Case Presentation

1. Customer Buying Behavior
Kodak : Creating Digital
Moments

2. Group Members
Names Roll No
Shashank Mandal 15106A10-46
Chinmay Chaware 15106B10-32
Abhishek Hariyan 15106B10-44
Sandhya Devlekar 15106B10-45

3. Case Findings- Challenges faced by Kodak
• Kodak’s Market share dropped by 10% because of Fuji cutting Price
on Film
• Digital Business drowning in Red Link
• Consumers not buying the camera even after
• Making the Price Low
• Introducing Photo CD
• FlashPixcd

4. Case Findings- Step Towards Success
• Fisher Slashed 7600 jobs
• Reduced Cost by $350 million – which boosted operated profit
margin to 18.5%
• Asked the Consumer to go for Picture CD
• Teamed with Adobe – To Develop the software for CD
• Kodak test marketed the picture CD in the last quarter of 1998
• Planned to Roll out CD
• Inked deal with AOL
• Kodak & Intel- Advertising – “Take Picture Further”

5. Questions and Answers
1. Opinion Leaders for Picture CD
 Kodak Users
 Photography Studios
2. Five Characteristics of Picture CD
 Advantage – Rotate Images , Add Names/Caption , Sharpen the
color , Remove Red eye , Stylize the Pictures
 Compatibility- E-mail Pictures to friends & Family , Adjust
Brightness & Contrast
 Complexity- Applying visual effects to create new look such as
Mirror images or Painting one picture over another

6.  Trialability – Using Kodak PhotoNet Online to extend
pictures by printing them to T-shirts or neck-ties
 Observability- Slideshow by choosing specific Pictures
Using Cosmopolitan virtual Makeover Beauty
Sample from Segasoft to glamorize your Picture
Advantage and Compatibility Scores Better

7. 3. Why where consumers resistant to earlier versions of digital imaging from Kodak ?
What where the barriers to their diffusion??
 Complex in use
 Lower Price of new version
 They don’t find it useful

8. • If Kodak get 5% of the Film processing market in 1999 , what categories of of
adopters will have used Picture Cd?
 Professional Photographers
 Journalist
 Tourist
 End Consumers

9. • How could Kodak affect each of the stages in adoption process??
 Awareness- Convincing internal and External Customers
 Interest- Advertising , Marketing , One to one communication
 Evaluation- Observation , Research , Survey
 Trial & Adoption- Test Marketing

10. If purchasers of Picture CD buy it because “Even though it cost more , it
provides more useful features” what kind of decision rule are they using?
 Value for Money
If they bought it just because they want to see loved ones and friends pictures
with e-mails , what kind of decision rule is that ?
 Attention Grabber
If they buy from Seattle FilmWorks . “Because it was cheaper , even though the
resolution wan’t as good, What kind of resolution is that??
 Price Conscious
If they bought it “Because Kodak and Intel are both wonderful companies that
make great prodcuts” What kind of decision rule is that?
 Up-to date with Technology