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Kodak Focuses Tightly on Ease of Shopping-- Revamps Packaging, Launches Versatile New Film, Introduces Digital Services Bundling.

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ROCHESTER, N.Y.--(BUSINESS WIRE)--May 2, 2001

Also Announces Streamlining of Product Line-up,

Support from Advertising Campaign

Eastman Kodak Company today announced a number of moves designed to focus on making it easier for consumers to shop for the best film and to order digital services. The initiatives include a substantial redesign of product packaging, the introduction of a new 800-speed film, a new bundling of digital services with traditional processing and some streamlining of the company's product line. A national advertising campaign will help communicate the innovations and their benefits to consumers.

"Collectively these efforts are focused on the consumer," said Jude Rake, General Manager & Vice President of Marketing, Consumer Imaging, US&C, Eastman Kodak Company. "We are excited about making it easy for consumers to get better pictures and providing easier ways to share them with family and friends."

New Packaging for Film

Kodak is redesigning its film and one-time-use camera packaging specifically to help consumers better match the products with their photographic needs. In most cases that means picture-takers will be inclined to choose higher speed films that have been redesigned to bring them better results.

The new look comes after extensive research into what consumers already know about film choice, what information they find useful and how best to communicate that information. New packaging clearly calls out the consumer benefits of each film or one-time-use camera; it features photos and icons, which appear on the front of the package to make it easier to choose the right film for the right occasion.

"Now, we're focusing sharply on consumer needs and benefits rather than film speed and technology," said Rake.

Icons Prominent in New Look

Kodak 100-speed color negative film, for example, sports a photographic image of a flower in sunlight on the package front, along with an icon for bright sun. The back of the package helps to illustrate the advantages of increased film speed such as reduced blur. The 200-speed film is illustrated with a flash photo of two young women and carries both bright sun and flash icons. At the higher end of the speed scale, Kodak Max 400-speed film continues to offer "versatility," while the new 800-speed product, previously designated for zoom cameras, is repositioned as "versatility plus." The film has been enhanced for low light, fast action and blur reduction. Packaging for Kodak Max Versatility Plus 800-speed film supports this premium positioning by displaying six icons: bright sun, flash, action, still, low light and less blur, graphically illustrating the film's versatility. The back of the package features a suggestion to order digital versions on CD or online when having the film developed.

Icons are likewise integral to redesigned packaging for Kodak one-time-use cameras. The newly introduced Max HQ one-time-use camera, for example, features "sharp lens" and "flash" icons, reinforcing its two-element aspheric lens and a flash that fires every time for outstanding pictures. All the one-time-use camera packages feature a photo of the entire face of the camera, making it extremely easy for consumers to choose the model they want.

Kodak Advantix film packaging also gets a fresh look out of the deal. The 200-speed variety is marked for "bright sun" and "flash," while the 400-speed Advantix film shares the "versatility" label of its 35 mm counterpart.

The newly packaged film will begin shipping in mid-May and will replace existing styles on a stock turnover basis. Kodak also plans design changes for its black-and-white film this year. Changes for the color reversal and Royal Gold film product lines will follow in 2002.

New Kodak Max 800 Film Now Better Than Ever

New Kodak Max Versatility Plus 800-speed film has been formulated to excel in virtually all lighting conditions, and offers unsurpassed sharpness and fine grain, improved color saturation, accuracy and consistency and improved, natural skin tone.

"We're focusing the bulk of our marketing support behind new Kodak Max Versatility Plus film because it really enables more, better pictures in more situations," said Glenn Patcha, Vice President, Film, Consumer Imaging, US&C, Eastman Kodak Company. "Once they try this film, consumers will really appreciate the difference."

The new 800-speed product offering follows another recent improvement to the 400-speed Kodak Max Versatility. Kodak Max Versatility 400-speed film provides excellent grain structure, optimized skin tones and outstanding color reproduction for 25 percent more better pictures. Together, these outstanding film products provide all the advantages of higher-speed film (faster shutter speeds, longer flash range, low-light capability and fewer underexposed pictures) without sacrificing grain and sharpness.

The new films and the Max HQ one-time-use camera are supported by a robust national advertising campaign that launched in mid-March and will continue throughout the year, with heavier exposure during the peak summer and holiday buying seasons.

Digital Bundling

Similar design and pricing changes will make it easier for consumers to choose both prints along with having their pictures either uploaded online or placed on a Kodak Picture CD. Kodak and its retail partners have made these choices much easier for consumers to choose. Now they can order by placing a single checkmark on the processing envelope. The company has concurrently adjusted prices for its digital offerings.

The strategy is already bearing fruit. In the initial stage of the digital bundling program, demand for Kodak Picture CD has already tripled and continues to grow.

"This is a great way for consumers to experience a key benefit of digital imaging - the ability to email their pictures to family and friends - without forcing them to learn to take pictures in a different way," said Scott Auer, Vice President of Consumer Digital Services, Consumer Imaging, US&C, Eastman Kodak Company. "By making the integration of technology and images simple so people can shop for digital services, consumers will discover they can create better pictures for easier sharing."

Streamlined SKUs

The company will further simplify the shopping experience by streamlining the number of stock keeping units (SKUs) it offers to retailers.

"Last year, over 50 percent of our skus accounted for less than 1 percent of our volume," said Rake. "That sort of variety just drives complexity, cost, and consumer confusion. We need to clean up the supply chain to ensure that everything we do is meaningful to our consumers, and reinvest the savings into innovation and advertising to grow the business."

While most reductions affect packaging configurations, Kodachrome 25 color reversal film and Kodak Royal Gold 1000 color negative film will be discontinued this year due to falling demand. However, they will be available through the balance of 2001.

About Kodak

Since essentially inventing consumer photography in 1880 with the introduction of the first roll film camera, Eastman Kodak Company has focused its energies on making picture-taking easy and accessible to everyone, amateur and professional alike. With a full line of consumer films and cameras, single-use cameras, consumer digital cameras, inkjet media, and supporting products and services, Kodak maintains that focus -- making it easy for everyone to get his or her pictures-through all its offerings, regardless of technology.

Kodak and Infoimaging

The new films and digital services will help drive the growth of services / media - a key segment of infoimaging. Infoimaging is a $225 billion industry created by the accelerated convergence of image science and information technology. Infoimaging unites three closely related imaging markets--devices, infrastructure and services / media--enabling consumers and businesses to more easily use images as a fast and effective way to communicate. Infoimaging presents significant new revenue opportunities for any company that delivers value through the marriage of information and images.

(Kodak, Max, Advantix, Royal Gold and Kodachrome are trademarks of Eastman Kodak Company.)

Editor's Note: For additional information about Kodak, visit our web site on the Internet at: www.kodak.com.

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Publication:Business Wire
Geographic Code:1USA
Date:May 2, 2001
Words:1323
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