Eastman Kodak Company Funtime Film

1. Case Study :
Eastman Kodak Company : Funtime
Film

2. About Eastman Kodak
2
Company
 Company is under new leadership. George Fisher
is new CEO.
 He has devised new strategy for Kodak Film
Products.
 Company has lost 8% stock value in past one
week.
 Market share has dropped from 76% to 70% in
last 5 years.
 Company plans to introduce new brand to
compete with Fuji and Konica.
 Gold Plus is their flagship brand.

3. U.S. Photo Film Market
3
 Total Current Market is of 670 million 24-
exposure rolls at average cost of $2.50 - $3.50
per 24-exposure roll.
 Major Players – Kodak, Fuji, Agfa & 3M.
 Growth of Polaroid and Fuji is greater than
growth of Kodak.

4. Market Share
4

5. Sales Pattern
5

6. Category Pricing
6
 Gold Plus (Kodak)
 Premium product of Kodak priced at $3.49.
 Majorly distributed through Camera Shops.
 Kodak Gross Margin is about 70%.
 FujiColor Super G (Fuji)
 Economy product of Fuji priced at $2.91.
 Kodak Gross Margin is about 55%.

7. Consumer Behavior
7
 Household Film Usage
 Average 15 rolls per year per household.

8. Consumer Behavior
8
 Overall quality score of top 6 ISO 100 films
were almost equal with Polaroid HD being the
best.
 Limited knowledge about photography among
consumers meant that purchase of films
dependent on price alone.
 For Kodak
 50% Loyal customers.
 40% Samplers
 10% shopped on price.

9. Problem Statement
9
 Market share has decreased from 76% to 70%
in last five years with 3% increase in sales in
past year.
 While competitors sales grew over 15%.
 Major competition from Fuji & Polaroid.

10. Funtime Strategy
10
 Strategy to reposition its film product line by
Kodak.
 Kodak will offer three films.
1. Gold Plus
2. Royal Gold
3. Funtime

11. Funtime Strategy
11
 Gold Plus
 To remain flagship brand of Kodak.
 Price unchanged from previous levels.
 Would receive 60% of advertising expenditure of
Kodak.

12. Funtime Strategy
12
 Royal Gold
 To replace Ektar in super premium segment.
 Targets broader audience for “Very Special”
occasions.
 Would receive 40% of advertising expenditure of
Kodak.
 To be priced 20% above the Gold Plus brand.

13. Funtime Strategy
13
 Funtime
 Mainly devised to give Kodak presence in
Economy Brand Tier.
 To be priced 20% below the Gold Plus brand.
 No advertising support.
 To be available only twice a year in off-peak
period.
 Packaged only in value packs specifically in two
forms.
2 rolls of 24 exposures.
 4 rolls packages (3 rolls of 24 exposure & 1 roll of
exposures)

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