EASTMAN KODAK COMPANY: FUNTIME FILM

PRESENTED BY :-$UDDHASATTA SENGUPTA (10DM022)

$RIRUP GOSWAMI (10DM026)$OURAV DUTTA (10DM037)

$IDHARTH MOHAPATRA (10DM041)$OVRAJ SAHA (10DM059)

THE MARKET STRUCTUREUS 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

Less than 5 rolls

between 5 to 9 rolls

between 10 to 15 rolls

between 16 to 25 rolls

more than 25 rolls

0

5

10

15

20

25

30

20

22

28

16

13

PHOTOFILM PURCHASE BY HOUSEHOLD

RANGE

%

OF

H

OU

SE

HO

LD

S

KODAK’S MARKET SHARE IN 1993

70%

11%

4%

10%

5%

MARKET SHARE IN 1993

KODAK FUJI

POLAROID PRIVATE LABEL

OTHERS

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.

PROBLEMS CONTD….

Most of the film qualities are relatively 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 STRATEGIESRoyal 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’sbrands.

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 ???1. Growth is almost nil in the last 5 years.

1993 1992 1991 1990 19890

100

200

300

400

500

600

700670 657 643 631 618

469 455 469

KODAK GROWTH WITH MARKET

market kodak

WHY FUNTIME ???

2. According to Kodak’s research, 40 % of its customers are samplers, the major part of which is to be converted into Kodak-loyals.

3. There is not much difference in quality among the existing brands in the 4 price tiers.

PHOTOFILM BRANDS QUALITY SCORES (100)

Polaroid High Definition 95

Fujicolor Super G 94

Kodak Gold Plus 93

Konica Super SR 93

Kodak Ektar 92

3M Scotch Color 92

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….

1. Possibly there is a scope of confused positioning.

2. Lowering industry profitability by reducing average price of films.

3. Threat to Kodak’s brand value.4. Cannibalizing Kodak’s Gold Plus market share

in premium category.5. Little possibility of market growth.6. Seasonal availability of Funtime (off-peak

seasons).7. No advertising support.

RECOMMENDATIONS

1. Conduct independent tests on new emulsion technology and incorporate in advertising to communicate superior performance.

2. Create marketing strategies to convert 40 % samplers into Kodak-loyals.

3. Awareness should be created to improve photography industry as a whole.

4. 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.