MARKET POSITION The competition is divided between quality photographers and digital photo studios. Our service and photo quality is high compared to other quality professional photographers. Our rates are comparable to theirs, but we add value through personal contact and easy dissemination of digital images. UNIQUE SELLING POSITION Technology Our innovative approach makes the most of consumers’ fascination with the latest digital imagery. By playing to this market trend, we gain new customers and provide added value, with high-quality, small file-size images our clients can easily share with friends and family members.
Morty’s Studio will use several digital cameras, and will require a computer fully loaded with image-manipulating software, such as Adobe Photoshop. We will also need an ongoing maintenance agreement for the computer and software, and nightly backups of image files, in the event of computer failure, theft, or fire. PRICING STRATEGY Penetration Pricing In order to gain market share quickly, Morty’s Studio will apply the penetration pricing, in which the price charged for a product/service is set at a deliberately low price.
Since this is a new venture the firm will focus on loyalty-building by offering a high quality photos and videos at a much lower expected price. This will help the business enter a new market even when strong competitors exist, and it builds loyalty with new customers from the beginning. It increase the lifetime value of customers, because they’re “hooked” with the outstanding first product offering and–assuming future products are just as high quality—potential market are more willing to buy additional products from the company long into the future. High-Low Pricing
Morty’s Studio will also use high-low pricing. It involves alternating between high and low prices. Initially, the product is offered at a high price, which establishes the value of the item in the minds of consumers. The price is then reduced, for example, through a special offerings and seasonal promos. The lower price soon seems like a bargain to our consumers. VALUE TO CUSTOMER Families have photos taken to preserve memories. Most photos are taken by consumers with their own cameras, which are increasingly digital and are even part of their cell phones.
Most of these photos are low quality but no one cares because only the family views them. Consumers generally engage professional portrait photographers when the photos will be viewed outside the family and when quality matters. Professionals, such as those in our target market, often have business needs for quality photos and have acquired a taste for them. These professionals have families, too. They have the budget and the need to use them for their families because they often entertain at home and their family photos will be on display.
Just as they appoint their homes with fine furniture and decorations, the photos on their walls need to exhibit quality. GROWTH POTENTIAL This photography business plan shows how Morty’s Studio will meet the needs of professionals and their families to capture the special moments in their lives and present them in the best light. We will establish a relationship in which we initiate the calls to keep their photos up to date. Digital files of their photos will be available for free by e-mail, or with a nominal fee for CD.
Because of our relationship with the families, when something big like a wedding comes, there’s no place else they would go. The business will grow at an annual rate of over 40 percent by targeting families of professionals with newborn babies for baby pictures and then developing a relationship with the client over the years for ongoing photographs. The opening of Morty’s Studio will mark a change in the way professional photography is delivered. Rather than being a rare place to visit, this photo studio will be a fun part of a family’s lives, helping them capture special moments and share them in a digital world.