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Eastman kodak company funtime film

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Eastman Kodak Company Funtime Film

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Eastman kodak company funtime film

  1. 1. Case Study :Eastman Kodak Company : Funtime Film
  2. 2. About Eastman Kodak2 Company  Company is under new leadership. George Fisher is new CEO.  He has devised new strategy for Kodak Film Products.  Company has lost 8% stock value in past one week.  Market share has dropped from 76% to 70% in last 5 years.  Company plans to introduce new brand to compete with Fuji and Konica.  Gold Plus is their flagship brand.
  3. 3. U.S. Photo Film Market3  Total Current Market is of 670 million 24- exposure rolls at average cost of $2.50 - $3.50 per 24-exposure roll.  Major Players – Kodak, Fuji, Agfa & 3M.  Growth of Polaroid and Fuji is greater than growth of Kodak.
  4. 4. Market Share4
  5. 5. Sales Pattern5
  6. 6. Category Pricing6  Gold Plus (Kodak)  Premium product of Kodak priced at $3.49.  Majorly distributed through Camera Shops.  Kodak Gross Margin is about 70%.  FujiColor Super G (Fuji)  Economy product of Fuji priced at $2.91.  Kodak Gross Margin is about 55%.
  7. 7. Consumer Behavior7  Household Film Usage  Average 15 rolls per year per household.
  8. 8. Consumer Behavior8  Overall quality score of top 6 ISO 100 films were almost equal with Polaroid HD being the best.  Limited knowledge about photography among consumers meant that purchase of films dependent on price alone.  For Kodak  50% Loyal customers.  40% Samplers  10% shopped on price.
  9. 9. Problem Statement9  Market share has decreased from 76% to 70% in last five years with 3% increase in sales in past year.  While competitors sales grew over 15%.  Major competition from Fuji & Polaroid.
  10. 10. Funtime Strategy10  Strategy to reposition its film product line by Kodak.  Kodak will offer three films. 1. Gold Plus 2. Royal Gold 3. Funtime
  11. 11. Funtime Strategy11  Gold Plus  To remain flagship brand of Kodak.  Price unchanged from previous levels.  Would receive 60% of advertising expenditure of Kodak.
  12. 12. Funtime Strategy12  Royal Gold  To replace Ektar in super premium segment.  Targets broader audience for “Very Special” occasions.  Would receive 40% of advertising expenditure of Kodak.  To be priced 20% above the Gold Plus brand.
  13. 13. Funtime Strategy13  Funtime  Mainly devised to give Kodak presence in Economy Brand Tier.  To be priced 20% below the Gold Plus brand.  No advertising support.  To be available only twice a year in off-peak period.  Packaged only in value packs specifically in two forms. 2 rolls of 24 exposures.  4 rolls packages (3 rolls of 24 exposure & 1 roll of exposures)
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