Term Project Presentation for my Advanced Project Mgt. Class

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).
 Let’s remember Kodak’s slogan back in the
1800’s.
“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 Kodak’s 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:
 Porter’s 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