Kodak Case Write Up

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Kodak Funtime Film case write-up Lucas Angermann BBA-A

The U.S. Photo Film Market

The major suppliers of the U.S. Photo film Market included Kodak, Fuji, Agfa and 3M, where Kodak Corp. dominated with a share of around 70%. The main product was the exposure role, with 670 million 24-exposure rolls sold in 1993. The main companies often would sell the rolls using different brands and pricing to attract a wide range of customers with different experience levels in photography. For example, Kodak had the Gold Plus brand, which was the standard of the industry. However, Kodak and Fuji also had superpremium brands for the advanced amateurs and professionals. These specific brands had a higher price and were only sold in camera shops, where as standard brands were distributed through department stores, drug stores, supermarkets, convenience stores, wholesale clubs and mail order. Kodak and Fuji were constantly engaged in a global battle for worldwide dominance of the photographic market. Although Kodak was with no doubt number one, Fuji was able to increase customer attention through the summer Olympics in 1984, which made their sales grow at over 15%. The annual growth rate of the photo film market averaged only 2% during the past five years. This could be, because suppliers offer a wide range of brands of exposure rolls, which are hard to distinguish by customers who know not so much of photography. Film usage rates also varied widely across households with an average of 15 rolls per year. 20% bought less than 5 rolls per year, 22% bought between 5 and 9 rolls, 28% bought 10 to 15 rolls, 16% bought 16 to 25 rolls, and 13% bought more than 25 rolls. On top of this, the quality of rolls between the different companies was also unclear. The result were huge advertisement spendings by suppliers such as Kodak and Fuji, in order to make their products stand out. However, actual consumer tests have shown that there is little...
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