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Kodak should be more concerned with increasing revenue and profit rather than regaining lost market share. Kodak should expand the premium market segment by offering a mid-grade film between the "Gold Plus" and "Royal Gold" products to bolster brand equity and yield higher gross margins.
We examined three alternatives (i) give Funtime time to build market share (ii) Abandon Funtime completely and (iii) Reposition Kodak product line.
Alternative 1 - Give Funtime film time to build market share
? Enter a market (economy) not serviced by Kodak
? Capture some market share (as consumers move out of the premium category)
? No advertising costs
? Lower gross margin (see Table 1)
? Tarnish Kodak brand name (brand equity) - Perception of Kodak as quality standard could be damaged as they compete in this market segment...
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