Circumstance preparation memo GROUP TERM _____________________________ YOUR NAME_________Jordan Lewis_______ CASE __Kodak_________________ 1 . What is/are the problem(s) in this case? Keep it to a single declaration. At most, you might point out a few the key queries.
The problem in the Kodak case is that Kodak is dropping market value as they are reworking their product line, leading to doubt in customer mindset. They have created the Funtime film to attempt to get back market value. installment payments on your What are the key issues? This really is just a simple list (condensed SWOT).
You don’tneed to analyze in great detail. The key issues are they are losing their market value by remaking their best retailer. By attempting to enter the economic system brand-pricing tier, they have restructured and rebranded their other films, producing their client doubt the standard of their first product. They may have renamed their superpremium film to assimialte with their high grade brand, the industry strength, yet could reduce a few of buyers in the changeover. By not heavily advertising their new line of Funtime film that they run the risk of not achieving their buyer.
From an enterprise standpoint, it seems odd to devote so little marketing to a new product, it seems like as though they don’t care/believe in the product to begin with. several. What are the alternatives? Always be creative! Precisely what are the ideal tradeoffs (pros / cons)? This should be a list of at least your five alternatives. They don’t all must be wonderful tips. This is a brainstorming step -Take a portion of the advertising/marketing dollars specified to the most well known, most acquired film, Gold Plus, and employ it to run one campaign to get Funtime. -Find a way to bundle the Gold Plus and the Funtime together. Advertise and market to current consumers of Rare metal Plus, their particular most well-liked film. -Give a free sample to 95 current Kodak users, it can not amazingly costly and may be able to create word of mouth promoting. -Sell every roll of Funtime individually. Set the retail price point somewhat higher than the manufactured pricing would be, and marketplace them as being a quick strategy to those required moments each time a photo is required. 4. Present a quantitative analysis of key alternatives (if appropriate). This section might include break even, margin analysis, RETURN, LCV, and so forth
State evidently if you do not get relevant amounts in the case. It is an interesting strategy to sell the Funtime film in “value packs. By selling all of them in packages they are producing a relatively comparable amount of money, as they would selling off one spin of Platinum Plus film. On average consumers spent between $2. 50 and $3. 50 on a roll of film so by bundling Funtime together and selling them for around the same selling price as one roll of Rare metal Plus, it appears like a higher perimeter could be manufactured by selling the Funtime rolls individually. In the event that they were to trade them individually they can sell them for zero. 0 lower than their Gold Plus but still make a great margin, while maintaining the lower price point necessary for the consumer. The case says that Funtime is to be bought at a price 20% less than Platinum Plus, which can be sold for 20% less than Regal Gold. five. In your own terms, what is your suggestion? First, what reason(s) do you have to choose this alternative? Second, how will it be executed? Use the advertising mix elements and exploration components while implementation guidelines. The previous areas can be replicated within your group, but this part should be individual effort.
The best technique would be to focus on the new manufacturer product line and advertise it heavily with a competitive price. Product tactics: I think they have to reevaluate how they are presenting Funtime in the market. It makes little to no sense to introduce a great economy price based item into the industry without advertising and marketing it. In analyzing all their target just 10% were price consumers, but their manager of basic merchandise advertising stated there is a significant rise in price-sensitive consumers, so it tends to make sense to dedicate in least a portion of the online strategy to the new price point product.
Go for industry penetration! Pricing: The Funtime film is intended to fit the economy brand prices tier. The other films in this tier range from $2. 69-$2. 91. The case would not directly point out the price of one person roll of Funtime film. It does even so mention that it is just to be sold in packages of two or four. It might make most sense to market two of the Funtime movies for the price of one roll of their premium film. Nevertheless , they do provide more exposures in the load up of four and could possibly offer it for a bigger margin.
Particularly if they are planning to compete with the private label margin which is greater than Kodak’s perimeter. To apply this prices strategy We would advertise a “2 pertaining to 1 or perhaps “more beat for your buck strategy, emphasizing the quality or genre difference as well. Promotional ideas: As an alternative I would decide to offer some kind of promotion pertaining to the Funtime film. I actually find it required to promote a new product, rather than introduce this twice a year in limited quantities. A great economy-based buyer is looking for some thing easy, low-cost, and on the go, therefore make this easily accessible to them.
Publicize it around college graduation time, marriage season, and holidays so that people make sure to pick up extra roll of film. Simply by releasing that with not much advertising and a limited volume run keep in mind that show very much confidence in the product to start with, so leave it out there and promote it when necessary. Distribution methods: Distribute at point of sale, subscribes, next to picture structures, in the picture developing area of department and drug store. Maybe even convenience stores. Costly economy listed item, that where people will make it an addition sale item.
Distribute wherever current users of Kodak film store so that they may become acquainted with this and understand its use. Research (goals, methods, etc . ): Exploration how other companies marketed and sold all their economy manufacturer priced film. Find out which consumer would be interested in the film and target all of them. Use a study to ask current consumers what price they would become willing to pay for any less high grade film, and what they would expect out of it. Any trial test in important areas and around optimum seasonal times.