rogers raiju kodak case discussion

8/2/2019 Rogers Raiju Kodak Case Discussion

1/8

BY:

ANKIT KHANDELWAL

RETTIKA GUPTA

SONAM GUPTA

PRAKRITI PANDEY

SATISH CHHABRA


2/8

y 670 million 24-roll exposures @$2.50-$3.50 per 24-rolls pack

y 2% average market annual unit growth rate.

y Kodaks Gold plus brand being the industry standard.

y Four categories differentiated based on the pricing- Super Premium, premium, economyand price brands

y 24-rolls film categorized, based on light sensitivity of film, as ISO 100, 200 & 400

Kodak and Fuji sell branded products, films, cameras and other imaging products Agfa and 3M sell branded products to consumers & other firms under a private label.

Polaroid's branded product is sourced from 3M

A significant portion of the US sales (32%) is through discount stores and department

stores where price brands are predominantly sold


3/8

y Kodaks market share fell from 76% to 70% over 5 years dueto lower pricing strategy employed by their competitors,Fuji and Konica.

y Stocks stumbled 8% over rumors of price cut on film

y Low 3% growth rate compared to an impressive 15% Fuji &Polaroid and 10% private labels

y Fuji, being closest competitor, rapidly increasing its marketshare by employing smart marketing strategies combined

with low pricing.y Fuji grown to $10 billion revenue world wide in under 10 yrs.


4/8

Kodak Film Types

y

Kodak Ektary being targeted to professionals and serious amateurs

y Royal Goldy being targeted to a broader audience for very special occasions, e.g. the birth of a baby,

the graduation, which is a marketing strategy to influence consumer behavior.y 40% used in advertising

y Kodak Gold Plusy flagship brandy 60% of the dollar advertising support

y Funtime Filmy being targeted to the price-sensitive consumers, which affected consumerdecision-

making process.y economy brandy no advertising supporty available in limited quantities and in off-peak seasons


5/8

y

Reposition itself to target different tiers by going in forcategory pricing due to these three major factors

1. New emulsion technology with increased exposurelatitude.

2. A new brand - Funtime Film to be introduced with anintention of regaining the lost market share.

3. Funtime to target the economy brand tier whereKodak had no previous presence

y The major problem with three is that many customers accordingto Discount Merchandisor 91 view film as a commodity. Also,according to Kodaks own research, 40% of their own customerssampled lower priced brands frequently.


6/8

Royal Gold Super Premium category with $4.50-$5.0 price range and

highlighting on new emulsion technology and hence greater performance. Targetthis to consumers who consider films much more than a mere commodity. Ektar Relegated to a new segment- premium with performance message andtarget amateurs and new entrants/novice. Price range $4.0 Gold Plus Premium brands with same pricing and since its a well establishedindustry standard and flagship brand, lesser advertising support feasible enough.

Funtime Available in limited quantities offered twice a year in April andSeptember. Economy end brand with pricing, around $2.50, to target pricesensitive consumers and salvage advertising dollars from other brands to pushthis. Smarter cooperative advertising to push forward the message of new technologyresulting in betterperformances.

Smart Marketing strategies rather than expensive ones which highlights the factof a new emulsion technology with increased latitude exposure.

Price cuts on off peak seasons and pushing single rolls 24 exposures

Regular price in peak season with multipacs of minimum 3 rolls pack


7/8

y Funtime is leveled to Economy Brands, which is onlyoffered during the off-peak seasons and in limitedquantities.y This probably will cause some cannibalism because research

showed that 40% of Kodak buyers sometimes bought cheaperfilm on a test basis

y Possibly not a huge amount of profit with the currentFuntime strategy, and the risks appear greater than the

possible benefit..


8/8

Scan the environment to look for alternative productioncentres to retain margins and match competitors low pricing. Effective and smarter marketing techniques. Push for independent tests on new emulsion technology to

display superior performance. Changes in camera technology to show the superiority ofperformance and hence value added pricing categories. Create marketing strategies to convert 40% samplerssegment to Kodak loyals. Extend the availability of economical Funtime Film roundthe year to cater to price sensitive consumers. If film is marketed as a commodity, gain market share byinvesting in one-time use camera models.

rogers raiju kodak case discussion

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