The document analyzes Kodak's failed Disc Camera project. It identifies issues with the project's management strategy such as weak communication, a lack of project management methodology, and team members who lacked faith in the project. The marketing strategy also faced challenges, including a poor evaluation of customer needs, a weak differentiation campaign, underestimating competitors, and time constraints that limited campaign development. Additionally, the Disc Camera suffered from quality problems like grainy pictures. The project's large scope and executives' obsession with the launch date contributed to overriding quality concerns.
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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