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Eastman Kodak Company: Funtime Film

A Case Study by Brajesh Mishra Prateek Gautam

US Photo Film Market (1993)

670 million 24-roll exposures @$2.50-$3.50 per 24-rolls pack 2% average market annual unit growth rate. Kodaks Gold plus brand being the industry standard.

Four categories differentiated based on the pricing- Super Premium, premium, economy and price brands
24-rolls film categorized, based on light sensitivity of film, as ISO 100, 200 & 400

Private Label 10% Polaroid 4% Fuji 11%

Others 5%

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

Kodak 70%

Breakup of US Market Share

A significant portion of the US sales (32%) is through discount stores and department stores where price brands are predominantly sold

Current Issue

Kodaks market share fell from 76% to 70% over 5 years due to lower pricing strategy employed by their competitors, Fuji and Konica. Stocks stumbled 8% over rumors of price cut on film Low 3% growth rate compared to an impressive 15% Fuji & Polaroid and 10% private labels Fuji, being closest competitor, rapidly increasing its market share by employing smart marketing strategies combined with low pricing. Fuji grown to $10 billion revenue world wide in under 10 yrs.

Kodak Film Types

Kodak Ektar
being targeted to professionals and serious amateurs

Royal Gold
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. 40% used in advertising

Kodak Gold Plus

flagship brand 60% of the dollar advertising support

Funtime Film
being targeted to the price-sensitive consumers, which affected consumer decisionmaking process. economy brand no advertising support available in limited quantities and in off-peak seasons


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

2. 3.

New emulsion technology with increased exposure latitude. A new brand - Funtime Film to be introduced with an intention of regaining the lost market share. Funtime to target the economy brand tier where Kodak had no previous presence
The major problem with three is that many customers according to Discount Merchandisor 91 view film as a commodity. Also, according to Kodaks own research, 40% of their own customers sampled lower priced brands frequently.

Royal Gold Super Premium category with $4.50-$5.0 price range and highlighting on new emulsion technology and hence greater performance. Target this to consumers who consider films much more than a mere commodity. Ektar Relegated to a new segment- premium with performance message and target amateurs and new entrants/novice. Price range $4.0 Gold Plus Premium brands with same pricing and since its a well established industry standard and flagship brand, lesser advertising support feasible enough. Funtime Available in limited quantities offered twice a year in April and September. Economy end brand with pricing, around $2.50, to target price sensitive consumers and salvage advertising dollars from other brands to push this. Smarter cooperative advertising to push forward the message of new technology resulting in better performances. Smart Marketing strategies rather than expensive ones which highlights the fact of 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

Possible Outcomes
Funtime is leveled to Economy Brands, which is only offered during the off-peak seasons and in limited quantities.
This probably will cause some cannibalism because research showed that 40% of Kodak buyers sometimes bought cheaper film on a test basis

Possibly not a huge amount of profit with the current Funtime strategy, and the risks appear greater than the possible benefit..

Long term plan

Scan the environment to look for alternative production centres 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 of performance and hence value added pricing categories. Create marketing strategies to convert 40% samplers segment to Kodak loyals. Extend the availability of economical Funtime Film round the year to cater to price sensitive consumers. If film is marketed as a commodity, gain market share by investing in one-time use camera models.