Using brand as a platform for growth
Faced with increasing competition and commoditization within the consumer electronics space, Philips recognized the need to rethink its business strategy. Philips decided to focus its energies on becoming a "high-growth technology company." It realized this shift would only succeed, however, if the company was able to quickly move beyond its image as a producer of light bulbs and shavers and set out to enhance its credibility with consumers.
Prophet helped Philips understand how brand strategy could accelerate realization of its business strategy and offered recommendations to elevate the visibility of the Philips brand in a high-growth, high-technology context. Prophet outlined how brand equity would be transferred in a partnership branding structure, and how partnership branding could improve Philips' ability to enter new markets and new products. Prophet built strategic cost-benefit frameworks to identify appropriate brand partners and negotiate partnership terms to maximize financial and brand-building goals without denigrating the Philips brand.
As a result of this project, Philips announced a partnership with Nike to develop co-branded portable electronics devices, apparel, and equipment designed to create a category of innovative products at the intersection of sports and technology. This partnership has infused "stylish" and "youthful" associations into the Philips brand, while earning it credit and recognition as a technology pioneer.