Eastman Kodak Company¡GFuntime Film

Situation Analysis
Although continuing its overwhelming domination of the photo film market, Kodak has suffered 6% of declines in film market share. This mainly resulted form fierce competition by Fuji Photo Film Co. and Konica Corp., selling consumer lower-priced films. Furthermore, since Kodak could not sell film on a private label basis, consumer is the only target to regain the revenue. Therefore, Kodak proposed to introduce a brand, Funtime, to fight with Fuji and Konica in economy class of film. With the introduction of Funtime, Kodak formed a 3-tiered product line, that is, Royal Gold, Gold plus, and Funtime.
III. The U.S. Photo Film Market Analysis
In a five years¡¦ observation, the photo film market¡¦s annual unit growth rate averaged only 2%. Obviously, it¡¦s been at matured stage of product life cycle, meaning the most possible way to win market share is to switch competitors¡¦ customers. That also forced Kodak to pay more attention to the price-sensitive consumer...