Background
It was disclosed in January, 1994, that stock of film manufacturing giant, Eastman Kodak, had alienated 8% in value, and its market sh ar in the unite States had dropped from 76 to 70%. Figures for 1993 showed that U.S. dollar gross sales of both fuji cherry and Polaroid had increased to over 15% compared to Kodaks 3%.
centre of attention Issues
Declining differentiation of goods in the filming industry, so other companies are providing almost the same reaping but with lower set than Kodak.
A persistent problem for Kodak was its inability to keep the suck on price and constraints imposed by a 1921consent phase which disallowed Kodak from marketing under a private label.
Kodak, with twice the sales dollars of Fuji, worn out(p) four times the amount Fuji spent on advertising. Both companies attempted to position themselves in the marketplace by promoting the superior part of their film accomplished with advanced technology. However, in a series of tests performed by Consumer Reports, it was name that there was no significant difference in the quality of the top six ISO 100 films.
Proposed Strategies
Introduction of a unseasoned Product Line
To offset a perceived downward social movement and to compete with main rivals, the Fuji Film Co.
and Konica, Kodak proposed to introduce a new brand priced comparably with Fuji and Konica and 20% cheaper than Kodaks top-of-the-line film, Gold Plus. The new brand was named Funtime.
Shortcomings
There was sizeable skepticism regarding the ultimate success of Kodaks Funtime infer. Reservations were based on the following shortcomings: 1. the 1921 consent decree seemed likely to limit harvesting distribution and sales since the film could only be change under the Kodak brand name; 2. no advertising dollars were earmarked for the venture; 3. the product would only be offered twice a family at off-peak film use times; 4. limited quantities of the product would be produced; 5. the product would only be available...If you want to cast a full essay, order it on our website: Orderessay
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