4A's Transformation 2013 - March 11 - Chris Lyons of Kodak


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Discussion about how the move toward production and distribution of advertising assets in digital form is transforming the industry.

Moderated by: Jack Myers, Media Economist, Media Advisory Group
Andrew McLean, EVP - General Manager, Marketing & Business Development, Deluxe
Chris Lyons, WW Director Communications & Marketing, Kodak
Harold S. Geller, Chief Growth Officer, Ad-ID
Steve Hernandez, Director, Commercial Operations, NBCUniversal

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  • Hello and welcome. I’m very pleased to be able to talk with you about today’s Kodak and how we share with you a common purpose – leading the future of commercial, packaging, and functional printing markets.
  • For years, we’ve leveraged our expertise in materials science, digital imaging and deposition processes to create valuable solutions for commercial print customers. We understand that commercial print markets are quite dynamic today, undergoing swift technology transitions – we’ve been there. So we also know that change brings new opportunities and pathways. That’s why we’ve worked to create a leading and differentiated portfolio of traditional and digital technology solutions in the commercial, packaging, functional printing, and enterprise services markets. Our mission is to be the best business partner to meet your needs today and into the future – to help you thrive during these dynamic times.A company with dual focus on Consumer & Commercial Imaging marketsWorld ‘s Imaging innovator for:Consumer and Professional photographersFilmmakers and Entertainment ProfessionalsGraphic communicationsBusiness and GovernmentHigh degree of experience, trust and awareness in consumer imaging brand spaceA foundation on innovation: “You push the button we do the rest.”
  • These solutions have made a big impact in the industry, which is why we can proudly say that today, Kodak customers produce over $100 Billion of the commercially printed pages worldwide – And when you add in Packaging it’s significantly larger. You can see (on slide) some of the facts that go into that number.
  • The role of packaging started out very practically--to protect ingredients and easily transport them to market. Since those humble beginnings the business of packaging has evolved into a worldwide supply chain and marketing phenomenon.Protecting ingredients inside the package is no longer the only protection required. Today a package also protects the product’s brand image and color integrity, and safeguards the brand against piracy. Transporting packages has also taken on a new and powerful responsibility as traditional pallets for big box stores have evolved into beautiful graphic displays that are designed to attract and sell the products inside. Informing consumers about content and ingredients, nutritional data,bars codes for scanning and inventory control, marketing information for item level promotions, website information for consumers to register products, find discounts and join product loyalty programs, are but a few of the informational elements required.Selling is packaging'smost critical role today. The package plays the role of sales agent for all brands. 70% of consumer products purchased today are the result of impulse buying based on the package’s shelf appeal. The look and feel of packaging today greatly influences if the product sucessfully sells or not.
  • Demand for packaging – and package printing – is growing worldwide. Key drivers:In emerging markets, urbanization and rising incomes are driving demand for packaged goods, especially packaged food items. In developed markets where the populations are aging, there is increasing demand for pharmaceutical, health care items and medical devices, and also for smaller portion packages. In all markets there is movement from mass production to mass customization, resulting in many versions of packaging and shorter manufacturing and print runs. Packaging is a very large market: The printed packaging market which Kodak addresses represents a $237 billion subset of the total packaging market. Kodak’s participation in the printed packaging market is focused on the development and execution ofhigh quality, accurate, and visually appealing printed content that appears on a package.
  • The role of print from its inception in 1452 with the Gutenberg Press to today has been to provide a communication platform for the masses. The rapidly evolving role of print in our hyper-connected world is still rooted in the basic tenants of informing, inspiring, attracting and engaging readers, but now with a twist. Prints ability to be customized and linked to other media channels adds a richness to the experience of readers and a way to measureprints multiplying effect in modern communications.For Marketers, the need to Attract, Engage and Sell consumers in a world where there are over 5,000 marketing messages delivered daily, requires improved value on every page.For Publishers, the need to Inform, Promote and Inspire readers in the printed page has become a far more precise business as efforts to manage the supply chain, inventory levels , and quality has been met head on with hybrid business models. New technologiesare empowering publishers to deliver on the promise ofcreating and delivering quality content to targeted readers.
  • The major trends facing the communications industry today include:Multi-channel communications:PersonalizationDigital print investments drive double digit page and revenue growthEmerging markets experiencing rapid growth and expansionDeveloped markets experiencing industry consolidation driving production efficiencies-while high impact applications drive ROMIKodak uniquely positioned to profit from the digitalization of print while serving traditional print markets with efficient, sustainable offset solutions
  • If you wonder what channels have the best effectiveness, the answer is that every channel plays a role. Success comes from how you use the channels and relate them. Some of this does require infrastructure – Personalized URLs can be effective in some verticals--but consider the type of customer you are seeking and if they are likely to follow a personalized URL to the web to follow an offer. Do you send catalogs? Is it easy for a customer to find things in the catalog and online? If a customer buys a product from you, do you follow up with a personal thank you? In print? On the web? Do your interactions with your customers on the web generate a print interaction, too? These are all ways to tie a multi-channel communication strategy together.
  • By retooling Kennickell’s marketing communications approach, Kennickell has now become an industry marketing service provider serving the NFL, MLB, and NHL professional sports leagues, and a number of catalogers and retailers. Kennickell has made this journey from a print service provider to a marketing service provider in just over the past 3 years.Kennickell worked with the Citadel to expand their multi-channel alumni reach to deliver consistent messaging through all media channels and to the proper target audience through CRM data enhancement and analytics. The new approach drove:variable offersLayout content, andpersonalized images
  • Kennickell’s campaign tracking results revealed:A 25% increase in membership, now that they have understanding of the data, there is more need for a telemarketing arm to capitalize.1/3 of the Citadel’s database was discarded – saving unnecessary postage.Details:25% increase in membership through MayPredicted yearly membership increases of 30%Total funds raised $225K , up 18% over 2009Costs were cut by 35%ROI has been monumental (confidential)Long term value: Citadel now knows who to talk to and what to sayData Analytics were proven to be invaluable
  • 4A's Transformation 2013 - March 11 - Chris Lyons of Kodak

    1. 1. Commercial ImagingChris LyonsWorldwide Director Customer CommunicationsMarch 11, 2013
    2. 2. Kodak Today – Who We Are We are Commercial Imaging - primarily focused on the commercial, packaging, functional printing solutions and enterprise services businesses We are a company centered on innovation with expertise in materials science, digital imaging science and deposition processes that provide our customers a distinctly profitable and sustainable competitive advantage Only Kodak’s portfolio of traditional and digital technologies and services offer the blend and depth of solutions that serve the current and future needs of our customers Our mission is to be the best business partner to help our customers thrive during these dynamic times 2
    3. 3. Kodak Today Leads the MarketKodak customers produce over $100 Billion commercial print worldwideKodak CTP devices image more than 30% of digital offset plates worldwideKodak Prosper systems printed on over 30 Billion pages since launchKodak Flexcel NX Plates have Doubled each year for the last four years 3
    4. 4. Packaging’s Powerful Multi-Purpose Role Protect Transport Inform Sell 4
    5. 5. Packaging is a $250B and growing opportunityThe Packaging Industry Packaging Market Growth ($ in millions) Fastest growing and sustainable $350,000 $307B print market 300,000 250,000 $237B Highly fragmented value chain 200,000 $189B 150,000 Ripe for technology substitution 100,000 50,000 Kodak well positioned to lead 0 2005 2010 2015 digitization and drive integration Western Europe North America Latin America Asia-Pacific Other Packaging Market Breakdown Screen Gravure Labels 2% Digital 14% 10% 2% Metal Cans Corrugated Others Offset 12% 34% 19% 24% Rigid Plastic 8% Flexible Flexography 18% Cartons 39% 18% Source: PIRA, PRIMIR, EK internal analysis 5
    6. 6. Print’s Dynamic Role in a Multi-Media World Marketing Publishing Attract Inform Engage Promote Sell Inspire 6
    7. 7. Rapidly Changing Print MarketCommunications Industry Trends 2012 Market Total $445B  Multi-channel communications: - Personalization  Digital print investments drive double digit page and revenue growth  Emerging markets experiencing rapid growth and expansion  Developed markets experiencing industry consolidation driving Publishing Commercial production efficiencies-while high impact applications drive ROMI $155B $290B  Kodak uniquely positioned to profit from the digitalization of print while serving traditional print markets with efficient, sustainable offset solutionsPrint Market Growth Worldwide Printing Pages Worldwide Digital Print Revenue 60 $180 50 $150 CAGR 44% 47% 50% A4 Pages (Trillions) 11.5% 40 $120 USD (Billions) 30 $90 CAGR 15.6% 20 $60 56% 53% 50% 10 $30 - $0 2011 2013P 2015P 2005 2010 2015P Developed Emerging Source: Poyry Source: Pira Worldwide Market for Print 7
    8. 8. The Shift to Digital is Underway WW Page Volumes in Publishing & Commercial Print 104% increase 55.3 54.8 Trillion Trillion Offset Offset 408 834 Pages Pages Billion Billion Digital Digital Pages Pages 2011 2016F 2011 2016F Source: WW Page Volume Model, July 2011 8
    9. 9. Print’s Role in Multi-Channel Campaigns Requests for info placed on web Catalogs drive Requests fulfilled web traffic Print boosts with customized collateral multi-channel campaign effectiveness Personalized Follow up with URL personalized direct mail 9
    10. 10. Kennickell Group: Multi-Channel Campaign / Citadel 4 Viral, email, direct mail, radio, newspaper, internet, & telemarketing variable offers and content driven and coordinated by data analytics personalized images For each target segment, this red bar highlighted the offer 10
    11. 11. Kennickell Group: Multi-Channel Campaign / Citadel 5Campaign Execution Engaging the TargetData Analytics Drove +25% in MembershipData Analytics Drove +18% in ContributionsData Analytics Drove -35% in Campaign Cost 11
    12. 12. Samples on Your Seats 12
    13. 13. Print Communications Today 13
    14. 14. © 2013, Eastman Kodak Company