Sony, Kodak and Disney CEOs ponder branding and competitive challenges.
You could tell that the CEOs of two iconic, but troubled, brands -- Kodak and Sony -- and the current chief custodian of the Disney mantle are putting a lot of thought into their companies' marketing and brand-maintenance (or revival) strategies. Even competitors such as Microsoft and Yahoo! are also struggling with the market evolution, as underscored by young consumers' attitudes toward their products.
During their respective hours at last week's "D: All Things Digital" conference, Antonio Perez (Kodak), Sir Howard Stringer (Sony) and Robert Iger (Disney) enunciated their initiatives for exploiting traditional loyalties in the face of greater competition from other behemoths as well as from scrappy competitors.
The annual D event, run by the Wall Street Journal, ostensibly concentrates on technology and the financial outlook. But this year's media-heavy agenda offered frequent glimpses into the changing relationship between media and marketing purveyors in the emerging digital environment.
For example, Perez pointed out that "You can buy market share in the United States" for commodity products such as digital cameras and printers. He noted that less than a year after Kodak entered the home-photo printer category, "We were the market leader in every country in a category that we [previously] were never present."
Perez stressed the value of a familiar brand, especially for consumers confronted with hundreds of products that are all similarly priced. He cited the "printer wall" at big box retailers, where consumers -- or sales personnel -- do not know where to focus.
"Brandpower is overwhelming," he added. "Differentiation is hard to establish, so [customers] go for the brand."
Perez acknowledged that Kodak's luster has lost its gleam during the digital imaging transition. In a short video specially produced to introduce him, Kodak laughed at its own slowness to capitalize on the sentiment of "the Kodak moment." (The witty video, which drew appreciative guffaws from the D audience, may be available later this month on the company's website, a Kodak official told me later, if Kodak can obtain the necessary copyright clearances.)
The Kodak CEO also cited a corporate re-focus, motivated by a combination of technology and market shifts. For example, Kodak intends to concentrate on service businesses, such as creation of searchable "digital shoeboxes," a reference to the ways in which many casual photographers now store their photos. Kodak will maintain personal photo libraries on its servers, enhancing them with an array of tools. Its "eFinder" pattern recognition systems can structure individual "intelligent archives" based on the content of the image, such as beach photos, baby pictures, images with grandparents. A customer can then sort and retrieve (for a fee) specific images, using the meta-data associated with each image-- including old photos that have been scanned into the system.
He rebuffed concerns customers may have if they realize that Kodak could charge any price it wants if a customer wants to retrieve a valued photo years or decades from now.
In one of many mea culpa's through the D conference, Perez acknowledged that Kodak will never again see the 60 percent to 70 percent margins that it had during the "film" era. He said that he'll be glad to stabilize at 30 percent margins.
Perez said he was encouraged by a comment from a focus group that Kodak ran about its services agenda. One participant warmly believed that Kodak would "treat my memories" not just "a file." Perez beamed that Kodak's future will come from exploiting the 100-year-old assurances of the Kodak brand and the company's past.
Mistakes were made
Sir Howard -- a consummate raconteur -- charmed the D audience with his enthusiasm about landmark opening-week grosses for Sony Pictures' "The DaVinci Code." He acknowledged that its tight release schedule and the decision to restrict advance screenings -- and critics' reviews -- are likely to become more frequent, suggesting that promotional campaigns and word-of-mouth marketing will increase in importance.
Sir Howard then turned to issues that have sullied Sony's once-impeccable brand reputation.
"We've had a great problem with applications software," he admitted, referring to the devices and even the competitive videogame market. His checklist of technology stumbles included set-top boxes and handheld devices. He also fended off jibes, made the previous night by Microsoft's Bill Gates, about the price of the upcoming PlayStation 3 videogame device. "It's not too high," Sir Howard insisted, although that current list price is at least $100 more than Microsoft's latest XBox 360.
The inconclusive remarks were a reminder that after the earliest adopters (who are not price sensitive) take up a product, market deployment depends on a great variety of perceptions and facts, including something as fundamental as price.
Stringer also deftly handled a cute interrogatory from domestic diva Martha Stewart, who was in the D audience. As she pulled cords and power blocks from her shopping bag, along with a Sony camera, phone and other handheld devices, Stewart inquired why there was no compatibility to reduce the number of connecting cords she needed at all her homes and cars.
"You need a native bearer," Sir Howard advised, to help Stewart carry her load of cords. He vowed to ask his engineers to look into the problem. Moderator Walt Mossberg, the Wall Street Journal's Personal Technology columnist, wittily suggested that if the problem were resolved, Stewart could macramé the cords into a placemat.
Next: A reminder that digital reality isn't always what's envisioned from the heads of media empires.