Confidential

Segment Objectives defined in 2008

1

Well-being/RelaxingPersonalization Virtual in the Shop

SIMPLICITYPermanent

Re-invention

Fun/Pampering

Flexibility in formAnd factor Authenticity Green

Niches….

Insights

Well Being &Store Experience

ConceptsExplored

Lighting More Complex Simplifying Lighting

Green Store

Sustainability &TCO

Bringing Brands to Life

Asian Entrepreneurship

Ambience & Expressing Enabling

Asean Colors

Growing purchasing power (status)X Poverty (SMART needs)

Key Explored Themes

Marketing Campaign 2009

Marketing Campaign 2010

Confidential

Segment Objectives defined in from 2009 onwards

2

Well-being/RelaxingPersonalization Virtual in the Shop

SIMPLICITYPermanent

Re-invention

Fun/Pampering

Flexibility in formAnd factor Authenticity Green

Niches….

Insights

Well Being &Store Experience

ConceptsExplored

Lighting More Complex Simplifying Lighting

Green Store

Sustainability &TCO

Bringing Brands to Life

Asian Entrepreneurship

SMART Range (Trade)

Retail Professionalization

in Asia

Asean Colors

Growing purchasing power (status)X Poverty (SMART needs)

Key Explored Themes

Marketing Campaign 2009

Marketing Campaign 2010

Marketing Campaign 2010

Ambience & Expressing Enabling

Confidential

Insight Platforms

3

Hyper/Supermarkets (incl Conv Stores)

Green StoreShopsBringing Brands to Life

ShopsSMART Range

Focus on AspirationalUpcoming Asian Shops

Focus on Mid & High End Shops

Focus Hyper and Super Markets

Confidential 4

Proposition - ‘SMART Range’ Building Platform

Philips is the long term reliable partner to support you to grow your business

Easy to work with

Proposition

Benefits

Reason to believe

-’One stop shop’ : wide portfolio at competitive price pointswide distribution, easy to access

-reliable portfolio (quality ‘true CCC’ / all certifications in place)

-service after sales / complaint handling-speed to fulfill projects

-training selling skills/ ‘hunting’, application & product knowledge

-Basic design support / tips- Philips online is the partner’s online

‘business card' (valid only for China)

-100 years brand-trust that you will find Philips in the

next years-trust that in case issues your

problem will be solved-assured that innovations will

continue

Lighting is a key factor for shops’ attractiveness. Renovation is very fast in Asia, so the system has to be affordable, attractive and preferably from a partner that can manage the whole deal, including the advice on how to apply it easily

Context

Interior designers/contractor company and shop ownersTA

Expertise Brand

Product SMART HID, SMART Spot & Track, SMART Office, SMART CFLni, SMART CFLi, T5 batten, SMART Modular, SMART Halogen Downlight, Harmony lamps

Battens, HID luminaries, Spot and track luminaries, Recessed luminaries, downlights, scrabbleFull range of lamps, including LED’s

Key Product Categories

It is all about helping them to generate more business

Confidential 5

Mood Board“We must differentiate.We need options”

“Most international brands are too expensive for the regional needs”

“ We have no real partner in the region”

“We miss regional focus. All concepts here are imported”

“I want to Show Off with Green”

“Installation costs are a hurtle”

“We miss a ‘one stop shop’”

“How can we link Light to Emotion?”

“We need a reliable brand but it has to be affordable”

“We want more form and factor flexibility”

“Green is high in my agenda”

“It is hard to replace halogen….its beautiful ‘dramatization’ and sparkling effects”

“LED’s change so fast. I can’t keep up with it”

“How can we enhance Indian colors?”

“Power shortage is an issue to us”

“Light can be complex”

“If we could we would put a solar panel in the entrance to show that we are working on green”

“Diffuse Lighting? Interesting…”“Play with Light? Only whenit is very simple to use”

“TCO is important but Initial investment also is”

Confidential 6

Mood Board“50% of the work is to get people in the store.Light can be engaging”

“Value for money is more important in APR.Our purchase power is still lower”

“ We change collections every 2 wks”

“If light is not tangible, it is difficult to convince the retailer to invest. It has to support the brand”

“Green is still a lot about showing off, but it will change soon”

“Installation and maintenance are key concerns”

“Creative freedom is all what designers look for”

“Intelligent lighting would be interesting, so we do not need so many people walking around”

“Light is still too complex. Not only the light source itself but the whole process around it (installation, maintenance, ….). Integration is a must”

“In India, energy shortage and voltage fluctuation are a major issue usually forgotten by manufacturers”

“CAPEX x OPEX : that is all about it”

“Design has to come with a story. It is all about the story telling”

“Decisions are made in the fitting room, but it is a space usually forgotten”

“Wireless lighting???

“Light has to be easy”

“Daylight integration is not yet explored in Asia”

“Light pollution will become an issue”

Confidential

Mood Board

“The need to escape”

“Home as entertainment hub”

“Value isn't cheap” “Good health and wellness are centre stage”

“The quest for experience, happiness and wellbeing will continue to gain importance”

“Green issues will also continue to take centre-stage – and not just in the rich world”

“The search for value for money and rational consumption will continue”

“Consumers in Asia are going to be the driving force behind global consumption”

"Beauty, after all, is evolutionary”

“Asian consumers have always suffered for beauty. Consider the ancient practice of foot binding in China, or the stacked, brass coils used to distend the necks of Karen women”

“The future is female. Women control over 83% of all consumer purchases”

“COMMUNITY : from B2C to C2C : group purchases, internet, preference for local traders, preference for environment responsible companies (reduce, re-use, recycle)”

“VALUE : clear communication (what I am getting for my money?), bidding x buying, freetail (retailers earning money via….)”

“NEW FORMATS : labs (try before you buy), pop-ups, forth come choice overload , customization”

“TECHNOLOGY: self service tools, mobile purchases (anywhere, everywhere), no boundaries”