Kodak 2010 Annual Report Download - page 7

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Consumer Digital Imaging Group (“CDG”) Segment
CDG's mission is to enhance people’s lives and social interactions through the capabilities of digital imaging and printing technology.
This focus has led to a full range of product and service offerings to the consumer. CDG’s strategy is to drive profitable revenue
growth by leveraging a powerful brand, a deep knowledge of the consumer, and extensive digital imaging and materials science
intellectual property.
Digital Capture and Devices: Digital capture and devices includes digital still and pocket video cameras, digital picture frames,
accessories, and branded licensed products. These products are sold directly to retailers or distributors, and are also available to
customers through the Internet at the KODAK Store (www.kodak.com) and other online providers. Digital Capture and Devices also
includes charged coupled devices (CCD) imaging sensors, and licensing activities related to the Company’s intellectual property in
digital imaging products.
Net sales of Digital Capture and Devices accounted for 28%, 23%, and 24% of total consolidated revenue for the years ended
December 31, 2010, 2009, and 2008, respectively.
Net revenues from licensing and royalties within the CDG segment accounted for 12%, 6%, and 5% of total consolidated revenue for
the years ended December 31, 2010, 2009, and 2008, respectively.
Retail Systems Solutions: Retail Systems Solutions’ product and service offerings to retailers include kiosks and consumables,
Adaptive Picture Exchange (“APEX”) drylab systems and consumables, and after sale service and support. Consumers can create a
wide variety of photo gifts including photo books, personal greeting cards, prints, posters, and collages. Kodak has the largest
installed base of retail photo kiosks in the world.
Consumer Inkjet Systems: Consumer Inkjet Systems encompasses Kodak All-in-One desktop inkjet printers, ink cartridges, and
media. These products are sold directly to retailers or distributors, and are also available to customers through the Internet at the
KODAK Store (www.kodak.com) and other online providers. Consumer Inkjet Systems is one of Kodak’s four digital growth initiative
businesses, and in 2010, printer unit shipments grew 45% year-on-year. Also in 2010 the Company launched a new and low-cost
platform of printers.
Consumer Imaging Services: Kodak Gallery is a leading online merchandise and photo sharing service. The
www.Kodakgallery.com website provides consumers with a secure and easy way to view, store and share their images with friends
and family, and to receive Kodak prints and other creative products from their pictures, such as photo books, frames, calendars, and
other personalized merchandise.
Kodak also distributes KODAK EasyShare desktop software at no charge to consumers, which provides easy organization and
editing tools, and unifies the experience between digital cameras, printers, and the KodakGallery services.
Marketing and Competition
CDG faces competition from consumer electronics and printer companies, and other online service companies in the markets in
which it competes, generally competing on price, features, and technological advances.
The key elements of CDG’s marketing strategy emphasize ease of use, quality, total cost of ownership value proposition, and the
complete solution offered by Kodak products and services. This is communicated through a combination of in-store presentation, an
aggressive social media strategy, online marketing, advertising, customer relationship marketing and public relations. The
Company's advertising programs actively promote the segment’s products and services in its various markets, and its principal
trademarks, trade dress, and corporate symbol are widely used and recognized. Kodak is frequently noted by trade and business
publications as one of the most recognized and respected brands in the world.
Graphic Communications Group (“GCG”) Segment
GCG is committed to helping its customers grow their businesses by offering innovative, powerful solutions that enhance production
efficiency, open new revenue opportunities, and improve return on marketing investment. To this end, the Company has developed a
wide-ranging portfolio of digital products – workflow, equipment, media, and services – that combine to create a value-added
complete solution to customers. GCG’s strategy is to transform large graphics markets with revolutionary technologies and
customized services that grow our customers’ businesses and Kodak’s business with them.
Prepress Solutions: Prepress Solutions is comprised of digital and traditional consumables, including plates, chemistry, and media,
prepress output device equipment and related services, and proofing solutions. Prepress solutions also includes flexographic
packaging solutions, which is one of Kodak’s four digital growth initiative businesses.
Innovative products within Prepress Solutions include high productivity TRILLIAN SP plates launched in 2010 and FLEXCEL NX
packaging systems.
Net sales of Prepress Solutions accounted for 22% of total consolidated revenue for each of the years ended December 31, 2010,
2009, and 2008.