Men are from Canon, Women are from Kodak

Discussion in 'Kodak' started by Johnson, Jul 7, 2005.

  1. Johnson

    Johnson Guest

    cut and paste from the WSJ:

    "Kodak Sharpens Digital Focus
    On Its Best Customers: Women

    Company Promotes Simplicity
    And High-Quality Prints;
    Taking On H-P and Sony
    By WILLIAM M. BULKELEY
    Staff Reporter of THE WALL STREET JOURNAL
    July 6, 2005; Page A1

    When film ruled home photography, women took about two-thirds of all
    pictures and ordered most of the prints, according to industry statistics.
    But things changed when digital cameras began horning in on film's turf:
    Suddenly men got behind the camera -- and many of the shots ended up trapped
    inside a computer.

    It was a disaster for Eastman Kodak Co. Sales of film and paper, its biggest
    sources of profit, tumbled. The 116-year-old company's long-successful
    strategy of courting women, emphasizing not so much gee-whiz technology as
    the chance to capture "Kodak moments," was in deep trouble.

    Today, Kodak is clawing its way to the top of the digital world by bringing
    its best customers into that world with it. Starting four years ago, Kodak
    set out to make digital photography female-friendly. The company's research
    showed that women wanted digital photography to be simple, and they desired
    high-quality prints to share with family and friends.


    Kodak revamped its digital cameras, stressing simple controls and larger
    display screens. It invented a new product category, the compact,
    stand-alone photo printer, which could be used to easily make prints without
    a computer. And it pushed to make digital-image printing simpler through
    retail kiosks and an online service.

    The result has been a slow but steady turnaround in Kodak's fortunes in the
    digital arena. The company is now the No. 1 seller of digital cameras in the
    U.S., up from a distant No. 3 as recently as 2002, according to market
    researcher IDC Corp. Although rivals have followed, Kodak remains tops in
    stand-alone photo printers. Kodak's photo paper for inkjet printers,
    introduced just last year, is the No. 2 brand after Hewlett-Packard Co.

    And evidence is growing that women are returning to retail stores to do
    their printing. There, Kodak gets its slice via a formidable network of
    digital print-making machines. In the 12 months ended March 31, digital
    prints made in stores rose to 35% of the market from 21% and prints made at
    home fell to 50% from 70%, according to the Photo Marketing Association, a
    trade group.

    Kodak isn't arguing that women lack the aptitude to deal with digital
    photography. In survey after survey, women simply say they aren't that
    interested in fiddling with cables and complicated camera-computer
    interfaces. So Kodak has worked to keep things simple, while most rival
    camera-makers focused on developing high-tech features and marketing them to
    techies.

    "Men are from Canon, Women are from Kodak," was the title of a recent report
    by Lyra Research, a Newton, Mass., firm that follows the industry. The
    report noted that Kodak is No. 1 among female digital-camera users with a
    20% share, but it is No. 4 among men with just 11%. Kodak's approach is
    "right on the money," says Charles LeCompte, president of Lyra. He says that
    Kodak has always known most pictures are taken by women "and they've done a
    great job targeting that market."

    In an interview, Chairman Daniel Carp says "women have just as much aptitude
    and ability," as men to use digital products, but they don't want to spend
    time making them work. "Throughout history," he adds, "women have been the
    keepers of family memories."

    Kodak's turnaround in digital has been masked, to some extent, by the rapid
    decline of the company's traditional, film-photography business. Over the
    past four years, Kodak's revenue has fallen 3.4% and earnings have dropped
    60% as it has scrambled to adapt to the digital world. It has laid off
    nearly 12,000 workers and its debt has been downgraded to junk. And Mr.
    Carp, who as chief executive set the company on its digital course, has just
    taken early retirement, although he remains chairman for the rest of the
    year.


    Photography accounted for 68% of Kodak's $13.5 billion in revenue last year,
    and investors still question whether the digital-photo business will ever be
    as profitable as film had been. Many young people do their photo swapping
    via Web sites or cellphones, rarely bothering to print out their images.

    The company has outlined a plan to gradually close down film operations,
    while quickly building up digital sales in medical imaging and commercial
    printing as well as consumer digital lines. Kodak says revenue from digital
    products will top film revenue for the first time this year. But the
    transition has been bumpy. In April, it surprised investors by reporting a
    loss for the first quarter, and its stock fell 14% in the next few days,
    approaching its 2004 lows.

    Kodak, based in Rochester, N.Y., is now competing with consumer-electronics
    specialists like H-P and Sony Corp., which are used to rapid product cycles
    and unrelenting price cuts.

    Still, Kodak says that its success with women shows that its strategy is on
    track. Brendan Burnett-Stohner, a New York-based management recruiter,
    bought a Kodak digital camera and snapshot-printer after her granddaughter
    was born two years ago. "I print in bulk and send them to my mother, my
    mother-in-law and daughter. Sometimes I make photo albums," Ms. Burnett
    says. "I don't think my husband has ever printed a picture."

    CVS Corp. has bought thousands of Kodak digital-printing kiosks in a bet
    that its customers -- 80% of whom are women -- will buy digital prints the
    way they bought film prints, at retail stores. "Kodak shares our vision that
    the female customer is important," says Grant Pill, director of photography
    at CVS. "Kodak has built a very user-friendly product and positioned it that
    way."

    Kodak isn't alone in realizing that women are a key market. With digital
    cameras accounting for four out of every five new camera sales, and U.S.
    film processing expected to decline 18% this year to $3.7 billion, getting
    new revenue from women is vital for retailers and photo-finishers alike.

    At Canon Inc., Rick Brooks, director of consumer-products advertising in the
    U.S., says the world's leading camera maker is "making sure that we include
    both" men and women when it designs and markets products. He notes the
    company, which has long been personified by macho tennis player Andre
    Agassi, recently started featuring 17-year-old Russian tennis star Maria
    Sharapova in some ads because she appeals to both men and women.

    Kodak executives say they knew that digital imaging would one day supplant
    film photography, but the company had assumed that the transition would take
    much longer than it has. In its regular customer research starting about
    2000, the company found that men had taken control in many digital-camera
    households.

    Susan Stoev, Kodak's world-wide director of consumer insights, says women
    complained that their husbands didn't bother to print pictures, preferring
    to view them on their computer screens instead. Men "took the picture and
    put it in the computer. But then it was like a roach motel for pictures.
    They never got out," says Ms. Stoev. The Photo Marketing Association says
    men print 25% of their digital images, while women print 35%. Although
    two-thirds of all film images were taken by women, by 2001 women were buying
    just 35% of digital cameras.

    But women still wanted snapshots that they could hold, pass around and stick
    on refrigerators, Kodak's researchers found. "It's an extremely important
    part of the culture," says Ms. Stoev. "People run into burning buildings to
    save their pictures." In the past, Kodak says, 35% of all prints were given
    to others, and its research shows that 80% of the people who make a habit of
    giving away photos are women.

    In 2001, Kodak started designing products and services that would generate
    as many prints as possible. Not only were digital cameras on their way to
    becoming low-margin consumer-electronic products, but Kodak had long ago
    lost most of the camera market to the Japanese makers. Its strategy was
    aimed at boosting sales of paper and inks, high-margin items that consumers
    would have to constantly replenish.

    To simplify the process of getting digital images from the camera to the PC,
    Kodak in 2001 introduced a docking station that could remain attached to the
    computer. It was the first such station that both recharged camera batteries
    and downloaded pictures to the computer at the touch of a button. Since
    then, most other digital-camera makers have followed suit.

    Kodak also searched for what Rowan Lawson, Kodak's digital-printing chief,
    calls a "PC-free solution" -- one that allowed women to control the images
    without having to rely on the designated family tech person, usually a
    spouse or a teen.

    That resulted in Kodak's second major innovation: A compact printer designed
    so a user could put the camera on top, push one button and get prints. The
    printer uses a proprietary dye-sublimation process that transfers color from
    plastic film onto paper. It produces glossy, water-resistant prints that
    look like they were made in a film lab.

    Compared with the big inkjet printers made by rivals, Kodak's $199 dock
    looks like a toy, and the biggest image it can handle is a 4-by-6 snapshot.
    But since its introduction in mid-2003, the dock and a $149 version have
    sold more than two million units, about 70% to women. Some 22% of Kodak
    cameras are sold with a printer dock. The device has helped drive sales of
    $25 paper-and-ink refill kits, which can produce 40 prints.

    Ulysses Yannas, a broker with Buckman, Buckman & Reid Inc. who has long
    followed Kodak, estimates that the printers generated $100 million in
    revenue last year and little or no profit. But the paper-and-ink refill kits
    amounted to $40 million of "highly profitable" sales, he says.

    Jeannette Izzi, a 35-year-old mother of three in Washington Township, Mich.,
    says "with the dock, it's like having 'one-hour photo' in my house." When
    her daughters' friends come over to play dress-up, Ms. Izzi sends them home
    with a snapshot. The prints cost about 60 cents apiece, more than twice the
    price at the drugstore. But Ms. Izzi says she's saving money compared with
    the pre-digital days, because she can look on the camera screen and tell if
    the pictures are good before printing.

    More recently, Kodak designed the EasyShare One camera, a $699 device that
    will go on sale this fall. One feature is a viewing screen that measures 3
    inches diagonally -- twice the size of most digital-camera screens. Kodak
    expects women to use the big screen to show snapshots to their friends as
    sort of a digital "brag book." The camera is designed with a special memory
    that allows users to store up to 1,000 pictures for viewing on the screen.
    It also features a wireless communications capability, so that a user can
    connect with a wireless network and email the photos to an online
    photo-sharing service or a friend.

    Building on its longstanding relationship with retailers, Kodak has sold
    about 20,000 retail-store kiosks at about $20,000 apiece in the past two
    years. The company makes additional revenue as retailers buy the special
    paper and ink used in the kiosks. Caroline Sabbagha, an analyst with Lehman
    Brothers, estimated in a report earlier this year that in 2004, Kodak's U.S.
    kiosks brought the company $400 million in revenue, with 65% coming from
    sales of kiosks and 35% coming from prints.

    Despite the risk of angering retailers, Kodak also is pushing ahead online.
    In 2001, it bought the online photo-storage leader, Ofoto Inc., for $51
    million. While Ofoto has grown steadily, and now claims more than 20 million
    registered users, Kodak decided to boost its online profile by changing the
    name in March to Kodak EasyShare Gallery. People can upload and store photos
    free, and send emails to friends telling them the photos are available for
    viewing and purchase. Kodak has also broadly hinted that once customers are
    locked in, it may be able to charge a monthly fee for storage.

    Besides making 4-by-6 prints, Kodak expects women to use the online service
    to create high-margin, personalized gifts like calendars and coffee-table
    books of family photos.
     
    Johnson, Jul 7, 2005
    #1
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  2. Johnson

    nailer Guest

    historically Kodak always pushed idiot boxes and relied heavily on
    brain crippled. the best example - format 110 and APS.
    they always kept the customer in contempt, now they rip the benefit of
    it. good ridance yellow monster.

    *cut and paste from the WSJ:
    *
    *"Kodak Sharpens Digital Focus
    *On Its Best Customers: Women
    *
    *Company Promotes Simplicity
    *And High-Quality Prints;
    *Taking On H-P and Sony
    *By WILLIAM M. BULKELEY
    *Staff Reporter of THE WALL STREET JOURNAL
    *July 6, 2005; Page A1
    *
    *When film ruled home photography, women took about two-thirds of all
    *pictures and ordered most of the prints, according to industry statistics.
    *But things changed when digital cameras began horning in on film's turf:
    *Suddenly men got behind the camera -- and many of the shots ended up trapped
    *inside a computer.
    *
    *It was a disaster for Eastman Kodak Co. Sales of film and paper, its biggest
    *sources of profit, tumbled. The 116-year-old company's long-successful
    *strategy of courting women, emphasizing not so much gee-whiz technology as
    *the chance to capture "Kodak moments," was in deep trouble.
    *
    *Today, Kodak is clawing its way to the top of the digital world by bringing
    *its best customers into that world with it. Starting four years ago, Kodak
    *set out to make digital photography female-friendly. The company's research
    *showed that women wanted digital photography to be simple, and they desired
    *high-quality prints to share with family and friends.
    *
    *
    *Kodak revamped its digital cameras, stressing simple controls and larger
    *display screens. It invented a new product category, the compact,
    *stand-alone photo printer, which could be used to easily make prints without
    *a computer. And it pushed to make digital-image printing simpler through
    *retail kiosks and an online service.
    *
    *The result has been a slow but steady turnaround in Kodak's fortunes in the
    *digital arena. The company is now the No. 1 seller of digital cameras in the
    *U.S., up from a distant No. 3 as recently as 2002, according to market
    *researcher IDC Corp. Although rivals have followed, Kodak remains tops in
    *stand-alone photo printers. Kodak's photo paper for inkjet printers,
    *introduced just last year, is the No. 2 brand after Hewlett-Packard Co.
    *
    *And evidence is growing that women are returning to retail stores to do
    *their printing. There, Kodak gets its slice via a formidable network of
    *digital print-making machines. In the 12 months ended March 31, digital
    *prints made in stores rose to 35% of the market from 21% and prints made at
    *home fell to 50% from 70%, according to the Photo Marketing Association, a
    *trade group.
    *
    *Kodak isn't arguing that women lack the aptitude to deal with digital
    *photography. In survey after survey, women simply say they aren't that
    *interested in fiddling with cables and complicated camera-computer
    *interfaces. So Kodak has worked to keep things simple, while most rival
    *camera-makers focused on developing high-tech features and marketing them to
    *techies.
    *
    *"Men are from Canon, Women are from Kodak," was the title of a recent report
    *by Lyra Research, a Newton, Mass., firm that follows the industry. The
    *report noted that Kodak is No. 1 among female digital-camera users with a
    *20% share, but it is No. 4 among men with just 11%. Kodak's approach is
    *"right on the money," says Charles LeCompte, president of Lyra. He says that
    *Kodak has always known most pictures are taken by women "and they've done a
    *great job targeting that market."
    *
    *In an interview, Chairman Daniel Carp says "women have just as much aptitude
    *and ability," as men to use digital products, but they don't want to spend
    *time making them work. "Throughout history," he adds, "women have been the
    *keepers of family memories."
    *
    *Kodak's turnaround in digital has been masked, to some extent, by the rapid
    *decline of the company's traditional, film-photography business. Over the
    *past four years, Kodak's revenue has fallen 3.4% and earnings have dropped
    *60% as it has scrambled to adapt to the digital world. It has laid off
    *nearly 12,000 workers and its debt has been downgraded to junk. And Mr.
    *Carp, who as chief executive set the company on its digital course, has just
    *taken early retirement, although he remains chairman for the rest of the
    *year.
    *
    *
    *Photography accounted for 68% of Kodak's $13.5 billion in revenue last year,
    *and investors still question whether the digital-photo business will ever be
    *as profitable as film had been. Many young people do their photo swapping
    *via Web sites or cellphones, rarely bothering to print out their images.
    *
    *The company has outlined a plan to gradually close down film operations,
    *while quickly building up digital sales in medical imaging and commercial
    *printing as well as consumer digital lines. Kodak says revenue from digital
    *products will top film revenue for the first time this year. But the
    *transition has been bumpy. In April, it surprised investors by reporting a
    *loss for the first quarter, and its stock fell 14% in the next few days,
    *approaching its 2004 lows.
    *
    *Kodak, based in Rochester, N.Y., is now competing with consumer-electronics
    *specialists like H-P and Sony Corp., which are used to rapid product cycles
    *and unrelenting price cuts.
    *
    *Still, Kodak says that its success with women shows that its strategy is on
    *track. Brendan Burnett-Stohner, a New York-based management recruiter,
    *bought a Kodak digital camera and snapshot-printer after her granddaughter
    *was born two years ago. "I print in bulk and send them to my mother, my
    *mother-in-law and daughter. Sometimes I make photo albums," Ms. Burnett
    *says. "I don't think my husband has ever printed a picture."
    *
    *CVS Corp. has bought thousands of Kodak digital-printing kiosks in a bet
    *that its customers -- 80% of whom are women -- will buy digital prints the
    *way they bought film prints, at retail stores. "Kodak shares our vision that
    *the female customer is important," says Grant Pill, director of photography
    *at CVS. "Kodak has built a very user-friendly product and positioned it that
    *way."
    *
    *Kodak isn't alone in realizing that women are a key market. With digital
    *cameras accounting for four out of every five new camera sales, and U.S.
    *film processing expected to decline 18% this year to $3.7 billion, getting
    *new revenue from women is vital for retailers and photo-finishers alike.
    *
    *At Canon Inc., Rick Brooks, director of consumer-products advertising in the
    *U.S., says the world's leading camera maker is "making sure that we include
    *both" men and women when it designs and markets products. He notes the
    *company, which has long been personified by macho tennis player Andre
    *Agassi, recently started featuring 17-year-old Russian tennis star Maria
    *Sharapova in some ads because she appeals to both men and women.
    *
    *Kodak executives say they knew that digital imaging would one day supplant
    *film photography, but the company had assumed that the transition would take
    *much longer than it has. In its regular customer research starting about
    *2000, the company found that men had taken control in many digital-camera
    *households.
    *
    *Susan Stoev, Kodak's world-wide director of consumer insights, says women
    *complained that their husbands didn't bother to print pictures, preferring
    *to view them on their computer screens instead. Men "took the picture and
    *put it in the computer. But then it was like a roach motel for pictures.
    *They never got out," says Ms. Stoev. The Photo Marketing Association says
    *men print 25% of their digital images, while women print 35%. Although
    *two-thirds of all film images were taken by women, by 2001 women were buying
    *just 35% of digital cameras.
    *
    *But women still wanted snapshots that they could hold, pass around and stick
    *on refrigerators, Kodak's researchers found. "It's an extremely important
    *part of the culture," says Ms. Stoev. "People run into burning buildings to
    *save their pictures." In the past, Kodak says, 35% of all prints were given
    *to others, and its research shows that 80% of the people who make a habit of
    *giving away photos are women.
    *
    *In 2001, Kodak started designing products and services that would generate
    *as many prints as possible. Not only were digital cameras on their way to
    *becoming low-margin consumer-electronic products, but Kodak had long ago
    *lost most of the camera market to the Japanese makers. Its strategy was
    *aimed at boosting sales of paper and inks, high-margin items that consumers
    *would have to constantly replenish.
    *
    *To simplify the process of getting digital images from the camera to the PC,
    *Kodak in 2001 introduced a docking station that could remain attached to the
    *computer. It was the first such station that both recharged camera batteries
    *and downloaded pictures to the computer at the touch of a button. Since
    *then, most other digital-camera makers have followed suit.
    *
    *Kodak also searched for what Rowan Lawson, Kodak's digital-printing chief,
    *calls a "PC-free solution" -- one that allowed women to control the images
    *without having to rely on the designated family tech person, usually a
    *spouse or a teen.
    *
    *That resulted in Kodak's second major innovation: A compact printer designed
    *so a user could put the camera on top, push one button and get prints. The
    *printer uses a proprietary dye-sublimation process that transfers color from
    *plastic film onto paper. It produces glossy, water-resistant prints that
    *look like they were made in a film lab.
    *
    *Compared with the big inkjet printers made by rivals, Kodak's $199 dock
    *looks like a toy, and the biggest image it can handle is a 4-by-6 snapshot.
    *But since its introduction in mid-2003, the dock and a $149 version have
    *sold more than two million units, about 70% to women. Some 22% of Kodak
    *cameras are sold with a printer dock. The device has helped drive sales of
    *$25 paper-and-ink refill kits, which can produce 40 prints.
    *
    *Ulysses Yannas, a broker with Buckman, Buckman & Reid Inc. who has long
    *followed Kodak, estimates that the printers generated $100 million in
    *revenue last year and little or no profit. But the paper-and-ink refill kits
    *amounted to $40 million of "highly profitable" sales, he says.
    *
    *Jeannette Izzi, a 35-year-old mother of three in Washington Township, Mich.,
    *says "with the dock, it's like having 'one-hour photo' in my house." When
    *her daughters' friends come over to play dress-up, Ms. Izzi sends them home
    *with a snapshot. The prints cost about 60 cents apiece, more than twice the
    *price at the drugstore. But Ms. Izzi says she's saving money compared with
    *the pre-digital days, because she can look on the camera screen and tell if
    *the pictures are good before printing.
    *
    *More recently, Kodak designed the EasyShare One camera, a $699 device that
    *will go on sale this fall. One feature is a viewing screen that measures 3
    *inches diagonally -- twice the size of most digital-camera screens. Kodak
    *expects women to use the big screen to show snapshots to their friends as
    *sort of a digital "brag book." The camera is designed with a special memory
    *that allows users to store up to 1,000 pictures for viewing on the screen.
    *It also features a wireless communications capability, so that a user can
    *connect with a wireless network and email the photos to an online
    *photo-sharing service or a friend.
    *
    *Building on its longstanding relationship with retailers, Kodak has sold
    *about 20,000 retail-store kiosks at about $20,000 apiece in the past two
    *years. The company makes additional revenue as retailers buy the special
    *paper and ink used in the kiosks. Caroline Sabbagha, an analyst with Lehman
    *Brothers, estimated in a report earlier this year that in 2004, Kodak's U.S.
    *kiosks brought the company $400 million in revenue, with 65% coming from
    *sales of kiosks and 35% coming from prints.
    *
    *Despite the risk of angering retailers, Kodak also is pushing ahead online.
    *In 2001, it bought the online photo-storage leader, Ofoto Inc., for $51
    *million. While Ofoto has grown steadily, and now claims more than 20 million
    *registered users, Kodak decided to boost its online profile by changing the
    *name in March to Kodak EasyShare Gallery. People can upload and store photos
    *free, and send emails to friends telling them the photos are available for
    *viewing and purchase. Kodak has also broadly hinted that once customers are
    *locked in, it may be able to charge a monthly fee for storage.
    *
    *Besides making 4-by-6 prints, Kodak expects women to use the online service
    *to create high-margin, personalized gifts like calendars and coffee-table
    *books of family photos.
    *
     
    nailer, Jul 7, 2005
    #2
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  3. My woman was from Leica til the day she died.
     
    PATRICK GAINER, Jul 14, 2005
    #3
  4. Johnson

    nailer Guest

    ===============================
    *My woman was from Leica til the day she died.

    a special edition - gold and leather?
     
    nailer, Jul 14, 2005
    #4
  5. Johnson

    Lloyd Erlick Guest



    July 14, 2005, from Lloyd Erlick,

    .... hope she was for a hell of a long time,
    too ... like my IIIf ...

    regards,
    --le
    ________________________________
    Lloyd Erlick Portraits, Toronto.
    voice: 416-686-0326
    email:
    net: www.heylloyd.com
    ________________________________
    --
     
    Lloyd Erlick, Jul 14, 2005
    #5
  6. Summa cum laude, Phi Bete Kappa, writer, musician, mother of our 6
    children and pretty good with a camera and developing tank. I had to
    teach her how to cook, but she got to be pretty good at that too. She
    could not overcome ovarian cancer, but resisted it in good humor for 4
    years. Lord, how I miss her.
     
    PATRICK GAINER, Jul 15, 2005
    #6
  7. Summa cum laude, Phi Bete Kappa, writer, musician, mother of our 6
    children and pretty good with a camera and developing tank. I had to
    teach her how to cook, but she got to be pretty good at that too. She
    could not overcome ovarian cancer, but resisted it in good humor for 4
    years. Lord, how I miss her.[/QUOTE]

    My many sympathies; watching someone live with & die from cancer, is one
    of the very difficult things,...... my Father died in 2000.
    I can only image the struggle, and hope I never have the experience
    first hand.
     
    Gregory Blank, Jul 15, 2005
    #7
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