BUS 343 - Marketing Plan Powerpoint[1]

Slide 1:

Polaroid Grey Label BUS 343 - Marketing Case Plan Brennan Hodge Camille Jasinski Jonathan Chiu

The Issue:

How can Polaroid revitalize its traditional imagine to meet today’s level of innovation in the electronics market? The Issue

Agenda:

Overview Introducing Grey Label The Issue Situational Analysis The 3 C’s SWOT analysis PESTO analysis Positioning Marketing Objectives Target Market Segmentation Variables Alternatives Recommendations Agenda

History of Polaroid :

1932  Polaroid manufactures synthetic sheet polarizers , moving on to polarize camera filters and produce day glasses Polaroid Corporation founded in 1937 1970’s  Instant photography camera strategy begins to lose appeal as new markets emerge Bankrupt twice since 2001 2007 - Polaroid discontinues production of analog cameras 2008 announces will discontinue production of film Austrian photographer purchases Polaroid’s last remaining factory in Holland; launches project to capture overwhelming demand for Polaroid- produces replica cameras of Polaroid’s most successful film History of Polaroid

Polaroid’s future:

Toronto based investment company Hilco Consumer Capital unites with Chicago company Gordon Brother Brands to purchase Polaroid 2010- enlist Lady Gaga as creative director for new line of products to re-launch Polaroid into digital market Polaroid now developing innovative new products at incredible rate incl. digital and video cameras, home entertainment systems, and has gone back to it’s roots to create glasses and goggles under the Polaroid name Today: Polaroid hopes to re-establish itself as product leader in changing world of photography So what is the future of photography for Polaroid? Polaroid’s future

Introducing The Grey Label:

GL10 Instant Mobile Printer – Instant printing technology; combined with ZINK ® Imaging for advanced photo quality generated by thermal technology for fully developed, instant photos (priced $179) GL20 Glasses – sunglasses with a built-in camera that can capture and upload photos; complete with LCD screen that allows its users to view the captured material (price to be announced) GL30 Instant Digital Camera – combines Polaroid’s traditional camera with an instant digital technology , paired with ZINK ® Imaging (price to be announced) Polaroid looking to keep customers reminiscent of reputable traditional camera qualities With Lady Gaga as creative director of this new product launch, Polaroid hopes to combine aesthetic with cutting edge technology to produce a fashion forward, functional and innovative new line of products Introducing The Grey Label

Situational Analysis (3 C’s):

Consumers; Recovering buying power of consumers since the recent recession (Mintel consumer report) Middle class consumers are growing, with disposable incomes and higher marginal propensities to consume. (Global middle class growth in North America) Situational Analysis (3 C’s)

Situational Analysis (3 C’s):

Competition; No direct competitors facing Polaroid with such a unique product line Companies such as Cannon, Sony and Nikon have huge camera market shares. Convergence of functionality in cell phones can play a major competitor. Companies such as Apple and R.I.M with cell phones that have great cameras Situational Analysis (3 C’s)

Competition::

Competition:

3Cs cont:

3Cs cont Company Iconic Brand Image embedded in culture for ‘instant photography’ Went bankrupt twice Shut down instant film operations 2008 Impossible Project Brand won’t seem to die.. 2009 introduced Pogo Brand equity More on co. in SWOT analysis..

Situational Analysis:

SWOT Analysis Strengths Strong brand image and equity Old iconic brand image playing on American nostalgia Lady Gaga adds increasing cultural influence on younger generations Zink Ink imaging / new technology Acquisition (Gordon Brothers & Hilco ) Weaknesses Possible clash of old nostalgic image with new, modern image Past management & failure to innovate  can they overcome this? Almost non-existent brand share for cameras Grey Label products not compatible with Apple…yet? Situational Analysis

Situational Analysis:

Opportunities Appeal to market to capture memorable moments tangibility vs. intangibility (Photographs as commodities) Printer is more of a complementary product to phones Camera phones are the future.. Situational Analysis

Situational Analysis:

Opportunities cont. Use cultural influence of Lady gaga combined with iconic image of Polaroid to create a synergy between technology, culture and self-expression [ technological convergence ] Looking for global licensing.. Expansion in foreign markets Threats Dropping price of Digital SLR, point and shoot SLRs used to be thousands.. Now $500 increasing quality of printed images from home printers Situational Analysis

Situational Analysis:

PESTO Political Economic - C oming out of recession Social – Social culture is one of the predominant contributing decision factor to almost all younger consumers. Trying to fit it, extrinsic image and self-expression through objects Technological – rapid advancements forcing companies to innovate Other Situational Analysis

Marketing Objectives:

Build awareness - Lady Gaga Facebook – link to grey label – click stream analysis Innovative – Develop 5 product line extensions of the Grey Label Sales revenue – 40% of business portfolio Attain compatibility with Apple’s iPhone and products within the year Marketing Objectives

Market Segmentation:

Segmentation Variables Demographics Age Income Geodemography Psychographics Market Segmentation

Market Segmentation:

Market Segmentation Historic/Forecast (US$) Year-on-Year growth %

Target Market:

North America & Western Europe Ages 14-22 Upper portion of Gen. Z Lower portion of Gen. Y Target Market

Age & Psychographics:

Generation Y Technology Adopters Hedonistic Spenders Fashion Influencers Online Community Dwellers Age & Psychographics Generation Z Digital Natives Materialistic Brand Aware/Brand Loyalty Older than their Years

Geodemographics:

Generation Y Represents 15.1% of world population 20 million in the US aged 20-24 1.2 million in Canada aged 20-24 Geodemographics Generation Z Largest population in the world (21%) 21 million in the US aged 15-19 1.2 million in Canada aged 15-19

Geodemographics:

Geodemographics Asia-Pacific Largest numbers Middle East & Africa Highest growth South & Central America Strong economic growth (future potential) Eastern Europe 25% decline in this demographic Western Europe North America

Income:

Income Generation Y Living at home longer No longer afraid of debt or credit Status conscious Favourable student loans and easily accessible credit Generation Z Distorted reality of money Higher living standards Higher purchasing power Discretionary income

Income:

Income Generation Z jjjj

Alternatives:

Positioning Product Leadership Symbolism & Meaning Hybrid of the Two Alternatives

Alternatives:

Alternatives Alternative 1 Alternative 2 Alternative 3 Strategic Orientation Product Leadership Symbolic PL / Symbolic Position Functional & Innovation Social / Self Expression Innovation / Social Price Mid- High Mid Mid Promotion Traditional Traditional Social / Traditional

Decision Criteria:

Decision Criteria Product Leader Symbolic PL / Symbolic Cutting Edge Factor (1) 3 (1) 1 (1) 3 (1) Price (2) 1 (2) 2 (2) 2 (2) Image (3) 2 (3) 3 (3) 3 (3) Functionality (3) 3 (3) 1 (3) 2 (3) Promotion (3) 1 (3) 3 (3) 2 (3) Weighted Total 20 26 28 innovators 2.5% of population and 13.5% for early adopters. This only represents 16% vs 84 of total population

Recommendation:

2. Hybrid of product leadership and symbolism/meaning. Recommendation

Positioning:

Positioning

Recommendations:

Recommendations