Eastman Kodak

Funtime Film
Case Discussion
Sumedha Nanda (10DM-159), Suraj Jain (10DM-163), Susan Pradhan (10DM-162), Vineet Sehgal (10DM-172), Siddharth Loya (10IB-058), Chinmay Agrawal (10IT-031), Vivek Sharma (10DM-181)

e. economy and price brands Being targeted to a broader audience for very special occasions.Super Premium.9 rolls 10 -.$3. which is a marketing strategy to influence consumer behavior 40% of the Dollar advertising support allocated to it Film purchased per year by Photo Film Purchase byHousehold Households 30 % of households 25 20 15 10 ‡ Royal Gold (Replacement for EKTAR) ± ± ‡ ‡ Kodak Ektar Kodak Gold Plus ± ± Flagship brand 60% of the Dollar advertising support ‡ Funtime Film ± ± ± ± 5 Being targeted to the price-sensitive consumers 0 Economy brand less than 5 rolls No advertising support Available in value packs.50 per 24-rolls pack 2% average market annual unit growth rate Kodak s Gold plus brand has been the largest selling brand (70% gross margins) Four categories differentiated based on the pricing.25 rolls more than 25 rolls ‡ Photo Film as a Commodity . the graduation. limited quantities and in off-peak seasons 5 -.50 . premium.g. the birth of a baby.Synopsis ‡ US Photo Film Market ± ± ± ± 670 million 24-roll exposures @$2.15 rolls 16 -.

‡ Most of the film quality is relatively similar and Kodak holds a dominant and leading position in the Photo film market which coupled with strong competition makes it even harder to increase marketshare ‡ Will the launch of Funtime Film help Kodak regain marketshare? ‡ Danger of Fighter Brand (Funtime) cannibalizing existing market of Flagship brand (Kodak Gold Plus) ‡ Will the launch of Royal Gold with a price strategy supporting superior trade margins reach the intended market segment? . ‡ Low 3% growth rate compared to an impressive 15% by Fuji & Polaroid (sells sourced film) and 10% by private labels. ‡ Stocks stumbled 8%.Problem Statement ‡ Kodak s market share fell from 76% to 70% over 5 years.

the risks appear to outweigh the possible benefits ± If handled well. the launch of Royal Gold can increase market share as it caters to a broad audience and will help maintain margins as is not a price warrior like Funtime ± Continuing with Funtime will cause loss of revenue.Analysis ‡ Given in the Case ± Funtime is leveled to Economy Brands. which is only offered during the off-peak seasons and in limited quantities ± This may cause some cannibalism because research shows that 40% of Kodak buyers sometimes bought cheaper film on a test basis ‡ Our Analysis ± The Brand value of Kodak will be affected negatively in case the strategy does not work (a rumour of price cuts. fall in the share price and brand distortion . sent the stock price reeling) ± In the current Funtime strategy.

single-use camera models ‡ Geography specific marketing ± Las Vegas. other tourist attractions Minimum of 4 rolls pack. . etc.Recommendations ‡ Search for alternative production centres (outsourcing) and better technology to retain margins and match competitors low pricing ‡ Employ Effective and Smarter marketing techniques ‡ Conduct independent tests on new emulsion technology and incorporate in advertising to communicate superior performance ‡ Create marketing strategies to convert 40% samplers segment to Kodak loyals ‡ If photo film is perceived as a commodity.g. E. gain market share by Brand Extensions. Victoria Falls. Times Square. higher advertising support. higher trade margins.