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Eastman Kodak Company:Funtime Film

Presented by

Ankita Saha(11DM023)

Samarjit Das(11DM025)

Anirban Dhar(11DM048)

Debashish Ghosh(11DM051)

Soubhik Ghatak(11DM052)

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The Market Structure

US Photo Film Market:

670 million 24 exposures @$ 2.50- $3.50 per 24 rolls pack.

2% average market annual unit growth rate.

Kodaks Gold Plus brand has been the largest selling brand.

Four categories differentiated based on pricing-super

premium,premium,Economy and price.

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Kodaks Existing Brands

Kodak Gold Plus:

- Flagship brand

- 60% of the advertising support

Kodak Ektar:

- Targeted professionals and very serious amateurs

- Super-premium brand to blunt share gaining attempts by rivals and

private-label products

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Kodaks Market share in 1993

70%

11%

4%

10%

5%

MARKET SHARE IN 1993

KODAK

FUJI

POLAROID

PRIVATE LABEL

OTHERS

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Kodak Number 1

Kodak film graded the same as competitors in aConsumer Reports test

Past year sales growth at Kodak (3%); main

competitors (Fuji and Polaroid grew 15%) Consumer behaviortend to view film as a

commodity, often buying on price alone

Film purchased per year by Household

0

5

10

15

20

25

30

less than 5

rolls

5 -- 9 rolls 10 -- 15

rolls

16 -- 25

rolls

more than

25 rolls

%ofhouseholds

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Problems faced by Kodak

Kodaks market share drastically fell from 76% to 70% in the last fiveyears.

Stocks stumbled by 8% over rumors of price cut on film

Low 3% growth rate compared to an impressive 15% by fuji andpolaroid and 10% by private labels.

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Kodaks strategies

Royal Gold(Replacement for EKTAR):

Being targeted to a broader audience for very special occasions.

Introduced as a super-premium brand .

40% of the advertising support allocated to its brands.

Funtime Film:

Being targeted to the price-sensitive consumers

Economy brand(derived US $2.79)

No advertising support

Available in value packs, limited quantities and in off-peak seasons.

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Why Funtime????

- According to kodaks research, 40% of its customers are samplers, themajor part of which is to be converted into kodak-loyals.

- There is not much difference in quality among the existing brands inthe four price tiers.

PHOTOFILM BRANDS QUALITY SCORES(100)

Polaroid High Definition 95

Fuji color super G 94

Kodak Gold Plus 93

Konica Super SR 93

Kodak Ektar 92

3M Scotch Color 92

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Why Funtime????

- There is a growing body of price sensitive consumers.

- With the help of Funtime, consumer disaggregation will be possible,

i.e. the needs of those consumers can be catered at a low price,

who could not afford to purchase expensive kodak products.

- Kodak had no existing product in the economic tier.

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Major Drawbacks????

1. Possibly there is a scope of confused positioning .

2. Lowering industry profitability by reducing average price of films.

3. Threat to Kodaks brand value.

4. Cannibalizing Kodaks Gold plus Market share in premium category.

5. No advertising support.

6. Seasonal availability of Funtime.

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Recommendations

1. Minimum promotion should be done

2. Awareness should be created to improve photography industry as

a whole.

3. If photo film is perceived as a mere commodity, market share can

be gained by brand extensions , eg. Single-use camera

models,multi-featured cameras etc

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