Eastman Kodak Company:Funtime Film

Presented by Ankita Saha(11DM023) Samarjit Das(11DM025) Anirban Dhar(11DM048) Debashish Ghosh(11DM051) Soubhik Ghatak(11DM052)

The Market Structure

US Photo Film Market: 670 million 24 exposures @$ 2.50- $3.50 per 24 rolls pack.
2% average market annual unit growth rate. Kodaks Gold Plus brand has been the largest selling brand. Four categories differentiated based on pricing-super premium,premium,Economy and price.

Kodaks Existing Brands

Kodak Gold Plus: - Flagship brand - 60% of the advertising support Kodak Ektar: - Targeted professionals and very serious amateurs - Super-premium brand to blunt share gaining attempts by rivals and private-label products

Kodaks Market share in 1993

MARKET SHARE IN 1993
5%

KODAK
10%

4%

FUJI

11%

POLAROID

PRIVATE LABEL
70%

OTHERS

Kodak Number 1
Kodak film graded the same as competitors in a Consumer Reports test Past year sales growth at Kodak (3%); main competitors (Fuji and Polaroid grew 15%) Consumer behavior tend to view film as a commodity, often buying on price alone
Film purchase d pe r ye ar by House hold
30

% of households

25 20 15 10 5 0 les s than 5 rolls 5 -- 9 rolls 10 -- 15 rolls 16 -- 25 rolls m ore than 25 rolls

Problems faced by Kodak

Kodaks market share drastically fell from 76% to 70% in the last five years. Stocks stumbled by 8% over rumors of price cut on film

Low 3% growth rate compared to an impressive 15% by fuji and polaroid and 10% by private labels.

Kodaks strategies
Royal Gold(Replacement for EKTAR): Being targeted to a broader audience for very special occasions. Introduced as a super-premium brand . 40% of the advertising support allocated to its brands. Funtime Film: Being targeted to the price-sensitive consumers Economy brand(derived US $2.79) No advertising support Available in value packs, limited quantities and in off-peak seasons.

Why Funtime????
- According to kodaks research, 40% of its customers are samplers, the major part of which is to be converted into kodak-loyals. - There is not much difference in quality among the existing brands in the four price tiers.
PHOTOFILM BRANDS Polaroid High Definition Fuji color super G Kodak Gold Plus Konica Super SR QUALITY SCORES(100) 95 94 93 93

Kodak Ektar
3M Scotch Color

92
92

Why Funtime????
- There is a growing body of price sensitive consumers. - With the help of Funtime, consumer disaggregation will be possible, i.e. the needs of those consumers can be catered at a low price, who could not afford to purchase expensive kodak products. - Kodak had no existing product in the economic tier.

Major Drawbacks????
1. Possibly there is a scope of confused positioning . 2. Lowering industry profitability by reducing average price of films. 3. Threat to Kodaks brand value. 4. Cannibalizing Kodaks Gold plus Market share in premium category. 5. No advertising support.

6. Seasonal availability of Funtime.

Recommendations
1. Minimum promotion should be done 2. Awareness should be created to improve photography industry as a whole.

3. If photo film is perceived as a mere commodity, market share can be gained by brand extensions , eg. Single-use camera models,multi-featured cameras etc