Polaroid

Family Imaging Market

Don’t do anything that
someone else can do. Don’t
undertake a project unless it is
manifestly important and
nearly impossible.

Edwin Land
Founder
Polaroid Corporation
 Polaroid’s History
 1937 – Edwin Land developed
Polarization
 1948 - 1st Instant camera
 1972- SX-70 camera
 1977 - Polavision instant movie
system
 1986 – Spectra Camera
 Financial Analysis
Polaroid Corporation
PROFITABILITY RATIOS

Net Profit Margin:

(Net Income/Sales) 1991 1990 1989

Polaroid* 33.00% 7.70% 7.60%

Kodak 0.11% 3.72% 2.88%

Return on Stockholders' Equity:

(Net Income/Total Stockholders' Equity) 1991 1990 1989

Polaroid* 0.88% 0.73% 0.97%

Kodak 0.28% 0.10% 0.08%

* These percentages are based on sales from within the U.S. and internationally
 Financial Analysis
LEVERAGE RAT IO

Long T erm debt-equity:

(Long Term Debt/Total Stockholders' Equity) 1991 1990 1989

Polaroid 0.61% 2.47% 3.57%

Kodak 1.24% 1.04% 1.11%

LIQUIDIT Y RATIO

Quick Ratio:
(Current Assets-Inventories)/Current Liabilities) 1991 1990 1989

Polaroid 1.27% 1.14% 1.05%

Kodak 0.86% 0.86% 0.93%

ACT IVITY RAT IO

Total Asset T urnover:

(Sales/Total Assets) 1991 1990 1989

Polaroid* 0.91% 1.16% 1.07%

Kodak 0.66% 0.78% 0.78%
Polaroid Instant Cameras
Parameters 1948 1963 1972

Photo Peel a piece of Peeling was not Integral film - no

paper over the required; but timing or
developing
photo and apply photo remained treatment
chemicals sticky for a while required
Time taken More More Relatively less
to develop

Photo Black and White Color Superior quality –

color
quality
 The Joshua Story
 Skunkworks -> Blue Sky meeting ->
Joshua
 ‘Think out of the box’ approach ->
Team
 Technological change -> Product
 What’s wrong ???
Issues:
-Design
-Reconsider market
potential
Actions taken:
-Assessor test
-Ingenious design

Consequences:
-Potential market for
small cameras
-Confidence in Joshua
 Vision -> Reality
 Quality test
 “Automatic Everything”
 Test Marketing
 STP
 4P’s
Highlights for Marketing
Strategies

 Low cost cameras, costly Polaroid

films
 High technological innovation
Reasons for failure

 Emerging players
 Did not adopt to changing trends
 Poor promotion and advertising
campaigns
 Inefficiency in production
 Improper channel mix
Strategic Problems - Results
 Loss of market share
 Sense of urgency
 Deterioration of Brand Image
Disruptive Innovation
 Change or Die

 In 2001, Polaroid declared bankruptcy.

 Razor-Blade business model

 Technology Driven Company

Disruptive Innovation
 Invested $30 million in Microelectronics lab.

 Spent 40% of R&D on digital imaging tech.

 No new business model.

 Last Efforts (New Mktng Strategies)

Outline of Marketing
Strategies (Suggestion)
 Market Penetration
 Product Development
 Forward Integration
 Business Process Reengineering
 Market Penetration
Problem : Poor promotional/Ad campaigns
Solution : Market penetration

>Public Relation Campaigns

>Sampling Strategies
Product Development
 Problem: Need For New Products
 Solution: Product Development

 Cater To Customer Trends

 Develop New Film
 Focus On Core Business

New Product Culture

Forward Integration

 Problem: High Price Of Film/Lost

Market Share
 Solution: Forward Integration

 Increase Control Over Retailers

 Cater To Consumer Trends
Business Process
Reengineering
 Problem : Failed to recognize the emerging
market trends
 Suggestion: Identify the phases of business
Thank You 