c



Kodak is one of the most celebrated bands in the camera industry. It has a history of
over 100 years of producing excellence in image and photo capturing reshaping the face
of the photographic industry as we know it. This marketing plan sets out to re -invent
and re-market one of its most celebrated and once sought after product the film
operated or analogue still picture disposable camera, Analogue SLR and Film operated
Video Camera .




 



With the slogan "you press the button, we do the rest," George Eastman launched the
first simple camera in to the consumer market in 1888. In so doing, he made a n
awkward and complex process easy to use and accessible for everyone.

Since that time, the Eastman Kodak Company has pioneered the way with a multitude of
new products and processes to make photography easier, more effective and more user-
friendly. Today Kodak is known for photography, images used in a variety of leisure,
commercial, entertainment and scientific applications. Its accomplishment involves the
use of technology to combine images and information changing the way people and
businesses communicate profoundly.

Eastman had a goal to make photography "as convenient as the pencil," Kodak continues
to expand upon his goal touching people¶s daily lives with effective use of technology.
The company today is a premier multinational corporation with a celebrated brand image
in almost every part of the world.





Film, Photofinishing and Entertainment Group (³FPEG´) Segment

This segment is composed of conventional photographic products and services as well as

paper, film and chemistry used for consumer, professional and industrial imaging

applications and those products and services used in the conception and exposition of

motion pictures. The Company manufactures and markets films which include motion

picture, consumer, professional, industrial and aerial, one-time-use cameras,

photographic paper and photo chemicals, and industrial components. The market for

consumer and professional films, customary photofinishing and certain industrial and

aerial films are in demur and expected to continue to demur because of the digital

substitution. Motion picture and television production activities were influenced

throughout most of 2009 by industry -specific labour issues, the by and large economic

impact on global advertising spend (broadcast c ommercials) and the available financing

for independent feature filmmakers. These factors deduced in lower film production and

the use of digital technology, as expected. However, Kodak motion picture print film

established a slightly amplified volume in spite of a number of new digital cinema

installations feeding the 3Dpipeline. Print volumes have remained strong because the

exhibition market returned to growth in 2009. Kodak ripped the fruits from this growth

and gained market share due to a higher percentage of major studio release activity.

 




The fundamental rudiments of the Company¶s strategy with respect to the photographic

products in this segment are to sustain a profitable and sustainable business model,

serving customers for conventional products while aggressively managing our cost

structure for those businesses in decline. As our silver halide business continues to

mature, we are also looking at different ways to leverage these core capabilities outside

of our traditional business applications. Opportunities exist to grow existing, nascent

businesses and develop new businesses utilizing

Kodak¶s existing capabilities in materials science, coating technology and base

manufacture. Segments on which we are currently focusing for these opportunities

include gelatine, silver and chemical components, industrial films, motion picture special

effects services and event imaging services. The Company¶s strategy for the

Entertainment Imaging business is to sustain motion pic ture film¶s position as the

unsurpassed capture medium for the creation of feature films, television dramas and

commercials. Careful investments to improve film¶s superior image capture and quality

characteristics are part of this strategy. Kodak has the leading share of the origination

film market led by the new VISION3 family of colour negative films, and the widely

acclaimed OSCAR-award-winning VISION2 series. The distribution of motion pictures to

theatres on print film is another important element of the business, one in which the

Company continues to be widely recognized as the market leader. Price competition is a

bigger factor in this segment of the motion picture market, but the Company continues

to maintain the leading share position, largely due to several multi-year agreements with

the major studios. Throughout the world, most Entertainment Imaging products are sold

directly to studios, laboratories, independent filmmakers or production companies.

Quality and availability are imperative factors for these products, which are sold in a

price-competitive environment. As the industry moves to digital formats, the Company

anticipates that it will face new competitors, including some of its current customers and

other electronics manufacturers. Film products and services for the consumer and

professional markets and traditional photofinishing are sold throughout the world, both

directly to retailers, and increasingly through distributors. Price antagonism continues to

subsist in all marketplaces. To be more cost effective with its traditional photofinishing

and film offerings, and to swing towards a variable cost model, the Company has

updated capacity and reorganized its ready-to-market models in many of its customary

segments. The Company will continue to manage this business to focus on cash flow and

earnings routine in this period of ongoing revenue decline.

Continued weakness or worsening of economic conditions could continue to adversely

affect our financial performance and our liquidity. The global economic recession and

declines in consumption in our end markets have adversely affected sales of both

commercial and consumer products

and profitability for such products. Further, the global financial markets have been

experiencing volatility. Slower sales of consumer digital products due to the uncertain

economic environment could lead to reduced sales and earnings while inventory

increases. Economic conditions could also accelerate the continuing decline in demand

for traditional products, whi ch could also place pressure on our results of operations and

liquidity. As a result of the tightening of credit in the global financial markets, our

commercial customers have experienced difficulty in obtaining financing for significant

equipment purchases, resulting in a decrease in, or cancellation of, orders for our

products and services and we can provide no assurance that this trend will not continue.

In addition, accounts receivable and past due accounts could increase due to a decline in

our customers¶ ability to pay as a result of the economic downturn, and our liquidity,

including our ability to use credit lines, could be negatively impacted by failures of

financial instrument counterparties, including banks and other financial institution s. If

the global economic weakness and tightness in the credit markets continue for a greater

period of time than anticipated or worsen, our profitability and related cash generation

capability could be adversely affected and, therefore, affect our ability to meet our

anticipated cash needs, impair our liquidity or increase our costs of borrowing.

If we are unsuccessful with the strategic investment decisions we have made, our

financial performance could be adversely affected. We have made a decision to focus our
investments on businesses in large growth markets that are positioned for technology

and business model

transformation, which are consumer inkjet, commercial inkjet (including our Prosper line

of products based upon the Company¶s Stream technology), workflow solutions and

services, and digital packaging printing solutions, all of which we believe have significant

growth potential. Introduction of successful innovative products and the achievement of

scale are necessary for us to grow these businesses, improve margins and achieve our

future financial success. We are also continuing to build upon our leading positions in

businesses that participate in large stable markets. Our

current strategic plans require significant attention from our management team and if

events occur that distract management¶s attention and resources, our business could be

harmed. Further, if we are unsuccessful in growing our investment businesses as

planned and maintaining and building upon our leading market positions, our financial

performance could be adversely affected.

The competitive pressures we face could harm our revenue, gross margins and market

share.

The markets in which we do business are highly competitive, and we encounter

aggressive price competition for all our products and services from numerous companies

globally. Over the past several years, price competition in the market for digital

products, film products and services has been

particularly intense as competitors have aggressively cut prices and lowered their profit

margins for these products. Our results of operations and financial condition may be

adversely affected by these and other industry wide pricing pressures. If our products,

services and pricing are not sufficiently

competitive with current and future competitors, we could also lose market share,

adversely affecting our revenue and gross margins.









Motorola and Kodak declared a 10-year global product, cross licensing and
marketing coalition planned in fulfilling the promise of mobile imaging for the benefit of
consumers. By integrating Kodak¶s image science and system integration knowledge with
Motorola's mobile device design, the two companies¶ goal is to greatly improve the ease -
of-use and image capture experience of camera phones. The collaboration involves
licensing, sourcing, software integration, marketing, and intends to co -development of
image-rich devices with joint engineering teams. Examples include Kodak expects to
supply its CMOS sensors to Motorola for use in its camera phones, as well as in any
future devices the companies co-develop. Additionally, the cooperation to seamlessly
integrate millions of Motorola mobile devices with Kodak home printers, retail kiosks,
and the Kodak EasyShare Gallery will afford a solution to consumers who want a quick
and easy way to get their images out of the devices for sharing and distribution.
Motorola and Kodak plan to primarily increase access to and understanding of mobile-
imaging services ± including retail programs, online services and customized operator -
led initiatives that deliver a flawless, easy experience for consumers. Later plans are to
launch handsets and co-created mobile devices with integrated software to facilitate
consumers accessing and managing their mobile images seamlessly and conveniently.
This cross-licensing agreement between Kodak and Motorola delivers royalty revenues to
Kodak.

Kodak announced a partnership with Martha Stewart Living Omnimedia Inc. for a
multitude of custom, personalized photo products. The products are intended to
integrate Martha Stewart¶s "how-to" style with Kodak¶s photo quality know-how, merging
online photography with offline products. The photo products consist of individualized
Photo Books, stationery, stickers, and cards, customized for holidays, weddings, and
thank-you notes. The products were offered by the end of the year and found on
www.kodakgallery.com and www.marthastewart.com.

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"#
$






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Kodak markets its products all around the globe influencing

local markets and governments alike. To market its film cameras and film products it has

to take into account political implications created by its products and local politics when

it comes to marketing or branding certain product. Certain markets and regions of the

world might have policies in place whereby they don¶t or won¶t allow a multinatio nal

organization to function or market a certain product in that market place.

c c
Economics has and will always have a major effect when

reinventing or re launching a product. The film camera will target a very specified

market namely that of specialized users and the entertainment industry so the economic

climate will dictate the funds available for demand creation of the product which will

mean that it will have direct relation of the quantity, segment market and target

audience
 


c
  Socio-cultural factors influence a lot in terms of

product positioning and branding. We as a society are moving towards a digitized

frontier. 3D movies and games are the latest phenomenon is the image and data capture

and projection industry. It¶s not just defines the new frontier in terms of technology used

but also what¶s socially µcool¶


c
 The inventions of new techniques in imaging technologies

have made a lot of old ideas and technologies obsolete. New and improved imaging

techniques not only digitized but also film imaging techniques have left the completion

wide open

!

c
 Legal implications and copyright laws have a significant effect on

the re launching of the product.

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environment has effect on product life cycle and

usability and other technical issues so we have to factor in where we are going to market

the product and adjust technical knowhow and R&D progr ams accordingly

#%" 



Wit h over 100 years of experience in imaging technology Kodak has the

pedigree and heritage to market its brand flawlessly. It has a established market share,

market loyalty and strong brand image.

%



In the digital age the film operated camera is being extinct, it¶s being

taken over by digital imaging and other pioneering technologies. The only places to

market these products left are the colloquial photographers who still have a passion for

the film photography, the art of the dark room and bringing a desolate obscure being to

life. If we cannot effectively anticipate technology trends and develop and market new

products to respond to changing customer preferences, this could adv ersely affect our

revenue and earnings.

Due to changes in technology and customer preferences, the market for traditional film

and paper products and services is in decline. Our success depends part on our ability to

manage the decline of the market for these traditional products by continuing to reduce

our cost structure to maintain profitability. In addition, we must develop and introduce

new products and services in a timely manner that keep pace with technological

developments and that are accepted in the market. Further, we may expend significant

resources to develop and introduce new products that are not commercially accepted for
number of reasons, including, but not limited to, failure to successfully market our

products, competition from existing and new competitors or product quality concerns. In

addition, if we are unable to anticipate and develop improvements to our current

technology, to adapt our products to changing customer preferences or requirements or

to continue to produce high quality products in a timely and cost effective manner in

order to compete with products offered by our competitors, this could adversely affect

our revenues.

"
As the digital age is dawning upon us new opportunities are being

opened what used to be trendy is now vintage. So using the brand image of Kodak film

cameras can be marketed in higher price rage to a higher end market with a specific

demand for vintage photography.



Threats from immerging technologies to make film photography obsolete are

always on the horizon. Other companies with similar pedigree and market share are also

trying to venture and explore the µvintage¶ phenomenon. So the treats of being over

crowed in the market place and loosing the distinctive feature and consequently loosing

the competitive advantage is always there. third parties may claim that we, our

customers, licensees or other parties indemnified by us are infringing upon their

intellectual property rights. Such claims may be made by competitors seeking to block

or limit our access to digital markets. Additionally, in recent years, individuals and

groups have begun purchasing intellectual property assets for the sole purpose of

making claims of infringement and attempting to extract settlements from

large companies like ours. Even if we believe that the claims are without merit, the

claims can be time consuming and costly to defend and distract management¶s attention

and resources. Claims of intellectual property infringement also might require us to

redesign affected products, enter into costly settlement or license agreements or pay

costly damage awards, or face a temporary or permanent injunction prohibiting us from

marketing or selling certain of our products. Even if we have an agreement to indemnify

us against such costs, the indemnifying party may be unable to uphold its contractual

obligations. If we cannot or do not license the infringed technology at all, license the

technology on reasonable terms or substitute similar technology from another source,

our revenue and earnings could be adversely impacted. Finally, we use open source

software in connection with our products and services. Companies that incorporate open

source software into their products have, from time to time, faced claims challenging the

ownership of open source software and/or compliance with open source license terms.
As a result, we could be subject to suits by parties claiming ow nership of what we

believe to be open source software or noncompliance with open source licensing terms.

Some open source software licenses require users who distribute open source software

as part of their software to publicly disclose all or part of the source code to such

software and/or make available any derivative works of the open

source code on unfavorable terms or at no cost. We have a corporate open source

governance board to monitor the use of open source software in our

products and services and try to ensure that none is used in a manner that would

require us to disclose the source code to the related product or service or that would

otherwise breach the terms of an open source agreement. Such use could inadvertently

occur and any requirement to disclose our source code or

pay damages for breach of contract could be harmful to our business results of

operations and financial condition.

"&



$

"&



In the next quarter we will try to capture 20% of the market share of the film camera

market. By mid 2011 we will be capturing 50 % of the market share delivering

disposable cameras to all most all kiosks around North America and Europe.

More Specialized products like the professional film mounted cameras will be sh elved in

high end departmental stores throughout the United States, Canada and west and mid

European markets

By the end of 2011 our target is to reach 50 % of the professional and entertainment

industry usage of the film camera and rolls

'

"&



EASTMAN KODAK COMPANY

CONSOLIDATED STATEMENT OF RETAINED EARNINGS (Unaudited)

(in millions)
 Three Nine months

Months ended ( Sept

Ended (Sept 30)

30)

Retained $ 5,620 $ 5,359 $ 5,676 $ 5,903

earnings at

beginning of

period

Net loss (43) (111) (92) (653)

Loss from (12) (2) (19) (4)

issuance of

treasury

stock

5,565 $ 5,246 $ 5,565 $ 5,246

Retained

earnings at

end of

period

Source: www.kodak.com

In the coming quarter we would like to supplement the earning by 10% which will owe

ato the growth of 30% of the market share of our selected product.

$





a)

$




 (##






What makes our position unique from others and gives us a competitive edge is the

unique expertise that we have of the product in concern. We have over 100 years of

expertise in developing and branding and marketing film cameras.

Our target market which is the high end professional photographers who has passion

and love for the vintage and film and the entertainment industry and the broader market
 which is reached by the disposable film camera can be segmented and positioned

depending on the fluctuation and forecasting of the financial market. But the positioning

of the product will depend upon variables as they occur and operations management

concordantly.

b) $

$

The actual product is the film camera. Its various derivates are the high-end

film camera or SLR¶s, the onetime use cameras and the professional video shooting

apparatus that is used in the entertainment industry. Products can be developed using

Kodak¶s expertise and knowledge of the target market, doing innovative market research

and statistical analysis of the trends in the vintage camera products. Some film products

could be developed with a digital twist. Examples could be film cameras with a digital

projection system and TFT screen


Price of the product is also variable. It would be dependent upon the excessive

market research done and prices offered by the competitors. Some high-end products

will be cost variable depending on the demand variables. So pricing decisions has to

reinvestigated every quarter and depending upon the units sold and future market

trends and forecasts it has to modified or even bent to meet the competitive edge which

we sought to establish.

  We can promote out product through an innovative IMC (integrated

marketing communications) campaign. Building product awareness inside the company

as well as outside we can create a sustainable demand for the product This can be

achieved through advertising campaigns, b2b and direct sales efforts, social marketing

initiatives etc.



placing and positioning of the product is also important. Sustainable growth and

development of the product will depend where and how we position the product and to

which extent are we willing to be flexible in terms of its positioning in the global market

and in relation with other products by the company. Initially the products will see limited

launch in the Americas and soon other markets will ensue.





FILM, PHOTOFINISHING AND ENTERTAINMENT GROUP

(dollars in millions) Three Months Ended

September 30,

2010 % of Sales 2009 % of Sales

Increase

/ (Decrease) % Change

Net sales $ 431 $ 572 $ (141) í25%

Cost of goods sold 357 446 (89) í20%

Gross profit 74 17.2% 126 22.0% (52) í41%

Selling, general and administrative

expenses 50 12% 72 13% (22) í31%

Research and development costs 4 1% 7 1% (3) í43%

Earnings from continuing operations

before interest expense, other income

(charges), net and income taxes $ 20 5% $ 47 8% $ (27) í57

Source: www.Kodak.com

Comments:

This marketing plan sets out to raise a declining product from its decaying state to he

modern market place. The product went into its declining state because technological

breakthroughs in imaging technologies. In order to market the product successfully we

have to reinvent our marketing and branding strategies.

Appendix:

The Business Environment, Forth Edition (2003) Ian Washington And Chris

Britton, Prentice Hall

Harvard Business Review On Innovation (2001), Harvard Business School Press

`

  
` ` 


  
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