Business cases that never were Posted by Tomi Heikkinen , Tuesday, June 16, 2009 at 20:16, in Labels: branding, case study, Flickr, Kevin Roberts, Kodak, Lovemarks, marketing, social media

I am always told that hindsight is unconstructive, mainly negative and energy-consuming. It should be avoided at all times – after all, you should always look to the future and its possibilities and not waste energy on looking back.

Or should you?

I’m starting a series of blogposts about Business Cases that Never Were – writings and discussions that make use of hindsight and unexecuted, perhaps even unrealized opportunities. I am doing this just because to disprove the myth of hindsight’s negative aspects, and to generally inspire creativity and innovative ideas. The first case is simply called Flickr – powered by Kodak.

Flickr – powered by Kodak

I was reading Lovemarks – Future beyond brands by Kevin Roberts (CEO Worldwide of Saatchi & Saatchi) the other day. Lovemarks is a compelling, vibrant book about the next level of branding, lovemarks that attract “loyalty beyond reason” in their customers. On pages 150 to 152 Kevin Roberts discusses a certain case of Kodak where the firm between 1999 and 2005 strived to connect with teens, enhance its brand position among them and capture the market of disposable one-time-use cameras in this segment. In the case study, their main fear seems to be (in addition to losing to their competition) becoming a disposable themselves, a fad like Polaroid.

The case study goes on about Kodak’s extensive marketing tactics that succeeded in reaching their target audience and steered (in their own words) Kodak towards a Lovemark. Their continuous goal is to remain authentic and relevant to the teen segment. The case sums up nicely how a certain Lovemark-oriented marketing perspective helped Kodak connect with teens, but I was left thinking about a lost chance for Kodak. Now, its 2009 and disposable cameras sound a bit from the leftfield. Sure, they are the low-budget choice, but teens love their digital cameras, because of their big memory cards and ability to share and edit their digital pictures – their life. The industry where Kodak operates, production of imaging and photographic materials and equipment, is in a world of trouble. I have clients in that same industry and discussions with them turn darker year after year, and digital photography is one of the main reasons. Retailers face bankruptcies as customers no longer develop their pictures but enjoy and store them in digital formats. And to boot, people increasingly purchase their photographic equipment from an often cheaper source, online.

How would we upgrade Kodak’s marketing efforts to 2009 while keeping in mind their business goals, continuous authenticity and relevance, brand preference and increased sales, presented in this case?

Life’s about sharing

Flickr is an open, free online photo and video management and sharing application where people can store and show off their magnificent pictures to the Internet. It’s hideously popular, and for a reason, thanks to its ease and (non-) cost of use and vibrant social community. Launched in February of 2004, it now hosts more than three point six billion images and videos. And it’s owned by none the other than Yahoo.

Kodak’s goal in Lovemarks’ case was to increase their share of market in photography equipment, in this case, one-time-use cameras, by connecting with a potential market of teens. For this example, we will disregard one-time-cameras and focus on other more relevant equipment.

What if Kodak had launched Flickr in 2004, or acquired it before Yahoo on March 2005?

What has been relevant to internet users in general and youth in particular since 2000? That’s right, social media, emphasis on social. In Roberts’ case study, Kodak claims to have gotten to grips with the youth market. In the past years Internet has become a major social playground for teens, a major part of their life. Kodak would’ve needed to be there too, should it want to remain relevant. And what is Kodak known for? Photography. Those Kodak moments.

What would it be/what would it have been?

In the fall of 2004, some exec in Eastman Kodak should’ve had a brain explosion. Realizing the same opportunities as we, he would’ve driven Kodak to the social internet community based on their main competence - photography. By creating a thriving community around their main business, they could attract customers and prospective customers. Kodak could have launched Flickr as a semi-independent, authentic, separate brand, being careful not to over-commercialize a service intended among others for sharp youth. Keeping it free and easy to use, just reminding that all this fun is powered by Kodak. Business-wise, their goals could have been to:

1) offer users easy possibility to develop their best images – direct them to their nearest Kodak retailer or even put out a service where people can develop their photos online by the nearest retailer
2) offer free advice to better photography, useful information on cameras and equipment (something Kodak does already, atleast in their UK website)
3) offer a easy, cost-competitive channel to purchase said equipment

This way, multiple benefits could have been reaped

1) Increase in crucial retail business
2) Major boost to brand awareness – “the little Kodak logo on every Flickr page”
3) Retained deep connection with youth – authenticity and relevance

Think about it: People sharing their Kodak moments online?