The basic intuition that I apply to this question is that
we are dealing here with various sinusoidal functions with period $2\pi$.
The function $\theta \mapsto \sin(\theta)$ is one such function,
and $\theta \mapsto \cos(\theta)$ is another such function.
In fact, every sinusoidal function of $\theta$ with period $2\pi$ is either
$\sin(\theta)$ or some stretched-and/or-translated version of $\sin(\theta)$,
such as $2 \sin(\theta)$ (whose graph has peaks and valleys twice as far from the $\theta$-axis as the graph of $\sin(\theta)$)
or $\sin\left(\theta - 1\right)$ (whose graph looks exactly like the graph of $\sin(\theta)$ except that it is shifted one unit to the right).
The cosine function also is a sinusoidal function with period $2\pi$:
$$\cos(\theta) = \sin\left(\theta + \frac\pi2\right).$$
The fact is that if you take any linear combination of sinusoidal functions
with period $2\pi$, you get a new function that also happens to be a
sinusoidal function. For example, consider the function
$$f(\theta) = \frac12 \sin(\theta) - \frac32 \cos(\theta).$$
As we can see from the graph of this function, the result of combining the
sine and cosine functions in this way is a graph that looks just like the
graph of the sine function, but with higher peaks and shifted slightly to the right.
If we want to talk about a linear combination of sine and cosine in
the most general way, we can write
$$g(\theta) = A\cos(\theta)+B\sin(\theta)$$
which says that $g(\theta)$ is a function formed by taking some linear
combination of sine and cosine, literally any linear combination that you like.
(Just pick any real-numbered values to plug in for $A$ and $B$!)
The fact that
$$A\cos(\theta)+B\sin(\theta) = \sqrt{A^2+B^2}(\sin(\theta+\phi))$$
is a fact that is proved via the manipulations you have shown.
That is, these manipulations show that the function $g(x)$ is basically
a sine function, except that it is stretched vertically by a factor
of $\sqrt{A^2+B^2}$ and it has been shifted to the left by $\phi$ units
(or to the right by $-\phi$ units; those are two ways of describing
the same movement).
In other words, we prove that
$\theta \mapsto A\cos(\theta)+B\sin(\theta)$ is a sinusoidal function
by finding out how much we have to stretch and shift the sine function
in order to get something equal to $A\cos(\theta)+B\sin(\theta)$.
And $\phi$ is just a symbol that we use to mean
"how far we have to shift the function".
\sqrt{bla+bla}
to produce $\sqrt{bla+bla}$. – hmakholm left over Monica Nov 12 '15 at 10:54