Olu Jr Photography LLC is a photography business based in Chicago, IL that focuses on wedding documentary and portrait photography with both international and domestic coverage with 80% of his wedding booking comes from US based clients and around 20% from international boarders mainly Nigeria West Africa and London United kingdom. Olu Photography creates artwork that captures lifelong memories for his clients that they can cherish for generations and takes pride in his ability to operate with integrity and deliver the very best services to his clients. Most of olu clients are from referral from past clients he has worked with. Olu currently uses social networking sites such as Facebook, Twitter and Instagram to advertise his company.Olu his proud of the fact that his company had remained debt free through its history. Now, he his wondered if such conservative financial strategy was limiting its potential. Olu Jr desperately needs to expand his business beyond the Chicago and U.S market.
Below are Issues the company is currently facing. Please provide your recommendation that addresses each of these issues.
1. Dealing with client's budget has become a problem for the company. Most of the clients that seek his service have low budget. Olu currently average booking price is around $3,500 which includes (engagement sessions, actual wedding coverage and hard photos and CD collection of wedding photos) and can go up to $10,000 depending on the location and other logistical factors. Olu cannot bring down his current price because of the fear that it will bring down the value of his company brand. How should olu address this?
2. The company has a problem standing out in a saturated market. Chicago as a lot of wedding photographers and in other U.S cities in generally) how should olu address this?
3. Olu needs a strategy to appeal to cross cultural clients most especially the Caucasian segment. Most of Olu current wedding clients currently compose of around 85% of African descent with 10% Asian American descent and 5% Caucasian Americans. What strategy would you recommend?
Revenue for 2016
Fixed(equipment, Photography Software) 10,000
Variable Cost(Transportation(airfare) 15,000
Total Revenue 39,300
Hope this helps-
A formatted copy is attached.
Olu Jr Photography LLC Mini Case Analysis
Olu Photography LLC is interested in expanding its reach in the photography business. The company has been focused on wedding photography for budget-minded consumers, primarily of African descent. The average booking prices is $3,500, but can be as high as $10,000. Olu is reluctant to reduce his prices, for fear of reducing the value of his brand. Olu is also unsure of how to standout in a saturated market. In addition, Olu would like to expand his business to reach a wider demographic. To address these issues, Olu should begin by performing a strength, weakness, opportunity, and threat (SWOT) analysis (Figure 1). Doing so will help Olu understand the key issues impacting his business, help him address weaknesses, deter threats, and take advantage of his company's strengths and opportunities. It will also help Olu develop business goals and strategies through analyzing the situation in a reflective manner.
Figure 1: SWOT Analysis Olu Jr Photography LLC
Olu has a number of strengths that he can capitalize upon, with customer referrals being a critical opportunity to grow additional business through new customers. However, Olu must address his weaknesses. Since he acknowledges that Chicago is a saturated market he must differentiate his services in some way. To do this, he must thoroughly develop a marketing plan. The U.S. Small Business Administration provides tutorials that could help Olu undertake this task. To differentiate his business, Olu must understand what his competition offers, and develop a unique selling proposition (Sugars, 2008). This might include targeting customers of African descent. While Olu has expressed an interest in expanding his demographic reach, it might be more feasible to expand the market he is currently in and become the wedding photographer for this demographic.
He has also indicated that many of his customers are budget ...
This detailed solution addresses the Olu Jr Photography LLC Mini Case Analysis. It discusses pricing strategy, saturated marketed, and diversifying customer base. Includes APA references.