To: David Tsiklauri
Case: Eastman Kodak Company: Funtime Film
From the beginning of the case Kodak’s problem is clearly seen. During January 17 and 24 Kodak stock had lost 8% in value. Also Kodak market share fell by 6%, from 76% to 70% over the past five years. Also the market annual unit growth rate averaged only 2% while the main competitors’ averages were much more impressive – 15% of Fuji and Polaroid and 10% private labels.
The problem is that Kodak is losing its market share while its competitors are contrary increasing on the market and growing their sales. To my mind the main question for Kodak to answer is how to regain the market share and increase growth rate and sales?
Key Information Provided:
Market share in 1993:
1. Kodak 70%
2. Fuji 11%
3. Polaroid 4 %
4. Private label 10%
5. Other 5%
Kodak products currently available on the market:
* 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 decision-making process. * economy brand
* no advertising support
* available in limited quantities and in off-peak seasons
* Kodak‘s 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 Kodak research has shown that 50% of buyers were “Kodak...