Polaroid introduced new consumer products like floppy disks and blank video tapes to expand into personal computer and video recorder markets. It developed new advertising with Ogilvy and Mather based on market research. It also changed dealer programs to improve relationships by giving dealers more flexibility. However, Polaroid had relied too long on instant film revenue and the perception that consumers always wanted hardcopy photos. It was slow to innovate and resisted electronics due to its film-focused culture. This "instant camera mentality" meant customers switched to options with more storage and editing, hurting Polaroid's demand over time. But Polaroid's new 1986 Spectra camera and marketing strategy showed annual revenues increasing 62% by 1992, making Polaroid

1. Polaroid Corporation

2. Q.1) What market separations were
bridged by Polaroid adding new
consumer and Industrial products,
developing new advertising, and
changing its dealer programs?

3. Products Introduced Products used for
Flexible disk (Floppy disk) For personal computer market
Beta and VHS blank tapes For video recorder market
35mm auto process system 5 minute processing of colour and
black & white
Palette Allows the personal computer to
select up to 72 colours in the
creation of a computer graphics
hard copy on a 35 mm slide.

4. Flexible disk (Floppy disk)
• 20 years warranty on
physical life of the disk
• Addition to this Polaroid
was offering a unique data
restoration service

5. Beta and VHS blank tapes
• Tape is a high quality general
purpose blank
Videocassette designed for
multiple uses
• It has excellent extended play
capability with great colour
reproduction and sound

6. 35mm auto process system
• Process and develop your
35mm film anywhere due the
device being highly portable
• Saves time take to give a film
for development

7. Polaroid Palette
• Can easily capture any image
from your computer screen
onto a 35mm film
• User can also adjust the
colours from a given range of
72 colours before capturing
the image

8. • By developing new advertising campaign with Ogilvy and
Mather which was consistent with direction given by
market research the separation bridged by polaroid was
the perceptual separation.

9. • By changing its dealer programs which meant to
improve strained relationships with its retail outlets by
granting dealers more flexibility, and giving better
direct service the separations bridged by polaroid
were spatial and perceptual separations.

10. Q.2) Why can the management of an
organisation like Polaroid failed to
respond for so long to its declining
position ?

11. • Maximum revenue from Instant film
• Perception that consumers will always want
permanent visual record
• Culture of leadership believed in chemistry
and media

12. Q.3) Some analysts have said that Polaroid
had “an instant camera mentality” for
many years. What did they mean by this
and what would the consequences of such
an attitude be ?

13. INSTANT CAMERA
• Self developing film image
• Based on a chemical process
• Instant gratification to the customer
INSTANT CAMERA MENTALITY
• Innovations by Polaroid were slow
• Polaroid leaders believed customers wanted a hardcopy
print
• The company had a bias against electronics
• Resistance on making money on hardware
• Fear from chemical and film people

14. CONSEQUENCES
Customers would opt for a camera creating value
• Providing more storage to save pictures
• Providing an option to choose pictures they would
like to print
• Cost of buying expensive films would be terminated
This would lead to customers switching to other
brands causing fall in demand for instant cameras

15. Q.4) How long will it take for polaroid’s
new marketing orientation to yield
improved performance ?

16. 0
0.5
1
1.5
2
2.5
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
Revenue $ in Billions

17. • New marketing strategy, the Spectra introduced in 1986
indicates that instant camera users wanted better picture
quality.
• Annual revenues increased by 62% from $1.33 billion in 1986
to $2.15 billion in 1992.
• In 1990, Polaroid became market leader in instant
photography and electronic imaging and manufacturer
conventional films, videotapes, and light polarizing filters and
lenses.