Eastman Kodak

1485 WordsFeb 7, 20136 Pages
Eastman Kodak Company: Funtime Film Case Analysis Group-5 PGP-RAK, 2012-14 PARTICIPANT Ankur Sinha Ishant Singal Prakhar Rathee Sambhav Jain Vikram Singh Shekhawat ROLL NUMBER 2012PGPRAK013 2012PGPRAK023 2012PGPRAK031 2012PGPRAK036 2012PGPRAK039 Situational Analysis Company Eastman Kodak is currently the market leader in the photo film market. The company has continued its domination of the photo film market, but in the past 5 years its market share has eased from 76% to 70%. Reason mainly being the competitors like Fuji Photo Film Co. and Konica Corp. lured consumers with their lower-priced versions. In 1993, Kodak spent an estimated $50 million on camera and film supply advertising in the United States; this was about 4 times its…show more content…
Of course, this is the worst case scenario when all customers moved from Gold Plus to Funtime. This situation is highly improbable given that Funtime is offered only two times in a year but it also gives an indication that there is a high potential of losses in this case of Negative Cannibalization. Analysis 3: The company should mull over its strategy to enter the economy segment. Instead of competing on price, it should protect its market. It is already the biggest brand in the market, with 40% samplers preferring Kodak. The company could focus on increasing quality through judicious pricing. The new pricing could also trigger cannibalization. Additionally it should leverage on the brand’s perceived image amongst buyers. Some existing customers are loyal to the Kodak brand, less pricey options could start to higher margins. They should also keep retailers interest into account and if possible selling to private labels could be exercised. Lack of advertising support could prove detrimental. Through advertising they could justify the high price they offer instead of entering an economy market. Furthermore, promotional campaigns could be helpful and the company could also have a relook at converting the 40% samplers into regular customers through loyalty programs. Analysis 4: Although the introduction of Funtime may result in losses, the company can persist with the plan. This

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