Hewlett-Packard has recently launched an online marketing campaign that compares HP to Kodak. The campaign titled, “nowadays, can you really afford anything but the truth? The real story behind Kodak inks” makes the argument that HP is a better choice, especially in this economic environment when money is on the minds of consumers.
On its website, HP makes the case that Kodak inks are not as superior as they claim for many reasons. Among these include: Kodaks’ colour ink cartridges which force customers to replace the cartridge when only one colour is out of ink. Kodak also does not have a printer or recycling program in place. Additionally, HP reports that according to Moody’s, Kodak is facing a 45 percent chance of bankruptcy in the next year.
Conversely, the campaign reports that HP offers individual ink cartridges so that customers can change each as needed. HP has a worldwide recycling program and in 2009 they were named one of the world’s most admired companies by Fortune.
Barbara Pierce, public relations director for Kodak provided the following statements: “Kodak’s business model — charging a modest premium for an inkjet printer and a fair price for high-quality inks — contrasts with the industry standard of essentially giving a printer away and overcharging for ink. Consumers, especially those who print a lot, are embracing Kodak’s value proposition (as evidence, for the last two quarters, sales of Kodak’s inkjet printers and ink have grown by double-digits while the rest of the industry has declined). So it doesn’t surprise us that our competition is taking notice.
“As a recognized leader in product stewardship — in fact, since 1990, Kodak has recycled more than 1.5 billion single-use cameras worldwide — we are committed to environmental sustainability. Kodak is new to the inkjet printer market and represents a small but growing percentage of global sales — rest assured, as this business develops, we will bring the same focus on product stewardship that we’ve brought to our established businesses.
“As for any questions about Kodak’s financial viability, the company ended the second quarter 2009 with more than $1.1 billion in cash. Kodak has the financial resources available to fully implement our business goals.
“We find it interesting that an industry giant like HP would instigate a marketing campaign against a small newcomer to the industry, when given today’s economic climate, it might be more meaningful to consumers to simply begin offering reasonably priced ink.”
In responce to Kodak’s statements, an HP company spokesperson replied, “We welcome healthy competition. As the market leader, we think it’s critical to let consumers know when they are being misled. Kodak’s claims were simply too far off-base to be ignored. Our web page includes accurate information about the cost of printing, validated by credible, third-party sources, including Lyra Research, Charisco Labs and AC Nielsen.”