MARKETING ASSESSMENT BRIEF MARKETING CONSULTANT.

3-Year Marketing Plan Kodak



3-Year Marketing Plan Kodak

Introduction

Once upon a time, the film industry within Britain was basically stable and predictable, with the industry leader Eastman Kodak. But despite 6 billion pounds in investments during the previous decade, Kodak's U.S. market share in movie had fell from a near monopoly to its 1993 grade as competitors like Fuji, Konica and personal labels enticed customers with smaller charge options. According to industry estimates, in the first three quarters of 1993, Kodak's sales rose by 3.5%; the gain for private-label products was 9%, while Fuji gained 15%, Kodak's market share in the United States have gone down from 76% to 70% in five years.

Although Kodak was using more-advanced film production technology, the actual differences in quality were not readily evident to consumers most of whom claimed to know little or nothing about photography, and price became an increasingly important criterion for choice as film was being viewed as a commodity. A research survey commissioned by Kodak found that even though four out of five consumers said they preferred Kodak film, many consumers purchased other brands. In fact, half of the consumers were Kodak loyal 40% were samplers who relied heavily on Kodak film but purchased other brands as well, and 10% shopped exclusively on price. Our research could direct the erosion of market share and consumer loyalty and allegiance to Kodak to four main reasons:

First, British consumers have become increasingly accepting of foreign-based products. Though still Buying Made in England remains a source of pride, the typical user has less sensitivity and is more forth coming in buying and demanding foreign products.

Second, consumers have found a competitor to Kodak in the name of Fuji. Clearly, Fuji has emerged from a minor player in the early 1980's to take a solid number two position within England and Wales especially when no major differences in the quality of film could position Kodak away from its competitors.

Third, the landscape within retail America has changed dramatically within the past years. The success of TESCO and similar chains, have taught retailers that diversification, and “one-stop” shopping are important to consumers. As consolidation sweeps the nation, retailers realize they must maintain their competitive advantage or close their shops. To survive, they are squeezing manufacturers for quality products at competitive prices and more large retailers are using private labels which Kodak can't take advantage of, and market its products under such labels like other companies are.

Which brings us to the fourth and most direct reason, The American consumer has became increasingly price sensitive. Film is seen as a commodity and more than half of the consumers as Kodak's research have shown may be driven to buy another brand due to price differences especially when no actual quality differences could be determined.

Clearly Kodak have realized that the current development in the market will only lead to loss of share and that the long held view of investing in research and development to improve the film ...