Philips high end TVs: seizing growth opportunities

Discover where your opportunities lie in the orientation and buying phase

Philips' challenge: To discover where Philips misses opportunities in the orientation and purchasing process of high-end televisions. When choosing and buying a TV, especially in the more expensive segment, consumers often don't take any chances.

By following consumers in a research community, we are able to track every step on the path from orientation to purchase. In doing so, we help Philips improve their omnichannel strategy.

Upfront, Philips has many assumptions about where improvement is needed, to increase sales, such as:

• How consistent is people's perception of the Philips brand?
• How important is it for a high-end TV brand to be innovative?
• What role do products from other categories have on the image of the Philips brand for more expensive TVs?
• How do people perceive the quality of Philips TVs?
• What importance do consumers place on the specific features of more expensive Philips TVs, such as ambilight?

Time to also check if these hypotheses are correct. And especially also to check how it plays out in different countries.

‍

Customer Journey: building as rich data as possible

Because Philips is a global company, we are conducting this research in multiple countries. The communities were set up simultaneously in Russia and Germany. A multi-country research where you want to ask questions daily to about 200 consumers in different time zones requires clear direction and a tight rhythm.

Blauw directed native moderators in the various countries from Rotterdam. Moderators and researchers who know the language and culture and understand the nuances. Very important, because these moderators understand all the subtleties of the community. A research program was developed in consultation with these moderators. Then, in a tight rhythm, daily reporting and consultation with the researchers in Rotterdam took place, so that we were informed every day of the conversations in the various communities. The researchers in Rotterdam switched with Philps.

The community consisted of people who are really about to buy a new, rather expensive television. They knew that this study was about televisions, but that it was specifically focused on Philips they did not know. They were allowed to make their own list of brands they had in mind.

The structured customer journey is divided into four steps over four weeks. We ask community members to take a new step in their path to purchase each week:

1. Visit websites of different brands
2. View online consumer reviews
3. Discuss your top 5 televisions and start the conversation in your community about these brands. How do your friends/family view these brands, TVs and their features?
4. Go to the store, check how the televisions are presented there and let the salesperson know what information the salesperson gives you.

Surprising insights into how consumers choose and buy

The great thing about community research: You get a wealth of information. The list of hypotheses Philips drew up in advance could be checked off one by one.

A community also provides the opportunity for consumers to complete additional tasks. One assumption: Philips' product environment is different from that of high-tech competitors. Because Philips focuses not only on selling television but also household appliances, the brand is less "cool" than its high-tech competitors.

That's why we send community members on the road. With the assignment to take pictures of the places where they encounter products of the different brands. As it turns out, Philips branding is different for each product family. The logo is the same, but the look and feel differs greatly.

And not only are there many distinctions per product family, but the differences between countries turned out to be enormous. In Russia, in-store promotional material lingers much longer, sometimes resulting in the use of old expressions. In Germany, on the other hand, the German "gründlichkeit" comes out strongly. There, all expressions are punctually refreshed according to the marketing plans and constantly sharpened.

Seeing = buying

One of the most important features of the high end televisions the Philips Ambilight. A unique technology from Philips with which light from the television shines on the wall, creating a certain atmosphere while watching TV (as if you were there yourself) and enlarging the size of the televisions, so to speak.

This lighting technology was invented by Philips and they are the only ones allowed to sell this type of televisions. Such a feature also comes with a price tag, so how do you make sure that the customer sees its value? Even in a picture it doesn't come across as beautiful as when you see it live. The Ambilight sells best when you stand in the store and see for yourself what a spectacular effect it gives.

That's why Philips has a whole plan of action on how best to do this justice in the store. By leaving enough space around the TV free and turning on a movie to let the consumer experience why this is such a cool feature.

But where in Germany they neatly adhere to this plan, in Russia the TVs hang an inch apart.... Gone is beautiful lighting effect.