Eastman kodak company : Funtime CasePresentation Transcript
Eastman Kodak Company: Funtime Film Presented by :- $uddhasatta Sengupta (10DM022) $rirup Goswami (10DM026) $ourav Dutta (10DM037) $idharth Mohapatra (10DM041) $ovraj Saha (10DM059)
THE MARKET STRUCTURE US Photo Film Market -670 million 24-roll exposures @$2.50 - $3.50 per 24-rolls pack -2% average market annual unit growth rate -Kodak’s Gold plus brand has been the largest selling brand. -Four categories differentiated based on the pricing - Super Premium , Premium, Economy and Price.
Kodak’s Existing Brands Kodak Gold Plus -Flagship brand -60% of the advertising support Kodak Ektar -Targeted professionals and very serious amateurs -Introduced as a super-premium brand to blunt share-gaining attempts by rivals and private-label products
The Purchase Pattern
Kodak’s Market Share in 1993
The Problem for Kodak…
Kodak’s market share fell from 76% to 70% in the last 5 years.
Stocks stumbled by 8%.
Low 3% growth rate compared to an impressive 15% by Fuji and Polaroid and 10% by private labels.
Most of the film qualities arerelatively similar and Kodak holds a dominant and leading position in the photo film market, which coupled with strong competition makes it even harder to increase market share.
Kodak’s strategies Royal Gold (Replacement for EKTAR) -Being targeted to a broader audience for “very special” occasions. -Introduced as a Super-premium brand. ( derived – U.S. $ 4.18 ). -40% of the advertising support allocated to it’s brands. Funtime Film -Being targeted to the price-sensitive consumers -Economy brand ( derived – U.S. $ 2.79 ) -No advertising support -Available in value packs, limited quantities and in off-peak seasons
Why Funtime ??? Growth is almost nil in the last 5 years.
Why Funtime ??? According to Kodak’s research, 40 % of its customers are samplers, the major part of which is to be converted into Kodak-loyals. There is not much difference in quality among the existing brands in the 4 price tiers.
Why Funtime ??? 4. There is a growing body of price-sensitive consumers. 5. With the help of Funtime, consumer disaggregation will be possible, i.e. the needs of those consumers can be catered at a low price, who could not afford to purchase expensive Kodak products. 6. Kodak had no existing product in the economic tier.
The Drawbacks…. Possibly there is a scope of confused positioning. Lowering industry profitability by reducing average price of films. Threat to Kodak’s brand value. Cannibalizing Kodak’s Gold Plus market share in premium category. Little possibility of market growth. Seasonal availability of Funtime (off-peak seasons). No advertising support.
Recommendations Conduct independent tests on new emulsion technology and incorporate in advertising to communicate superior performance. Create marketing strategies to convert 40 % samplers into Kodak-loyals. Awareness should be created to improve photography industry as a whole. If photo film is perceived as a mere commodity, market share can be gained by brand extensions, e.g. single-use camera models, multi-featured cameras, etc.