Situation Analysis of Sensuous Photography - Case Study Example

Assginment 1 and 2 – Situation Analysis and Marketing plan Student: Name, ID, Tutor: Tutorial time Chosen Topic: Sensuous Photography Introduction In this case study analysis, the situation at Sensuous Photography is analysed from a variety of business perspectives. Starting from the business objectives, the case study will be used to illustrate how the business objectives need to be stated. In addition, the necessary courses of action that need to be taken in order to ensure accomplishment of these objectives will be taken into consideration. This will include SWOT analysis, situation analysis in into the business macro-environmental factors. The marketing plan and analysis using marketing forces such as the four P’s will be instrumental in determining the profitability of the business. Objectives The main business objectives for Sensuous Photography are: i. To become the best photography service providers at Canberra. ii. To maximize on the profit margins generated from the marketing operations. iii. To become the most popular service provider all across Canberra within the least possible time In order to accomplish the business objectives above, the main marketing objectives that have been derived in order to ensure meeting of the above goals include: a. To be strategically positioned in a way that is accessible to all the customers in the region. b. To provide high quality services in the photography industry in a way that is satisfactory to all the customers that will be acquiring the services. c. To provide services at the most favourable costs, both to the customers and to the business as whole. Ensure the marketing objectives are: Situation analysis Political forces Any business organization, irrespective of the size, operates in an environment surrounded by political factors. In the case of Sensuous Photography, located in Canberra, the political moods provide enabling factors that will favour the business activities. The location has been associated with a long period of political stability. In addition, the core business activity, that is photography, has not been illegalized in the region, making it acceptable both to the people and the government. Tax laws are uniform, both to large and small businesses, and this will affect the revenue margin of the organizational operations. Economic forces The economic forces may not only be constraining, but the business initiative that is adopted by the business owners will determine the rate of adaptability of the organization to the surrounding factors. Interest rates will not have a direct effect on the business since it currently operates on small investments. With the relatively stable employment rates at Canberra, most people will be able to afford the service costs charged by the business. Sociocultural forces There is a cultural mix among the occupants at Canberra city. Being the largest inland city in Australia, the city has attracted several cultures. However, a larger extent of the population holds religious functions such as weddings or different form of marriage ceremonies that will require services of Sensuous Photography. The cultural beliefs also vary to a great extent, but still allow for acquisition of these services in major functions. Technological forces In order to provide the best services to the customers, the business needs to invest more in technology and creativity. For example, there needs to be equipment enabled to provide instant photographs to their customers. In addition, the paper quality on which the print-outs are given should satisfy the customers. The owners also need to provide both hardcopy and softcopy photos on demand by the customers. This implies that there should be a stable and large capacity storage device for all the customers’ files. This should be complimented by stable back-up storage equipment to prevent loss of the customers’ files. Legal forces The major legal concerns that need to be taken into account are those in line with the natural environment. The photography industry deals in a number of paper and polythene materials that pollute the environment if not properly dumped. Proper dumping of these wastes as per the environmental laws need to be done so as to prevent environmental pollution by all means. In the current business world, environmental laws are given the priority and they form a larger part of business corporate social responsibility. Sensuous Photography has to take all these legal requirements into consideration. In addition, the tax laws within Australia have to be adhered to. Competitor analysis The major risk that faces this organization is the stiff competition that exists in Canberra. There are several Photography shops that operate at the moment, each with substantial market coverage. The type of competition that exists in this industry in Canberra City is pure. There are over forty competing organization providing the same services to the population. Who are your competitors? Some of the competing organizations in this case include Esh Photography, Dale Wolk Photography, Civic Proframe, Pete Molly Photography and Conference Photography Australia among other established institutions. Though there are those that do not target the same customers as Sensuous Photography, such as Conference Photography that mainly deals with customers in seminars and meetings, most of these shops cover nearly all events, posing a direct competitive threat to Sensuous Photography. Customer/client analysis The population of Canberra City is estimated at approximately 500, 000 on the upper limit. Though the rise in population has been relatively stable, a majority of this population are within the ages 17-35. This means that there is a large population that may be attracted to the services provided by Sensuous Photography. The employment rates within the city are moderately enough to sustain the economy. With the majority being below forty years, it implies that the dependency ratio is relatively low in the city. As a result, there is a large market potential within the population that needs to be exploited. Target market Since the business will mainly be involved in the production of photography services at major events such as weddings, the target market is composed of mixed sexes of between the ages 21 and 38. This age bracket forms the largest of Canberra’s overall population. The market will be segmented with regard to Demographic patterns. For example, regions with the largest target populations will be supplied with more service agents. This will require commensurate distribution of the agents across the city. Segmentation basis: demographic, lifestyle, benefits sought? Strengths a. Modern Technology b. Large Market Potential c. Qualified Staff and Agent d. Accessibility to Customers Weaknesses a. High Operational Costs b. Specialization in one event i.e. weddings c. Expansion Problems Opportunities a. Large Target Market b. Innovations and staff creativity c. Acquisition of new technologies d. Parallel Competitors Threats a. Stiff Competition b. Bankruptcy due to market shifts c. Seasonal variation in number of customers Assignment 2 Marketing mix strategy Product The main products that will be sold out to the customers are the printed photographs or softcopy versions. All the printing papers will have to bear the organizational logo to make the business more popular within the city. All the photos will be packed in high quality transparent material. Instant photos will be available in demand. Positioning Branding Service Packaging product life cycle considerations Promotion The main promotional strategy that will be used will be based on price setting. Due to the stiff competition that the organization operates in, most of the prices will be set relatively below the competitors’ rates. In addition, social media marketing will be used to attract more people to the business (McDonald 42). This is due to the fact that the target population comprises of an age bracket actively involved in social networking. Promotional pricing and social media marketing will also be cost effective to the business since there will be no need to draw a budget to the same. Price The prices will be discounted far below those of the competitors with the aim of acquiring more customers. The main basis of this form of price setting is to ensure the business gains more popularity among the customers and also to strengthen the competitive advantage. A draft of the budget for a month of full operation is illustrated below. Sensuous Photography Budget OPERATIONAL REVENUE Item Unit Cost Quantity Unit Sale Price Profits A5 Photo 120 100 125 5000 A4 Photos 150 50 180 3000 Softcopy Photos 50 350 70 7000 INITIAL INVESTMENT COSTS Rent 2500 Stationery 1500 Machinery 7000 Registration 3000 Initial Start Capital 10000 Net Operating Profit/ Loss 0.00 Distribution (place) In order to effectively distribute the products, the market segmentation strategy will call for establishment of more outlets. The allocation of these outlets will be based on population patterns. Largely populated sections of the city will be given higher consideration. Implementation In order to make the plan successful, the implementation will follow a step-by-step process to ensure all the initiatives are put into action. This will occur in a period of 4 months from the time of commencement. The main participants will be the two business owners, Naomi and David. The flow of operations will be as follows: First Month- Establishment of the main office Second Month- Acquisition of Operational Equipment Third Month- Promotion and Marketing Activities Fourth Month- Establishment and opening up of other outlets Evaluation The evaluation will be done after the full implementation of the strategic marketing plan. The criteria of evaluation will be based on: First Month Second Month Third Month Fourth Month Costs Revenue Profits (Revenue-Cost) Customers Served Level of Satisfaction (Low/ High) Conclusion/Future recommendations In the event that the operations of the will be profitable in the long run, the project will be worth giving a consideration. The market share, profitability and general acceptance of the business will be used to qualify the business to be expanded further. Works Cited Top of Form McDonald, Malcolm. Marketing Plans: How to Prepare Them, How to Use Them. Chichester: Wiley, 2011. Print. Bottom of Form Read More