Key Issues
In the mid-nineties, the Kodak company saw a drop in their market share due to the rise of other newer and less expensive products in the photography/film industry. While Kodak had become the standard and was still the sixth most valuable brand name globally, it was on the decline. Other companies such as Fuji and Polaroid began seeing sales growth of over 15% in the nineties, while Kodak sat at 3%. While Kodak was still a respected brand, it had to find a way to keep up with the rise of more cost effective film from competitors like Fuji.
Fast-forward to the 21st century and Kodak begins running into trouble again, this time with a need to revitalize the brand to reconnect to its roots and increase its value with consumers. The company had lost its sense of identity increasingly each time they repositioned prior to 2018, and it had started to take a toll on the brand value. The company needed an overhaul of what Kodak ‘was,’ and how it fit in with consumers in the modern age.
What Should be Kodak’s Strategy?
Consumers in the nineties were very price-conscious and did not go for film based on the quality or the name as often as they went for the cheapest choice available to them. Not only that, but consumers in the nineties ranked the top 6 ISO 100 films the same in quality, leaving the most cost-effective option as the winner of market value in most cases. To keep up with other cheaper alternatives for Kodak film, Kodak needed to introduce the Funtime film. Having film priced in the economy tier would have made Kodak a real competitor again, and because of Kodak’s high level of brand awareness among consumers, Kodak wouldn’t have had to provide advertising for the new expansion. Consumers had shown that they go for whatever brand is cheapest when they search for ISO film, and mixing the recognizable brand name with a more cost-effective price for consumers would have led to an increase in market share.
In the 2010’s, consumers were less price-sensitive and leaned more into buying the “it” thing at the time. Whatever was the coolest, trendiest thing on the market was sure to get the most attention from consumers, especially millennials. In the 2010’s there was an obsession with reclaiming ‘slow’ goods such as vinyl, craft beer, and of course, film cameras. Kodak leaning into the brand’s dedication to craftsmanship and creativity was a fantastic start to repositioning in a way that draws in young consumers and sets the company up for long-term success with an entire generation. Creating a product that forms an impression and core memory for young people will lead them to reach for the brand in the future, even if only for the sake of nostalgia.
Conclusion
In conclusion, the Kodak brand faced two major challenges over the last 30 years. The first being that they needed to find a way to compete in an increasingly price-sensitive marketplace, and the second being a need to reposition the brand in a way that connected with the next generation of photographers and filmmakers. To solve these issues, the company ought to have expanded into a more cost-effective tier of film while maintaining the quality of the product in the nineties and lean into the rise of slow good culture with young people in the 2010’s.
