Case Study :

Eastman Kodak Company : Funtime Film

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About Eastman Kodak Company Company is under new leadership. George

Fisher is new CEO. He has devised new strategy for Kodak Film

Products. Company has lost 8% stock value in past one

week. Market share has dropped from 76% to 70% in

last 5 years. Company plans to introduce new brand to

compete with Fuji and Konica. Gold Plus is their flagship brand.

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U.S. Photo Film Market

Total Current Market is of 670 million 24-exposure rolls at average cost of $2.50 - $3.50 per 24-exposure roll.

Major Players – Kodak, Fuji, Agfa & 3M. Growth of Polaroid and Fuji is greater

than growth of Kodak.

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Market Share

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Sales Pattern

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Category Pricing

Gold Plus (Kodak) Premium product of Kodak priced at $3.49. Majorly distributed through Camera Shops. Kodak Gross Margin is about 70%.

FujiColor Super G (Fuji) Economy product of Fuji priced at $2.91. Kodak Gross Margin is about 55%.

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Consumer Behavior

Household Film Usage

Average 15 rolls per year per household.

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Consumer Behavior

Overall quality score of top 6 ISO 100 films were almost equal with Polaroid HD being the best.

Limited knowledge about photography among consumers meant that purchase of films dependent on price alone.

For Kodak 50% Loyal customers. 40% Samplers 10% shopped on price.

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Problem Statement

Market share has decreased from 76% to 70% in last five years with 3% increase in sales in past year.

While competitors sales grew over 15%. Major competition from Fuji & Polaroid.

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Funtime Strategy

Strategy to reposition its film product line by Kodak.

Kodak will offer three films.1. Gold Plus2. Royal Gold3. Funtime

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Funtime Strategy

Gold Plus To remain flagship brand of Kodak. Price unchanged from previous levels. Would receive 60% of advertising

expenditure of Kodak.

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Funtime Strategy

Royal Gold To replace Ektar in super premium

segment. Targets broader audience for “Very Special”

occasions. Would receive 40% of advertising

expenditure of Kodak. To be priced 20% above the Gold Plus

brand.

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Funtime Strategy

Funtime Mainly devised to give Kodak presence in

Economy Brand Tier. To be priced 20% below the Gold Plus brand. No advertising support. To be available only twice a year in off-peak

period. Packaged only in value packs specifically in two

forms. 2 rolls of 24 exposures. 4 rolls packages (3 rolls of 24 exposure & 1 roll of

exposures)

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