Principle Objective
To propel gain in a maturing food market and take steps to prevent erosion of market share.
To mitigate the low-pricing strategy of competition
Key Assessment
Kodak enjoys strong brand front man and market dominance tar bothering the Superpremium and Premium tiers. The flagship product, Kodak currency Plus is easy recognized and perceived as industry standard.
The companys large distributer networks have helped in market penetration.
The dealer incentives for the dealers were the in high spirits margins offered per displume by Kodak - 70 cents as opposed to 61 cents offered by private labels.
Fuji has carved out a come on for itself in the minds of the consumer by positioning its product at a price lower than Kodak favourable and at the same time using technology to provide a claim of high quality films at discounted prices.
Fuji has also demonstrated its right commitment in ablactateing away customers from Kodak loyalists by its high visible promotion in the 1984 Summer Olympics in LA
With market surveys portraying that the average consumer perceived film as a commodity, and differentiated between the available options based on brand awareness/loyalty and price sensitivity, It became imperative for Kodak to chew over a antagonistic strategy.
Kodak Response to the strategy was to create a 3 pronged division of customer stratification
1.Royal gold as a market expansion from Professionals to special occassions
2.Gold plus as the flagship brand
3.Funtime to cater to economy tier to wean consumers from me-too competition brands
Observations & Recommendations
The strategy is sound.
Resisting the temptation to aggressively introduce newly product lines in a matured low growth market segment is a prudent strategy. In this context, the counter strategy by introducing Funtime to stem market loss would be most appropriate..
Kodak can play on its competitive value of market presence and strong distribution network. In...If you want to get a full essay, order it on our website: Orderessay
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