Kodak: Brand and Market Share Essay

Words: 1077
Pages: 5
Open Document
KODAK FUNTIME ANALYSIS

1. Diagnosis of the reasons for Kodak's market share loss and assessment of likely development of the market if Kodak maintained the status quo.

Answer:
Kodak had been experiencing a loss on market share from 76% to 70% over the past five years, which was caused by the action of its competitors like Fuji Photo Film Co. and Konica Corp., wooing consumers with low-priced versions.

If Kodak did nothing to deal with the situation, either in pricing or creating something new, sooner or later its competitors would continue to tighten their grips on Kodak's market share. The market share would slowly, but steadily, decreased. The growth, compared to Fuji's 15%, could not be relied on. At some point, it would be …show more content…
Gold's standard should help building Funtime's reputation for its quality, even if its price was low.

b. Royal Gold replaced Ektar in the Super premium segment. Ektar was targeting professionals and serious amateurs, while Royal Gold targeted a broader audience for "very special" occasions such as the birth of a baby or graduation day. This was a good strategy since people usually tend to try memorializing those events and it occurred in every day's life. There were always moments like those in people's life. Kodak could build a strong bond with the costumers by "attending" every important events in their life.

5. Analyze price-cutting effect on brand loyalty.

Answer:
Kotler (2006) mentions three possible traps, which follow a price-cutting strategy, which are:
a. Low-quality trap
Consumers will assume that the quality is low. With Kodak, Gold Plus already sets the standard for the photo film industry. If the price is cut, consumers will question its quality: Is there a faulty on the product? Has the quality been reduced? They will undoubtedly look for other products because the sense of security or trust on the product is not there anymore, due to the low price. This is a threat to the loyalty that already exists between Kodak and its consumers.

b. Fragile-market-share trap
A low price buys market share, but not market loyalty. The same customers will
Show More

Related Documents: Kodak: Brand and Market Share Essay

Eastman Kodak Company Case Study Essay

Eastman Kodak Company: Funtime Film 1. Diagnose the reasons for Kodak’s market share loss and make your assessment of the likely development of the market if Kodak maintained the status quo. Kodak has been losing market share for the past five years to the point it has gone from 76% to 70%. The underlying causes that have generated such losses and have ultimately led consumers to favor competing brands with larger growth are: I. Consumers are tending to view film as a commodity, often…

Words 1430 - Pages 6

Kodak Case Study Essay

Case 1: Kodak Questions 1. When the digital camera was first introduced to the mainstream market by Sony, analog cameras had been in use for just under a century. The analog camera was much less expensive and smaller than the clunky original digital camera. Kodak operated in a razor blade scheme of selling very inexpensive cameras, but drove revenue through their film sales. As time went on though, the digital camera increased in its advancement of shutter speed and clarity, while decreasing, relatively…

Words 1320 - Pages 6

Essay on Kodak Strategic Analysis

traditional photography was dominated by Kodak but Fujifilm had enough cash inflow from Japan market and took away a significant premium market share. In the mid 80s, quality film processing became commoditized and private label started taking market shares. As the market for digital photography matured, major players have developed competitive strength and established a unique position along different segments and different parts of the value chain. The digital camera market is characterized by intense competition…

Words 1581 - Pages 7

Essay on Hidden Reasons for Kodak's Digital Revolution

Kodak and the Digital Revolution: Case Analysis Since the early 1880’s, Kodak had proven themselves to be great innovators and had worked on building their brand on a domestic and international front. They invested heavily in marketing to establish their image and realized early on that their profits would come from consumables rather than hardware. They sold their equipment at low prices in order to fuel their highly profitable film sales. This use of a razor-blade strategy, coupled with strong…

Words 1127 - Pages 5

Kodak: Camera and Kodak Essay

ETHICS PAPER The brand name Kodak, formerly known as Eastman Kodak Company, with it's yellow "K" symbol is synonomous with pictures, or at least it used to be. During most of the 20th century Kodak held the top position in photographic film, and in 1976, had a 90% market share of photographic film sales in the United States. Their main focus with imaging solultions and services for business is headquartered in Rochester, New York and incorporated in New Jersey. Founder, George Eastman, invented…

Words 1302 - Pages 6

In Theodore Essay

business rather than defining the business and its products by the customer’s preferences and wants. Incorporating this myopic view in the market will cause three inefficiencies. Firstly, the assumption that business is, and will always be, in a growth phase will lead to a loss of sight of what the customers really want. Secondly, too narrow a definition in the market prevents foreseeing external threats, and lastly, being product orientated rather than having a customer orientated business perspective…

Words 1127 - Pages 5

Case: Chester & Wayne Essay

Global Sustainability Eastman Kodak Company 2010 Annual Report TABLE OF CONTENTS 1 Report Scope 3 Leadership Message 6 Company Profile 10 Goals 12 Performance Data 14 Compliance 15 Sustainability Framework 21 Governance 26 Innovation 31 Stewardship 41 Engagement 50 External Recognition 51 About the Photographs SCOPE OF REPORT SCOPE OF REPORT Kodak is pleased to present our fifth annual Global Sustainability Report, as well as our 21st public report to include health, safety and environmental…

Words 18757 - Pages 76

Essay on Marketing and Different Customer Segment

Social-Aging pop, diverse pop, social class. Their wants and needs. Technological-information and communication fast uptake. Advertising,promotion,facebook. Businesses did not pay attention to trends which failed. Whitcoulls -> amazon Motorola-> Apple Kodak-> Digital photography Five forces for air NZ Bargaining power of buyer-domestic v international, personal vs business travel. Threat of substitute-low, trade off between costs v time saving and convenient. Bargaining power of supplier-depends…

Words 1253 - Pages 6

Walmart's Sustainability Strategy (C): Inventory Management in the Seafood Supply Chain Essay

cannibalizing market share from new products. Remanufacturing operations involve taking used products, bringing them back to as-new condition, and selling them again, often with exactly the same warranty as a new product. Cannibalization in our setting is when the purchase of a remanufactured version of a product displaces the sale of a new product. At most of the OEMs we’ve collaborated with over the last dozen years, there is little factual knowledge about the potential for market cannibalization…

Words 9727 - Pages 39

Rothaermel Discussion Questions

means the market area may not grow or decline. Firms utilizing a focused strategy must also be aware of how the economy will impact their performance based on various target market segment that include population. It will make it hard for firms to predict how well they may do based on economy concerns of consumers. There a many risks to both a generic and focused strategy. Some can also be based on strategy sleeted. For instance a low cost strategy can involve competitors in the market to lower…

Words 1909 - Pages 8