KODAK CASE

BY GROUP 8

introduction

• Rapid transition to digital media• Film suppliers and photo-service providers

such as Kodak and Fuji films are affected• 8m digital cameras were sold in Europe in

2002• 70% of European customer printed their

photographs at home in 2003• Snapfish as leading online photo service in

north America

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SALIENT FEATURE

• Film supplier and photo-service provider• Printing of digital image on Kodak paper• Online service by Kodak's owned Ofoto• Kodak strong brand image• presence in various areas like home printer,

internet processing, mini-labs with 1400 Kodak branded kiosk

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OBJECTIVES

• Restoring Kodak as digital brands with rapid transition to digital media

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KEY ISSUES

• Transition from photo film to digital media• Changing marketing strategies of Kodak and

Fuji film• Emergence of leading brands like Snapfish as a

leading online photo-service• Advent of supermarket’s own brand photo

services like Tesco• Wearing off of printing at home, in future will

affect photo-service market

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KEY PROBLEM AREA

• Late innovation & inability to keep up with changing market trends

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SWOT ANALYSISSTRENGTH•Good brand image •Better retail network•Proper quality maintenance•Online photofinishing services

WEAKNESS•Late innovator•Not keeping up with changing market trends•Poor marketing strategy

THREAT•Emergence of unfamiliar brands like Snapfish•Decreasing use of home printers•Camera phones •Digital media

OPPORTUNITY •Increasing opportunity in European and UK market•Advent of supermarkets own brand photo services

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BCG MATRIX

group 8

At present Kodak is Cash Cow and will remain at this place by keeping Up with changing technology

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ANSOFF MODEL

group 8

Kodak is entering in existing market with modified product so it is product Development , in future with increasing its presence in European countries and UK It will do diversification

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DREK MODEL

• Currently Kodak is at declining position due to low on differentiation and high on others

• Kodak if not innovated properly, will be at Eroding place in future

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POTTER’S MODEL

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THE FIVE FORCES

• The threat of entry of new competitors like Sony, Cannon and Olympus- The threat of substitute like digital media- The bargaining power of buyers- The bargaining power of suppliers like Pixology- The degree of rivalry between existing competitors like Fuji, Sony and Cannon

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CORE-COMPETENCY

• All round presence in the market as Kodak paper, online services (Ofoto)and mini labs and kiosks

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COMPETETIVE ADVANTAGE

• A good brand image among retailers provides them with a measure of comfort

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USP

• The printing of digital images on Kodak papers shows the qualitative aspect of Kodak with good value for money

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DIFFERENTIATION

• Quality photo films and paper along with wide retail network

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CURRENT SCENARIO

• Loss of film suppliers and photo service providers due to transition to digital media

• Emergence of new brand winners like Samsung, Apple, Sony, Cannon etc

• Emergence of leading brands like Snapfish as a leading online photo-service

• Advent of supermarket’s own brand photo services like Tesco

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PROPOSED SCENARIO

• Kodak may restore itself as digital brands• Reduction in printing at home will boost the

photo finishing business like kiosks and mini lab

• Better presence in European market in term of online services such Ofoto with increasing awareness about online photo-services

• Better presence in UK and European market

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SUGGESTION

• Kodak should keep up with the changing technology and market trend

• It should keep on innovating according to changing customer need

• Keep on revising its marketing strategies

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Que:1- Write a brief statement providing your assessment of Kodak’s marketing options from a seeing first perspective.

Ans: Kodak apply seeing first strategy (steward type company) conserve by following :1.Polishing the silver : focus on new opportunities like digital cameras, high speed photo lab.2.Selling of bad business units : closed five laboratories in UK because of declining in demand of professional photofinishing.3.Cutting cost: using new technology to reduce the cost.

Que:2- Make the hypothetical assumption that Kodak is unsure what it should do next. What strikes you top of mind, as a good idea for doing first? How might Kodak monitor whether or not it worked?

Ans: • Hypothetical assumption: Be a entrepreneurs type company(revolutionary

wealth creators who capture the future riches) • Strategy: shifting from “resource allocation to resource attraction”

1. Ideas: innovation in digital products2. Capital: investment in retail film processing business for digital

and analog.3. Talent: Retailers should be able to create own label processing.

• Good idea for doing first: the process for “ doing first “ • 1. DO something: Diversified the business-

-develop the kiosk business-focus on digital services- online services

• 2. Make sense of it: change the marketing strategy • 3. Repeat the successful parts and discard the rest: measure the results of

diversified business.

Que: 3- Look at the variety of data in the case using your judgment, develop a simple marketing strategic rule for Kodak that would affect the degree of its involvement in the home printing market.

Ans:• Simple strategic rule for Kodak that would affect the degree of its

involvement in the home printing market:Data available – 70% in 2003

42% in 200710% in future

1. Boundary: should not invest much in home printing business.2. Priority: digital business, retail opportunity3. Timing : should take care of proper time to make diversified business.4. Exit: exit from simple photofinishing business.

Que:4- From a postmodern perspective, might there be a role for any elements of ‘TEASE’ or the 7s in Kodak's digital strategy?

Ans: • Postmodern perspective (digital strategy): • TEASE practices for KODAK o Tricksterism: sales promotion of Kodak digital products

through brand image of Kodak.o Entertainment: online digital services with entertainment.o Amplification: Advertising of benefits of Kodak digital.o Secrecy: hide the analog businesso Exclusivity: focus on digital business in comparison to old

trendy analog business.

group 8

THANK YOU

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