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3.

BARCO
Barco NV is one of the top three global manufacturer, focused on expensive, high-quality products in a niche market. It focuses on
the graphic projector, projector market has the greatest growth and income.
Barco's market share of 4%, a video projector, 23% and 55% of the data projector graphics projector.
Barco's main competitors, Sony, Electrohome and NEC.
In my opinion, scrap the BD700 and star new "high-end" projector is the smarter choice. His strongest competitor, Sony develops
a new product 1270 "super data" projector and trade show in the Boston. It is a high-performance graphics applications and low
price. From the Table A Product Segment Growth, 1988, we can find that Graphics predicted annual growth, 1989-1994 were
40.2% from 1988 4% units. Data only grows 12.3% from 1988 33% units. Its mean graphics' market growth is more than Data's
market growth. The BD700 is BarcoData700. Data's market is growing slowly. That means new product BD700 is fail product and
fail in the market. That's why I agree scrap the BD700. I will show more analyze in my product life cycle. And BG400
(BarcoGraphics400) is old model. If 1270 go in the market, BG400 will be kick-off from the market, because BG400 is the high
price and low benefit product when 1270 come in. To star new "high-end" projector it is the smarter choice. Barco can develop
new-product like as BG800 or upgrading BG700. In the Niche marketing, Barco need to keep pursuing top of the line in the
"high-end" niche market and declining the prices, and Barco can win back the competitive edgy.

Mission Statement
High quality, high technology, popular, and five stars customers' service, are all in ours' product.
Three levels of product
Projector is popular in the world, especially graphics projector. Projector is used in the class by the professors and very important
in multimedia instruction. That's the core customer value. Its customers' needs. And in these customers, when they chose the
projectors they are care about the brand name, features, quality level, packaging, and design, its customer's wants, these are actual
product. And most customers are actually care about the band name, features, quality level, packaging, and design, and these are
actual product. The features are the points Barco's new "high-end" projector's positioning, and also it is customer wants. In the
Actual product, I will focus on the features, Barco's BG800 projector is new scanning frequency and new tubes than the 1270 "the
BG800 with at least 90kHz of scanning frequency and new tubes" (p 249). Barco is famous brand name in the worldwide. Sony, it
is not a profession projector brand. Customers will choose the professional brand-Barco. However, in the augmented product,
customers want a good after-sale service and product support. In that part, Sony has good after-sale service and product support.
That also is a good point for Barco's customer future cost, and collect customers information for the new-products. Also, it will
become the point that customers care about when they chose the company. Barco need to improve that part, because that's
customer wants. And its customer future cost, and researcher can collect customer information and wants from the new-products
in the test marketing.
Barco and Sony's strengths and weaknesses. First, Barco's products have a better scan speed is higher than the Sony. Barco dealer
for 20% of the box distributors and 80% of the dealers and the dealer of Sony were 50%, tank dealers, and 50% of the system
dealer. And we clearly can see customer needs and wants of three levels of product. Positioning is important part of customer
wants.
Positioning
New "high-end" products are very important for Barco, it's positioning on the high-performance graphics applications and middle
high price like as BG800. Because Barco's strong competitor, Sony's 1270 is high-performance graphics applications and low
price. Keeping high technology, appropriate price cut, and doing market research are the good way for the new-products. The
BG800 in type of consumer product is classified the shopping products. Customer would like to compare these product, features,
design, brand name, quality level, and packaging. The BG800 is the one Barco develop and position for the "high-end" products.
Product life cycle

In the product life cycle, BD700 are almost developed. But BD700 is the fail product like what I said in the beginning. But Barco
already paid for the BD700 development fee and that was the sink cost. And Barco cannot take this money back. In the product
life cycle, if BD700 is the right product, it can run like the curve, keeping to spent money for introduction. But the problem is
BD700 is the fail product, it's wrong product. In the development, it's the sink cost. Sony is in the product development area, and
they can stop and decline the loss, but Barco. Right now Sony's product 1270 is passed the product development area and they
will keep to following the product life cycle curve, introduction, growth, maturity, and Decline. The profits will between the end
of introduction and the end of decline. Barco can start to develop BG800 and also follow the curve, because BG800 is the right
product right now.
Possible Value Propositions
From the upper, we can find that BG400 is in the more prices and more benefits area. But when 1270 are come in the market.
BG400 will go down to the more prices and less benefits. And the 1270 will go to the less prices and more benefits area. It's very
bad for BG400. Because no one want to buy a expensive and less benefits product. Barco will lose that market. From the
positioning, BG800 will go in to the more prices and more benefits area. That's good to fight with 1270 in the market. Customers
really need the less prices and more benefits product, but some customers want more of the product, like they want and compare
different brand name, features, and after-sale service. So they will choose BG800.

The New-Product Development Process


In the idea generation, Barco has many ideas. I will talk about three ideas from Barco; finish the BD700, scrap the BD700 and
start new "high-end" projector, and improve BD700. In the idea screening, I suggest Barco scrap the BD700 and start new "highend "projector. If that idea is passed, Barco will continue the next part-concept development and testing. BG800 is show up in the
concept development and testing of the new-product development process. And then, Barco can do the marketing strategy
development and business analysis. In the marketing strategy development, Barco can follow the Niche market to find what they
fit. Following the Niche marketing, Barco can position the BG800 to the high-performance graphics applications and middle high
price. So their marketing strategy will fit at high-performance and high price or middle high price. In the Business analysis, Barco
need to do more market research and collect more information from the customers, price, needs, and wants. The third step will go
in to the product development like as the graph of product life cycle, beginning the product development and products'
introduction, growth, maturity, and decline. The test marketing is beginning on the products' growth. That means in the test
marketing, it is beginning on the products' growth and test the new product whether or not fit in the market growth and market
share. And the last part, it will star the commercialization.
SWOT
Analyzing the Barco's superiority from the case, it's show that Barco has two big markets: the United States and Western Europe.
From the Table B Geographic Segment Growth, Barco has 50% units in the United States and 36% units in the Western Europe
1988 and the predicted annual growth of each are 9% and 11.5% from 1989 to 1994. And the weakness part is the relationship
with dealer. Barco hasn't the system dealer who know-how of integrate and install equipment packages. From the Table D BPS's
Pricing Index, BPS has 41% direct cost and 59% gross margin, and this is the high margin. Existing dealers liked to sell BPS's
products. But BPS's product is complexity. "In 1989, few dealers could survive without the Sony volume; an estimated 80% to
90% of professional audiovisual dealers worldwide Sony products because of reliability and low price among dealers" (p. 244).
Sony has a lot of dealers and good for his product selling. The opportunity of Barco's products are high technology and famous
brand in the worldwide of projectors. Barco can develop "high-end" product BG800 or upgrading BG700. The threat is Barco
need to scrap BD700 production. It means they lose a lot of money and need more time for the new "high-end" product
development. And they will lose a lot of market share from their competitors. If the BG800 are not fit in the market, Barco will
lose and never come back.
Line stretching and Line filling
Barco need to fill in the gap of Sony. Keeping the high quality and dropping the price, it's the good way to fill the line of product
line decisions. Right now Barco is in the high quality and high prices. And Sony is in the low prices and low quality. Sony keeps

the low price and develops high quality product, 1270. If Barco develops BD700, the low price and low quality, will lose the
market. If Barco scarp the BD700 and develops the "high-end" product BG800, it would be keep their high quality. Barco haven't
low price product, so he has no line filling. Barco have high price and high quality product. Barco will have line filling when he
drop the price and keep high quality. Finding the gap of Sony is the good way to win the battle.
Summary
Surviving in the competitive market is not easy. To scrap BD700 and start a new "high-end" product, BG800, is the smarter
choice. From the analysis, Barco need to find their new product whether or not fit in the market. Finding the customers' needs and
wants, it's very important. Barco need to redefine its target market from collecting customers' feedback and competitors' strategic.
To position new-product, it's still important for Barco's line filling. Positioning also use to the Possible Value Propositions, to find
where the area is and where is the competitors. Understanding the product life cycle is good for losing money and scraping the fail
products. The right product will follow the product life cycle curves. Understanding the SWOT, Barco has two big markets: the
United States and Western Europe. the weakness part is the relationship with dealer. The opportunity of Barco's products are high
technology and famous brand in the worldwide of projectors. Barco can develop "high-end" product BG800 or upgrading BG700.
The threat is Barco need to scrap BD700 production. In the line stretching and line filling part, Barco need to find his line, high
prices and high quality, dropping the prices and keeping high quality are go way to filling the line of product line decisions.

Case Analysis Eastman Kodak Company


Marketing Essay
Problem Statement: Eastman Kodak Company: Funtime Film is the case which deals with the problem which is
faced by Kodak. In the year 1993 and 1994, Kodak has witnessed a drop in the market share.

US Market of Photo Film: (1993)


First, we will have a look at the US Market of the films, which will help us in understanding the market and the
reasons for the downfall of Kodak can be analysed. In 1993, the total of 16 million colour exposures were made
which was equivalent to 670 million 24 - exposure rolls ranging from $2.50 to $3.50 for a roll. From last few
years, the industry has witnessed a growth of 2% with Kodak, Fuji, Agfa and 3M as the major players in the
industry. Kodak offered its Gold plus brand which was the standard roll of the market. The US market offered
four different categories of the films which was differentiated on the basis of price i.e. Super premium, premium,
economy and price brands. The film roles were categorized on the basis of light sensitivity as ISO 100, 200 and
400.

The major sales of films in the US market were made through discount stores and departmental stores.

Competitors:
The major competitors of Kodak were Fuji, Agfa, 3M and polaroid's branded products. Kodak and Fuji sold
branded products, films, imaging products, and camera. These were the two companies who has dominance in
the worldwide photographic market. Agfa and 3M sold the products under the private labels. Polaroid sourced its
product from 3M and sold them.

Current Situation of Kodak:

Kodak has witnessed a decrease in the market share from 76% to 70% over past five years mainly because of
the low price strategy that was followed by its competitors such as Fuji. Kodak also lost 8% of its stock because
of the rumour for the price cut in the products of Kodak. Kodak's market growth was stagnant and it could
achieve only 3% of the growth in comparison to Fuji and Polaraid who witnessed the market growth of 15% .
Kodak was loosing its market as its biggest competitor Fuji was capturing the market by following low pricing
strategy. Fuji adopted competitive strategy and different marketing tactics to achieve the worldwide sale of $10%
which amounted to half of Kodak's sales. The market share of Kodak is shrinking by 1.2% and the current gross
profit earned by Kodak is 70%.

Product Line of Kodak:


Kodak offered 4 different product range each with different prices to capture the maximum market. Kodak Ektar
was a premium product of Kodak which was used professionally. The other brand was Royal gold which
positioned itself for 'very special' occasions like the birth of baby, graduation ceremony, Kodak spent about 40%
of the total budget on this product line to attract more and more customers. The positioning used by this product
helped in influencing many consumers as they are highly associated with the special occasions also known as
'Kodak Moment'. Kodak Gold Plus was the flagship brand of Kodak and had approximately 60% of the total
advertising support. As Kodak generally had premium brands, it launched a brand in the name of Funtime film
which focused on the customers who were price sensitive. It was an economy brand and did not have any
advertising support. This product was available in limited quantities on a particular season or time. This product
packed for the convince of the customers in value packs i.e. 2 rolls package of 24 exposure and 4 rolls package
of 3 24 exposure rolls and 1 roll of 36 exposure.

Situation Analysis:
In this section we will try to analyse the current situation of Kodak through Michael Porter's Five force analysis,
Swot analysis and BCG Matrix
The five forces that affects the US Market of Photo Films (Kodak):
The intensity of competitive rivalry: There were different players in the market which offered the same product as
offered by Kodak. Major players in the market were Fuji, Agfa, 3M and polaroid's branded products. The quality
of the products were almost of the same level.
Threat of New Entry: The photo film industry is based on high technology and needs huge investment. So, the
threat of new entry in the market is limited. Polaraid entered the market but it sold the branded products of 3M.
Thus, the treat of new entrant is less in this market.
The Bargaining power of buyer: The bargaining power of the buyers in this industry is quite high as there is no
switching cost in the industry.
The Bargaining power of Suppliers: The bargaining power of suppliers is high as it is a commodity product.
Threat of Substitute products: The threat of substitute is high as per the survey conducted in the case, we ca see
that consumers switch over to other films easily depending on the quality of the films offered.

SWOT Analysis:
Strengths of Kodak:
Enjoys strong brand name
Enjoys high market share i.e. 70%

Enjoys high gross profit margin of


Weaknesses of Kodak:
The price of the products offered is comparatively higher than the perceived value.
Has only 3% growth rate compared to 15% growth rate of Fuji

Opportunities:
Growth of the photo industry and increasing demand and need of the rolls and other photo film products.

Threats:
Competition mainly from Fuji and Polaraid
Advancement in technology which will reduce the need of rolls offered by the companies.