Business Development and Sales Benchmarking for Brand Image Photographic Studio - Essay Example

Research Proposal: Business Development and Sales Benchmarking for "Brand Image" Photographic Studio I. introduction The world of photography has made rapid strides during the last 150 years and it has done so both in terms of quality and quantity and has evolved into a massive industry in its own right. Today photography is used in almost every imaginable domain of our lives and has come to be a integral component of the modern age. We use photography for virtually every activity ranging from leisure and holidaying to professional and commercial activities such as advertising, marketing, journalism, film etc. besides, the explosive growth of the internet and our increasingly information driven lives have further fueled a surge in the use of photography so much so that it is required to obtain professional training in order to pursue it as a career or as a serious hobby. As such, assuming that one has the required professional capabilities, establishing a business based on photography raises yet another important question with regards to starting and sustaining the business. The proposed project, whose purpose shall be further explained as part of this research proposal, is aimed at conceiving and developing a framework that will be assessed based on the intention of setting up a proposed photo studio as a feasible business option. The study conducted as part of the effort involved in setting up this photo studio in my town, to be known as “Brand Image”, will concentrate on identifying key areas such as potential sales opportunities, identification of industry competitors and general market averages, which will also be utilized as benchmarks for evaluating the worthiness of the proposed business. The proposed research aims to study ways in which the new studio will be able to exploit the visible market comprising of photographic artists, individual artists as well as those belonging to large studios as sources for producing photographic material. The business plan shall be developed keeping in mind the potential client base comprising diverse clients such as advertising agencies, public relations agencies and designers. Key services offered by the studio will cover many areas of the business such as Wedding / Portrait photography, Commercial / Industrial photography, Advertising / Fashion photography, and supplementary photographic services such as retouching & CGI. In brief, the proposed studio will work towards providing core services in the areas of Commercial, and Advertising photography. The proposed research project will be undertaken in two parts/phases namely: (1) Development of the business idea for the photo studio: wherein the effort will be focused on identifying the main consumer groups and targeted segments, their requirements, the potential client and market size. This study will be undertaken by utilizing different analysis methods such as PEST and Porter Analysis that will help arrive at an overall evaluation of the industry in which the studio aims to operate with the potential consumers. (2) With the initial business idea and market estimation in place, it is aimed to devise a requisite sales benchmarking plan, which will fulfill the requirement of a feedback and control instrument, aimed at monitoring the performance of the studio against competitors and market averages once the business activities are started. Such a benchmarking option will also work towards improving performance, as studying it will enable one to track the different parameters and take suitable measures on timely basis in order to improve the business. With the results of these two phases in place, It will be possible to examine the viability of the proposed studio business initiative, which will come to be part of a market that includes photographic artists, both individual and belonging to larger studios. Since the potential clientele base is vast and diverse ranging from advertising agencies, PR agencies and designers, it is understood that the level of competition will be quite substantial and challenging, which necessitates that the proposed viability study be thoroughly evaluated. The project will also aim at determining which of these niches the photographic studio can successfully tackle, which are likely to increase the company’s revenues at the lowest costs, and which can make the studio competitive. II. Objectives The rationale behind this project proposal is closely related to the vastness and diversity of the subject itself, as well as its numerous implications, as feasibility and viability studies are standard practices for setting up a business. In fact, they continue to be utilized during business operations to determine the pace and health of the organization. Given the particularities of the photographic market in the local region, the way that this approach can determine some of the figures and constraints in the business development plan is an interesting study worth pursuing. With such a project, one would be able to devise, track, investigate and monitor variables that will help ascertain the parameters that are critical for studying the viability of a business venture. As has been mentioned before, the initial business development process includes the initial market research, identification of relevant competitors and market consumers, as well as developing a suitable mechanism for continuous sales monitoring. This is proposed to be studied by the inclusion of sales benchmarking, tracking of sales, comparison of sales figures using market-wide data (against competitors and against relevant market figures) as well as researching the business idea against existing market standards. These approaches will help the research effort understand the key ingredients required to cover a complete monitoring and analytical process over a wider spectrum of the company’s existence. At the same time, it will allow a differentiated approach to the use of different monitoring instruments and research tools. Both phases will require the collection and processing of data from the local market and consumers in order to draw relevant conclusions. The initial business development phase will require both theoretical and practical approaches to determine how the market works, the players in the market, the sales and distribution rules of the photographic market and the terms for approaching new clients and building an appropriate network of contacts. The sales benchmarking phase will basically allow us to determine variables and techniques that shall be considered as essential for monitoring the performance of the studio against relevant local competitors (other companies operating in the town) and market averages in terms of sales, etc. An important and interesting part of this study will be aimed at determining additional frameworks for providing future projections of the sales benchmarking mechanism aimed at identifying potential consumer trends and determining how these are likely to evolve in the future. This will establish an appropriate basis for the early identification of potential problems that may hamper sales figures in the future and determining the way in which the business can react to these challenges. Finally, the project also aims to develop an action plan that will put the results of the sales benchmarking process into good use and help determine the next steps to take. As earlier mentioned, this area of research is sufficiently vast to permit a diverse research project, with implications over a long period of the business development process. Research methodology The research hypothesis being that of the market offering reasonable opportunities for new players and providing few barriers to entry, the research strategy will focus on gathering sufficient, relevant data on the existing industry players, the extent of competition amongst these businesses, the expected trends in the future and information on the business’ target market. The results of the data collection process shall serve as basis to ascertain available opportunities for the business, tools & techniques required to monitor growth of the business and address the issues affecting its growth vis-à-vis verifiable results of operations of competitor-companies. For the purpose of the proposed research and from a practical perspective, the project aims to utilize both primary as well as secondary sources of data for arriving at suitable conclusions and shall cover two distinct periods: pre-development and early development. It is proposed to source primary data from diverse sources such as industry data comprising sales, performance and additional figures of competitors’, revenue, costs, budget from company reports, advertisements, and articles written in newspapers and magazines as well as interviews. The research effort also aims to source data from credible and reliable secondary sources made up of articles and market analysis reports that have been published previously. It is strongly believed that using information from these sources will help understand the market dynamics that will influence the proposed business. The interviews will be conducted with potential clients, market players and regulatory bodies which will help create a foundation for the potential evolution of all these variables in relation to consumer preferences. To be more specific, primary research shall be based on less financially influencing instruments, such as focus groups, online interviews conducted in specific chat rooms or forums where potential clients could be found, such as photography websites and by way of newsletters / e-mails sent directly to potential clients. This phase will concentrate on understanding the opportunities and insecurities existing in the market. During the benchmarking stage, competitors willing to communicate their figures shall be tapped. Some of these data can be drawn from theoretical research, with much of the data available publicly. Business directories, including Google, will likewise be a good place to commence research on competitors, while research on the market can concentrate on data obtained from direct contact with professional groups specializing in the area. Direct contact with one or more potential future competitors will also be a good way to develop a network with some of the industry players. Another secondary research tool such as the systematic review of information gathered by studying relevant articles and materials related to both photography as an art and, especially, to photography as a business as well as other sources of feedbacks and industry publications may be used. More specifically, data and analysis will focus on the following areas: 1. Key Statistics such as industry revenue, industry gross product, employment, establishments, exports, imports, domestic demand and total wages. 2. Segmentation i.e. Products and Service Segmentation, Major Market Segments, Industry Concentration and Geographic Spread descirbed as follows: 3. Market Characteristics such as Market Size, Linkages, Demand Determinants, Domestic and International Markets, Basis of Competition and Life Cycle. 4. Industry Conditions will cover the Barriers to Entry, Taxation, Industry Assistance, Regulation and Deregulation, Cost Structure, Capital and Labour Intensity, Technology and Systems, Industry Volatility and Globalisation. 5. Key Factors shall cover the industrys Key Sensitivities and Key Success Factors. Key Sensitivities shall outline the key factors that are beyond the control of an operator in the industry but which are likely to have significant impact on the business while Key Success Factors are the factors within the control of an industry operator and which should be followed in order to be successful in the industry. 6. Key Competitors are the major players in the industry and shall include a brief analysis of each major players activities and information on market share where possible. 7. Industry Performance shall provide an analysis of both the industrys Current and Historical Performances where a current performance analysis shall involve a scrutiny of the industry over a reasonable period versus key performance indicators while historical Performance shall detail past events that have proved important in the development of the industry. 8. Industry Outlook shall involve an analysis of and an outline of expectations for the key industry indicators over a set period, including forecasts. Action plan Initial pre-development and early development research efforts shall be carried out every month, with benchmarking activities to be conducted once every three months over a reasonable period of time. While the industry is dynamic and data can change easily over this period, the industry looks like one where figures are stable enough for research purposes. The business action plan will thus be as follows: 1. December 2008 – Pre-development primary research and Interview of potential clients, market evaluations and estimates etc. 2. January 2009 – Monthly pre-development evaluation to be performed for three months before the launch of the business. 3. February 2009 – Last monthly evaluation. Conduct of final interviews and focus groups. 4. March 2009 – Launch of the business. 5. April to May 2009 – Development of the business. No market research at this point. 6. June to August 2009 – Three (3) months benchmarking evaluation through primary and secondary research. 7. September 2009 – Three (3) month benchmarking evaluation. References Trochim, W.M.K. (2006), Structure of Research, Research Methods Knowledge Base. Bell, J. (2005), Doing your Research Project, 4th ed. Maidenhead: Open University Press. Driscoll, Dana Lynn. (2008). Conducting Primary Research. On the Internet at http://owl.english.purdue.edu/owl/resource/559/01/. Last retrieved on October 6, 2008 Secondary vs. Primary Market Research. On the Internet at http://www.allbusiness.com/marketing/market-research/1310-1.html. Last retrieved on October 6, 2008 IBISWorld Australia Photographic Studios Industry Market Research Report. On the Internet at http://www.IBISWorl.com.au/industry/retail.aspx?indid=6748&chid=1. Last retrieved on November 2, 2008. Tutor’s Comments: Read More