Shifting perception and making an impact through Social Media and Influencer Engagement

Shifting Perception through Social Media and Influencer Engagement ���The Philips ‘+’ Campaign ���

Arent Jan Hesselink (AJ) ���Head of Integrated Marketing and Communications Philips Asia Pacific sg.linkedin.com/in/ ajhesselink /

Jon Chin Senior Vice President, Head of Digital, SEA Fleishman-Hillard Singapore sg.linkedin.com/in/jonwchin @jonwchin

Laura Ashton���Vice President, Head of Marketing Philips Lighting, Growth Markets sg.linkedin.com/in/lauraashton/ @lauraashton

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Philips: A strong diversified industrial group leading in health and well-being

Philips

Businesses1, 2 Geographies1

Healthcare Consumer Lifestyle

Lighting North America

Other Mature Geographies

31% 9% 35%

Growth Geographies3

44%

€23.5 Billion Sales in 2012. Portfolio consists of ~70% B2B businesses

~116,000 People employed worldwide in over 100 countries

19% 37%

Since 1891 Headquarters in Amsterdam, the Netherlands

8% of sales invested in R&D in 2012 59,000 patent rights, 35,000 trademark rights, 81,000 design rights

Western Europe

25%

$9.1Billion Brand value in 2012

1 Last twelve months March 2013 2 Excluding Central sector (IG&S) 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report section 12.10 “Significant Accounting Policies”)

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At Philips we strive to make the world healthier and more sustainable through innovation

We will be the best place to work for people who share our passion

Together we will deliver ���superior value for our ���customers and shareholders

Improving people’s lives through meaningful innovation

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What does meaningful innovation mean?

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Situation analysis and program objectives

Goal Result

Fragmented brand perceptions across audiences, stakeholders, counties

Previously

Brand activation largely product focused

Limited brand differentiation, limited impact on business value

Objectives

Improve brand differentiation and brand preference across business

Lead creation and partnership opportunities

Build a stronger, better performing brand

No unified platform at company level to drive our brand

Link brand to business strategy

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+ Project by Philips

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Business Objective of the ‘+’ Project

Build a stronger, better performing Philips brand in ASEAN & Pacific to support accelerated business growth, whilst strengthening existing, creating new business relationships Communication Objective of the ‘+’ Project

Strengthen Philips brand as an innovation leader in Health & Well-Being

Philips’ Brief to FleishmanHillard:���

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•  Strategized and planned a cross-sector umbrella program to position Philips as leader and innovator in health and well-being in Asia Pacific in 3 sectors that Philips occupies via Social Media & Traditional PR

What FleishmanHillard did CONSUMER LIFESTYLE

LIGHTING HEALTHCARE

Cross sectors halo effect on individual sectors.

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•  Crowd source ideas to define grass-root projects around the three themes to deliver meaningful innovation to improve the health and well-being of individuals, communities in <country> via Philips products and solutions. 3 projects per country, one per theme.

•  Top locally garnered ideas will then be brought to life, through Philips-led teams with a project budget of USD50,000 each.

Engagement Platform

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Approach

Influencer Mapping &

Engagement

Offline Social Media Event

(Media & Influencers)

Creation of Compelling

Content

Media Relations

1.  Raising breast cancer awareness 2.  Sustainable bus shelters 3.  Bringing chefs back to schools

1.  Hospital guides for new moms 2.  Beautification of public walkways

1.  Smart lighting for public parks 2.  Free health screenings for elderly 3.  Healthy living app

‘+’ Projects Realisation ���

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Video – “Winner”

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FleishmanHillard’s Learnings (From an Agency Perspective)

Campaign has more traction

when it is tied to realization

Key Online Influencers were the main drivers

of success

Keep the idea simple

Social Media

“Movement”

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Philips Learnings

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Define your target audience, and its approach: •  Narrow vs. wide reach •  People we want to engage around the brand •  People we want to see the brand •  People that can act as catalyst

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Engage key target audiences around the brand: •  Listen to create meaning •  Crowd source to co-create solutions •  Partner to deliver real-world outcomes

Real World Outcomes

Stakeholder Engagement

Crowdsourcing

Partner

Market Insights

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360° degree activation, and conversion: •  Targeted versus mass activation •  Integration with marketing •  Convert across touch points •  Incentivize

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Integrated approach to social: •  Participate and influence

•  Different approaches to different influencers

•  Owned community as catalyst

•  Integrate social media with offline activation

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Measure everything: •  Brand and Sales to measure brand health and lead generation •  Campaign and Channel to measure campaign ROI and optimize real-time

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Integrated brand experience: •  Integration across all touch points •  Product, capability, brand

Product Capability Brand

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Linking Brand to Business���

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and marketing Lighting at Philips

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Meaningful Measurement & Accountability

Friends Likes

Visitors Participation levels

Column inches

….(less) hard stuff

What businesses need to know

Top line growth

Costs

Profitability

NPS

Share

….hard stuff

What enthusiastic agencies sometimes offer

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Brand-Building

Sales-Driving

Consumer Persuasion Journey

Pre-purchase environment Purchase environment

Corporate ads, Brand Ads

Public relations, branded content, digital

Digital/DM, e-catalogue, packaging, Promotional ads & OOS activation

In-Store Activation, merchandising, promo staff, offers

%

%

More emotional

More rational

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What made different for the business

Project execution in partnership

with customers influencers and public à lead

generation, NPS

Amplification through search,

publishers, influencers, owned

assets

Co-creation Crowd-sourcing

Content-led (not product-

led PLATFORM

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Awareness

Familiarity

Purchase Intent

Preference

NPS Advocacy

Loyalty Leads

…Purchase & Share

Managing the non-linear funnel & aligning KPIs first!

before with

þþ þ þ x x

þ þ

þ þ

þþ þ

þ  þ

þ

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Results

Brand association

of Health & Well-Being several folds

Double digit growth

in the marketing funnel – brand preference &

advocacy.

75 million in first 3 first countries

were reached

Established Partnership and

Business Opportunities

>  Business  Impact  

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Why does work for Lighting?

+  Core of the business +  Meaningful innovation at the heart of health & wellbeing +  Collaboration with partners, stakeholders, customers:

B2B, B2G, B2C +  Multiple touchpoints = unassailable system +  Commitment to invest +  Don’t spread the budget too thinly over many markets +  Accountability hard-wired

Indonesia Thailand

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