Kodak zeroes on lifestyle shops for digicams

In a bid to target upwardly-mobile customers for its digicam range, Kodak
India has decided to showcase its products at leading lifestyle shops in the
country. It has already tied up with Shoppers Stop, and its digicams are
displayed at all 17 outlets of the retail chain. Other retail outlets that the
company has signed on include Vijay Sales and Sony Mony in Mumbai, Vivek's in
Chennai as well as two outlets of Eureka Forbes. Some more lifestyle malls will
soon be inducted, especially in New Delhi and Gurgaon.

Explaining this positioning strategy, Manisha Sood, Business Manager,Digital
and Applied Imaging, Kodak India said, "We want to concentrate on those
buyers who place an emphasis on pictures and want simplistic click and shoot
technology, without having to get into the hassles."

Till last year, Kodak was selling its digicams through its photographic
channel, which is still the strongest contributor for Kodak's digicam business
with almost 50% of KodakExpress photoshops stocking these products. It added 17
telecom retail partners, to sell the digicams along with mobile handsets. The
company is also trying to rope in IT channel partners to sell its digicams. It
has already enlisted some partners in New Delhi, Bangalore and Mumbai, but the
response is not very positive. "It is easier for an IT channel partner to
sell a PC, than a digicam, as customers prefer to buy the latter from shopping
malls. Also partners are not focused on selling digicams exclusively, though it
offers better margins than most traditional IT products."

Besides upwardly-mobile customers, Kodak is also targeting select verticals
for its digicams with a key focus on banking, insurance and healthcare.
"Banks and insurance companies can use our digicams for attaching the
photographs of new customers to their documents. In healthcare, doctors can take
photos of the recovery made by patients over a period of time," explains
Manisha.

VINITA BHATIA