Kodak Marketing Strategy

Kodak Marketing Strategy

Executive Summary

Kodak has been failing over the years despite being among the leading camera manufacturers in the world at one point. This new marketing strategy is aimed at helping the Company regain its competitive advantage. The marketing strategy will include a combination of content and social media marketing. The main content marketing tactics that will be used are videos, photos, blogs, and user-generated content. Blogs will be published on various photography and product review websites and shared on social media after being optimized with search engine optimization. The blog posts will be published once a month to keep customers informed about Kodak product improvements and the availability of different products. Videos will include demonstrations of the quality of photos taken using the Kodak camera and how to use the Kodak cameras. They will be shared on different social media platforms and include captions requesting feedback from the audience, such as reviews from customers who have used the cameras discussed in the video and suggestions on improvement areas. Photos taken using different Kodak cameras will be posted on social media platforms to market the cameras. The photos will include a short description of the camera used and its features to help customers distinguish between different Kodak cameras in the market.

User-generated content will include the photos and videos that customers have taken using the Kodak cameras. The Company will initiate customer competition challenges where the person with the best photo taken using Kodak cameras will receive a reward. The rewards will include shopping vouchers, free cameras, and being hired as the Company’s brand ambassadors. The competitions will be initiated on social media platforms with a large audience, such as Instagram, Facebook, and TikTok. Customers will be requested to give consent for their content to be used for marketing to generate credibility among customers and increase visibility. Social media marketing will include posting photos, videos, and user-generated content on Facebook, Instagram, and TikTok. The Company will also use influencers to present videos on the features of the Kodak cameras, their prices, and where to purchase them.

Company Description

George Eastman founded Kodak in 1888. The Company was incorporated in 1892 as Eastman Kodak Company. It focused on different photography-related activities, such as film and photographic-based materials and chemicals (Tyan, 2009). It dominated the photography industry by structuring its operations based on customer focus, local distribution, developing a low-cost mass production process, and extensive marketing (Stanwick & Stanwick, 2020). Eastman was dedicated to revolutionizing how images were captured by emphasizing clarity. The Company increased its market share rapidly and controlled over 80% of the market share in the photographic film industry in the United States and 50% of the photographic market in the world. However, the Company’s performance began declining in 2005 when digital cameras were introduced in the market because the Company ignored the changes and continued focusing on analog photography. The Company also started facing stiff competition from lower-priced competitors who offered similar quality. Its main competitor was Fujifilm. The stiff competition led to a massive decline in sales, and the Company began making losses. In January 2012, it filed for bankruptcy because it could not sustain a positive cash flow.

In 2016, the Company began its journey to recovery. It announced that it would revive its Super 8 camera. During the same year, it announced that it would introduce a Kodak smartphone, Kodak Ektra, that would be sold at $3999.99 (Stanwick & Stanwick, 2020). However, the smartphone idea was not successful because the phone was not compatible with major mobile networks. In January 2018, the Company announced that it would expand into cryptocurrency and blockchain technology. The Company also stated that it would use blockchain technology to create its cryptocurrency, KodakCoin. The cryptocurrency would be used for photo royalty and copyright payments for digital photographers (Stanwick & Stanwick, 2020). However, the project was unsuccessful due to criticism that the profits promised to investors were misleading and unrealistic. On July 28, 2020, the Company announced that it had been granted a government loan amounting to $765 million under the United States Defense Production Act. It stated that the loan would be used to help in generic medicine production. The Company also noted that it would create a new pharmaceutical department to expand its operations.

Strategic Focus and Plan

Proposed New Mission

To revolutionize digital age photography by creating a result-oriented culture offering customers exciting ways to capture high-quality images and process them as entertainment, memories, and information anywhere in the world.

Proposed New Goals

• To become a leader in the photography industry.
• To introduce innovative ideas that will revolutionize the digital photography age.
• To gain 60% market share in the United States and 50% in the global market.
• To increase customer loyalty by offering cameras that capture high-quality images.

Core Competency and Sustainable Advantage to Return to Competitiveness

The core competencies that Kodak can leverage to retain competitiveness are color science, image processing, sensors, ink technology, and print media competencies. According to Grant (2016), Kodak is a leader in the control, production, specification, visual perception, and measurement of color, including predicting the performance of the devices used to capture images and imaging systems. The Company is also a leader in quantifying and measuring visual responses to light. Therefore, it can leverage these competencies to improve the quality of the pictures captured using Kodak cameras. Kodak is also a leader in the algorithms used to process images for text and object recognition, balancing color and image manipulation and enhancement. The Company can leverage this competency in adjusting lighting conditions, scene reflectance, and sharpness in digital photo finishing. Grant (2016) argues that Kodak is a leader in image sensor technology with more than 30 years of experience in manufacturing and designing electronic image sensors used in machine vision, cameras, medical imaging, and satellites. The Company is also a global leader in pigments and dyes, including the micro-milling technology applicable in digital photography. The print media competency includes being a leader in applying chemical and polymer science engineering in printing.

Situational Analysis

Industry Analysis

The photography industry is highly profitable due to the rising demand for high-quality cameras to record films, advertisements, and events. According to Fang & Xiong (2020), technological advancements have impacted the demand for film processing, thus creating an opportunity for innovative businesses within the industry to leverage new opportunities. The industry is also characterized by seasonal demand, including high demand for photography products and services during summer when outdoor activities and weddings are rising. According to Simpson (2012), seasonal demand is also experienced in commercial photography due to seasonal events such as fashion campaigns. The industry is anticipated to grow, especially in the United States and the United Kingdom. According to Tiernan (2019), the photography industry in the United Kingdom and the United States expects a 1.9% growth over the next five years due to the demand for portrait and wedding photography. Technological advancements will also contribute to the industry’s growth by creating new changes that allow customers to improve their photography skills and understand the most important features to consider when purchasing a camera. The demand for commercial photography will also accelerate the growth of the photography industry due to an increase in the demand for high-quality videos and images to promote products and services.

Market Analysis

The market for photography products is large due to the high number of small businesses specializing in photography and content creation. The level of competition in the market is high because the reduced cost of photography equipment and technological advancements have made it easier for consumers to create their content and take photos with their phones instead of relying on professional photography. Therefore, camera manufacturers must rely on building a good reputation and customer loyalty to succeed. Digital technology software such as Adobe Photoshop also threatens the success of camera manufacturers such as Kodak. Customers do not need to capture high-quality images since they can retouch and enhance any image digitally. However, the demand for digital photography in commercial photography continues to increase steadily, thus creating an opportunity for companies such as Kodak to gain a significant market share by focusing on business-to-business sales.

SWOT Analysis

Strengths

Kodak’s main strength is its extensive product portfolio. According to Grant (2016), Kodak has many different products in the market for commercial, industrial, and personal use, such as printing chemical-ray films, photo-finishing services, and microfilming equipment. The second strength is reliable suppliers. Kodak has a reliable customer base that enables it to overcome the bottlenecks in the supply chain. The third strength is a skilled workforce that helps the Company produce quality products. The Company also has good after-sale services, including warranties for all its products, thus creating customer satisfaction and loyalty.

Weaknesses

One of the main weaknesses affecting Kodak’s growth is its slow response to changes in the business environment. Kodak has a history of ignoring changes in the market, such as the rise of digital photography, thus limiting its competitive advantage. The second weakness is poor leadership. Kodak’s leaders delayed the Company’s transition from analog to digital photography leading to massive losses and losing the Company’s competitive advantage.

Opportunities

One of the opportunities that Kodak can leverage is producing digital cameras and setting low prices to attract customers who are aware of the brand’s reputation for producing high-quality products. The second opportunity is developing cameras for mobile phones due to the rising trend of the use of mobile phones in content creation and photography. Kodak can partner with phone manufacturers to provide high-quality cameras for their phones, thus increasing profitability through business-to-business sales.

Threats

The main threat Kodak should be prepared to face is stiff competition because it has been out of the market for a long time. The second threat is substitute products, such as smartphones, which capture high-quality images and record videos. The third threat is technological development. Kodak has to stay updated on the technological developments that could affect the demand for its products.

Market-Product Focus

Proposed Marketing Objectives

• To increase the Company’s market share by 15% within two months.
• To increase the Company’s sales by 25% within three months.
• To regain the 80% market share in the United States within one year.
• To regain the 50% market share in the global market within one year.

New Target Market(s)

One of the new target markets will be filmmakers. The Company will design cameras for filmmakers by including features to help filmmakers capture clear images, such as light adjustment and zooming. The second new target market will be professional photographers. The Company will focus on the camera features required in professional photography, such as image clarity, to meet the needs of professional photographers. The third new target market will be amateur photographers. The Company will offer cameras with photo editing features to help amateur photographers capture good photos. The fourth new target market is marketing content producers. The Company will offer affordable cameras with filmmaking capabilities for content producers.

Identifiable Points of Difference

One of the differentiable points that Kodak will use to distinguish itself from competitors is same-day delivery. The Company will create an extensive distribution network and partner with logistics companies to offer same-day deliveries to customers to increase customer satisfaction and loyalty. The second differentiating point is offering high-quality cameras at different price ranges. The Company will also offer discounts and flash sales to create a competitive advantage. Another differentiable point is offering a one-and-a-half-year warranty on all its products to attract more customers and create customer loyalty.

Brand/Product Positioning

Kodak will use performance-based and quality-based brand positioning. According to Kostelijk & Alsem (2020), performance-based brand positioning focuses on the performance of a product compared to similar products offered by competitors. Kodak will ensure that its cameras’ performance is high and meets digital photography’s performance standards. Quality-based brand positioning focuses on using a product’s quality as the main selling point (Mogaji, 2021). Kodak will use high-quality raw materials to manufacture the cameras to ensure they are durable and strong to avoid breakage. The Company will also use high-quality lenses to ensure that the photos captured with the cameras are of high quality.

Marketing Mix Program

Product Strategy

Kodak will focus on producing digital cameras, lenses, and digital printing materials. The digital cameras will include mirrorless cameras, digital SLR cameras, compact digital cameras, and film SLR cameras. The Company will produce phone camera lenses to sell to phone manufacturing companies and camera lenses that customers can purchase when they want to change their camera lenses. Digital printing material will include digital printers and printing presses. The product portfolio may be expanded based on customer suggestions and market trends.

Price Strategy

Kodak will use a competitive pricing strategy. According to Kachani & Shmatov (2010), competitive pricing includes strategically setting prices based on the price of similar products offered by competitors. Kodak will compare its prices with the prices set by major competitors such as Nikon to ensure that it sets favorable prices that can help acquire a large customer base. The Company will occasionally offer incentives and discounts to maintain customer loyalty and attract more customers. Returning customers will also be offered discounts to encourage return purchases.

Promotion Strategy

Kodak will use content marketing and social media marketing. Essentially, the Company will create blog posts discussing its products and product features and tutorial videos to show customers how to use the cameras and the quality of photos captured by the different types of cameras. The Company will also post user-generated content on social media platforms to market the cameras based on the quality of videos and photos captured. The leading social media platforms that will be used for marketing are Facebook, Instagram, and TikTok.

Distribution Strategy

The Company will distribute its products through online e-commerce platforms and physical stores in areas with a high population of target customers. The Company will also partner with electronics retailers to sell its products. It will also create an online selling platform where customers can view available products, product features, prices, and reviews and place an order and delivery address.

Financial Data and Projections

Historical Sales Revenues

Figure 1: Kodak Sales Revenues (Source: Market Cap. (n.d.). Eastman Kodak Company (KODK) – revenue.)

Financial Projections

The available financial projections for Kodak are on stock performance, as indicated in the table below.

Table 1: Kodak stock price projections (Source: (AI Pickup. (2020). Kodk: Eastman Kodak Company Stock Forecast 2022 – 2025 – 2030).

Future Sales Estimates/Forecasts

Product	Sales Estimates
	2023	2024	2025	2026	2027
Digital printing materials	$200.00	$220.00	$230.00	$250.00	$270.00
Cameras	$1,500.00	$1,550.00	$1,600.00	$1,650.00	$1,700.00

 

The figures above were determined based on the Company’s revenue increase over the past two years. The main assumption is that the company will continue generating more revenue in the coming years due to extensive marketing and increasing brand awareness as customers continue to recognize the return of Kodak to the photography market. However, the figures may change based on changes in market conditions.

Organization

The Company will expand into the global market by venturing into developing markets that large brands have not yet dominated. The Company will open branches in developing countries to monitor sales and conduct market research to improve the Company’s sales in the countries. The Company will also partner with filmmakers in developing countries by forming partnerships to supply filming cameras and share the profits from selling the films because most developing countries cannot afford high-quality cameras for film production. Expanding into developing markets will also include partnering with local retailers to increase the availability of Kodak products to the target customers. The Company will partner with electronics distributors in developed countries to sell products and increase brand awareness.

Implementation, Evaluation, and Control Plan

The marketing strategy will be implemented in three phases. The first phase will be creating content that will be used to market the Company’s products. The marketing team and graphic designers will create the content to ensure that it is fit for marketing and appealing to the audience. The second phase will be creating social media platforms and maintaining customer engagement to get followers before posting marketing content. During this phase, the social media platforms will inform customers that the Company is regaining its position in the photography industry and solicit customer feedback on what they expect from the company and improvement areas it should consider to be successful. The third phase will be posting marketing content on social media platforms and engaging customers by replying to their comments on the marketing posts. The content will be updated regularly to maintain customer engagement and the brand’s relevance. The marketing strategy will be evaluated by creating key performance indicators. According to Appleton (2017), key performance indicators are the indicators that organizations use to estimate their success based on specific goals and objectives. One of the key performance indicators that will be used is the increase in new customers. The second indicator is the increase in sales. The third indicator is the increase in brand awareness. In addition, the marketing strategy will be controlled by regularly monitoring the changes in sales and customer feedback on the marketing posts on social media platforms. The changes will be recorded to assist the evaluating team in determining what is working and what should be reconsidered.

References

AI Pickup. (2020). Kodk: Eastman Kodak Company Stock Forecast 2022 – 2025 – 2030. KODK: Eastman Kodak Company stock forecast 2022 – 2025 – 2030. Retrieved December 2, 2022, from https://aipickup.com/stock-prediction/kodk-stock-forecast

Appleton, L. (2017). An overview of key performance indicators. Libraries and Key Performance Indicators, 61–72. https://doi.org/10.1016/b978-0-08-100227-8.00009-1

Fang, J., & Xiong, W. (2020). Impact of digital technology and the Internet on the film industry. IOP Conference Series: Materials Science and Engineering, 768(7), 072112. https://doi.org/10.1088/1757-899x/768/7/072112

Grant, R. (2016). Eastman Kodak’s Quest for a Digital Future. CASES TO ACCOMPANY CONTEMPORARY STRATEGY ANALYSIS.

Kachani, S., & Shmatov, K. (2010). Competitive pricing in a multi-product, multi-attribute environment. Production and Operations Management, 20(5), 668–680. https://doi.org/10.1111/j.1937-5956.2010.01195.x

Kostelijk, E., & Alsem, K. J. (2020). Brand positioning and Brand Architecture. Brand Positioning, 194–209. https://doi.org/10.4324/9780429285820-13

Market Cap. (n.d.). Eastman Kodak Company (KODK) – revenue. CompaniesMarketCap.com – companies ranked by market capitalization. Retrieved December 2, 2022, from https://companiesmarketcap.com/eastman-kodak-company/revenue/#:~:text=Revenue%20in%202022%20 (TTM) %3A%20%241.20%20B

Mogaji, E. (2021). Brand positioning. Brand Management, 63–84. https://doi.org/10.1007/978-3-030-66119-9_4

Simpson, R. (2012). Photography in demand: The work of the increasing number of professional photographers to meet public demand. The Photography of Victorian Scotland, 68–88. https://doi.org/10.3366/edinburgh/9780748654611.003.0005

Stanwick, P. A., & Stanwick, S. D. (2020). The Rise and Fall of Eastman Kodak: Looking Through Kodachrome Colored Glasses. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(12), 219–224.

Tiernan, S. (2019). An overview of the photography industry. Splento Blog: Videography & Photography on Demand. Retrieved December 2, 2022, from https://www.splento.com/blog/business/photography-industry-overview/

Tyan, Y. S. (2009). Eastern Kodak Company. https://doi.org/10.2172/1004875.

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You will prepare a written report and a presentation for marketing strategy regarding a publicly traded company that has either failed or has been struggling to compete in recent years.

Your task is to research and strategize how your chosen company will return and be competitive in a global market.

Because this course concerns marketing management in a global economy, the marketing mix should reflect the firm’s ambitions to compete across multiple foreign markets. This means the product, price, promotional, and distribution

strategies should reflect a globally competitive mindset.

 Below is the outline for the marketing plan:

1. Executive Summary
   1. One-to-two-page summary of the marketing strategy
2. Company Description
   1. Highlights of the firm’s historical and recent operations
3. Strategic Focus and Plan
   1. Proposed new Mission
   2. Proposed new Goals
   3. Core competency and sustainable advantage to return to competitiveness
4. Situational Analysis
   1. Industry analysis
   2. Market analysis
   3. SWOT Analysis

5. Market-Product Focus

• Proposed marketing objectives
• New target market(s)
• Identifiable points of difference
• Brand/Product Positioning

6. Marketing Mix Program
   1. Product strategy
   2. Price strategy
   3. Promotion strategy
   4. Distribution strategy
7. Financial Data and Projections
   1. Historical sales revenues
   2. Financial projections (if available)
   3. Future sales estimates/forecasts (based on product price, units to be sold, market size, competition, and other variables)
8. Organization
   1. Restructuring of the firm, expansion(?)
9. Implementation, Evaluation, and Control Plan
10. References