Lesson #3: When the Market is Limited, Push the Limits

“The idea gradually dawned on me that what we were doing was not merely making dry plates, but that we were starting out to make photography an everyday affair,” said Eastman, “to make the camera as convenient as the pencil.”

When the original Kodak camera first came out, it was expensive. In fact, it was very expensive even for the professional photographer. It cost $25, which was the equivalent of almost three months’ salary for the average working person. But it was not meant for the average person. Rather, it was meant for the person who could afford to take long vacations, who traveled the world, who wanted to capture their holidays and have a permanent record.

But Eastman quickly realized that his market was a limited one. Professionals and upper class jet setters were only so many in numbers. He knew that he would have to introduce his product to a new market if he was going to make a real name for himself: amateurs.

“When we started out with our scheme of film photography, we expected that everybody who used glass plates would take up films,” said Eastman. “But we found that the number which did so was relatively small. In order to make a large business we would have to reach the general public.”

Eastman believed that his easy-to-use Kodak camera would be popular among amateurs if only they could afford it. So, what he had to do was find a way to lower the cost of the camera. With that, he set out on another wave of innovation, experimenting with new materials and equipment to find alternatives.

Together with his chemist Henry Reichenbach, Eastman began testing everything from wax, moss, and seaweed as a replacement to the camera’s paper backing. He believed eliminating the paper in favour of something clear would reduce printing time and save costs. After several months, Reichenbach found a formula that worked, involving celluloid.

With his new transparent film, Eastman was convinced that his latest camera would be a huge hit with professionals and amateurs alike because he was able to reduce his expenses considerable. As a result, he opened a new, large manufacturing plant called Kodak Park, and began producing his next camera, the Brownie.

Eastman’s strategy worked. At just $1 a pop, the Brownie was one camera that almost everyone could afford. He also targeted it specifically towards children in the hopes of hooking them onto photography at a young age. In 1900, the first year the Brownie came out, Eastman sold over 150,000 – more than he had ever sold in his prior twelve years in business combined.

Eastman’s initial target market was a small one, but he knew the potential for growth was there. By adapting his product to meet the market needs, he was able to capitalize on an entirely new segment of the population. He was selling simplicity to the professionals and affordability to the amateurs, and both responded to his call.



Lesson #3: When the Market is Limited, Push the Limits

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