Case preparation memo
GROUP NAME _____________________________
YOUR NAME_________Jordan Lewis_______ CASE __Kodak_________________
1. What is/are the problem(s) in this case? Keep it to a single statement. At most, you may point out a couple of the key questions. The problem in the Kodak case is that Kodak is losing market value because they are reworking their product line, causing doubt in customer mindset. They have created the Funtime film to attempt to regain market value.
2. What are the key issues? This is just a simple list (condensed SWOT). You do not need to analyze in great detail. The key issues are that they are losing market value by remaking their best seller. By attempting to enter the economy brand-pricing
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4. Present a quantitative analysis of key alternatives (if appropriate). This section may include break even, margin analysis, ROI, LCV, etc. State clearly if you do not find relevant numbers in the case. It is an interesting strategy to sell the Funtime film in “value packs.” By selling them in packs they are making a relatively similar amount of money, as they would by selling one roll of Gold Plus film. On average consumers spent between $2.50 and $3.50 on a roll of film so by bundling Funtime together and selling them for roughly the same price as one roll of Gold Plus, it seems like a higher margin could be made by selling the Funtime rolls individually. If they were to sell them individually they could sell them for 0.50 less than their Gold Plus and still make a decent margin, while maintaining the lower price point necessary for the consumer. The case states that Funtime is to be sold at a price 20% less than Gold Plus, which is sold for 20% less than Royal Gold.
5. In your own words, what is your recommendation? First, what reason(s) do you have to choose this alternative? Second, how will it be implemented? Use the marketing mix elements and research components as implementation guidelines. The previous sections can be duplicated within your group, but this part should be individual effort. The best strategy would be to concentrate on the new product line and promote it heavily with a competitive
4) Based on your positioning strategy, what brand name and marketing budget allocations would you advise?
Because of this rapid growth several challenges can present themselves. A primary challenge that can present itself is the lost of the boutique feel because of the hundreds of locations. Even though each boutique is different and personalized, opening too many locations may cause the retailer to lose its niche in the market. Another challenge is the many changes the company has gone through in upper level management. Because of the changes investors have been discouraged, as mentioned before, and shares were down 16% after the changes.
The problem in this case is concerned with Eastman Kodak losing its market share in film products to lower-priced economy brands. Over the last five years, in addition to being brand-aware, customers have also become price-conscious. This has resulted in the fast paced growth of lower priced segments in which Kodak has no presence.
What is the main outcome you intend to achieve? Tie it back to the relevant marketing objective.
The main issue is that their clients have moved away from the old vertical manufacturing structure (i.e. acquiring the upstream/downstream components of the value
The third question Rochelle should pose to the team is: What types of customers have we been serving? This question would be answered through a market research that would be aimed at defining the existing customers in detail. The team by answering this question will then be able to diversify appropriately. They would then identify the groups that have not been covered by their products and come up with a product line that is suitable for them. Diversification will ensure that the company has security and decline in one product line is cushioned by the sales of other products.
The problem in this case is Kodak's steadily eroding market share and shareholder value in the film rolls market. This is especially undesirable given the fact that the market has been growing at a tepid 2% annual rate and the steadily increasing threat from competition. Kodak needs to come up with a strategy for corrective action so as to arrest this decline, regain market share and increase share holder value. Kodak's strategy is to reposition itself by targeting a new segment of price sensitive customers and re-segmenting the super premium customers’ space by including a wider segment of special occasion customers.
1. Describe the main challenges faced by brand managers Marcilie Smith Boyle and Allison Warren. Of what relevant trends should they be aware?
d) What additional information would you like before making a decision about adding these new products?
To better understand their declining performance, the company then launched an internal review of their operations and determined that the main reasons for their recent struggles were: a decline in department store sales, the rise of fast fashion retailers, the company’s own out-of-date supply chain model, and that the company’s focus was diluted over too many brands and too many initiatives. (“The
To develop such strategy mix of strategic options will be applied including Integration to deal with competition and Intensive + Diversification strategies for product and market development.
Thanks to a lucky series of events, Atomic Company has enjoyed a sharp increase in sales of their Tiger Pants line. The most obvious and immediate pains being felt by management is the inability to predict future sales and the high amount being paid out in sales commissions. While these are legitimate concerns, I believe deeper problems exist.
It is considered that photography only became widely available to the public when the Kodak Eastman Company introduced the box shaped Brownie Camera in 1900. (Baker, n.p.) Its features became more refined since its original placing on the market; one of the reasons why it has become considered the birth of public photography is because of the processing. Using a similar image capture system, the brownie exposed the light to a 120mm roll of film, which could be wound round, meaning six photographs could be taken before the slides needed removing. The first Brownie used a six-exposure cartridge that Kodak processed for the photographer. (Kodak.com, n.d.) Realistically, the armature photographers did not need to understand darkroom processes,
Once they analysed what were the main issues that led the company into that situation, two were the main problems. First of all, the product portfolio was unprofitable, more than the 94% (Breen 2013).
In the past Classic Pen Company had been the low-cost producer of black and blue pens and had profit margins over 20% of sales. Over the last five years Pen Co. decided to start producing red and purple pens. They require the same basic production technology but can be sold at 3% and 10% premium selling prices. Sales Manager Dennis Selmor is just seeing the financial results and is not happy with the numbers.