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1.     Kodak
as a brand is associated with high quality product and launching a low-price
product can impact the Kodak’s premium quality image.

2.     Selling
the film at only two speeds can negatively impact the sales. Research has shown
that consumers are increasingly viewing film as a commodity and they may not
understand the difference between three tiers with same products available in
all. As a result, sales could decrease.

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3.     Selling
the product during off season cannot significantly increase the market share as
the product is available at a particular time of the year that too at off-peak
times whereas other lower priced films are available throughout the year.

4.     Private
label owned brands which are the major competitors of Kodak in this category
may lower their price in order to prevent Kodak take advantage of their brand
name and attract price sensitive customers. Kodak has already lowered their
price and they cannot further lower the price as this can damage their brand
image of high quality.

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