Kodak 2006 Annual Report Download - page 5

Consumer Digital Imaging Group
This past year was full of critical milestones for our Consumer
Digital Imaging Group (CDG). We are pleased about our progress
and feel confi dent that we will build on this momentum in 2007.
As Kodak transforms we look to the consumer business to bring
profi table digital revenue growth and further carry the Kodak brand
and consumer value proposition.
We continue to be a top market leader in the business segments
where CDG competes, including digital cameras, snapshot printers,
retail photo, kiosks, and online services. For the third year running,
we received the J.D. Power and Associates award for Highest
Customer Satisfaction with Digital Cameras—$200–$399. Kodak’s
EasyShare photo printers also earned high honors from J.D.
Power and Associates for the highest level of overall satisfaction,
signifi cantly outpacing the other top six competitors. And, we earned
numerous innovation and “best in show” awards.
We have made substantial progress in installing our digital business
model and largely have the necessary infrastructure to compete in the
digital world. We saw some important proof points from this e ort:
improved inventory levels and cash fl ow; a rationalized regional go-to-
market model; a streamlined design, manufacturing and supply chain
model; and a new marketing architecture with product marketing
and integrated team focus. We implemented this business model
with new partnerships and new ways of working and we should see
further benefi ts from leveraging this integration during the next year
and beyond. All of this was achieved while we kept investing in key
technologies and product development for the future.
As we head into 2007, we are well positioned to launch new products
and technologies in new markets, helping us to achieve profi table
growth. We will also continue to exploit our current businesses—
building on the scale that we gained during the past years.
One of those new products is a revolutionary approach to inkjet
printing. The innovative Kodak EasyShare all-in-one inkjet
printers, featuring premium pigment-based inks at half the price
of competing inks, o er customers quality, ease-of-use and value
that’s unprecedented in the industry.
Film Products Group
Although our Film Products Group (FPG), formerly the Film and
Photofi nishing Systems Group, might not be thought of as part
of the digital spotlight at Kodak, it continues to generate an
impressive amount of cash to help fund our digital transition.
Showing great leadership, our traditional business has successfully
paced its restructuring e orts ahead of the decline in revenue.
Despite competing in a challenging industry environment, we have
maintained strong market positions and signifi cant profi t margins.
As a result, we are creating a sustainable business model for
customers who use fi lm and paper.
Color negative fi lm still holds a unique space in the motion picture
workfl ow. It remains the medium of choice because its artistic and
archival qualities still di erentiate it from digital capture. For the
79th consecutive year—ever since the inception of the Academy
Awards—the Oscar for Best Picture went to a movie produced
on Kodak fi lm. Similarly, Kodak distribution fi lm still remains the
medium of choice for distributing and viewing movies.
Studio Photography named Kodak Professional Portra fi lm as the top
choice in fi lm in its fi rst ever Reader’s Choice Awards competition
at Photo Plus Expo, the largest gathering of pro photographers and
advanced amateurs in the U.S.
“40 percent of the world’s
commercially printed pages
are touched by Kodak
technology.”