Some thoughts on the business side of K'chrome ...

[Denise Reinecke]

On that ubiquitous matrix (BCG?) -- you know, the one with "Stars",
"Dogs", "Cash Cows", and whatever they're calling the fourth one this
week -- Kodachrome most certainly has to fall into the Cash Cow box.
It's not a very sexy product these days, thus precluding the "Stars"
box, but it has to be just about all $$$ to the bottom line. There's
no (more) R&D, the brand name is established, very little marketing
effort required, and the marginal cost of producing that nth-plus-one
roll of Kodachrome has to be pennies! The capital equipment used to
make and package Kodachrome has to be fully depreciated. They've
outsourced the Processing By Kodak brand for Kodachrome, so they don't
have to worry about keeping that up.

I think the reason that Kodachrome (64 at least) is still around it
that it *IS* a cash cow -- for now!

That cash cow will, however, be put out to pasture when she dries up,
and just about everybody speaks as though it's a certainty. :(

My hunch is that the Powers That Be at Big Yellow have had countless
strategy sessions regarding the Kodachrome brand, and that the
transient conclusion is to let the brand ride it out -- for now.

>With just a *little* bit of marketting, Kodak *could* make Kodachrome into
>a goldmine.  Instead, it's the red-haired stepchild.  Or yellow-boxed, as
>the case may be.

I don't think that Kodachrome could ever again be a goldmine. Any
advertising would be the proverbial preaching to the choir, and that's
us! We already know about Kodachrome. We use it, and we will continue
to do so without any more promotion. What more could a company want?

Today's cam-phone teenyboppers and DSLR 20-boppers are not gonna use
Kodachrome, ever! Tautology! Pope is Catholic and bears go doodoo in
the woods! No high-profile commercials on the Super Bowl or American
Idol will change any of those!

(Ok, I'll shut up -- for now.) :)
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[Phil Burton]

> -----Original Message-----
> From: kodachrome-bounces@...
> [mailto:kodachrome-bounces@...] On Behalf Of
> Denise Reinecke
> Sent: Thursday, February 07, 2008 9:58 AM
> To: kodachrome@...
> Subject: [Kodachrome] Some thoughts on the business side of
> K'chrome ...
>
> On that ubiquitous matrix (BCG?) -- you know, the one with

Indeed it is the Boston Consulting Group.   http://www.bcg.com/.


> "Stars", "Dogs", "Cash Cows", and whatever they're calling
> the fourth one this week -- Kodachrome most certainly has to
> fall into the Cash Cow box.

Read about it here (if you care enough ~] )
tp://en.wikipedia.org/wiki/Growth-share_matrix.

> It's not a very sexy product these days, thus precluding the "Stars"
> box, but it has to be just about all $$$ to the bottom line.
> There's no (more) R&D, the brand name is established, very
> little marketing effort required, and the marginal cost of
> producing that nth-plus-one roll of Kodachrome has to be
> pennies! The capital equipment used to make and package
> Kodachrome has to be fully depreciated. They've outsourced
> the Processing By Kodak brand for Kodachrome, so they don't
> have to worry about keeping that up.
>
> I think the reason that Kodachrome (64 at least) is still
> around it that it *IS* a cash cow -- for now!
>
> That cash cow will, however, be put out to pasture when she
> dries up, and just about everybody speaks as though it's a
> certainty. :(
>
> My hunch is that the Powers That Be at Big Yellow have had
> countless strategy sessions regarding the Kodachrome brand,
> and that the transient conclusion is to let the brand ride it
> out -- for now.

Seems right, although the "MBA types" who like "clean charts" will be upset
that the company is focused on digital, yet here is this _film!! _ product
that is making them money, although probably a bit less each year.

>
> >With just a *little* bit of marketting, Kodak *could* make
> Kodachrome
> >into a goldmine.  Instead, it's the red-haired stepchild.  Or
> >yellow-boxed, as the case may be.
>
> I don't think that Kodachrome could ever again be a goldmine.
> Any advertising would be the proverbial preaching to the
> choir, and that's us! We already know about Kodachrome. We
> use it, and we will continue to do so without any more
> promotion. What more could a company want?

More customers.  Which they don't expect to get with Kodachrome.  You have
to wonder if some of those Powers That Be see Kodachrome as "their fathers'
film," something that they would never use themselves of course.

>
> Today's cam-phone teenyboppers and DSLR 20-boppers are not
> gonna use Kodachrome, ever! Tautology! Pope is Catholic and
> bears go doodoo in the woods! No high-profile commercials on
> the Super Bowl or American Idol will change any of those!

My kids still remember fondly all the slide shows that Dad put on when they
were growing up, but they are strictly digital 20-somethings.  

>
> (Ok, I'll shut up -- for now.) :)

Phil Burton


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