Philips to junk ubiquitous tag line for a new pitch

Let's make things better, the well-worn tag line associated with Dutch multinational Royal Philips Electronics, is being given a burial.

And a new catchline that conveys the company's new positioning strategy globally is likely to be in place next year.

"We find that the current positioning of Philips is weak as it does not communicate a clear-cut benefit. Consumers should know why Philips is relevant to their lives. We are in the process of working out a new positioning strategy and if necessary we will even change the tag line to reflect the new positioning. A final decision on the entire issue will be taken soon," Andrea Ragnetti, chief marketing officer of Royal Philips Electronics said. He was, however, tight-lipped on the details of the new positioning strategy that is being worked out.

The 'Let's make things better' tag line has been in place for the last six to seven years. Earlier, the line was, 'When it is Philips, you can be sure'. The attempt to find a new positioning for the Dutch company comes in the face of stagnant sales.

"We have been a $ 30 billion company for about a decade and restructuring our business for the last 15 years. It is time to grow now," Ragnetti said.

Philips is perceived as a strong brand. In India it has been around for over 70 years and consumers see it as a home grown brand and not as an MNC.

This is the case in many European countries like Germany and France as well. In the United States however, the brand does not have a high recall value and its focus will be to create brand awareness in this region.

Around four years back, Philips identified the Asia-Pacific region as a key market with a thrust on India and China.

In India apart from the flagship consumer electronics business it has a strong presence in lighting as well.

The dominant view in the Indian advertising industry is that being perceived as a domestic brand actually works to the company's disadvantage as it robs it off the perceived benefits associated with an MNC brand.