Kodak Harvard Case

Case prep ardness memo GROUP NAME _____________________________ YOUR NAME_________Jordan Lewis_______ upshot __Kodak_________________ 1. What is/ atomic number 18 the problem(s) in this demonstrate window? hang in it to a single statement. At close, you whitethorn apex out(a) a twain of the key questions. The problem in the Kodak case is that Kodak is losing trade hold dear because they are reworking their mathematical increase line, causing precariousness in client mindset. They waste created the Funtime bourgeon to attempt to get hold market value. 2. What are the key issues? This is retri barelyory 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 gravel over their topper tell oner. By attempting to enter the sparing marking-pricing point, they suck up restructured and re branded their other films, making their consumer doubt the quality of their original merchandise. They ha ve renamed their superpremium film to correlate with their premium brand, which is a strength, hardly could lose a few of their customers in the transition. By not heavily advert their untried line of Funtime film they runnel the risk of not r for each 1ing their consumer.From a business standpoint, it seems odd to devote so little marketing to a new product, it seems as though they dont care/believe in the product to begin with. 3. What are the alternatives? Be germinal What are the strategic tradeoffs (pros / cons)? This should be a list of at least 5 alternatives. They do not all have to be wonderful ideas. This is a think step -Take a percentage of the advertize/marketing dollars designated to the most well known, most purchased film, bullion gain, and use it to run genius campaign for Funtime. -Find a way to box the Gold Plus and the Funtime together. Advertise and market to genuine consumers of Gold Plus, their most best- selling(predicate) film. -Give a free samp le to cytosine current Kodak users, its not implausibly costly and whitethorn be fitted to generate word of mouth advertising. -Sell each curler of Funtime singly. Set the legal injury point a little higher than the encase pricing would be, and market them as a quick solution to those necessary moments when a photo is needed. 4. Present a valued analysis of key alternatives (if appropriate). This section may include break even, margin analysis, ROI, LCV, etc.State all the way if you do not find pertinent numbers in the case. It is an interesting outline to sell the Funtime film in value packs. By selling them in packs they are making a relatively comparable amount of m peerlessy, as they would by selling one roll of Gold Plus film. On average consumers spent betwixt $2. 50 and $3. 50 on a roll of film so by bundling Funtime together and selling them for almost the same harm as one roll of Gold Plus, it seems like a higher margin could be make by selling the Funtime rolls separately. If they were to sell them individually they could sell them for 0. 0 less than their Gold Plus and still make a decent margin, while maintaining the lower set point necessary for the consumer. The case states that Funtime is to be exchange at a outlay 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? practice session the marketing shamble elements and research components as implementation guidelines. The precedent 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 advance it heavily with a competitive price. result strategies I think they need to measure the way they are introducing Funtime into the market. It makes little to no experience to introduce an economy price based item into the market without advertising it. In analyzing their target scarce 10% were price storehousepers, but their manager of command merchandise marketing stated that there is a significant rise in price-sensitive shoppers, so it would make sense to feed at least a fraction of the marketing strategy to the new price point product.Go for market penetration determine The Funtime film is meant to fit the economy brand pricing tier. The other films in this tier range from $2. 69-$2. 91. The case does not today state the price of one individual roll of Funtime film. It does however mention that it is only to be sold in packages of both or quadruplet. It would make most sense to sell two of the Funtime films for the price of one roll of their premium film. However, they do entreat more exposures in the pack of four and could possibly sell it for a large margin.Especially if they are trying to compete with the undercover label margin which is higher than Kodaks margin. To implemen t this pricing strategy I would advertise a 2 for 1 or more bang for your jerk strategy, emphasizing the quality or writing style difference as well. Promotional ideas As an alternative I would choose to conjure some form of promotion for the Funtime film. I find it necessary to promote a new product, rather than introduce it twice a year in particular quantities. An economy-based shopper is looking for something easy, cheap, and on the go, so make it easily accessible to them.Promote it about kickoff time, wedding season, and holidays so that people toy with to pick up an extra roll of film. By releasing it with hardly some(prenominal) advertising and on a trammel quantity run it doesnt show much confidence in the product to begin with, so leave it out there and promote it when necessary. Distribution play Distribute at point of sale, registers, beside to picture frames, in the photo growing section of department and drug store. maybe even convenience stores. It is an economy priced item, sell it where people will make it an add sale item.Distribute where current users of Kodak film shop so that they may become acquaint with it and understand its use. interrogation (goals, methods, etc. ) Research how other companies marketed and sold their economy brand priced film. Find out which consumer would be kindle in the film and target them. Use a survey to ask current consumers what price they would be willing to gestate for a less premium film, and what they would watch out of it. Run a mental testing test in key areas and around peak seasonal times.