Philips takes aim at emerging economies

Regional - Asia and its growth markets will take on increased importance in 2009 for Dutch electronics giant Philips, as it plans to up its investments including marketing in emerging markets by as much as 25%.

"We want to follow where the money is and where the growth is," Egbert A.J.van Acht, Philips' chief marketing officer and EVP Consumer Lifestyle, tells Marketing.

As part of the investment, the company will spend more on marketing (which includes in advertising, PR, events, and digital platforms) in Greater China, India and the ASEAN region, and "step up" investments in local talent as well. Next year, Philips will also invest more in its Simplicity Events which act as an opportunity for the brand to unveil and launch products.

"We do a lot of trade shows which are not unimportant but its better, from a branding point of view, for us to do our own events," van Acht said.

The last Philips Simplicity Event took place at the Red Square, in Moscow Russia, a month ago. Philips is also expected to further diversify its regional business, particularly in the Mother and Childcare sector, expanding beyond existing Philips Avent products.

"We are really going to expand the range to be just more than a baby bottle and some monitors," van Acht said.

Other areas the company will look to diversify in will be on water and air purification products, as well as kitchen appliances which promote healthy eating and living.

"We have a great portfolio of products and we are expanding that in the direction of health and well being," van Acht said.

BusinessWeek's annual ranking of the 100 Best Global Brands valued Philips at $8,325 million for 2008. Philips works with DDB globally.