Market Evaluation for Digital Photography Industry Article

Eastman Kodak Company: Funtime Film

Case Study, BEP 430 Marketing

20030059 Dong-ock Kim1, 20030071 Min-geuk Kim2, 20040054 Keehyung Kim3, 20040535 Yohan Jo4, 20076006 Huang Qiuling5, 20076035 Dorjsuren Bayarmaa6 Promoting Team A2 2 3 4 5 6

[email protected] com1, [email protected] net2, [email protected] com3, [email protected] com4, [email protected] com5, [email protected] com6

Professor: Wonjoon Ellie Date published: April 10, 2007

TO: George Fisher, chief executive officer, Eastman Kodak Firm FROM: Dong-ock Kim, Min-geuk Kim, Keehyung Kim, Yohan Jo, Huang Qiuling, Dorjsuren Bayarmaa LSO ARE: Eastman Kodak Company: Funtime Film DATE: April twelve, 2007

To begin with, we've examined about Kodak's circumstances and problems. Next, we can recommend a strategy for Kodak. From surveys, people did start to think movies as products, but buyers often select films be based upon price only. Even though pretty high percent of movies are sold by private label, Kodak can't sell film over a private label basis because of 1921 consent rule still in force.

According to SWOT research [Exhibit 1], BCG matrix [Exhibit 2] and Porter's a few forces [Exhibit 3], we attempted to understand the conditions of Kodak. From these kinds of analyses, we've found that Kodak is within trouble now because of shrinking of market share and low sales growth rate. Consequently , we thought that all Kodak should certainly use the power of their overwhelming market share and high gross margin when compared to other companies to break through this kind of hardship.

Next, we reviewed the reason of decreasing business. First of all, 'Price' is relatively higher than other companies their quality is not very outstanding. -1-

By the evaluation of the consumers, even Kodak Ektar has lower quality than Kodak Gold In addition. Furthermore, even though Polaroid High-definition is cost brands ($2. 49, which in turn 0. 71 of Kodak Gold In addition, it means incredibly cheap), buyers evaluated it has the best quality. Appearance of many competitors can be one more of shrinking market share. Polaroid and Fuji started incursion into Kodak's territory.

Then, let's think about the situation of doing nothing. Market share of Kodak will reduce continuously like it has been. Throughout the calculation [Appendix 1], we can consider that there is a risk of lessening profit of Kodak. It indicates that Kodak has to generate some tactics.

According to the case, film market's annual product growth level is only about 2%. It implies that you can't expect exponential growth of new-comer consumers any longer, so you have to make potential consumers to acquire Kodak's item. Potential buyers here not simply include present consumers who have buy competitors' product nevertheless also foreseeable future consumers just like children. Consequently , Kodak's initially objective should be to make in least 76% of new-comer consumers and 20% of competitors' customers buy Kodak's product in a given time. In addition , Kodak can get more profit in the event that Kodak's consumers buy

-2-

more and more movies. Moreover, the other objective is usually increase average households' film usage rate from 12-15 rolls each year to 20 comes per year in two years period.

The technique of Funtime is pretty interesting. Funtime has a low cost compared with various other products of Kodak and sells simply in off-peak time. It may be a good idea to sell it in a low price because it appeals to more buyers. Although I agree that your small business has history, high strategy, and knack, the products of your company are expensive in spite of having no unique merit. According to the data of testing a large number of films, the values of your goods are irrational, because the different good quality motion pictures of other companies are sold in lower prices. If you provide a very good product within a lower price, then it can be a very good chance for one to gain many customers.

Nevertheless I found some problems in your situation. Your main customers will be consisted of faithful customers and samplers who have rely greatly on Kodak. Equally, they can be stable buyers and they will not...

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