Kodak Strategic Marketing Plan - An in-depth analysis with marketing concepts. PDF

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Summary

Kodak Strategic Marketing Plan - An in-depth analysis with marketing concepts.
this handles all of the concepts learned in marketing, ranging from SWOT, PESTEL, and etc....

Description

Sample Strategic Marketing Plan for Kodak To

: Marketing Director

From

: Marketing Assistant

Subject : Developing Sustainable and Market Oriented Marketing Strategies Date

: 15 August 2010

01. Executive Summary

The purpose of this report is to undertake a strategic audit that evaluate the current marketing strategy of the company and recommend a course of action to inculcate a market-oriented culture for the company. This has become one of the key priorities for the company as the market for the photographic products and services has changed dramatically. This strategic marketing plan identifies the key strategic issues facing the company in order to recommended marketing strategy for the next 5 years.

2.0 Key Issues



Dramatic sales drop in US market and other earning issues



Technical orientation prevailing in the company which is backed by its



Inflexible business model which has resulted long formal processes for key business activities including innovation.



Increasing popularity of mobile phones with sophisticated cameras.



Impact of the world economic crisis



Impact of recent demographic changes

3.0 Vision, Mission and Corporate Objectives

3.1 Vision The Global Diversity Vision is an inclusive environment in which we leverage diversity to achieve company business objectives and maximize the potential of individuals and the organization.

1

3.2 Mission Statement The Mission of the Global Diversity & Community Affairs Office is to integrate diversity and inclusion in all aspects of the business in order to:  Fully engage the energies of Kodak's employees and a diverse supplier base  Meet competitive challenges in the marketplace  Maximise shareholder value 3.3 Corporate Values 

Respect for the Dignity of the Individual



Uncompromising Integrity



Trust



Credibility



Continuous Improvement and Personal Renewal



Recognition and Celebration

3.4 Corporate Objectives 2010

2011

2012

2013

2014

Increase overall revenue by

2%

3%

3%

5%

6%

Achieve gross profit margins

24%

25%

26%

28%

28%

Increase overall profit margins by

2%

2%

3%

3%

5%

32%

32%

30%

28%

25%

Maintain operational expenses as a % of revenue

4.0 Situational Analysis Please refer the appendices.

2

5.0 Marketing Objectives 

To achieve following sales targets by defending the US market and penetrating the international market 2009 Revenue

2010

2011

2012

2013

2014

2619

2710

2790

2840

2860

2880

2257

2328

2397

2417

2450

2454

2726

2715

2804

2967

3325

3820

4

5

5

6

6

6

7606

7758

7991

8230

8641

9160

$ million Consumer Digital Imaging Group Film, Photofinishing and Entertainment Group* Graphic Communication Group All other* Overall



Position Kodak as a highly innovative imaging solutions brand in both B2B and B2C markets within next two years



Rationalise the product portfolio within next two years in order to utilise Critical Factors for Success and remain competitive in the changing market



Increase the sales contribution of innovations in order to rationalise the R & D investments



Design and implement internal marketing programme to change focus from product orientation to solution based service orientation while changing the recruitment and selection process of sales personnel.

3

6.0 Marketing Strategies Imaging solutions

6.1 Service Orientation

Less Innovative

Highly Innovative

Photographic products

6.2 Growth Strategies

Position defence- Position defence is recommended as it will assist the company maintain its dominance especially in diminishing niche markets of the film, photofinishing and entertainment group. Recommended strategies Market penetration Product Development

Mobile defence- Here it is recommended that the company focuses specifically on women and the younger generation and on products such as mobile and customized photographic equipment. Also this strategy involves redefining Kodak’s core business from photographic products to imaging solutions for both B2C and B2B customers. Recommended strategies Product Development and Market Development Diversification

4

Flanking Defence- Innovation is one of the main areas that has not been protected by the company with clear standards and policies and hence it has been unsuccessful in delivering value to both customers and to the company.

Pre-emptive defence- Kodak should identify the possible limitations of position, mobile and flank defence and should focus on the potential value of pre-emptive strikes. This involves gathering information on developments of the market place and capitalizing on competitive advantages. In this context Kodak should capitalize on its image, competencies and innovations.

Here the Ansoff matrix has been used as a framework to identify the growth opportunities available to Kodak. Then an adapted GE matrix has been used to evaluate and justify the attractiveness of these options both in terms of market and business strengths.

Market penetration All in one printers EasyShare product range Single use cameras Photo paper and cartridges Social networking sites and photo sharing Workflow solutions

Market Development EasyShare range targeted specifically at young and women 5

Product Development New packaging and workflow solutions Consumer and stream inkjet printer Scan the world Mobile phones with Motorola Products enabling customization

Diversification Related diversification- security systems with remote monitoring

Growth Strategies

Market penetration All in one printer

Market

Company Strengths

Strategic Intent

Very High

High

To penetrate the

[increasing demand]

[793,000 units last year

international market

Attractiveness

less than 1% of market]

Easy Share range

High

High

To defend the home market

[Huge demand for easy

EasyShare range

and to penetrate the international market

to capture and easy to share cameras]

Single use cameras

High

High

To defend the home market

[account for nearly 75%

[flagship products]

and to penetrate the international market

of the market]

Photo paper and cartridge

High

High

To defend the home market

[Printer sales have

[flagship products]

and to penetrate the international market

created ongoing demand for print paper and cartridges]

Workflow solutions

High

High

To defend the home market

[Sales have increased

Acquisition of

and to penetrate the

rapidly from inception]

Design2Launch/

international market

Popularity of Kodak’s 6

Prinergy Evo Workflow

High

High

To defend the home market

[Huge demand from

[Successfully acquired

and to penetrate the

both private and

BOWE BELL]

international market

Very high

High

To defend the home market

Social networking and

[Increased popularity

[Kodak gallery is the

and to penetrate the

photo sharing through

backed by the need for

second largest network

international market

sharing photos]

with more than 70m

Strengthen global brand

subscribers]

image

High

High

To defend the home market

[backed by recent

[Kodak gallery and

and to penetrate the

demographic changes]

EasyShare range]

international market

Scanners

business customers]

Kodak Gallery

Other online services [Editing and sharing]

Strengthen global brand image

Traditional films market

Market Development EasyShare range targeted specifically at young people and women

High

High

To defend the home market

[competitors are

[High market share with

and to penetrate the

withdrawing]

low market growth rate]

international market

High

High

Mainly to defend the home

Women love to take

[EasyShare range which

market and penetrate

digital photos but

allows easy, quick

selected international

experience problems

sharing photos]

markets

when sharing them

Product Development

Very High

High

Mainly to defend the home

Consumer inkjet printer

[highly economical

[Company can use its

market and penetrate

because of low cartridge

existing channels]

selected international

Digital inkjet printerStream

Scan the world

markets

cost]

High

Low to Moderate

Mainly to defend the home

[Highly innovative

[Still planning to launch

market and penetrate

product]

the product but

selected international

company managed to

markets 7

acquire BOWE BELL scan division]

Digital Film Formats

Medium

Low

Mainly to defend the home

[Expected to grow with

[need more investment

market and penetrate

better infrastructure

for new products and

selected international

and economic

R&D]

markets

Very High

Moderate to High

To defend the home market

[mobile phones - one of

[Collaboration with

and to penetrate the

the main challenges for

Motorola]

international market

Very High

High

Mainly to defend the home

[Demand driven by B2B

Acquisition of

market and penetrate

customers]

Design2Launch/

selected international

Popularity of Kodak’s

markets

environment]

Mobile phones with sophisticated cameras

digital cameras and camcorders]

New peaking and workflow solutions

Prinergy Evo Workflow

Customized products

Related Diversification Security systems with remote monitoring

High

Moderate

To defend the home market

[This strategy has been

[Company needs to

and to penetrate the

successful in other

invest considerable

international market

related industries -

effort on R&D and

mobile phones]

advertising]

Moderate

High

To defend the home market

[Acquisition of

and to penetrate the

Intermate A/S which

international market

specializes in remote monitoring]

Adopted GE Matrix

8

6.3 Portfolio Analysis SBU Consumer

Target Market

Main Services

Key trends & Competition

Digital camera

Online services

-The market for

digital imaging

Camcorders

Retail photo service

cameras is saturated

group

Snapshot & inkjet

-Women and

printers

youngsters will create

Digital picture

future demand

frames

-Intense competition

Film photofinishing

Mainly B2C

Main Products

Mainly B2B &

Black & white

Event management

-Sales are steadily

B2C

negative films

solutions

declining

and

Moving pictures

-Demand for motion

entertainment

Aerial photography

pictures is stable

Disposable cameras

-Slow adoption of

Projectors

digital formats

Chemicals and

-Relatively low

apparatus

competition

Graphic

B2B

Communications

Software

Manipulation and

-Rapid growth from

Scanners

printing

inception

Printers

Commercial printing

-Decreased sales in

Packaging

2008 because of

Workflows

economic downturn -Competitive

All other

B2B

Display business Other small enterprises

Here the BCG growth share matrix can be used to identify the relative strengths and weaknesses of each strategic business unit.

9

Company Capabilities

Market Attractiveness

H

M

L

H

M

L

Inkjet Printers Single use cameras Online services- gallery Packaging & digital printing & other graphic communications Workflow solutions Workflow software Photo papers & cartridges Scanners & Scan the World Motion picture films Digital cameras & camcorders with easy share system Digital picture frames

Customized cameras with preferred option

Mobile phone Other business markets

Security cameras with Intermate A/S Digital picture films All other segments

Traditional still photography Roll film for still photos Health Group segment

10

Strategy Invest

Product/ market Stream and consumer inkjet printers Photo papers and print cartridges Kodak Gallery & online services Single use cameras Motion picture films

Packaging and digital printing & other graphic communications Digital cameras and camcorders- EasyShare Young people and women Workflow solutions

Selectively Invest

Divest

Scan the World & Scanners Customized cameras with upgrading facilities Mobile phones with sophisticated cameras Digital films formats Security cameras All other segment Roll films Traditional still photography Health group

Rationale Low cartridges cost Inkjet printer sales have created ongoing demand Second largest social networking site/ Over 70million members 75% of volume Relatively stable demand/ Maintain the dominance/ Competitors are withdrawing Acquisition of KPG for sales of films and chemicals Rapidly increased sales [slow growth due to recession]

To exploit the increasing popularity of social networking sites Research findings and Kodak cameras with easy sharing technologies Acquisition of Design2Launch/ Popularity of Kodak’s Prinergy Evo Workflow Acquisition of HOWELL scanner division To cater to the highly fragmented market and to increase the brand loyalty through continuous upgrading Collaboration with Motorola Expected to grow with better economic environment Acquisition of Intermate A/S which specialises in remote monitoring Should be selectively invested Declining market Declining demand Divested

11

7.0 Implementation

7.1 Product 

New product developments backed by R&D investments New packaging and workflow solutions

Consumer and stream inkjet printer, Scan the world, Mobile phones with Motorola, Products enabling customization, security systems and remote monitoring 

Enhance Kodak Gallery with social networking and photo sharing facilities



Product rationalisation



Tailor made solutions for graphic communication group with the Kodak service teams

7.2 Place 

Increased focus online sales

7.3 Price 

Revise pricing strategy for innovative products in the context of economic recession

7.4 Promotion 

Shifting focus from traditional above the line advertising to modern cost effective digital platforms



Sales promotion [both ATL and BTL with increased focus on online promotion]



Use of blogs and social networking



Favourable credit terms

7.5 People 

Internal marketing programme



New recruitment and selection programme



Integrate sales people and service team for better service solutions

7.6 Processes 

Revitalise the R&D process with cross functional R&D team [including customers]



Joint R&D efforts with key customers

7.7 Physical Evidence 

Extended warranties



Kodak service and support team



Web presence

12

8.0 Budgetary Requirements (dollars in millions) SBU

2009*

Consumer digital

2010** 2011** 2012** 2013** 2014**

Rationale Shifting

focus

from

483

230

228

225

225

225

290

150

145

140

140

140

524

255

250

245

243

240

5

2

2

3

3

3

on

Corporate positing

n/a

15

15

5

5

5

account management

MKIS and CRM

n/a

25

75