Kodak Disc Camera

Case Study: Kodak Disc CameraDaniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez

February 22, 2012

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Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012

Video

http://www.youtube.com/watch?v=g0uinQqVXAk&feature=youtu.be

Analysis of Results: Reasons for Failure


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Management StrategyRazor Blade Strategy in place


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Selling Cameras at Low Cost

Selling High Cost

Film

Management StrategyWeak Communication Channels

“I heard at that time if employees gave truthful feedback on certain data, cost projections, or unrealistic expectations from management, they could lose their job”.

–Dan Callahan, 2012

(worked at Eastman Kodak from 1991 to 2004).


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Management StrategyLack of Project Management Methodology


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“Unfortunately there were no formal phases and gates for the project or mechanism that signaled warning flags at failure points.”

- John Kaemmerlen, 2012

(Interview).

Management StrategyTeam Members With No Faith in the

Project

“Employees at Kodak told me (in 1991) that even during the production phase they knew that the Kodak Disc Camera project was going to be a failure.”

-Dan Callahan, 2012


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Marketing Strategy


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Marketing Strategy

“mass production at low cost, international distribution, extensive advertising, customer focus, and growth through continuous research” (Gavetti, Hernderson and Giorgio, 2007).

Let’s remember Kodak’s slogan back in the 1800’s.

“You Press the bottom, we do the rest”


10Marketing Strategy

The Main Marketing outcome for the Disc Camera was a Combination of


Media Merchandising Promotions

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Poor Evaluation of Customers Needs

Kodak Disc Camera was developed and design after a market research study focusing on those conditions or activities in which customers were not used to take pictures

Was the definition of functionality of the Disc Camera adequate?

“negative effect on quality” and “excessive noise in the output signal” (Chiang, Pennathur and Mital, 2000).

Marketing Strategy


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Weak Marketing Campaign Differentiation

Customer begun to be confuse about which camera was doing which features and started being obscure about the different camera models.

“Kodak does not feel that its two new product campaigns will confuse consumers” (Anonymous, 1982).

Marketing Strategy



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Advertisement Example

http://www.youtube.com/watch?v=jYxBp85lrgk

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Price vs. Quality and Marketing Investment Fallon expresses his concern about Kodak’s investment in

marketing and advertising as

“in the hundreds of millions” Fallon (1982). High Price “Kodak encourages dealers to improve point-of-sale material

and offer promotional allowance and also pay for local promotions” (Renard, 1982).

vs.

Marketing Strategy


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Poor Evaluation of Competitors Fuji Photo Film Co., Japan.

“Kodak felt extremely confident about their customer loyalty being extremely secure that North-Americans will not buy other camera besides Kodak” (Luca, Heckaman & Faulkner, 1982).

Sony, Japan : was already developing filmless models. Ansco, China. Polaroid, USA.

Marketing Strategy


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Time Constrains

“Kodak Busy Launching” (Anonymous, 1982).

Marketing Campaign was develop in less than 2 years.

Marketing Strategy


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Quality Problems

Grainy pictures

Cloudy or fuzzy pictures

Camera noise


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Grainy, cloudy picture


19Comparison

• Taken with a 110 camera

• Taken with the Disc camera


Project ScopeHuge capital investment.

Kodak spent hundreds of millions of dollars building an entire system just for that single project.


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Project ScopeAll about the launch date.

Executives desperately wanted the product to reach the market. They were even willing to compromise their best asset, “Quality”.

“Executives became obsessed with

launching the product.”

-John Timpano


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Project ScopeWhether to pull the plug or postpone the

launching date.


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Recommendations


RecommendationsFrom a Management Perspective:

The creation and adaptation of a project management methodology

Engage team members

Create a system for the evaluation of customer satisfaction


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25Recommendations

From a Marketing Perspective:

Porter’s 5 forces: supplier power, buyer power, competitive rivalry, threat substitution, threat of new entry.

Division of Marketing Staff members for products categories.

Use different media channels for the different target customers.


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From a Marketing Perspective:

Do not launch different models at the same time using the same media channels.

Correct identification of products’ features and effective communication of them.

Use of social media: Facebook, Twitter, etc.

Sponsor Events (e.g. Olympic Games).

Recommendations

RecommendationsFrom a Quality Perspective:

Use larger negatives/camera in order to deliver quality pictures

Have scientists work 2 or 3 shifts to develop the best emulsion for film processing

Use continuous improvement, lean operations, and six sigma MFG methods


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RecommendationsFrom a Project Scope perspective:

Assess whether to launch the product or postpone launching date.

Launch the product after the quality issue is solved.


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Thank you

Questions or Comments?


Kodak Disc Camera

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