What comes to your mind when you think about the brand Philips?
A Russian would probably mention batteries, hairdryers, toasters, TV sets, electric razors. Audio devices would most likely be the last on the list, if they would even be in it.
This is a story of how we breathed a new life into Philips' audio division in Russia and tried to lead it away from a highly competitive market segment and create a completely new one for itself. All of that - without any serious advertising budgets or celebrity images that are all too common for the category.
Market Overview and the Main Challenges
Philips is one of the foreign mass brands that appeared in Russia after the collapse of Soviet Union. Every Russian used to have a random Philips device - ranging from TV set to a toaster.