Download - Kodak Disc Camera
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Case Study: Kodak Disc CameraDaniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
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Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
Video
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Analysis of Results: Reasons for Failure
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Management StrategyRazor Blade Strategy in place
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Selling Cameras at Low Cost
Selling High Cost
Film
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Management StrategyWeak Communication Channels
“I heard at that time if employees gave truthful feedback on certain data, cost projections, or unrealistic expectations from management, they could lose their job”.
–Dan Callahan, 2012
(worked at Eastman Kodak from 1991 to 2004).
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Management StrategyLack of Project Management Methodology
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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“Unfortunately there were no formal phases and gates for the project or mechanism that signaled warning flags at failure points.”
- John Kaemmerlen, 2012
(Interview).
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Management StrategyTeam Members With No Faith in the
Project
“Employees at Kodak told me (in 1991) that even during the production phase they knew that the Kodak Disc Camera project was going to be a failure.”
-Dan Callahan, 2012
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Marketing Strategy
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Marketing Strategy
“mass production at low cost, international distribution, extensive advertising, customer focus, and growth through continuous research” (Gavetti, Hernderson and Giorgio, 2007).
Let’s remember Kodak’s slogan back in the 1800’s.
“You Press the bottom, we do the rest”
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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10Marketing Strategy
The Main Marketing outcome for the Disc Camera was a Combination of
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
Media Merchandising Promotions
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Poor Evaluation of Customers Needs
Kodak Disc Camera was developed and design after a market research study focusing on those conditions or activities in which customers were not used to take pictures
Was the definition of functionality of the Disc Camera adequate?
“negative effect on quality” and “excessive noise in the output signal” (Chiang, Pennathur and Mital, 2000).
Marketing Strategy
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Weak Marketing Campaign Differentiation
Customer begun to be confuse about which camera was doing which features and started being obscure about the different camera models.
“Kodak does not feel that its two new product campaigns will confuse consumers” (Anonymous, 1982).
Marketing Strategy
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Advertisement Example
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Price vs. Quality and Marketing Investment Fallon expresses his concern about Kodak’s investment in
marketing and advertising as
“in the hundreds of millions” Fallon (1982). High Price “Kodak encourages dealers to improve point-of-sale material
and offer promotional allowance and also pay for local promotions” (Renard, 1982).
vs.
Marketing Strategy
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Poor Evaluation of Competitors Fuji Photo Film Co., Japan.
“Kodak felt extremely confident about their customer loyalty being extremely secure that North-Americans will not buy other camera besides Kodak” (Luca, Heckaman & Faulkner, 1982).
Sony, Japan : was already developing filmless models. Ansco, China. Polaroid, USA.
Marketing Strategy
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Time Constrains
“Kodak Busy Launching” (Anonymous, 1982).
Marketing Campaign was develop in less than 2 years.
Marketing Strategy
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Quality Problems
Grainy pictures
Cloudy or fuzzy pictures
Camera noise
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Grainy, cloudy picture
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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19Comparison
• Taken with a 110 camera
• Taken with the Disc camera
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Project ScopeHuge capital investment.
Kodak spent hundreds of millions of dollars building an entire system just for that single project.
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Project ScopeAll about the launch date.
Executives desperately wanted the product to reach the market. They were even willing to compromise their best asset, “Quality”.
“Executives became obsessed with
launching the product.”
-John Timpano
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Project ScopeWhether to pull the plug or postpone the
launching date.
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Recommendations
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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RecommendationsFrom a Management Perspective:
The creation and adaptation of a project management methodology
Engage team members
Create a system for the evaluation of customer satisfaction
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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From a Marketing Perspective:
Porter’s 5 forces: supplier power, buyer power, competitive rivalry, threat substitution, threat of new entry.
Division of Marketing Staff members for products categories.
Use different media channels for the different target customers.
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Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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From a Marketing Perspective:
Do not launch different models at the same time using the same media channels.
Correct identification of products’ features and effective communication of them.
Use of social media: Facebook, Twitter, etc.
Sponsor Events (e.g. Olympic Games).
Recommendations
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RecommendationsFrom a Quality Perspective:
Use larger negatives/camera in order to deliver quality pictures
Have scientists work 2 or 3 shifts to develop the best emulsion for film processing
Use continuous improvement, lean operations, and six sigma MFG methods
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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RecommendationsFrom a Project Scope perspective:
Assess whether to launch the product or postpone launching date.
Launch the product after the quality issue is solved.
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
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Thank you
Questions or Comments?
Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012