Annual Report 1996

In 1996, Polaroid made a vigorous commitment to revitalizing instant consumer imaging through significant investments in people, product development, and marketing and advertising.

Effective advertising and promotions
Marketing programs capitalized on the already-high recognition of the Polaroid name worldwide, with new advertising in the United States, and a continuation of the European campaign which began in 1995. These initiatives portray instant imaging as relevant and contemporary, a catalyst for making exciting or important things happen and the only option for a variety of imaging situations.

Sandy Posa is executive vice president and president, consumer imaging. He joined Polaroid in 1996, from Kraft Foods North America, a division of Philip Morris Companies, where he was senior vice president for business development. Posa holds an undergraduate degree from Brown University and an M.B.A. from the University of Chicago.

    In Europe, Polaroid's award-winning "Live for the Moment" advertising campaign continued in the four major markets where it was originally introduced (France, Germany, Russia and Switzerland), and is now running in 14 countries.

Two new commercials were added to the series in 1996, and the campaign has been recognized with industry awards for advertising, strategy and media planning. Studies indicate a very positive response from consumers. Innovative promotions have proven successful throughout Europe, including cross-promotions with brands such as Absolut Vodka, and more unusual links with nightclubs like the well-known Ministry of Sound in London.

"Scissors" is one of two new 1996 European commercials.

    In the United States, Polaroid's new "See What Develops" advertising campaign helped reintroduce consumers to the exciting immediacy of instant imaging. The campaign was named among the "Best Advertising of 1996" by Time magazine, Adweek, The New York Times and USA Today. "See What Develops" was also among the most popular and most effective campaigns ever measured by USA Today's Ad Track studies. Market surveys showed a sharp increase in customers' overall intent to purchase instant cameras and film after viewing the new ads, especially among parents of children under age six.

"Architect," one of several new U.S. commercials shown in 1996, is part of the brand repositioning strategy intended to revitalize Polaroid's core instant photography business.

    To further encourage parental interest, Polaroid offered Instant Encouragement Kits, designed to help parents and other caregivers build self-esteem in young children by capturing important developmental milestones on instant film. A national advertising campaign in parents' magazines and a program of promotional events supported this effort under the umbrella of "See What Develops." Polaroid also delivered its message to parents as a charter sponsor of Parent Soup, an interactive Internet web site.

Instant Encouragement Kits provide fun as well as activities to help parents build their children's self-esteem.

    The "See What Develops" Road Tour visited 21 major U.S. markets over the summer. The tour generated more than 20,000 instant images, created by local consumers with Polaroid cameras on loan.

In Japan, a partnership between leading Japanese toy manufacturer Tomy and Nippon Polaroid K.K. made toy stores a successful first-time distribution channel for a Polaroid instant camera designed for young children. Marketing tie-ins to a popular children's television show were highly effective in raising awareness and prompting additional sales of the children's camera. Targeted marketing efforts in Japan also produced healthy sales of the Polaroid JoyCam among teen-aged girls, an influential and growing Japanese market.

In Japan, Sara chan, a popular children's television character uses an instant camera and film to document her adventures.

    The Polaroid SLR 690 instant camera - a restyled version of the much-loved Polaroid 680 - made its worldwide debut in Japan in 1996. Technical, scientific and business imagers in Japan, who had long missed the technical superiority, flexibility and quality of the 680 camera, welcomed the introduction of a new, improved version with upgraded electronics. The SLR 690 was also introduced in Europe at Photokina '96.

Delivering new products
New products are an essential component of Polaroid's strategy for reinvigorating its core consumer business. Plans call for the introduction of at least one major new consumer product every two years as well as for numerous line extensions and products developed through a variety of approaches, from internal development to partnerships.

Jerry Noonan is vice president and general manager, consumer imaging. Noonan is responsible for the company's consumer business in North America, as well as market research and worldwide forecasting. He joined Polaroid in 1996 from Nabisco Biscuit Co. where he was senior vice president of marketing. Noonan is a graduate of Babson College.

    In September, at Photokina '96 in Cologne, Germany, Polaroid introduced two Advanced Photo System (APS) cameras, the Polaroid 5500 Focus-Free Camera and the 6500 Autofocus Camera, along with a new conventional film for use with these cameras. Both APS cameras share many high-tech features, such as simplified film loading, motorized film advance, automatic rewind and the availability of proof sheets and three print sizes. These and other APS features make conventional photography easier and ensure more consistent results for the amateur photographer. The APS cameras will be introduced in the United States in 1997.

Polaroid's SLR 690 instant camera is a restyled version of the much-loved Polaroid 680.

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