Kodak in Russia

1224 Words Jan 23rd, 2011 5 Pages
Kodak in Russia
In the early 1990s, Kodak entered Russia. At the time, the country was deep in the middle of a turbulent transition from a Communist-run command economy to a fledgling democracy that was committed to pushing through the privatization of state-owned enterprises and economic reforms designed to establish competitive markets. Kodak’s entry into this market posed a number of challenges. Russian consumers had little knowledge of Kodak’s products, and the consumer market for photography was very underdeveloped. Moreover, apart from state-run stores that were generally poorly run, there was little or no infrastructure in place for distributing photographic equipment and films and for processing film. To compound
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These owner operated stores adhere to strict business guidelines Kodak set down in its master franchise agreement. The stores are clean, attractively designed, have a consistent appearance that helps promote the Kodak brand, and are staffed by friendly and polite employees. These stores rapidly set a new standard for retailing in Russia. Within three years, more than 350 Kodak Express outlets had opened in
Russia, and today there are several thousand.

This case describes how Kodak entered Russia and promoted their product throughout. It describes how they marketed their product and adjusted to the economy of Russia. They also adjusted their production of cameras and film to the area by opening a factory in Russia to reduce costs. Opened a franchising program in Russia to distribute their products through local stores instead of investing in Kodak specific stores.

Case Discussion Questions
1. How did the Russian market differ from markets in developed Western nations? How were these differences likely to impact upon demand for photographic products?

The Russian market was different due to the fact that the Russians are poor and really did not have any knowledge of cameras or what they do. Kodak marketed their product through radio, tv, and print. They made it clear that they oppose black market

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