What is Sales and Marketing Strategy of Signify Company?

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What is Signify's Sales and Marketing Strategy?

Signify, a global leader in lighting, has significantly evolved its sales and marketing approach, reflecting a strategic pivot towards responsible innovation and sustainability. This evolution is clearly demonstrated by its 2024 partnership with the Mercedes-AMG PETRONAS F1 Team, a move that aligns with its forward-thinking vision in the dynamic lighting industry.

The company, which originated as Philips Lighting NV in 2016, has transitioned from its historical roots in incandescent bulbs to a modern focus on advanced LED lighting, smart connected systems, and data-driven services. This strategic shift is a departure from the traditional go-to-market strategies of conventional lighting manufacturers.

In 2024, Signify achieved total sales of €6.1 billion, with an impressive 93% of this revenue coming from LED-based products, a notable increase from 85% in 2023. This highlights a strong commitment to energy-efficient and digital lighting solutions. Despite a comparable sales growth (CSG) decline of 6.6% in 2024 and 2.8% in Q1 2025, the company has maintained a robust adjusted EBITA margin of 9.9% for the full year 2024 and 8.0% in Q1 2025. These results are attributed to effective cost-saving measures and growth in its connected and specialty lighting segments. The installed base of connected light points has grown to 153 million in Q1 2025, representing over one-third of its total business, underscoring a significant expansion in its IoT integration. This comprehensive strategy aims to deliver products and services to customers through sophisticated marketing tactics, distinct brand positioning, and impactful campaigns, all while navigating a challenging macroeconomic environment with a focus on digital transformation, sustainability, and strategic partnerships to foster future growth. Understanding Signify's go-to-market strategy involves examining its approach to channel sales and distribution, its customer acquisition strategy, and its digital marketing tactics for lighting solutions. The company's strategy for expanding into new markets and its customer retention strategies are also key components of its overall business strategy. Signify's sales strategy is deeply intertwined with its marketing initiatives, aiming to enhance brand awareness and leverage data in its sales and marketing efforts. The company's approach to promoting smart lighting products and its marketing campaigns for the professional sector are crucial for its revenue growth and market share. Signify's competitive advantage is built upon its innovative product portfolio, including solutions that can be analyzed using the Signify BCG Matrix, and its commitment to sustainability.

Signify employs a multifaceted approach to its sales strategy, utilizing a diverse range of primary sales channels to effectively reach its global customer base. These channels encompass both online and offline avenues, catering to distinct market segments and product offerings.

For its professional clientele, Signify heavily relies on an established network comprising distributors, wholesalers, contractors, installers, and certified system integrators. This robust channel ensures comprehensive coverage and specialized support for business-to-business transactions. In the consumer segment, the company has strategically expanded its direct-to-consumer (DTC) capabilities through its company website. Complementing this, Signify also leverages major e-commerce platforms and a strong presence in physical retail locations, particularly for its well-known Philips Hue smart lighting products.

Professional Customer Channels

Signify's professional segment is served through a well-developed network. This includes distributors, wholesalers, contractors, and installers who are crucial for reaching commercial and industrial clients. Certified system integrators also play a key role in delivering complex lighting solutions.

Consumer Sales Avenues

For consumers, Signify utilizes a dual approach. Direct sales occur via the company's website, offering a streamlined purchasing experience. Additionally, the company maintains a strong presence on popular e-commerce platforms and in physical retail stores, ensuring broad accessibility for its products.

Digitalization and Connected Lighting Focus

The evolution of Signify's sales channels reflects a strategic pivot towards digitalization and the growing smart lighting market. While traditional channels for conventional products are seeing a decline, the company is intensifying its focus on digital adoption and creating an integrated omnichannel experience for its customers.

Strategic Partnerships for Growth

Key partnerships are instrumental in Signify's channel strategy. These collaborations expand market reach and offer integrated solutions, particularly in the rapidly growing smart lighting sector. Such alliances are vital for enhancing market share and driving revenue growth.

The company's consumer business, especially its connected home offerings, has demonstrated strong demand, with online sales significantly contributing to both top-line and bottom-line gains. In Q1 2025, conventional lighting sales experienced a notable decrease of 23.9%, underscoring the strategic importance of this shift. Signify's business strategy is increasingly centered on digital integration and expanding its smart lighting portfolio. For instance, a proposed joint venture with Dixon Technologies in India, announced in March 2025, aims to bolster local manufacturing and cost-effectiveness for a wide array of LED products in the competitive Indian market. Furthermore, the Pineapple CoRE collaboration with Schneider Electric, launched in June 2025, offers a streamlined solution for decarbonization in commercial and industrial properties by integrating Signify's connected lighting systems into a broader ecosystem. These strategic alliances are crucial for Signify's competitive advantage and its strategy for expanding into new markets.

Channel Evolution and Market Impact

Signify's sales and marketing alignment is evident in its response to market shifts. The company is actively adapting its go-to-market strategy to capitalize on the growth of smart lighting and digital channels.

• Conventional lighting sales declined by 23.9% in Q1 2025.
• Online sales are a key driver for the connected home segment.
• Partnerships enhance market reach and solution integration.
• Focus on digitalization supports Signify's revenue growth.
• The company's approach to channel sales and distribution is adapting to market trends.

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The company's marketing tactics are a blend of digital and traditional methods, designed to build brand awareness, generate leads, and ultimately drive sales across its varied product lines. A significant focus is placed on digital engagement, utilizing content marketing to share valuable insights and solutions within the lighting industry. Search Engine Optimization (SEO) plays a vital role in ensuring visibility, especially for its connected lighting products. For instance, new AI-powered features for a prominent smart lighting system were introduced in January 2025, including a generative assistant and smoke-alarm detection, which are key talking points in their digital campaigns.

Paid advertising across various digital platforms, targeted email marketing, and collaborations with influencers are also integral to reaching both professional and consumer audiences. Social media is actively used to highlight product innovations and foster community engagement around smart home technology and sustainable living practices. This multi-faceted digital approach is crucial for maintaining its competitive advantage.

Content Marketing

Leveraging industry expertise to provide valuable insights and solutions through informative content.

SEO Strategy

Prioritizing search engine visibility, particularly for connected lighting solutions and new feature launches.

Paid Digital Advertising

Utilizing digital platforms to reach targeted professional and consumer segments effectively.

Email Marketing

Engaging customers and prospects through targeted email campaigns to nurture leads and drive sales.

Influencer Partnerships

Collaborating with influencers to expand reach and build credibility with specific audiences.

Social Media Engagement

Showcasing product innovations and interacting with communities interested in smart homes and sustainability.

Beyond digital channels, traditional marketing remains important, particularly through participation in events and conferences. An example of this is the 'Race to Growth' initiative, launched at its annual distributors conference in Manila in March 2025. This event brought together over 100 professional distributors to align on strategic plans for 2025, with a strong emphasis on innovation and customer engagement. This underscores a commitment to empowering professional partners through comprehensive training and enhanced after-sales support, contributing to its overall business strategy. The company's data-driven approach is evident in its tracking of connected light points, which reached 153 million in Q1 2025, offering valuable insights into user behavior and market penetration. This data informs their marketing campaigns and helps optimize their sales funnel. The marketing mix has increasingly prioritized energy-efficient and innovative solutions, aligning with its 'Brighter Lives, Better World 2025' sustainability program, a core message in its brand positioning. Sustained investment in research and development directly fuels the next-generation lighting solutions that are then prominently featured in marketing communications, a key aspect of its Growth Strategy of Signify.

Traditional Marketing Initiatives

Events and conferences are key for engaging professional partners and outlining strategic plans, reinforcing the company's go-to-market strategy.

• 'Race to Growth' initiative launched in March 2025.
• Over 100 professional distributors attended the Manila conference.
• Focus on empowering partners through training and after-sales support.
• Emphasis on innovation and customer engagement in strategic planning.

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Signify positions itself as a global leader in lighting, distinguishing itself through a commitment to innovation, sustainability, and a broad spectrum of lighting products, systems, and services. These offerings cater to professionals, consumers, and the burgeoning Internet of Things (IoT) market. The brand's central message, 'unlocking the extraordinary potential of light for brighter lives and a better world,' is consistently reflected in its visual identity and communication style, which emphasize cutting-edge technology, energy efficiency, and a strong dedication to environmental and social responsibility. The customer experience is designed to deliver superior light quality, enhanced user interactions, and new business value through connected, data-driven solutions.

The company's appeal to its diverse audience is built upon a multi-faceted unique selling proposition. Innovation is a cornerstone, evident in the continuous expansion of product lines like Philips Hue and the development of new connected lighting systems. Sustainability is deeply embedded in Signify's brand identity, with consistent recognition for its leadership in this area. For instance, the company has been included in the Dow Jones Sustainability World Index for eight consecutive years and has achieved the EcoVadis Platinum rating for five consecutive years, placing it in the top one percent of assessed companies. Further underscoring this commitment, in Q1 2025, Signify was ranked 15th globally and 3rd within its sector in the Corporate Knights Global 100 Most Sustainable Corporations index. The brand actively communicates its progress on sustainability targets, with circular revenues reaching 36% in Q1 2025, surpassing the 2025 goal of 32%. This brand consistency is maintained across all communication channels, from product packaging to investor relations, and the company proactively addresses evolving consumer preferences, particularly the increasing demand for energy-efficient and smart home solutions.

Innovation as a Differentiator

Signify leverages innovation as a primary driver of its brand positioning. This is clearly demonstrated through the ongoing development and expansion of its smart lighting systems, such as the Philips Hue product line. The company consistently invests in R&D to introduce new technologies that enhance user experience and create new market opportunities.

Sustainability as a Core Value

Sustainability is a fundamental aspect of Signify's brand identity and business strategy. The company's consistent recognition in sustainability indices, such as the Dow Jones Sustainability World Index and EcoVadis ratings, reinforces its commitment to environmental and social responsibility. This focus resonates with increasingly eco-conscious consumers and stakeholders.

Comprehensive Portfolio and IoT Integration

Signify offers a comprehensive portfolio of lighting products, systems, and services that extend across various sectors, including professional, consumer, and the Internet of Things (IoT). This broad reach allows the company to address diverse customer needs and capitalize on the growing trend of connected living and smart infrastructure.

Customer Experience and Value Proposition

The brand promises a superior customer experience characterized by high-quality light, enhanced usability, and the creation of new business value through connected and data-enabled solutions. This approach aims to move beyond traditional lighting products to offer integrated, intelligent systems that improve lives and operations.

Brand Messaging

Signify's core messaging, 'unlocking the extraordinary potential of light for brighter lives and a better world,' is consistently communicated. This narrative highlights the transformative power of light beyond mere illumination.

Visual Identity and Tone

The brand's visual identity and tone of voice are carefully crafted to convey advanced technology, energy efficiency, and a deep commitment to environmental and social responsibility, reinforcing its leadership position.

Sustainability Achievements

Signify's commitment to sustainability is validated by its inclusion in prestigious indices and high ratings from EcoVadis, demonstrating tangible progress towards its environmental goals, such as achieving 36% circular revenues in Q1 2025.

Market Responsiveness

The company actively monitors and responds to market shifts, particularly the growing consumer demand for energy-efficient and smart home solutions, ensuring its product development and marketing efforts remain relevant and competitive.

Brand Consistency

Maintaining brand consistency across all touchpoints, from product packaging to corporate communications, is crucial for Signify's brand positioning and reinforces its core values and messaging to all stakeholders.

Target Market Alignment

Signify's strategy effectively aligns with the Target Market of Signify by offering solutions that meet the evolving needs for smart, sustainable, and high-performance lighting across various consumer and professional segments.

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Signify's sales strategy and marketing strategy are deeply intertwined with its commitment to sustainability and innovation, forming the core of its business strategy. The company consistently launches and promotes initiatives that highlight these values, aiming to build brand loyalty and drive market share.

A cornerstone of their ongoing marketing is the 'Brighter Lives, Better World 2025' sustainability program. This initiative, launched in 2020, is more than just a message; it's a tangible commitment to enhancing their positive impact on both the environment and society. By 2025, Signify is on track to achieve a 40% reduction in emissions compared to their 2019 baseline, a target that surpasses the goals set by the Paris Agreement. Furthermore, they have already reached 35% circular revenues in 2024, exceeding their 2025 objective. These achievements are regularly communicated, reinforcing their leadership in sustainable lighting solutions.

Sustainability Program: Brighter Lives, Better World 2025

This program underpins Signify's brand messaging, emphasizing their commitment to environmental and social progress. It showcases significant achievements, such as emission reductions and circular revenue targets, positioning the company as a leader in sustainable practices within the lighting industry.

Formula 1 Partnership: Driving Innovation and Sustainability

The collaboration with the Mercedes-AMG PETRONAS F1 Team, initiated in summer 2024, focuses on enhancing customer experience for Signify Professionals. This partnership leverages shared values of quality and sustainability to deliver advanced solutions and services, boosting brand visibility and credibility on a global scale.

'Race to Growth' Initiative

Launched in March 2025, this annual distributors conference serves as a platform to unveil new product innovations, such as the expanded Philips SmartBright All-In range. The initiative outlines a roadmap that merges technological advancements with enhanced customer engagement strategies.

Brand Positioning and Messaging

Signify's brand positioning centers on responsible innovation and leadership in decarbonization. Through high-profile partnerships and sustainability programs, they aim to communicate their dedication to creating a better world through light, influencing their overall market share and revenue growth.

The partnership with the Mercedes-AMG PETRONAS F1 Team, extending into 2025, is a prime example of Signify's strategy to enhance its brand and engage with professional clients. This collaboration aims to foster new programs that elevate the customer experience for Signify Professionals by providing cutting-edge solutions and services. The core creative concept of this partnership emphasizes responsible innovation and leadership in decarbonization. Signify supports the F1 team's ambition to become one of the most sustainable sports teams globally by implementing energy-efficient, connected, and circular lighting solutions. This high-profile association is communicated through official press releases and investor calls, utilizing the extensive reach and global appeal of Formula 1 to amplify brand visibility and reinforce credibility. While specific metrics on sales lift directly attributable to this partnership are not publicly disclosed, its clear objective is brand enhancement and deeper engagement with the professional sector, contributing to their overall sales strategy.

Key Marketing Initiatives

Signify's marketing efforts are strategically focused on highlighting its sustainability achievements and innovative product offerings. These initiatives are designed to strengthen brand positioning and drive customer acquisition.

• 'Brighter Lives, Better World 2025' sustainability program.
• Partnership with the Mercedes-AMG PETRONAS F1 Team.
• 'Race to Growth' annual distributors conference.
• Showcasing new product innovations like the Philips SmartBright All-In range.
• Leveraging digital and event-based channels for communication.

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