KODAK SETS ASSAULT ON 'PHOTO USE' WITH 3 NEW CAMPAIGNS: PRODUCT LINES ADD PRO TOUCH FOR AMATEURS

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Eastman Kodak Co. wants consumers to do more with their photos than place them in an album or stack them in a closet.

The marketer plans to plug three digital-imaging products in new ad campaigns from Ogilvy & Mather, New York.

Kodak-which spent about $150 million on advertising last year-wouldn't discuss the budget, but said it plans to boost its expenditure this year.

BEGINS TODAY

The pushes begin today with a national TV and print campaign for Kodak's new Picture CD, a service that gives consumers their processed roll of photos on a CD, along with prints and negatives.

That will be followed in October by another national effort for Kodak's 5-year-old Picture Maker, an in-store machine that enlarges, crops and adjusts photos.

Also in the fall, a national print effort may be launched for You've Got Pictures, a joint service from Kodak and America Online that places developed photos directly online.

The campaigns will continue to use Kodak's corporate tagline "Take pictures. Further."

All three product lines give amateur photographers a taste of what a professional can do. Users can make adjustments to their pictures, such as enlarging them, cropping them or reducing the red-eye effect.

Picture CD and You've Got Pictures also allow consumers to swiftly e-mail photos to friends and relatives, while all three products enable customers to add messages or creative borders to pictures.

A SIGNIFICANT MOVE

For Kodak, the products represent a significant move into what could be defined broadly as the "photo-use" market. The ad campaigns are the company's first moves in that arena.

"We think if people get more enjoyment out of their pictures that ultimately will lead them to take more pictures, so they have more to share," said David Hardie, general manager and VP-marketing of consumer imaging for the U.S. and Canada.

Analysts view the move as a way for Kodak to keep interest alive in its traditional film and camera products as digital cameras (which don't require film) continue to grab market share.

"Everyone's talking about how traditional photography may be dying," said Jim Corridore of S&P Equity Group. "This is a way to keep photography in the mainstream."

Kodak officials said only 2% of the 70 billion to 80 billion exposures taken annually are reprinted or enlarged, giving the new products a vast potential market.

ADS TESTED

Launched in 1994, Picture Maker advertising was tested late last year in Sacramento, Calif.; Wichita, Kan., and Pensacola, Fla.

Company research shows the machine has only 8% awareness, but a 95% satisfaction level, giving the national ad campaign a critical role.

Picture CD was introduced this year and by yearend is expected to be available in all 40,000 retail outlets that process Kodak film; suggested price is $8.95 to $10.95 per roll of film.

Its development and marketing involve a joint effort with Intel Corp., which will launch its own TV, radio and online advertising from Messner Vetere Berger McNamee Schmetterer/Euro RSCG, New York, for the product late next month.

You've Got Pictures was launched in three test cities-Cleveland, Orlando and Tampa, Fla.-on June 18 and is expected to move nationwide later this year.

AOL will promote the service online to its users. The national print ads will appear when the service goes national, with the launch planned for mid-to late fall.

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