Imperial Data

Organisations within the industry are constantly looking for new ways to present their companies and attract new business. Until about a year ago the main area of promotion was at the various exhibitions and, in the absence of specialised microfilm ones, companies have been going to exhibitions like IBS, Info and the like. I have not heard of the recent IBS in London being hailed as a major success and micrographics exhibitors did not seem to be impressed with the results. Their main conclusion was that it is rapidly turning into a furniture show. It would appear that no one is able or willing to promote the ‘Microfilm Exhibition’, partly because nobody wants to bring their prospects into contact with other competitors, and also because most micrdfilm exhibitions world wide seem to get swamped by optical disc companies. However four companies, from a complete cross section of the industry, are trying a more personal approach to promote business. Advance Microfilm of Wolverhampton had an open day for prospective and existing clients on the 9th November, Agfa Gevaert had similar open days at their Birmingham Show room on the 9th and 10th November and Kodak have announced that they are to have a customer open day, though no date or venue has yet been specified. The object of the exercise being to invite existing and potential customers into their premises, show them the company at work and impress on them the various attributes they have to offer. On the 26th October Genneg, The Microfilm Shop, tried pretty much the same sort of open day but with a slightly different twist. This involved targeting various prospects in Central London and then arranging a luxury coach to pick them up at the time they would normally arrive at their office. After a trip up the Ml to Nuneaton a complete tour of the Microfilm Shop and Factory took place, at which prospects could see how microfilm jackets, diazo and various other products were made and how Genneg goes about selling and marketing those products on a day to day basis. This was followed by a visit to a well known East Midlands watering hole - the ‘Axe & Compass’ at Wolvey in Leicestershire. A place well known to many people in the industry who have previously visited Genneg Associates. Following lunch the guests were taken back down the Ml, again in the coach, to arrive back in Central London in time to catch their normal tube home. John Negus, Managing Director of Genneg Associates, expressed great satisfaction with the initial trip and a further visit is planned for the 30th November. Should this be of equal success, it is intended that during 1989 a series of visits will be promoted for major microfilm supply users throughout the United Kingdam. The Microfilm Shop is one of several companies who have employed the services of ‘Hob’ our main cartoonist, to have a personalised cartoon prepared for this event. These were framed for each visitor and personalised with their name and the date of the visit. If The Microfilm Shop has anything to do with it, these will be appearing on an awful lot of office walls over the next twelve months. Anybody in the industry who would like to take part in one of these ‘bus trips’ when it leaves from their area should contact The Microfilm Shop. However it is understood that a vetting procedure will take place to ensure that visits by direct competitors are politely declined.

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A brand new silver film ball game in the U.S.A.

A surprising thing has happened in the estimated $300 million (b) exclusivity - i.e. no longer selling other films annual U.S. micrographics silver film market since the (c) consuming large volumes of film internally, such as in a Rochester Film Company disappeared from the scene at the service bureau operation, as opposed to selling the film end of 1986. Instead of prices shooting upward, the expected course of events when competition is reduced, there have been no substantial increases. In fact, prices have remained stable and, in some instances even come down for end users. on. At certain levels the Kodak rebate is 3%. Then at the $ million mark it allegedly goes to 5% with add-ons if a big reseller agrees to be an exclusive Kodak distributor. Also said to be Why? The biggest reason appears to be aggressive marketing part of the programme are special incentives for switching by Eastman Kodak who have taken off the gloves worn in accounts from other brands to Kodak. These are based on prior years. According to one Kodak distributor. “ They don’t invoices sales for a given period. want to let Fuji get a solid foothold in the U.S. marketplace so they offer prices and make deals they never would have before.” Since RFC’s departure, there are now only five silver film What angers some resellers is that in certain major cities Kodak has apparently targeted, for itself, selected giant accounts, such as banks and government agencies. This strategy is called the “ Meet/Comp” (Meet Competition) sources for U.S. buyers. Kodak is by far the largest full-line programme and under it Kodak sells directly to big users at a supplier, followed by a distant Fuji Photo Film and then lower price than any distributor can offer or even purchase the Agfa-Gevaert, which is distributed in the United States by film for. Of particular annoyance, aside from losing business, Xidex. DuPont supplies, directly and OEM, silver film for to some resellers is their claim that Kodak expects resellers to COM applications only, but is a minority player in that process the film for such customers who may run into market segment. The fifth supplier is one year-old Phoenix overload situations or, on occasions, have no internal Microfilm, a small niche marketer without giant ambitions. processing department. “ It’s business and I won’t turn it away All pale next to Kodak in market share. Fuji is a major but it’s very low margin, so I’d also like a chance to get some supplier on the world scene but is still far behind Kodak in the of the film business, but I know I can’t” , lamented one United States. Agfa has a respectable market in Europe but reseller who added, “ It’s a lousy way to treat your has never been a significant factor here. Now that its exclusive distributors.” U.S. distributor Xidex has become part of Anacomp there is Kodak also has certain other low price programmes that some question about Agfa’s future distribution, since in many benefit resellers who are also service bureau and/or of its locations Anaccmp is a major Kodak distributor. microrepublishers. On certain films sold for internal use only DuPont’s film business is small in total. In fact, it is a small (never to be sold outside as raw stock), the company offers part of the larger Imaging Systems Division that is part of prices that are better than the best distributor price. These DuPont’s still larger Industrial and Consumer Products films, however, are easily identified. They have different business segment. That segment provided just a little more packaging and different catalogue numbers than Kodak films than 10% of DuPont’s total sales last year. Within Imaging intended for external sale. The apparent target is the segment Systems, the micrographics silver film line is a minor factor of the service or microrepublishing market that might and the company doesn’t appear to have any plans to otherwise go to, or have been going to, a competitor like Fuji. significantly expand it. For example, Kodak is said to sell at very low prices for Phoenix Microfilm, which celebrated its first anniversary in July, is “ not interested in becoming a giant” according to a internal use only its AFIU Image Capture Film which is directly competitive against Fuji’s HR2 film. company sales spokesman. “ We are a competitive alternative In an aggressive bid to win business, Kodak recently initiated a product offered by a little guy to other little guys.” variation of its Meet/Comp program that involves its So, the big silver film player in the United States is clearly Eastman Kodak. Since 1983, Kodak has structured indirect, as well as direct product marketing programmes. The indirect programme distributors. If an account is buying $50,000 or more in camera film annually from another source, Kodak will go in with the local distributor and come up with a special Meet/Comp price. To achieve a low price that will enable an account to be switched, Kodak and the distributor each cuts offers two sales channels - brokers who act as sales agents for Kodak micrographics equipment and distributors who deal in sensitized products. his margin. The rebate goes straight to the user, not the distributor. The rebate is said to be flexible and vary from situation to situation. Brokers sell equipment, to which they never take title, at the Kodak book price, then turn the order over to Kodak for processing (i.e. installation, billing, service). For obtaining the order, the broker gets an agreed fee which is a variable, depending on volume. The broker programme is divided into four categories, each of which represents different types of equipment the broker can sell; a broker can be represented in more than one category. As would be expected, reseller reactions to Kodak practices vary, from one end of the spectrum to the other. There are those who are unhappy at losing business they once had, to a newly aggressive Kodak. “ Not too long ago I found I was underbid by Kodak on a state agency I used to serve and was sure I had,” said one distributor. “ You can’t expect me to be happy about that. The new Kodak philosophy seems to be to keep the big accounts for itself and leave the rest to us. I can Film distribution is handled differently. There are no understand their business rationale but they in turn should categories of distributors. Instead, the “ resellers” buy the understand why they can’t expect the loyalty from us that was product from Kodak, based on a contract, and resell at any once automatic. It has to be a two-way street.” price they choose. What resellers pay Kodak depends on the contract commitment. The discounts they get are in direct relation to the volume they sell. In addition there are rebates that Kodak says apply “ if the distributor meets certain conditions.” Other resellers say that loyalty still exists, though in other, and sometimes not clearly defined, ways. For example, some resellers who have lost some former client business to Kodak claim they have been assured off-the record that Kodak will see they won’t be “ hurt” as a result of the Meet/Comp Based on discussions with Kodak resellers across the country, programme. It is uncertain how “ hurt” will be defined or it appears the special conditions concern: what remedies will be offered. (a) exceeding agreed-upon volumes Another major reseller said, “ What’s happening is normal in