Kodak has released a video of Jeff Hayzlett sharing his perspective on industry suppliers competing with their customers.
In an email to Print CEO about the video, Kodak states, "Hayzlett talks about the responsibility that suppliers have to make decisions that will bring success to customers and the benefits of working together as partners. Kodak’s recently launched “Print and Prosper” consumer campaign is designed to educate customers on the true costs of inkjet printing and provide a more cost effective alternative. Similarly, Kodak embraces its responsibility to help commercial customers understand the dynamics of the market and the opportunities to drive new business. By helping its customers find success, Kodak ensures its own success, and continues its commitment to delivering the industry’s broadest portfolio of integrated solutions."
The video is clearly targeted at HP and the HP MarketSplash initiative which has received industry criticism (See the recent video interview with Carl Gerhardt, CEO of Allegra Network).
Kodak faced similar criticism in March 2007 when it launched the KODAK Creative Network. At the time Kodak stated the service was launched "in response to requests from our customers to drive more demand for print business." Industry reaction to the service was not positive. Further clarification was provided by Jeff Hayzlett in an interview with WhatTheyThink: Hayzlett Clarifies Kodak’s Print eCommerce Network Strategy. Kodak discontinued the service five months later citing member feedback.
There are at least two lessons from the HP and Kodak initiatives: 1) industry suppliers should be wary of competing with the printers it supplies. And 2) printers don't want suppliers to get between them and their customers.
Discussion
By John on Apr 07, 2009
Why are the printers limited to a print length of 14"? Why not allow it to print whatever length the document is at 8.5" wide?
And what about Popular Photography's review?:
"As for the Kodak? This model may appeal to budget minded consumers who will accept draft quality color prints in order to achieve a 10-12 cent price per 4x6-inch print. But anyone who's serious about print quality will have to load it with at least 4 star Premium Photo Paper and that triples the price per 4x6 print and brings consumable costs more in line with the other three printers. Considering the $199 price tag, the Kodak is therefore overpriced for what it offers and outclassed by the prints and versatility of the less expensive Epson."
It would be great to have an independent assessment of Kodak's printers vs their competition. All we get is marketing spin.
John
By Brad on Apr 07, 2009
HP and Kodak understand their existing customers will not exist in size or scope, in increasingly near new business environment. They are positioning themselves for what they hope will be the new market. This leaves them little choice but to seek new relationships, note to printers like the movie... they are just not that into you.
By Michael J on Apr 07, 2009
Adam,
Unfortunately I think what printers want or don't want is just one part of an equation for Kodak or HP or Xerox or another global. Everyone should face the fact, that in the scope of things, it's not really that important a part of the equation. Printers are tapped out. Not much more revenue coming from them for a while.
If VistaPrint hasn't already skimmed off the bottom of the smb pyramid, why should anyone be afraid of what Kodak or HP is going to do.
If Kodak's Creative Network would have worked, you know they would have pursued it. On the other hand if a box supplier offered a better, cheaper box, with better service a PSP would take it. No love lost.
This is not personal. This is business. Printers as a channel have a lot more to worry about than competition from a global. A printer's defensible advantage is their present customer list. If those customers would move to MarketSplash or a globals print offering, it isn't a very valuable customer list to begin with.