Stemming Precipitous Declines in the Market Capitalization of an Iconic Brand Facing Disruptive Change

Kodak was losing market share to Fuji largely based on price, and the nascent digital technology was still priced out of reach for most consumers. Due to inroads by Fuji and the looming threat of digital to high margin film, Kodak’s market capitalization had been declining for years even though the company was tremendously profitable and the brand remained an icon.

 

Strategic Action:

 

  • Led development of a new vision for the future, and a strategic plan to make the vision reality.
     

  • Transformed and streamlined four separate organizations into a single market-driven unit, significantly improving consumer focus, innovation, and operational efficiency, while reducing costs.  Focused more resources on growth via expansive innovation, more and better consumer communication, and business simplification. Employee survey results showed significant organizational transformation as reflected by increased commitment and job satisfaction in the face of downsizing that reduced SG&A expense by 22%.
     

  • Created an expansive innovation cross-functional team to fuel growth, and doubled the percentage of sales fueled by new products and services in three years.
     

  • Co-led a new and award winning “Share Moments, Share Life” ad campaign that achieved strong in-market consumption and tracking results, and was rated the most effective ad campaign of 2001 by USA Today readers.
     

  • Launched picture CD to enable easy transfer of pictures to computer, winning a Gold Effie award for business results delivered by a new marketing campaign targeting teenage girls.
     

  • Simplified the consumer shopping experience by restaging all packaging and point of sale merchandising to be more consumer friendly and less technology focused.
     

  • Implemented a more disciplined and simplified project management system to address consistent failures in the commercialization stage.
     

  • Reallocated resources such as inefficient trade spending toward consumer focused marketing support.
     

  • Improved profitability and cash flow by reducing SKUs and inventory, reducing DSO, and moving production of One-Time-Use cameras to Asia.
     

  • Developed and deployed a new recruitment, succession planning, and talent development program that significantly upgraded talent and accelerated cross fertilization of high potential talent.

 

Result:

  • Fueled the only two-year increase in Kodak’s market capitalization over the span of two decades.
     

  • Curtailed revenue declines, and improved profitability, cash flow, and market share

 “Jude is a great attracter of talent who builds strong teams and excels at nurturing that talent to perform at the highest level. And while he is strong across the broad spectrum of managerial disciplines, I would say he is a great marketer at heart. Jude was always a very vocal advocate for keeping the consumer front and center in all our thinking and all our efforts as an organization. His marketing instincts are superb."

- Jerry Quindlen, Former President & CEO at Logitech

 

 “What strikes me most about that era and Jude in particular is the calm confidence that he exhibited in the face of unprecedented change. As VP of Marketing and later as COO, Jude demonstrated a consistent, clear long-term vision of where the business needed to go. He worked diligently and fearlessly across the organization to get consensus and alignment on our strategy and plans… With the high level of risk and uncertainty, morale was a serious risk, but Jude’s behavior, character and skills inspired many people to peak performance…Leadership isn’t always important, in fact, many companies do pretty well without leadership....but in times like these leadership is everything.”

- Fran Linnane, AVP Product Development/Mergers and Integration, AT&T