Case study: Kodak Funtime
A Summary of
Eastman Kodak Company: Funtime Film
Situation Analysis:
Current product offerings of Kodak:
Product
Segment
Focus of the product
Competition
Ektar
Super Premium
Professionals and serious amateurs
Fuji Reala @ 10% higher price
Gold Plus
Premium Brand
Flagship product Agfacolor
Industry:
Market is stagnant with annual unit growth rate of 2%.
Kodak has overall 70% market share in films sold in US.
Consumer Behaviour:
50% customers are Kodak Loyal, 40% are samplers relying heavily on Kodak and 10% are price sensitive
Kodak does not have any offering in economy segment which is generally price sensitive.
Competition:
Konica, Fuji have launched low price products
Competition is slowly eating Kodak’s market share – 6% in 5 years
Kodak’s New Strategy:
Kodak has decided to reposition its the product line.
Kodak is planning to replace its super premium offering Ektar with Royal Gold and target it to a wider consumer base.
No change in the flagship product – Gold Plus
Plan to launch an economy band Funtime, priced 20% lower than Royal Gold and offered only during off-peak periods in limited quantity.
New product positioning:
Product
Segment
Focus of the product
Royal Gold
Super Premium
Professionals, Serious Amateurs as well as regular consumers for “Special occasion”
Gold Plus
Premium
Flagship product, for regular consumers
Funtime
Economy
For price sensitive customers
Product
Value Proposition to customers
Royal Gold
Better quality than Gold Plus
Gold Plus
Trusted product, good quality
Funtime
Better Price than Gold Plus
New Price Tiers: Assuming other brand prices remains constant.
New Price Tiers in Market
Superpremium Brands
Fujicolor Reala $ 4.69 Kodak Royal Gold $ 4.19
Premium Brands
Kodak Gold Plus $ 3.49 AgfaColor XRG $ 3.49
Economy Brands
FujiColor Super G $
Eastman Kodak Company: Funtime Film
Situation Analysis:
Current product offerings of Kodak:
Product
Segment
Focus of the product
Competition
Ektar
Super Premium
Professionals and serious amateurs
Fuji Reala @ 10% higher price
Gold Plus
Premium Brand
Flagship product Agfacolor
Industry:
Market is stagnant with annual unit growth rate of 2%.
Kodak has overall 70% market share in films sold in US.
Consumer Behaviour:
50% customers are Kodak Loyal, 40% are samplers relying heavily on Kodak and 10% are price sensitive
Kodak does not have any offering in economy segment which is generally price sensitive.
Competition:
Konica, Fuji have launched low price products
Competition is slowly eating Kodak’s market share – 6% in 5 years
Kodak’s New Strategy:
Kodak has decided to reposition its the product line.
Kodak is planning to replace its super premium offering Ektar with Royal Gold and target it to a wider consumer base.
No change in the flagship product – Gold Plus
Plan to launch an economy band Funtime, priced 20% lower than Royal Gold and offered only during off-peak periods in limited quantity.
New product positioning:
Product
Segment
Focus of the product
Royal Gold
Super Premium
Professionals, Serious Amateurs as well as regular consumers for “Special occasion”
Gold Plus
Premium
Flagship product, for regular consumers
Funtime
Economy
For price sensitive customers
Product
Value Proposition to customers
Royal Gold
Better quality than Gold Plus
Gold Plus
Trusted product, good quality
Funtime
Better Price than Gold Plus
New Price Tiers: Assuming other brand prices remains constant.
New Price Tiers in Market
Superpremium Brands
Fujicolor Reala $ 4.69 Kodak Royal Gold $ 4.19
Premium Brands
Kodak Gold Plus $ 3.49 AgfaColor XRG $ 3.49
Economy Brands
FujiColor Super G $