KODAK CASE

BY GROUP 8
 introduction
• Rapid transition to digital media
• Film suppliers and photo-service
providers such as Kodak and Fuji
films are affected
• 8m digital cameras were sold in
Europe in 2002
• 70% of European customer printed
their photographs at home in 2003
• Snapfish as leading online photo
service in north America
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 SALIENT FEATURE

• Film supplier and photo-service

provider
• Printing of digital image on Kodak
paper
• Online service by Kodak's owned
Ofoto
• Kodak strong brand image
• presence in various areas like home
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 OBJECTIVES
• Restoring Kodak as digital brands
with rapid transition to digital media

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 KEY ISSUES
• Transition from photo film to digital
media
• Changing marketing strategies of
Kodak and Fuji film
• Emergence of leading brands like
Snapfish as a leading online photo-
service
• Advent of supermarket’s own brand
photo services like Tesco
• Wearing off of printing at home, in
future will affect photo-service
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 KEY PROBLEM AREA
• Late innovation & inability to keep up
with changing market trends

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 SWOT ANALYSIS
STRENGTH WEAKNESS
•Good brand image •Late innovator
•Better retail network •Not keeping up with
•Proper quality changing market trends
maintenance •Poor marketing strategy
•Online photofinishing
services

THREAT OPPORTUNITY
•Emergence of unfamiliar •Increasing opportunity in
brands like Snapfish European and UK market
•Decreasing use of home •Advent of supermarkets
printers own brand photo services
•Camera phones
•Digital media
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 BCG MATRIX

At present Kodak is Cash Cow and will remain at this place by keeping
Up with changing technology

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 ANSOFF MODEL

odak is entering in existing market with modified product so it is product

evelopment , in future with increasing its presence in European countries and U
will do diversification

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 DREK MODEL
• Currently Kodak is at declining
position due to low on differentiation
and high on others
• Kodak if not innovated properly, will
be at Eroding place in future

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 POTTER’S MODEL

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 THE FIVE FORCES

• The threat of entry of new

competitors like Sony, Cannon and
Olympus
- The threat of substitute like digital
media
- The bargaining power of buyers
- The bargaining power of suppliers
like Pixology
- The degree of rivalry between
existing competitors like Fuji, Sony
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 CORE-COMPETENCY
• All round presence in the market as
Kodak paper, online services
(Ofoto)and mini labs and kiosks

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 COMPETETIVE ADVANTAGE
• A good brand image among retailers
provides them with a measure of
comfort

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 USP
• The printing of digital images on
Kodak papers shows the qualitative
aspect of Kodak with good value for
money

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 DIFFERENTIATION
• Quality photo films and paper along
with wide retail network

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 CURRENT SCENARIO
• Loss of film suppliers and photo
service providers due to transition to
digital media
• Emergence of new brand winners like
Samsung, Apple, Sony, Cannon etc
• Emergence of leading brands like
Snapfish as a leading online photo-
service
• Advent of supermarket’s own brand
photo services like Tesco
02/06/09 group 8 17
 PROPOSED SCENARIO
• Kodak may restore itself as digital
brands
• Reduction in printing at home will
boost the photo finishing business
like kiosks and mini lab
• Better presence in European market
in term of online services such Ofoto
with increasing awareness about
online photo-services
• Better presence in UK and European
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 SUGGESTION
• Kodak should keep up with the
changing technology and market
trend
• It should keep on innovating
according to changing customer
need
• Keep on revising its marketing
strategies

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Que:1- Write a brief statement providing your
assessment of Kodak’s marketing options from a
seeing first perspective.

Ans:
Kodak apply seeing first strategy (steward type company)
conserve by following :
•Polishing the silver : focus on new opportunities like digital
cameras, high speed photo lab.
•Selling of bad business units : closed five laboratories in
UK because of declining in demand of professional
photofinishing.
•Cutting cost: using new technology to reduce the cost.
Que:2- Make the hypothetical assumption that Kodak is unsure
what it should do next. What strikes you top of mind, as a
good idea for doing first? How might Kodak monitor whether
or not it worked?

Ans:
• Hypothetical assumption: Be a entrepreneurs type company(revolutionary
wealth creators who capture the future riches)
• Strategy: shifting from “resource allocation to resource attraction”
1. Ideas: innovation in digital products
2. Capital: investment in retail film processing business for digital
and analog.
3. Talent: Retailers should be able to create own label processing.

• Good idea for doing first: the process for “ doing first “
• 1. DO something: Diversified the business-
-develop the kiosk business
-focus on digital services
- online services
• 2. Make sense of it: change the marketing strategy
• 3. Repeat the successful parts and discard the rest: measure the results of
diversified business.
Que: 3- Look at the variety of data in the case using
your judgment, develop a simple marketing strategic
rule for Kodak that would affect the degree of its
involvement in the home printing market.

Ans:
• Simple strategic rule for Kodak that would affect the degree
of its involvement in the home printing market:
Data available – 70% in 2003
42% in 2007
10% in future
7. Boundary: should not invest much in home printing
business.
8. Priority: digital business, retail opportunity
9. Timing : should take care of proper time to make
diversified business.
10.Exit: exit from simple photofinishing business.
Que:4- From a postmodern perspective,
might there be a role for any elements of
‘TEASE’ or the 7s in Kodak's digital strategy?

Ans:
• Postmodern perspective (digital strategy):
• TEASE practices for KODAK
o Tricksterism: sales promotion of Kodak digital
products through brand image of Kodak.
o Entertainment: online digital services with
entertainment.
o Amplification: Advertising of benefits of Kodak
digital.
o Secrecy: hide the analog business
o Exclusivity: focus on digital business in
comparison to old trendy analog business.
 THANK
02/06/09
YOU
group 8 24