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Kodak Marketing Presentation

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  • Changed: core competence steal share : from digital
  • http://www.widerange.org/resolution.html

Transcript

  • 1. Marketing 300Group 3Amanda Lohman, Abby Williams, Eric Zhang, Charlotte Rath and CyrilleBourdeaux
  • 2. Agenda About Kodak Current Big Picture Implications Revised Big Picture Conclusions
  • 3. About KodakGeorge Eastman revolutionized photography created Kodak in 1880 Manufacturer of film “You push the button, we do the rest”In 1935, Kodak produced the first mass-market color film in 16mm and 8mm.1970s- Kodak owned the film market with a 90% market shareCreated the first Digital camera in the 1970s Did not want to threaten their film business, did not go through with the marketing of the Digital camera Because of this, other digital camera companies, such as Nikon, Sony and Fujifilm put pressure on Kodak, and their sales began to plummet.On January 18th, 2012, Kodak filed for Chapter 11 bankruptcy protection.
  • 4. Kodak’s Decline
  • 5. Film vs. Digital  Spatial Resolution  Digital: 5-20 megapixels  Film: smallest format: 20 megapixels, largest: 200-800  Film  Better Capturing of Shadow and Highlighting Details  Creates a traditional photographic look  Higher quality Archival Storage  Digital  More Convenient  Cheaper (dont have to pay for film)  Easier to Use
  • 6. Kodak’s Current Big Picture Product MV: Need Experience Segment to share moments DV: None Price Business Marketing Source of Value Objective Objective Volume Anyone Target who wants to use film Top of mind FE: Kodak Promotion awareness CC: Digital Image Cameras Stimulate “If I want Behavior Retention Proposition to use film, Goal: Increase Demand Revenues by Kodak 50% by 2013 Place provides it”
  • 7. Current 5 Box Positioning Statement Digital is more If I want to use film, Kodak film is high convenient to use Kodak provides it quality If I want to use film, I I use Digital Cameras will use Kodak
  • 8. Current Target  Kim Thompson  31 year old, Mom of 3 young kids  Uses her Kodak digital camera daily to take pictures of her kids  Often shares these pictures with her friends and family on Facebook  Uses her Kodak EC200 35mm film camera on holidays to capture special moments (2-3X/year)  Wishes professional-like shots were more convenient
  • 9. Current b2b2b Analysis 3.5 million photographers X 68% prefer film 2.38 million potential film users X Probability of Conversion: 30% Current # of users: 714,000 X Price per unit: $93 = Revenues: $66,000,000
  • 10. Reasons for Revisions  Kodak is the film market leader, and F ilm C a m e r a M a r k e t S h a r e D is tr ib u tio n even more so that global competition has decreased 36 45 K odak F u jiF ilm O t h e r C o m p a n ie s 19  Dominating the film market, S a le s o f D ig it a l v s F ilm C a m e r a s in 2011 we turn to steal share from the 9000 8000 8 0 5 2 .5 S a le s (in m illio n s ) 7000 overwhelming digital market 6000 5000 4000 3000 2000 1000 2 2 8 .8 0 F ilm C a m e ra s D ig it a l C a m e ra s
  • 11. Revised Big Picture Product Experience MV: High Quality images Segment DV: “Cater to the artist in you” Price Business Marketing Source of Value Objective Objective Volume Photography/Fi Target lm Professionals Top of Mind FE: Kodak and amateurs Promotion Awareness CC: High Information Quality Film Steal Share Behavior Retention Goal: Increase (from Digital) “I need Revenues by Proposition something to 50% by 2013 cater to my artistic ability” Place
  • 12. Revised 5-box Positioning Statement Kodak Film is high Film has certain Digital is more quality and will set benefits that cater to convenient me apart from digital my artistic needs photographers When I shoot I use Digital Cameras professionally, I will more than Film use Kodak Film
  • 13. Revised Target  Jean-Luc Connor  40 year old professional filmmaker who graduated from the University of Southern California  He is an experienced amateur photographer  Jean is married and has 2 children  He has made most of his career using film.  He uses digital for convenient purposes such as day to day pictures but prefers using traditional film for his professional and artistic activities.
  • 14. Marketing Film  film’s superiority in capturing more information on medium and large format films  creating a traditional photographic look  capturing shadow and highlighting details  the wide exposure latitude of film  archival storage
  • 15. Digital versus Film
  • 16. Digital versus Film
  • 17. Promotion and Advertising Sponsoring events will spread awareness and knowledge expressing the benefits of film versus digital Cannes Film Festival Berlinale Toronto Sundance Venice Ann Arbor Film Festival Affiliation with specialty film stores placed in strategic areas near large film markets (Bollywood, Hollywood, etc.)
  • 18. Revised b2b2b Analysis 3.5 million Photographers X 80% prefer film 2.8 million potential film users X Probability of Conversion 40% = # of users: Price per Revenues: 1.1 million X unit: $93 $102,300,000
  • 19. Conclusions  Kodak is currently in Chapter 11 restructuring bankruptcy neglecting the film market  Film versus Digital  Change of big picture strategy  Revised strategy  B2b2b and goal achievement
  • 20. Questions?
  • 21. References  Kodak logo: http://www.kodak.com/ek/US/en/Kodak_Focuses_Consumer_Business_On_More_Profitable_Growth_Opportun  Film strip: http://peathead.blogspot.com/2011/11/kissing-film-goodbye.html  Film canisters : http://www.bargainist.com/deals/2008/08/walgreens-free-film-roll-developing-coupon/  Porta 400 film: http://www.7dayshop.com/catalog/product_info.php?cPath=777_1&products_id=110866  Mom: http://notjustcute.com/2010/05/08/a-mothers-day-confession-2/  Digital vs. Film: http://www.widerange.org/resolution.html  http://www.kenrockwell.com/tech/filmdig.htm  “Jean-Luc Connor”: http://mubi.com/cast_members/783  Questions picture: http://www.photobards.com/interview/jack-brauer-13.html