"Philips has below-average brand awareness in the US, especially compared to Sony or Panasonic, its chief rivals," said John Karolefski, the former editor in chief of Brand Marketing magazine. "Philips's advertising has been weak and, at best, inconsistent."
Guy Demuynck, CEO of the company's consumer electronics business, has said Philips doesn't plan to leave the US, though he conceded it's "an area of concern." In an interview earlier this month in Bangkok, he predicted it would turn a quarterly profit at some point this year, and be profitable for the full year in 2004.
For Kleisterlee, who's been at Philips for 25 years, turning around the US unit -- or shedding it -- would show investors he's serious about driving profit growth. It might also convince some doubters that he's not too much of an insider to shake things up, investors said.
Fixing that business "is a test whether Kleisterlee is able to actually get things done," said Rob Koenders, who helps manage shares, including Philips, at Eureffect in Amsterdam.
RSS