Marketing 300

Group 3

Amanda Lohman, Abby Williams, Eric Zhang, Charlotte Rath and Cyrille
Bourdeaux
Agenda

About Kodak

Current Big Picture

Implications

Revised Big Picture

Conclusions
About Kodak
George Eastman revolutionized photography
created Kodak in 1880
Manufacturer of film
You push the button, we do the rest

In 1935, Kodak produced the first mass-market color film in 16mm and 8mm.

1970s- Kodak owned the film market with a 90% market share

Created the first Digital camera in the 1970s

Did not want to threaten their film business, did not go through with the marketing
of the Digital camera
Because of this, other digital camera companies, such as Nikon, Sony and Fujifilm
put pressure on Kodak, and their sales began to plummet.

On January 18th, 2012, Kodak filed for Chapter 11 bankruptcy protection.

Kodaks Decline
Film vs. Digital
Spatial Resolution
Digital: 5-20 megapixels
Film: smallest format: 20 megapixels, largest: 200-800

Film
Better Capturing of Shadow and Highlighting Details
Creates a traditional photographic look
Higher quality Archival Storage

Digital
More Convenient
Cheaper (don't have to pay for film)
Easier to Use
Kodaks Current Big Picture
Product
MV: Need Experience
Segment
to share
moments
DV: None
Price
Business Marketing Source of Value
Objective Objective Volume Anyone
Target
who wants
to use film Top of mind
FE: Kodak
Promotion
awareness
CC: Digital Image
Cameras Stimulate
If I want Behavior
Retention Proposition
to use film,
Goal: Increase Demand
Revenues by Kodak
50% by 2013 Place
provides it
Current 5 Box Positioning Statement

Digital is more If I want to use film, Kodak film is high

convenient to use Kodak provides it quality

If I want to use film, I

I use Digital Cameras
will use Kodak
Current Target
Kim Thompson
31 year old, Mom of 3 young
kids
Uses her Kodak digital camera daily to
take pictures of her kids
Often shares these pictures with her friends and
family on Facebook
Uses her Kodak EC200 35mm film camera on
holidays to capture special moments (2-3X/year)
Wishes professional-like shots were more
convenient
Current b2b2b Analysis

3.5 million photographers

X 68% prefer film

2.38 million potential film

users X Probability of Conversion:
30%

Current
# of users:
714,000 X Price per
unit: $93 = Revenues:
$66,000,000
Reasons for Revisions
Kodak is the film market leader, and
F ilm C a m e r a M a r k e t S h a r e
D is tr ib u tio n

even more so that global

competition has decreased 36
45 K odak
F u jiF ilm
O t h e r C o m p a n ie s
19

Dominating the film market, S a le s o f D ig it a l v s F ilm C a m e r a s in

2011

we turn to steal share from the 9000

8000
8 0 5 2 .5

S a le s (in m illio n s )
7000

overwhelming digital market 6000

5000
4000
3000
2000
1000 2 2 8 .8
0
F ilm C a m e ra s D ig it a l C a m e ra s
Revised Big Picture
Product
Experience
MV: High
Quality images
Segment
DV: Cater to
the artist in
you Price
Business Marketing Source of Value
Objective Objective Volume
Photography/Fi
Target
lm
Professionals Top of Mind
FE: Kodak and amateurs Promotion
Awareness
CC: High Information
Quality Film Steal Share Behavior
Retention
Goal: Increase (from Digital) I need
Revenues by Proposition
something to
50% by 2013 cater to my
artistic ability Place
Revised 5-box Positioning Statement

Kodak Film is high

Film has certain
Digital is more quality and will set
benefits that cater to
convenient me apart from digital
my artistic needs
photographers

When I shoot
I use Digital Cameras
professionally, I will
more than Film
use Kodak Film
Revised Target
Jean-Luc Connor
40 year old professional filmmaker
who graduated from the
University of Southern California
He is an experienced amateur
photographer
Jean is married and has 2 children
He has made most of his career using
film.
He uses digital for convenient purposes such as
day to day pictures but prefers using traditional
film for his professional and artistic activities.
Marketing Film
films superiority in capturing more
information on medium and large format
films
creating a traditional photographic look
capturing shadow and highlighting details
the wide exposure latitude of film
archival storage
Digital versus Film
Digital versus Film
Promotion and Advertising
Sponsoring events will spread awareness and knowledge
expressing the benefits of film versus digital
Cannes Film Festival
Berlinale
Toronto
Sundance
Venice
Ann Arbor Film Festival

Affiliation with specialty film stores placed in strategic areas near

large film markets (Bollywood, Hollywood, etc.)
Revised b2b2b Analysis

3.5 million Photographers

X 80% prefer film

2.8 million potential film

users X Probability of Conversion
40%

=
# of users: Price per Revenues:
1.1 million
X unit:
$93
$102,300,000
Conclusions
Kodak is currently in Chapter 11 restructuring
bankruptcy neglecting the film market
Film versus Digital
Change of big picture strategy
Revised strategy
B2b2b and goal achievement
Questions?
References
Kodak logo:
http://www.kodak.com/ek/US/en/Kodak_Focuses_Consumer_Business_On_More_Profitable_Growth_Opportun
Film strip: http://peathead.blogspot.com/2011/11/kissing-film-goodbye.html
Film canisters : http://www.bargainist.com/deals/2008/08/walgreens-free-film-roll-developing-coupon/
Porta 400 film: http://www.7dayshop.com/catalog/product_info.php?cPath=777_1&products_id=110866
Mom: http://notjustcute.com/2010/05/08/a-mothers-day-confession-2/
Digital vs. Film: http://www.widerange.org/resolution.html
http://www.kenrockwell.com/tech/filmdig.htm
Jean-Luc Connor: http://mubi.com/cast_members/783
Questions picture: http://www.photobards.com/interview/jack-brauer-13.html