Reaching Mom in the Digital Age Susan Stoev Worldwide Director, Business Research Eastman Kodak Company October 23, 2006

1. Reaching Mom in the Digital AgeSusan StoevWorldwide Director, Business ResearchEastman Kodak CompanyOctober 23, 2006

2. The Story of EasyShare How Kodak became the # 1 preferred brand of digital cameras among women

3. It’s a Digital World • The digital regime has taken her photos hostage • Diminishing her family • Diminishing her pleasure and effectiveness as a mom “You know, we’ve been taking pictures for 2 years and they’re all sitting on his damn computer!! This digital camera is ruining my life”

4. 1. Map Out the Highs and Lows of Dealing with Your Brand “Moments of Truth” is an Ogilvy Brand Stewardship tool that identifies “make it or break it” interaction points between a brand and its consumers • Consumers record their experiences as they went digital in a diary • Video taped in-home interviews • Followed them into the store • Created Experience Map to Chart the highs and the lows

5. “Why is he asking me about an operating system? I don’t even know what that is. I need my husband to come in and talk to the salesperson.” Maria “A person who does not want to deal with the computer should not buy a digital camera... There is no reason not to learn [how to use] the computer.’” Specialty Camera Salesman with Maria “When I got my digital camera, I thought ‘Yeah … I finally got it!’. Then I left in in the box for two months. I just didn’t feel like learning to use something new and read the whole manual. “I feel like I need to get smart enough about memory, resolution and all that so I can have an on-par discussion with my husband.”

6. 12) Final purchase: It all comes together! Select the camera and kit, buy it. 6) Enter store: Like the store, still excited, look around for cameras and sales associate. Phase #1 Phase #2 Phase #3 + 1) Trigger: Desire for DSC triggered. Customer starts looking into DSCs. 7) At the shelf: Range is overwhelming. Shelf is hard to read. Peripherals not nearby. Look for help. Potential Customer Bonding 13) Anticlimax: Relief sets in. Leave camera in box – can hardly bear to look at it. 2) Pre-research: Feeling confident about research process. Gather inserts, speak to friends. 11) Return to store: Go with back-up. 5) Preparing for store visit: Expectations shoot up. Compile list of questions. 8) Talk to sales associate: talks foreign language, does not answer questions, is ill-informed or patronizing. Consumer feels stupid and patronized. 3) Start research: Discover research is a much bigger, more complex process than anticipated. 10) Taking back control. Potential Customer Check-out _ 9) Exit store: Feel demotivated, angry, frustrated, or alienated. Either Drop out, Go Back to Step 4,or ‘Refocus’ and go on. 4) In research: ‘Go round in circles’ with research as they gain a little ground, then encounter a setback. May last extended period of time. DEAD END Digital Camera Experience Map

7. Some thoughts on Ethnographic Research • Observe consumers using your product in their environment You need to see some of the crazy workarounds • Find “labels” for key consumer behaviors “Second Stage Stall” “Picture Purgatory” • Understand your Ethnographer’s specialty Advertising Agency In House Psychological • Take the time to package your report --- use lots of video, pictures and quotes to bring consumers to life

8. 2. Involve your Product Designers • Product Designers part of Research Team • Individual In-Depth Interviews with both researchers and designers sitting across the table from the consumer. Consumers rank their favorites four times: • Just Look • Pick it Up • Reveal Features and Price • Brand • Designer allowed to ask the respondent questions as the interview progresses • Immediate plan for design changes

9. Lessons Learned • Be careful about prop selection – pre-production models can get lower scores • Chose “design-forward” cities • Have both note taker and translator when English is not spoken • Debrief the next morning to make sure there are no misconceptions

10. 3. Start an Online Community • Kodak Digital Picture Forum was an online community of 250 parents who were heavy picture sharers • Members participated in surveys, chat sessions, field trips, bulletin boards, photo contests and more Key learnings • Gave us deep insights into problems and workarounds • Field trips gave new ideas about strengths and weakness of our marketing messages • Some product ideas we were developing were not viable • Members were more comfortable (and interested in) talking amongst themselves than to Kodak • Community built huge enthusiasm for Kodak and its efforts to understand needs in digital space “I learned that there are people that know all the ins & outs about great picture taking and they are happy and ready to help if needed.” “I’ve been educated, inspired and rewarded for what I enjoy doing. I look forward to gathering around my PC and opening up this page. Please, don’t’ tell us this is the end of this journey” “Kodak ROCKS!”

11. Tips on Managing an Online Community • Establish a Board of Directors • Need a full-time community manager Prepare materials to keep it fresh Dig for insights Work with the Panel members Communicate the Findings • Have live debrief sessions with a broad audience on a monthly basis

12. 4. Establish a Consumer Advisory Panel • Kodak Big Picture Panel surveys over 7000 US customers per week • Survey topics include product naming questions, appeal of new concepts, attitudes about claims and product messages, and invitations to trial new software tools and share usage experiences • Time to implement down from 6 weeks to 6 days. • Opportunities to further strengthen the connection bigpicturepanel.com

13. 5. Do More Prototyping and See What Sticks Sandbox.kodak.com is a site to support the rapid design, prototyping and launch of new technologies. Consumers can play with their own images while Kodak tracks use of the concepts, satisfaction, and subsequent print behavior. Gives us a wealth of knowledge that helps refine our offerings and showcases Kodak technology. Sandbox.kodak.com

14. 6. Involve Customers in Idea Generation & Prioritization • Needed a way to prioritize ideas for enhancements to Kodak EasyShare Software • Utilized an adaptive conversation technology to place structured preference information around consumer verbatims • Ask an open-ended question, giving respondent some “seed” ideas from Kodak and the opportunity to “write in” their own suggestion • These write-in responses are exposed to subsequent respondents as answer choices • End result is a prioritized list which includes consumer-generated ideas.

15. Start a Corporate Blog Why did Kodak join the ranks of 55 million blogs? We saw a number of benefits . . . • direct communications with consumers • reinforce the Kodak brand with images and stories by employees that touch people • burnish Kodak’s reputation as a technology innovator in a soulful way • make new friends and strengthen our existing friendships 1000words.kodak.com

16. Make Research a Part of Your Company’s DNA • Map out the highs and lows of dealing with your brand. • Involve your product designers in consumer research. • Start an online community. • Establish a consumer advisory panel. • Do more prototyping and see what sticks. • Involve customers in idea generation and prioritization. • Start a corporate blog. “Other companies will treat my pictures like a computer file, but only Kodak will treat them like a memory.”

18. Contacts Styling Research Anderson Research 12868 North 116th Street Scottsdale, AZ 85259 480 614 1270 FAResearch@aol.com Online Community Communispace 100 Talcott Avenue Watertown, MA 02472 617 607 1400 Communispace.com Custom Panel MarketTools 150 Spear Street, Suite 600 San Francisco, CA 94105 415 957-2200 Markettools.com Adaptive Concept Screening INFORMATIVE, INC. 701 Gateway Blvd South San Francisco, CA 94080 650 534 1010 Informative.com Susan Stoev 343 State Street Rochester, NY 14534 585 724-1525 Susan.stoev@Kodak.com