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Integrated Company Analysis - Business Library

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Exhibit 3 – Competitor Endorsements<br />

Figure 12 – Ashton Kutche, Nikon<br />

Figure 13 – Maria Sharapova<br />

Exhibit 4 – Economic Value Pricing<br />

According to the economic value-pricing model, a firm‘s product price is a sum of its reference value and its<br />

differentiation value. As such, the reference value for Kodak‘s products is the price of its competitor‘s comparable<br />

products, while differentiation value is the price premium (or discount) captured by Kodak‘s products due to additional<br />

(or fewer) benefits offered, as perceived by the consumer.<br />

Figure 14 - Economic Value Pricing<br />

Exhibit 5 – Kodak Product Pricing<br />

Within the all-in-one inkjet printer category, Kodak‘s prices are slightly higher than those of Hewlett Packard (HP) and<br />

Canon, which is consistent with its current campaign to charge a small premium for the printer, while offering the ink at<br />

significantly lower prices. In addition, to offset the price premium, Kodak is partnering with retailers such as Best Buy to<br />

offer a $50 discount on a printer, when a customer recycles an old printer. The digital picture frame market is highly<br />

fragmented with 15 different brands ranked in the top 20 by Consumer Reports (add works cited). Kodak‘s price range of<br />

$60-$230 is consistent with the pricing of other brands. An exception to this is the pricing of Kodak‘s recently released<br />

wireless OLED frame, which demands an extreme price premium, at a price of $999, because it is the only frame offered<br />

22

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