Kodak turns to mobile for rebranding effort: MMF keynote

By Dan Butcher

June 3, 2009

NEW YORK - Faced with a crisis of epic proportions -- the death of film and the rise of digital photography -- Kodak has shifted its strategy to mobile.

During a keynote address, a Kodak executive discussed how the company is transforming itself from a film dinosaur into a leader in digital imaging. He shared his perspectives on what it takes to succeed in the digital age, with a particular focus on how companies can use mobile marketing to build closer relationships with customers, build their brand, create innovative products and deliver tangible return from their marketing investment.

"What I love about mobile is that I can go out and do it and it's not going to kill you, it's not going to die," said Jeff Hayzlett, chief marketing officer/vice president for Eastman Kodak Co., Rochester, NY.

"We've had some great successes and some huge failures, but mobile isn't going anywhere," he said. "Mobile helps us get across our motto, FAST -- Focus, Accountability, Simplicity, Trust."

Kodak is using social media and other tools -- including the mobile channel -- to transform itself and re-brand as a high-tech, forward-looking company in touch with the digital, mobile generation.

Kodak invented the digital camera in 1975, but didn't think it would catch on and wanted to preserve the higher profit margins of film.

Once a $15 billion company, Kodak saw its profits plummet when digital camera's popularity exploded. It has since rebounded, with 2008 revenues of $9.4 billion.

"Kodak pulled of the biggest turnaround in American business history," Mr. Hayzlett said. "About 80 percent of Kodak revenue is from all new products and services developed within last five years.

"It's been a complete brand transformation," he said. "Our greatest attribute is trust, people trust us, so we wanted to keep some perceptions, but alter others."

As a testament to its radical facelift, 60 percent of Kodak employees have been there less than four years.

Kodak Gallery has more than 75 million members, making it the second largest social network in the world.

The Kodak Gallery iPhone app gives people access to their Gallery pictures via their handset, so they can share them with friends and family members.

Users can also upload new pictures taken with their iPhone to their Kodak Gallery online photo albums.

Existing Kodak Gallery members can download the iPhone app from the App Store and follow the instructions to access their account.

New users who download the application can join the Kodak Gallery free of charge from their iPhone.

Once pictures are online at Kodak Gallery, consumers can order Kodak prints, share photos with friends and family members, create designer holiday photo cards and make photo keepsakes.

The Kodak Challenge is a golf competition on the PGA Tour, and in addition to on-site, online, print, radio and TV advertising, Kodak started a golf fantasy league via mobile applications.

The company runs SMS promotions and sweepstakes every week. A call-to-action might say, "Text us now with the name of the golfer who you think will win, and you could win $10,000."

Kodak also runs mobile promotions in conjunction with its branded content -- i.e. product placement -- on TV shows such as Conan O'Brien, Jimmy Fallon, Celebrity Apprentice and Telemundo programs.

Kodak activated its Celebrity Apprentice sponsorship with an SMS poll, "Vote now, who do you think will win?"

Viewers could also send in their own pictures via MMS and buy either their own photos or photos taken by celebrities on the show.

In addition, Kodak sent consumers who texted in a coupon for a discount on Kodak ink jet printers.

Kodak issued a call-to-action in Spanish urging Telemundo viewers to text in their own pictures, which Kodak framed and put up for sale.

Kodak ran a similar MMS promotion during President Obama's inauguration, letting users add up to five photos to the campaign's dedicated site, and made money on the project via photo sale while getting brand uplift.

Kodak is currently working with BuzzWire on a beta version of a branded mobile portal.

Kodak also invests in mobile banner advertising. The company has dedicated mobile teams in the U.S., Europe and Asia.

"We're shifting a lot of our activity and budget to mobile -- it's triple what it was a year ago," Mr. Hayzlett said. "It's mobile, it's easy to make changes, so that's what we do.

"This is mobile, this is fast, move fast," he said. "We focus on ROI, what are my results?

"Show me a compelling thing that's $15 million I'll spend it, show me something that works and I'll try it -- I'm interesting in campaigns that drive sales, interaction with customers is my brand, so make it a priority for me, and I'll do it."