How Philips accelerated portfolio optimization for its oral healthcare range

Philips, a global leader in health technology, constantly seeks to innovate based on consumer needs and market dynamics. When the company sought to optimize its next-generation electric toothbrush portfolio and channel strategy for the US market, it turned to SKIM as a consultative partner for rapid, data-driven decision-making.

“What we accomplished in 6 hours together would have previously taken months. SKIM expertly moderated the workshop, providing flexibility and knowing where to facilitate to reach our goals. The feedback from our teams was amazing.” – Tanya Laidlaw, Senior Consumer Insights Manager for Oral Healthcare, Philips

Philips faced a dual challenge:

1. Portfolio optimization: How to optimize their rechargeable toothbrush portfolio to deliver greater consumer value while growing market share
2. Channel strategy: How to develop a clear channel strategy that would determine effective SKUs and pricing per major online and offline retailer, factoring in specific channel dynamics and retailer guidelines

The solution: A strategic workshop to drive informed decision-making

SKIM understood that a successful solution would require more than just a market research study. To drive real change, Philips needed a collaborative space where key stakeholders could align, strategize, and make critical decisions efficiently. SKIM designed a one-day, in-person activation workshop as a catalyst for this transformation.

“I was hesitant at first, having experienced workshops where there is a lot of talk but not much action,” admitted Tanya. “But this was different – we got much more value than I expected.”

The workshop brought together a diverse group of experts from across Philips, including sales, design, product management, marketing, and R&D. This cross-functional team of both global and regional stakeholders ensured that all relevant perspectives and expertise were represented at the table. To inform their discussions, participants were immersed in a wealth of insights, including:

• Consumer insights: Nuanced consumer preferences and varying price sensitivity for different product attributes and portfolio compositions were revealed through a Filter Choice-Based Conjoint (Filter CBC) analysis. This detailed understanding of consumer values empowered Philips to precisely tailor their offerings to meet consumer needs.
• Historical sales data: Philips sales data provided valuable context on past performance, allowing the team to identify successful products, understand market trends, and uncover opportunities and white spaces.
• Retailer-specific guidelines: Understanding the unique dynamics of each retailer’s landscape ensured that Philips could develop strategies that aligned with specific channel needs and requirements.

An important element of the workshop was an interactive market simulator tool that utilized conjoint consumer preference data. This tool empowered stakeholders to experiment with different product portfolio configurations, pricing strategies, and claims. It also provided immediate feedback on how each decision would impact consumer choice and revenue, giving the team real-time insights to guide their decision-making. Meanwhile, past sales data and retailer-specific guidelines were used to provide valuable context and enhance the overall relevance of the portfolio and pricing simulations.

The impact: Big decisions made in just 6 hours

The dynamic environment of the workshop fostered open discussions, seamless collaboration, and rapid, evidence-based decision-making. By the end of the workshop, the team reached a consensus on how to optimize the portfolio, adapt strategies for each channel, and approach retailers with confidence.

The activation workshop dramatically accelerated decision-making, condensing a process that usually takes months into just six hours. In a single day, Philips was able to definitively decide:

• Which SKUs to prioritize and their associated claims
• Optimal price points
• Tailored strategies for each sales channel
• How to approach retailers with data-backed proposals

The success of this workshop demonstrates the power of a consultative approach that combines deep expertise with a collaborative, data-driven process. By working together with SKIM, Philips was able to accelerate their decision-making timeline and confidently move forward.

When asked about her experience, Tanya noted, “SKIM‘s researchers and managers came to know our product line as well as we did. They acted like an extension of our team, and I’m really looking forward to our next project together.”

The power of collaboration: 3 key takeaways

Philips’ successful implementation of a team-oriented activation workshop showcases the transformative power of collaboration. Here’s how it can benefit your organization:

1. Drive strategic action: Collaborative workshops can supercharge your strategic thinking. By bringing together diverse perspectives, you can quickly identify key insights and efficiently turn them into actionable plans, accelerating the journey from strategy to implementation.
2. Unite and align teams: Successful projects require the expertise of multiple teams. By actively involving all relevant stakeholders in the decision-making process through workshops and other collaborative approaches, you can streamline communication, create shared understanding, and build a consensus on the best path forward.
3. Make data-driven decisions: Leverage a wide range of data sources – from market simulations and sales guidelines to customer feedback and competitor analysis – to gain a comprehensive understanding of your business landscape. This well-rounded perspective will empower you to make more informed and effective decisions.

Are you looking to enhance your strategic decision-making and achieve greater market performance? Schedule a consultation with one of our experts.