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Case Study: Kodak Disc Camera
         Daniel Callahan, Gabriela Garcia, Isis Quinones, and
         Julio Sanchez

         February 22, 2012
2




                                                                      Video




Case Study: Kodak Disc Camera
 Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
3




                                                     Analysis of Results:
                                                     Reasons for Failure




Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
4


    Management Strategy
     Razor Blade Strategy in place

                                                                      Selling
                                                                     Cameras
                                                                      at Low
                                                                       Cost



                                      Selling
                                    High Cost
                                       Film
Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
5


    Management Strategy
     Weak 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
6


    Management Strategy
     Lack of Project Management Methodology



                                                                     Unfortunately there were no
                                                                     formal phases and gates for
                                                                     the project or mechanism that
                                                                     signaled warning flags at
                                                                     failure points.

                                                                          - John Kaemmerlen,
                                                                                  2012 (Interview).




Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
7



    Management Strategy
     Team 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
8



    Marketing Strategy




Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
9
   Marketing Strategy

 mass production at low cost, international
  distribution, extensive advertising, customer focus,
  and growth through continuous research
  (Gavetti, Hernderson and Giorgio, 2007).



 Lets remember Kodaks slogan back in the
  1800s.

             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
10
   Marketing Strategy
  The Main Marketing outcome for the Disc
   Camera was a Combination of




             Media                              Merchandising        Promotions

Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
11

   Marketing Strategy
    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).



Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
12

   Marketing Strategy
 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).



Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
13

                     Advertisement Example




Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones,
and Julio Sanchez February 22, 2012
14

   Marketing Strategy
      Price vs. Quality and Marketing Investment
         Fallon expresses his concern about Kodaks 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.



Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
15

   Marketing Strategy
 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.


Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
16

   Marketing Strategy
 Time Constrains


           Kodak Busy Launching
         (Anonymous, 1982).


         Marketing Campaign was
         develop in less than 2 years.




Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
17


    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
18


   Grainy, cloudy picture




Case Study: Kodak Disc
Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
19

    Comparison
     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
20



    Project Scope
     Huge 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
21



    Project Scope
 All 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
22



    Project Scope
     Whether 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
23


                          Recommendations




Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012
24



Recommendations
                                                    From 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
25
   Recommendations
    From a Marketing Perspective:


        Porters 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.




Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones,
and Julio Sanchez February 22, 2012
26


                                   Recommendations
                                           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).


Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones,
and Julio Sanchez February 22, 2012
27



Recommendations
                                                    From 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
28


    Recommendations
     From 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
29

     Thank you

     Questions or Comments?




Case Study: Kodak Disc Camera
Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez
February 22, 2012

More Related Content

Kodak Disc Camera

  • 1. Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 2. 2 Video Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 3. 3 Analysis of Results: Reasons for Failure Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 4. 4 Management Strategy Razor Blade Strategy in place Selling Cameras at Low Cost Selling High Cost Film Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 5. 5 Management Strategy Weak 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
  • 6. 6 Management Strategy Lack of Project Management Methodology Unfortunately there were no formal phases and gates for the project or mechanism that signaled warning flags at failure points. - John Kaemmerlen, 2012 (Interview). Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 7. 7 Management Strategy Team 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
  • 8. 8 Marketing Strategy Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 9. 9 Marketing Strategy mass production at low cost, international distribution, extensive advertising, customer focus, and growth through continuous research (Gavetti, Hernderson and Giorgio, 2007). Lets remember Kodaks slogan back in the 1800s. 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
  • 10. 10 Marketing Strategy The Main Marketing outcome for the Disc Camera was a Combination of Media Merchandising Promotions Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 11. 11 Marketing Strategy 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). Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 12. 12 Marketing Strategy 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). Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 13. 13 Advertisement Example Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 14. 14 Marketing Strategy Price vs. Quality and Marketing Investment Fallon expresses his concern about Kodaks 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. Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 15. 15 Marketing Strategy 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. Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 16. 16 Marketing Strategy Time Constrains Kodak Busy Launching (Anonymous, 1982). Marketing Campaign was develop in less than 2 years. Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 17. 17 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
  • 18. 18 Grainy, cloudy picture Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 19. 19 Comparison 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
  • 20. 20 Project Scope Huge 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
  • 21. 21 Project Scope All 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
  • 22. 22 Project Scope Whether 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
  • 23. 23 Recommendations Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 24. 24 Recommendations From 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
  • 25. 25 Recommendations From a Marketing Perspective: Porters 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. Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 26. 26 Recommendations 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). Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012
  • 27. 27 Recommendations From 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
  • 28. 28 Recommendations From 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
  • 29. 29 Thank you Questions or Comments? Case Study: Kodak Disc Camera Daniel Callahan, Gabriela Garcia, Isis Quinones, and Julio Sanchez February 22, 2012