KODAK ± FUJI RIVALRY

Swati Mishra (Roll no: 34) Apoorv Mahajan (Roll no: 28) Jayesh Morkar (Roll no: 36) Meharban Mehra (Roll no: 32)

Introduction
‡ Eastman had a goal to make photography ³As convenient as the pencil´. Dry Plates Roll of Film Manufacturing cameras ‡ Eastman Photographic Material Company LimitedLondon,1889 ‡ Kodak has earned 8 Academy Award.

Eastman built his business on four basic principles: ‡ Mass production at low cost ‡ International distribution ‡ Extensive advertising ‡ A focus on the customer Success invited competitors.YOU PRESS THE BUTTON. WE DO THE REST.. .

‡ Focused on Quality and Innovative Product ‡ Popular among mass due to its high speed and cheaper price rate.8% in US.Fuji In Us ‡ Fuji a Japan Based company entered US market in 1964. ‡ Was accused by Kodak of dumping its Product ‡ Had a market share of 18. . ‡ First competitor to Kodak. ‡ US could not take its home market granted.

‡ ‡ ‡ ‡ . as Kodak-Nagase.Kodak in Japan Kodak entered the Japanese market in 1905. ‡ Kodak failed to get good retail acceptance with market share of only 7-9%. Kodak introduced Waterproof disposable camera which became highly popular.000 camera stores. Joint venture with Nagase & Co. ‡ Kodak filed a petition under section 301. Access to 60.

‡ Established its first subsidiary in 1965 ‡ In 1967 .Strategies Adopted by Fuji to Enter US Market ‡ Founded in 1934 (Tokyo.Fuji released 8mm home movie system before Kodak ‡ After that Kodak introduced Super 8 movie camera which was incompatible with Fuji . Japan) ‡ Focused on providing quality and innovative products at cheap price ‡ Entered in US market in 1964 as supplier of private label film.

e.‡ Fuji¶s µPuppy Dog¶ stance(15 % market share other than Kodak i.Fuji introduced 400 speed color film that was faster than films made by Kodak due to which many photo finishers switched to Fuji .Fuji introduced a faster film with bright colors (helpful for professionals) ‡ 1972.began to market its film under its own name & started giving free rolls to buyers of Japanese cameras ‡ 1976. 3M) ‡ 1970. Konica.

‡ Kodak products were 20% more expensive than Fuji ‡ 1977. Fuji adopted intensive distribution strategy (drugstores . supermarkets) ‡ 1983. reduced prices of its print paper ‡ 1978.Fuji bought new high-resolution speed in 2 speeds and Kodak responded with 4 speeds .

‡ Fuji adopt the strategy to follow Kodak (Reactive Follower) ‡ 1984. Globalization through Localization) .e.was the first to introduce one time use cameras(leader) ‡ Established a Production plant in US (1991.Fuji was official film for Summer Olympics after which Kodak thought that Fuji could be potential threat ‡ 1986.Fuji had 15 plants in 12 countries i.

Fuji gained market share in film by spending time with distributors(bright color & fast speed) ‡ Aggressive Marketing?????????? .‡ Compatibility with Kodak Cameras & Films(Fuji spent 7% of its revenues on R & D annually to maintain competitive advantage) ‡ 1988.Kodak sponsor Olympics ‡ 1990.

Reasons for Fuji¶s success in the US ‡ Kodak had not take Fuji seriously ‡ Built a reputation for quality and innovative products ‡ Gained market share by offering products at prices lower than that of Kodak¶s ‡ Consumers oriented viewed the company as Customer ‡ Regular introduction of new products ‡ Kodak¶s defensive strategy v/s Fuji¶s offensive strategy .

U. Inc. Market 80 70 60 Unit sale s in milli ons 50 40 30 20 10 0 1993 1994 1995 1996 1997 1998 Kodak Fuji Source: Information Resources.S. Ending 6/21/98 .

KODAK IN JAPAN .

.‡ In 1980.after US.. Japan emerged as the second largest market in photography products. ‡ In 1905-To grab this opportunity and strengthening his Competitive advantage Kodak entered Japanese Market.

DISTRIBUTION NETWORK 2. INNOVATION OF NEW PRODUCT 4. 3. ADVERTISEMENT .Strategies adopted by Kodak 1. JOINT VENTURE & STRATEGIC ALLIANCE.

Setting up R&D and technical assistance centre to help customers. 2.Helped in increased the access to 60000 camera stores from the initial 30000 stores. . .a leading Japanese Toy manufacturer to sell single use cameras.Bandai. worlds leading manufacturer of Mini labs equipment.Tying up with Japanese arm Nagase & Co. . .Increase in the Access to more shelf space to display. .Increasing workforce from 12 to 4500.Which helped to process film than earlier. ..DISTRIBUTION NETWORK: .Agreement with Noritsu Koki.JOINT VENTURE & STRATEGIC ALLIANCE: . .1.

falcon.print film name Ektar. . All the above product had given high brand recognition and brand recall among Japanese consumers.e. . 4. trademark and name.Advertise heavily in the media to increase its popularity.Single use camera i.3.Innovation of New product: . . . . decorated with bright yellow color.New products such as waterproof disposable cameras.Leased only available blimp in Japan.Huge Yellow sign symbolizing Kodak¶s name.Advertisemet : .

Reasons for Kodak poor performance in Japan. 4. . 1.Generous Commission: More commission paid by Fuji to distributor 3.Entry to new barriers: Not allowing to sell other product in store except FUJI product.Poor distribution Channel: 2.Negligance: Realizing late to enter in Japan market after Fuji enters in US market.

S. & JAPAN .DIFFERENCE BETWEEN DISTRIBUTION NETWORK FOR PHOTOGRAPHIC FILM IN U.

In Japan. . distributors mediate between the two parties.MAJOR DIFFERENCES systems in place to distribute film. paper and supplies to end-users. most of photographic manufacturers sell directly to retailers and photofinishers. In the United States.

FUJI DISTRIBUTION NETWORK IN JAPAN FUJIFILM Tokuyakuten (Independent traders or merchants) ASANUMA MISUZU KASHIMURA OHMIYA Secondary Wholesaler SMALL RETAILERS (KIOSKS) LARGE RETAILERS CAMERA STORES .

COLOR FILM DISTRIBUTION STRUCTURE IN JAPAN .

FUJI DOMINANCE IN JAPAN Fuji substantial control over the vertical channel Characteristically smaller retail outlets & are large in number sold in approximately 400. when only one brand can be stocked.S. retailers. and Fuji's similar ability in Japan .000 Japanese retail establishments Limited shelf . inventory & storage space Small store likely to specialize in single best known brand They also buy from secondary wholesalers Gained an access to small retailers in rural area Kodak's ability to be best choice for small U.

Japanese Private Label. prime location.Store Type Large. part of local chain Convenience store. well-known single. MA Kodak. single-unit Discount house. largest unit oflocal chain Large retail phannacy. single-unit Large food supennarket. Polaroid. Charlestown. MA Kodak. MA Kodak Kodak . MA chain News shop at resort News shop. MA Kodak Charlestown. Polaroid. unit ofleading chain Large retail phannacy. VA Boston. Polaroid. part of regional Charlestown. Polaroid.unit photo equipment and supplies specialist Photo equipment specialist. Fuji Charlestown. Fuji. Fuji Hot Springs. MA Kodak. MA Kodak. off location. Polaroid Cambridge. Konica. MA Film Brands Stocked Kodak. unit of chain. MA Kodak. Polaroid. Fuji Charlestown. Polaroid. Logan Airport Location Cambridge. MA Kodak. iiford Cambridge. Konica Brookline. Fuji. Polaroid Brookline. in large shopping mall Small photo supplies and processing outlet. single-unit Small retail phannacy. MA Kodak.

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