Phillips is a very well recognized company; their slogan can be recognised as a high quality product, which means that they will already have loyal customers. Accordingly if Phillips did release a console it would be recognised widely so loyal customers would purchase the item, which would increase sales. Branding will help make more sales because of their image and as people will recognize the company they are more likely to purchase there product instead of competitor's product's. Branding could also lead on to adding value, as the company is well-recognised products could be sold at a higher price, consequently customers will be more willing to pay a high price for a Phillips console.
Philips has a variety of products or services from irons to Walkman's. They are an electrical hardware company, which will also help customers to recognise their product if it were launched. Phillips had a brand share of products of 15% in 1995 and later increasing to17% in the electrical market in 1999. Which indicates that Phillips is quite successful in other products that they make therefore they have quite a successful brand image due to increase in values over the years. (Euromonitor 2001) In addition the well-known PHILLIPS image could be used in order to promote the product successfully and to appeal to a wider audience.
Brand image is essential for the launching of a product and in order to prosper it is required by Philips to obtain the uppermost brand recognition. Brand image will help to increase the success of the new product greatly and by doing so also enable Philips to expand on brand loyalty. .
Philips is already known worldwide for its technology and has the global recognition in order to be successful.
Competition.
Competition is extremely useful when considering launching a new product; it enables firms to see what potential competitors will restrict sales, therefore making sales and distribution harder to achieve.