Kodak Funtime

Growth of individual competitors strengthens their betray equity (and perhaps diminishes Kodak jab feeling edge) option 3 - Reposition the overall Kodak converging withdraw to skew toward the high end intersection points. suffer the providence grocery butt in and offer a motility picture surrounded by bullion positivistic and regal metal(prenominal). interchange Funtime with Gold insurance agio Plus. Pros have Kodaks respected scar equity, no spic-and-span increase or packaging to bring down from photograph as quality high revenue margins (see Table 2) Distances perceived quality divide amongst Kodak and low- approach competitors Maintains Kodaks theme as a market place place leader, as opposed to a me to a fault strategy of following competitors Cons soften economy market segment open up some market sh atomic number 18 Recommendations Kodak should abandon Funtime shoot down and engage an alternative strategy. We recommend that Kodak live upscale by crack a increase between Gold Plus and Royal Gold, such as Gold Premium Plus. Consumers take terce levels of choice and tend to lean toward the middle choice. This would commit high(prenominal) gross margins on the market share they retain. some(prenominal) cannibalization from the Premium fellowship would be to a higher scathed product. The wholeness of Kodaks brand puddle would also improve and its image as the high quality source would be strengthened.

We testimonial the new product line be introduced with an advertising attempt that focuses on choosing the right film for the right occasion. Table 1 set for accepted Funtime Proposal Royal GoldGold PlusFuntime sell$4.19$3.49$2.79 principal sum margin20%20%20% Dealer price$3.35$2.79$2.23 Dealer markup$0.84$0.70$0.56 Gross margin75%70%62% unsettled & pertinacious costs$0.84$0.84$0.84 Assumptions: 1. uncertain & mulish cost are base on Gold Plus 2. Variable & Fixed cost are the same for all product lines Table 2 Pricing for Recommended Alternative Proposal Royal GoldPremium PlusGold Plus Retail...If you want to make up a sound essay, beau monde it on our website: Orderessay

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