Eastman kodak company: funtime film

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By: Abinash(041) Debasish(110) Rajani(019) Santanu(107) Waseem(096) 5/27/12

Case scenario
On 25th January 1994 George fisher recently appointed as CEO Kodak, met with analyst & investors to set Kodak new strategy of film products.

Reason being:

Being Kodak stock had lost 8% in value on ramous of price cut on film. Fall in share value from 76% to 70% in the past five years. 5/27/12

Market share

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Key Issues

Kodaks US market share & competitor. Retailers higher margin by selling higher brand. Distribution Channels. Consumers view film as a commodity.

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problems

Late innovation and inability to keep up with changing marketing trends. Kodak could not sale film on a private label basis. Kodak response was that they did not understand the American market. Confused positioning during winter Olympics 1994 Norway.
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Why funtime ?????

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Contd..

40 % of its customers are samplers. Not much difference in existing brands. No existing products in economic tier. Consumer disaggregation (Price sensitive consumers)

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Survival Strategy (Mass Marketing)

Kodak Ektar
being targeted to professionals and serious amateurs

Royal Gold
being targeted to a broader audience for very special occasions, e.g. the birth of a baby, the graduation, which is a marketing strategy to influence consumer behavior. 40% used in advertising

Kodak Gold Plus

flagship brand 60% of the dollar advertising support

Funtime Film
being targeted to the price-sensitive consumers, which affected consumer decision-making process. economy brand no advertising support available in limited quantities and in off-peak seasons 5/27/12

Kodaks Brand value chain

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Recommendation

Kodak keep up changing technology with market trends. It should develop a more effective CRM strategy. Conduct market segmentation analysis.

Reposition itself to target different tiers by going in for category pricing due to these three major factors
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