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DAVID RUBIN
PHOTOGRAPHY
Edith Banda
Mamata Hatmode
Okechukwu Maduka
Nikolas Pethis
TABLE OF CONTENTS
 INTRODUCTION Page 3
o Company overview Page 4
o Competitors Page 5
 REFINING CURRENT MARKET STRATEGY Page 6
o Market overview and trends Page 6
o Possibility of a studio/storefront Page 7
o Cost benefit analysis Page 7
o Social media usage in the United States Page 9
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o Enhancing social media presence Page 10
o Connecting with customers through a blog Page 11
o Attributes of a great website Page 12
 EXPLORING NEW BUSINESS INITIATIVES Page 13
o Dallas high school senior market Page 13
o Dallas county public school statistics Page 13
o High school market trends and opportunities Page 14
o Lifetouch photography Page 15
o Expanding DRP’s fine arts business Page 16
o Gallery shows vs. private home shows Page 18
o Dallas art gallery market Page 19
 RECOMMENDATIONS Page 21
o Positioning Page 21
o Price Page 21
o Place Page 21
o Promotion Page 21
o Product Page 22
o People Page 23
 REFERENCES Page 24
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INTRODUCTION
The concept of the camera, and of photography itself, has been around for several
centuries and has been offered as a service in some form or another since the early 1800’s1.
However, over the last 60 years, society has seen a surge in new technologies and an increased
interest in the field of photography. Professional photography as an industry has grown to meet
this demand and a sizeable workforce of professionals, approximately 136,350 individuals, now
exist within the industry. New entrants into the market such as regular ‘point-and-shoot’
photographers as well as the increasing number of ‘do-it-yourself’ enthusiasts have made it
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necessary for these professionals to continually monitor their environment and adapt to
evolving trends in order to keep up and remain competitive.
David Rubin Photography (DRP) is a firm that is owned and operated solely by Mr. Rubin
himself. It provides professional photography services in Dallas/Fort worth (DFW), specifically
the Park Cities area. Photography has always been a hobby for Mr. Rubin and he began
operating as a professional in 2011. DRP’s main service offering is portraits for both families
and events. The company does also offer printing services and a few other tangible products,
such as framed photos, iron fine art pieces and glossy print outs; however these are not major
sources of revenue.
DRP is not a typical ‘photography studio’ in the sense that it does not have a centralized,
brick-and-mortar location. What sets it apart from other traditional studio photographers is
that Mr. Rubin is mobile and has the flexibility to work in various locations including natural
outdoor settings. This allows himto create what he refers to as ‘captures’, spontaneous
photographic moments where his subjects are not aware that they are being photographed…
which provide an amazing collection of genuine moments.
DRP is currently considering expanding and Mr. Rubin has expressed interest in better
understanding his market and enhancing his current offering as well as exploring new business
initiatives. The purpose of this analysis is to help define DRP’s current market, refine and
enhance its current marketing strategy and explore possible new methods to exploit untapped
markets. This report will provide valuable in-depth research into the company’s customer base
and competitors, market trends, the costs and benefits associated with opening a physical
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storefront, detailed information on a new secondary target market (high school senior
portraits), and a conclusion with professional recommendations regarding future strategies.
COMPANY OVERVIEW
DRP positions itself as a low-to-average priced personal option for non-commercial
portrait photography. Without collecting primary data, it is difficult to determine customers’
images and perceptions of the business and Mr. Rubin has stated his desire to increase overall
exposure for the business in both the portrait and fine arts markets. Mr. Rubin has already set
about doing so by participating in a few gallery shows…a feat that is an extremely rare
accomplishment for photographers nowadays…and through public promotions of his work.
Much of the current business promotion comes from word-of-mouth communication and from
displays of his work on multiple websites.
Mr. Rubin typically takes a couple hundred snaps during a shoot and then he picks out
approximately 40 captures that are of the highest quality. Customers then receive a data file, or
CD with the chosen captures within a day or two after each session. Mr. Rubin utilizes several
mediums to sell his fine art pieces and has seen recent success with using aluminum based
sheet metal for his art prints. The current product mix for DRP is split approximately 50/50
between family portraits and fine art.
The current culture of DRP can be summarized using a direct quote from Mr. Rubin
himself, “Have Camera, Will Travel”. This indicates his willingness to accommodate his
customers as well as pursue his passion of art. This attitude is very evident in how he operates
his company.
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DRP’s future goals are to expand the business as a whole, but more specifically to shift
the product mix ratio from 50/50 to 30/80, with a heavier emphasis on fine arts. Fine arts is the
area for which Mr. Rubin has the most passion, and he would love to see an increase in the
profit ratio derived from this area of service.
COMPETITORS
DRP has many direct competitors in the DFW area, with approximately 135,000
individuals registered as professional photographers. Some of the larger competitors are: James
French Photography and John Derryberry Photography, which both have over 30 years of
experience in the industry. Since DRP is much smaller in comparison, it also faces competition
with anyone else who has a similar service offering. This includes some indirect competition
from amateur photographers who are able to snap similar…albeit lower quality…‘captures’,
which can be just as much of a threat as the other professional photographers3.
The fine arts market in DFW is currently saturated; so many artists rely on websites such
as Thumbtack which allow them to market their services online. This has proved to be
convenient as customers who visit these websites can ask for any type of fine art that they are
looking for and be provided with a free quote in a short period of time.
REFINING CURRENT MARKET STRATEGY
MARKET OVERVIEW
The employment of photographers is projected to grow by four percent between 2012
and 20221. Even though this growth rate is slower than the average rate for all other
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occupations, the demand for portrait photographers will continue to be sustained as the
demand for new portraits has remained fairly steady2.
The growing trend in the marketplace is the desire and ability to take and upload
pictures and videos immediately via social media3. This trend, along with advances in mobile
camera technologies, and the continued reach of social media is something that DRP needs to
monitor and adapt to in order to remain competitive.
DRP’s target market is geographically located in DFW, more specifically the Park Cities
area. A brief demographic analysis of this area revealed the follows statistics4: Population:
23,040(Park Cities), Median Age: 29.7 years, Median Household Income: $120,000,
predominantly white (95.14%).
The company’s main target segment is families as much of its business comes from
family portraits and photographing children at various sporting events. However, due to the
nature and flexibility of the services offered, this target segment can include anyone else that
desires or needs pictures or fine art. Recent data estimates the total number of households in
this primary market segment to be 11,590, with 7,703 of them listed as families with kids.
POSSIBILITY OF OPENING A STUDIO/STOREFRONT:
The only tangible product DRP provides customers with is CD or soft copies of their
photographs. Since the company is almost a pure service, the presence of a studio might make
the photography service seem more tangible to customers. In the absence of a tangible
product, customers rely on the business atmosphere and other physical cues to infer about the
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quality of the service they are going to receive. Having a studio could help in creating a
favorable first impression about DRP’s services and alleviate any difficulty customers might
experience as they try to determine the quality of service offered.
ANALYSIS ASSOCIATED WITH OPENING A STUDIO:
Several factors would need to be considered before making the decision to open a
storefront. Firstly, the basic requirements for opening an upscale photo studio are size and
appearance 6. An upscale photo studio should not be too small, as it will need a nice reception
and waiting area, a dressing room, a camera room with lights, as well as a working lab 7. The
reception area could have a few of Mr. Rubin’s art pieces on display, a big TV displaying all the
other photo collections and feature nice trendy furniture to add character to the place. The
location of the studio should be as close to the target customer segment as possible; potential
locations would include Dallas, Highland Park, Greenway Park, North Park and Preston Center
neighborhoods 8. The specific shopping centers to rent studio space can be Highland Park
Village, Snider Plaza or The shops at Highland Park.
Opening the studio/storefront would provide a visible place and address to contact DRP,
and could lead the customers to perceive the company as more professional and dependable.
Upon visiting the studio, customers would take cues from the overall ambience as well as the
displayed artwork and make assumptions about the quality of the services from DRP based on
this physical evidence. Overall, having a storefront would definitely make DRP services more
tangible.
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As discussed above, the most substantial benefit from opening the studio would be the
tangibility that the studio would provide. The studio could double as a gallery and also be used
to display the best art pieces which may attract more profitable customers. However, there are
some expenses associated with having a store. These expenses include rent, furniture, other
photography gear, staff salary, telephone and internet, store insurance and legal and
accounting costs. In order to cover these costs, Mr. Rubin would need to invest a lot of money
upfront.
An additional drawback associated with opening the studio is direct competition with
other photography studios in the area. In addition to this competition, the increase in costs
could force DRP to charge more to its customers thus threatening the company’s current
position as a low-cost service for outdoor photography in the DFW market place.
SOCIAL MEDIA USAGE IN THE UNITED STATES
According to The Statistics Portal, the number of social media users in the United States
as of 2015 is currently at 180.3 million 9. This number has increased from 165.7 million in 2013
and is projected to reach over 200 million by 2019. This continuous growth is due to an
increasing number of Americans creating online profiles and opening accounts on multiple
platforms. The table below was created by the Pewter Research Centre and breaks down social
media usage in the United Sates by website 10. As the table shows, the five main websites that
users utilized between the years 2012 to 2014 are Facebook, Linked In, Pinterest, Instagram
and Twitter. The table also shows that all of the websites experienced positive growth since
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2012 with the exception of Facebook, which seems to have reached its peak usage. Despite
exhibiting slower growth rate, Facebook still dominates the other websites and boasts the
largest percentage of adult users each year.
ENHANCING DRP’s SOCIAL MEDIA PRESENCE
In order to increase the company’s competitive advantage, DRP needs to incorporate
social media in its daily operations and maintain regular activity on all its websites to keep
customers updated and engaged. According to Jacqueline Woerner, the social media manager
for Emarsys, “The challenges brands thus face involve a bigger, yet scattered audience; more
diverse, yet fragmented social platforms.” Woerner explains that even though the number of
social media users in the US is growing each year, these same users are being spread across
more and more different websites that are being developed. While it is not possible for DRP to
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post on every new trendy website that pops up, an effective strategy might be to pick only a
few of the top websites mentioned earlier and focus on creating a tight knit group of followers
and building loyalty and lasting relationship with them.
DRP has already established a Facebook page which boasts over 800 likes. As the
previous graph illustrates, Facebook has the most users compared to any other social media
websites so investing in some paid promotion on Facebook to boost DRP’s exposure would be
appropriate. Facebook allows businesses to set their own advertising budget, with the price
paid dependent on how many users are reached, starting as low as five dollars12. In addition to
promoting the Facebook page as a whole, single posts could also be further boosted if Mr.
Rubin felt they were more important in grabbing customer attention and directing traffic to the
company’s page.
Almost all websites these days have a share function/button that allows users to share
a post to all their various other pages without having to do so repeatedly on each one. This is a
great function that DRP could take advantage of, as it would allow a post on Facebook to be
simultaneously shared to Instagram and so on. Not only would this save time, but if the same
message is posted across all websites, it creates consistency across all platforms which would
be a great first impression for the business.
Another growing trend with social media is the revolution of the mobile phone.
“Because people are so easily and quickly connected to the Internet using their phones, mobile
devices, and tablets, it’s absolutely imperative that your website looks great on these
devices13”. All DRP websites need to be checked and monitored regularly to ensure that all the
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photographs load correctly and create just as good of an impression on these devices as they
do for computer users.
CONNECTING WITH CUSTOMERS THROUGH BLOGS
Creating a blog gives an artist the freedom to talk about themselves and fully express
the thought process and ideas behind their work. Websites such as Twitter and Instagramhave
word limits which prohibit writers from elaborating sufficiently. A blog would be one way for
DRP to connect with customers who are interested in getting to know Mr. Rubin on a more
personal level. “A blog allows you to build a fuller picture of who you are. Most people will
meet you through other places…but if they like what they read on Twitter, then they’ll follow
you back to your blog and find out more about who you are…14”. A blog would be especially
useful for the fine arts portion of Mr. Rubin’s business, where individual pieces of art could be
given names as well as accompanied by a short description of how the photograph came about.
This could help potential buyers connect with, and understand, the story behind a piece that
they are interested in purchasing.
ATTRIBUTES OF A GREAT WEBSITE
With the dominance of the Internet in business today, it is very important to have a
strong web presence for any business. A company’s website is usually the first point of contact
that a customer will have with a product or a service. Most small business experts argue that an
effective website is one of the top three success drivers for any business. This is why it is
important for our client, Mr. Rubin, to have a competitive website in order to be able to match
his competitors.
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According to Vladimir Bladogevic who writes about the “must-have elements of an
effective landing page 14”, the three main attributes of a great website are that it grabs
attention, is simple, clear and easy to navigate and lastly, builds trust and credibility.
Contemporary customers have a lot of options and this gives business owners an even shorter
period to grab a customer’s attention. The style, color and layout of a website determine
whether or not a customer spends time on any page. A website should be simple, clear and
easy to navigate: this is very important because the easier a website is to navigate, the more
appealing it is to customers. Lastly, there is a popular saying that states, “People buy from
people”. This quote can be extended further to say people buy from people they trust
.Customers want to associate a product with a feeling. Since photography is a more personable
service, DRP could further personalize its websites to give customers a better picture of what it
represents. Having testimonials and reviews from loyal customers on the website would also
add credibility and build trust.
EXPLORING NEW BUSINESS INITIATIVES
THE DALLAS HIGH SCHOOL SENIOR MARKET
According to Dallas high schools data, there are 83 high schools in the Dallas
independent school district (ISD) 28. This number is set to grow by 10% between the years 2014
to 2019 and this predicted growth will provide a good opportunity for DRP considering that
most of the seniors at these schools want a high school portrait taken. The high school portrait
market is a profitable line of business however it is also important to note that there are an
additional 422 elementary schools in the Dallas ISD that DRP could also target.
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DALLAS COUNTY PUBLIC SCHOOL STATISTICS / DEMOGRAPHICS
HIGH SCHOOL MARKET TRENDS AND OPPORTUNITIES
Our research indicates that the average prices charged for senior portraits continue to
increase each year. Price is no longer a determining factor for purchasing these services and
0
50
100
150
200
250
300
350
400
450
elementary middle highschool
Schools in Dallas
Schools in Dallas
Total no of students 445,007
Number of schools 675
Middle schools 422
High schools 83
Other 56
Number of schools district 55
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portraits are becoming more expensive and elaborate with clients willing to pay premium prices
for them. A Washington post article by Steve Hendrix stated “It’s growing every year,” in
regards to why a certain photographer chose to drop family and baby photography work in
favor of high-concept senior portraiture, which according to this source, can average $2,200 per
package. This particular photographer now has a waiting list of clients, which he credits to
word-of-mouth communication among high school peers. “When something becomes popular
with teenagers, it just spreads. They see these pictures on Facebook, and they want to do what
their friends are doing”.
Prom Night is another important occasion in the life of any high school student.
Capturing this moment provides a priceless memory for students and given the right social
media and marketing tools, DRP could easily penetrate this market as well. The average prices
charged for high school prom photos are as follows: Formal shots-$350, Entire prom night
coverage- $850 and Prom photo booths - $1000. DRP could consider tapping into the high
school prom market.
Achieving success with high school senior portraits will require a sophisticated social
media and technological presence among the school’s In Dallas. According to Norman K. Denzin
in the Handbook of Qualitative Research, high school seniors are among the Generation Z
demographic, which makes them part of a generation that is global, social, visual and
technological. They are early adopters, brand influencers, social media drivers and pop-culture
leaders. If they like something, they will quickly show it off on social media and recommend it
to others as well. DRP could successfully achieve its expansion goals by entering this market.
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LIFETOUCH PHOTOGRAPHY
Lifetouch is a strong competitor of DRP in elementary schools and will provide a
significant obstacle in Mr. Rubin’s attempts to break into the Dallas schools market. Lifetouch
already has a firm foothold in the K-11th market and senior portrait market and has been in
business for more than 50 years. Although Lifetouch has a fairly large share of the market place,
many consumers have voiced their concerns about its lack of a personal touch and it has
received significant complaints regarding its out of touch company structure. As stated by one
customer - “I have contacted the company via email, I think using their online form, and the
only response I ever get is the automated response saying they got my message and that
someone would call me. No one ever calls me, despite repeated attempts at communication on
my part via email and telephone17”. The above review is indicative of Lifetouch’s lackluster
customer service. Building relationships is very important in the service industry and Mr. Rubin
can differentiate his company by continuing to offer personalized one-on-one customer contact
and emphasize the value of quick and efficient customer service.
Lifetouch markets its service offerings mostly through its website, onsite representation
at the different schools, and via word-of-mouth. The company uses several different companies
such as Prestige Portraits and Flash Portraits as outlets for selling its services. Lifetouch
positions itself in a fairly moderate price range, offering “5x7” glossy prints for different collage
sets ranging from two to six photos for $6.99 18. An article regarding Lifetouch’s typical pricing
model stated, “…not everyone will buy, - even a $10.00 package may be asking a
lot…Lifetouch's cheapest package here is $15 or $20.00 - so if you doing 200 kids - figure a 40-
50% sales rate… but some of that depends on location and school population…if you don't sell
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anything - you don't pay them anything.” These figures seemto be the average rate that DRP
could expect based on similar research findings.
EXPANDING DRP’S FINE ART BUSINESS
If DRP decides to market itself as a fine arts business service, it will compete with many
different fine artists who exhibit their work through more than 25 galleries in Dallas located at
Fair Park in downtown, uptown Gallery district and the Design district. The Dragon Street
located in the Dallas design district is a famous hot spot destination for purchasing fine art, and
most of these galleries sell contemporary art by local Texas artists and photographers 20. Two
prominent art galleries that specifically work in the fine art photography business are
Photographs Do Not Bend (PDNB) 21 located at Dragon street Dallas and Sun to Moon 22 which is
located in the Dallas Design District -South. The first gallery exhibits and sells fine art
photographs taken by more than 60 artists through their website. The Sun to Moon gallery
displays mostly traditional landscape photography and alternative printing methods by
different national artists. It also publishes a travel blog written by a travel photographer which
is available through the Sun to Moon website 22.
Another option to sell fine arts photography is to do so through third party websites
such as Fine Arts America.com 23.On this particular website, artists and photographers can
upload their images onto the site, set their own prices, and instantly sell prints to a global
audience of art collectors. Fine Arts America fulfills each order on behalf of the artists and
takes care of the printing, framing, matting, packaging, shipping, collecting payments from the
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buyers and sending profits to the artists. Each print is conveniently manufactured at Fine Art
America's own production facility.
Given that the two most prominent ways to sell fine art photography are through
galleries and websites, the first important step for DRP will be to set up a separate website or
convert one of the existing websites, exclusively for selling fine art. The introduction and
description of this website will need to feature buzz words such as “fine arts”, “home décor”
and “landscapes” etc. to help the website and blog be more easily found by customers who are
looking for fine arts photography to redecorate their homes/businesses. The website should
also be connected to a blog which can be used to write stories about the various pictures and
places in the photographs. A recent blog post by Todd Binghamstated that people buy fine art
as a benchmark to their lives, “they look at fine art as something memorable, something so
meaningful that the experience of it is imprinted on our consciousness”24. It is therefore
important to elicit those meaningful feelings about art photography in order to promote sales.
Creating a blog about Mr. Rubin’s photographs and art pieces will help to emotionally appeal to
art buyers and to encourage them to make purchases, “People purchase fine art photographs
for emotional and sentimental reasons, and not for a bigger piece or discounted price”24. Fine
art photography is a niche market segment and the customer demographic is not very sensitive
to price. Therefore posting stories and descriptions about key photographs on the blog will
help attract these customers.
GALLERY SHOWS VS. PRIVATE HOME SHOWS
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Joining one or two popular galleries at the price of a yearly membership fee of around
$300 to $800 will help create increased recognition and develop the popularity of Mr. Rubin as
a fine artist. These gallery exhibitions will also provide necessary exposure to target customers.
Through these galleries, Mr. Rubin has a chance to reach a broad market segment. However,
there are two major drawbacks to be considered. First, to be able to exhibit his artwork in these
galleries, Mr. Rubin will have to pay upfront for the membership as well as some percentage of
sales. Second, by displaying his art through these gallery websites he will be in direct
competition with other well established artists.
Private home shows generally display three to four artists’ work to a small group of
guests, and allow the artists to interact with the potential client and create an impression about
their art. This private home shows normally do not charge any upfront fees but they may take
some percentage of sales. Through the private shows, Mr. Rubin would get a chance to directly
connect with customers and promote his work. According to a Washington Post article, home
or micro galleries are very popular in big cities such as Los Angeles or Chicago. “The mainstream
galleries are too expensive for new artists who do not yet have the resources to afford to
exhibit their art therefore these young artists turn their home or basements into small gallery
where they invite 4-5 participants to show their art26” Based on this, the private home shows
seem to be an appropriate venue for initially promoting, and selling DRP’s fine art because
doing so would enables Mr. Rubin to avoid direct competition with other well-known artists as
well as the membership fees associated with galleries.
THE DALLAS ART GALLERY MARKET
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Art dealers in Dallas County are not required by the law to obtain a license to buy and
sell art. This means that art dealers do not necessarily have to follow strict standards regarding
honesty and reliability. Several organizations such as the Dallas Art Dealers Association (DADA)
were created to regulate the art gallery business and serve as a benchmark for ethical practices.
“DADA is dedicated to promoting the highest standards of ethical practice within the profession
and to increase public awareness of the role and responsibilities of reputable art dealers and
non-profit visual art spaces 30”. A company called the Prime Buyer’s Report compiled a list of
ten of the best art dealers in the Dallas County based on research that included past customer
satisfaction, complaint records and verified liability insurance 31. This list, available on their
website, is a good tool for artists such as Mr. Rubin to use when searching for credible art
galleries to partner with.
In addition to doing thorough research about the credibility of an art gallery, Mr. Rubin
could further protect himself by requesting a contract every time he does business with any
dealer. This does not have to be formally written up, as even a short informal agreement would
be enough to clarify certain terms and conditions in case any misunderstandings arise. These
contracts should include details such as who will insure the artwork in case of any damage?
Who will have the final say over the layout and display of the artwork and who will incur costs
for transporting the artwork to and from the gallery? 32. Such small details are often overlooked
but can create problems if they are not agreed upon beforehand.
A recent article on ArtBusiness.com compares an artist’s artwork to a business card or
billboard that serves as constant advertisement 24 hours a day. The author stated that the
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easiest way to create a “buzz” is to keep producing new pieces of art in order to keep the public
interested and in anticipation of the next one. “Even when you're not generating sales, you're
still sharing your art with others and maintaining a public presence. You never know who might
see it and be impressed enough to spread the word”33. Dallas has plenty of upscale restaurants,
boutiques and coffee shops that Mr. Rubin could explore as possible venues to display his
artwork. Several major Art Festivals also go on throughout the year such as the Dallas Art Fair,
Arts cape and Texas Crafts and Fine Arts Festival. Attending at least one of these events
annually would provide a great opportunity to mingle and meet with fellow art lovers.
RECOMMENDATIONS
POSITIONING:
Mr. Rubin should continue to position his company as a low to moderately priced family
portrait firm. In addition, Mr. Rubin would benefit from entering into the elementary school
market. Although there is already significant competition in the high school senior picture
market, if Mr. Rubin emphasizes his customer service and concentrates on building lasting
relationships with customers he can gain a strong foothold in the this segment.
PRICES:
No recommendations suggested for a change in price strategy
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PLACE:
We recommend that Mr. Rubin not establish a Store front location. This recommendation is
based off the fact that a physical location would increase costs and jeopardize DRP’s current
position as a low cost professional portrait photography business. We also believe that with the
recent trends in the portrait business, having a store front will not necessarily pose a big
advantage in the near future.
PROMOTION:
Mr. Rubin should hire a professional web developer to redesign his websites. We also
recommend that he limits his websites to just two instead of three. One should focus solely on
portraits and the other website on his fine art. This change will make it easier for customers to
differentiate between his works and enable them to quickly navigate around his website.
Mr. Rubin should consider having a testimonial page on his website where customers can
express their comments about his service and masterpieces. This feature will go a long way in
validating his exceptional customer service and personalize his brand.
DRP should actively strive to gain a larger social media presence and following. Mr. Rubin can
do so by using paid advertisements to grow his Facebook page and by increasing activity on the
company Instagram account.
In order to promote the fine arts side of the business we recommend that Mr. Rubin join a
membership organization such as DADA. This organization has three membership tiers which
are full member, friend of DADA and volunteer. Mr. Rubin could pick which ever level of
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commitment suits his schedule and even if he decided to simply volunteer or attend a few
meetings on a regular basis it would give him new opportunities to network with other art
enthusiasts.
We also recommend that Mr. Rubin revamp his business cards with a more professional and
polished look.
Lastly, we recommend that Mr. Rubin should start creating a customer database. This database
can be helpful for future promotion activities such as sending out emails to reminding
customers about booking appointments for approaching holidays or other special events.
PRODUCT:
As seen on other fine art photography websites, it is recommended to create separate
categories of fine art photos on DRP’s website such as travel, landscape, food etc.
PEOPLE:
With DRP’s planned growth, Mr. Rubin should consider hiring an additional person to help him
as the business grows.
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REFERENCES
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<http://www.bls.gov/ooh/media-and-communication/photographers.htm>.
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3. Swanson, Jamie. "Will Your Photography Business Survive In 2014? 13 Predictions For
The New Year." Photography Marketing Ideas Photographers Pricing Guide Get More
Clients RSS. The Modern Tog, 1 Jan. 2014.
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<http://www.themoderntog.com/photography-business-industry-trends-predictions-
2014>
4. "United States Census Bureau." Dallas (city) QuickFacts from the US Census Bureau. US
Census Bureau
5. Wade, John (1979). A Short History of the Camera. Watford: Fountain Press.
6. 10 Steps to Designing the Perfect Photography Studio. Photofucus.com, n.d. Web.
<http://photofocus.com/2010/07/28/10-steps-to-designing-the-perfect-photography-
studio/>
7. http://www.city-data.com/city/Dallas-Texas.html
8. http://www.statista.com/statistics/278409/number-of-social-network-users-in-the-
united-states/
9. http://www.pewinternet.org/2015/01/09/social-media-update-2014/
10. http://www.emarsys.com/en/resources/blog/the-7-social-media-trends-dominating-
2015/
11. https://www.facebook.com/help/535832449882077
12. Swanson, Jamie. "Will Your Photography Business Survive In 2014? 13 Predictions For
The New Year." Photography Marketing Ideas Photographers Pricing Guide Get More
Clients RSS. The Modern Tog, 1 Jan. 2014.
<http://www.themoderntog.com/photography-business-industry-trends-predictions-
2014>
13. http://www.searchenginejournal.com/7-reasons-why-blogging-is-still-important-in-
2012/39225/
Page 25 of 28
14. Vladimir Bladogevic. “8 Must have elements of an effective landing page”.
http://scalemybusiness.com/detailed-guide-8-must-have-elements-of-an-effective-
landing-page/.
16. "Lifetouch – Portrait Studios, School Pictures, Senior Portraits, Family Portraits, Photo
Gifts." Lifetouch – Portrait Studios, School Pictures, Senior Portraits, Family Portraits,
Photo Gifts. 1 Jan. 2011. Web. <http://www.lifetouch.com>.
17. "Lifetouch Photography - Great Pictures - Horrible Company." LIFETOUCH
PHOTOGRAPHY Complaints and Reviews. 3 Apr. 2015. Web. <http://lifetouch-
photography.pissedconsumer.com/>.
18. "Prints." Prints. LifeTouch, 1 Jan. 2015. Web.
<https://photogifts.lifetouch.com/prints.html>.
19. "School Photography: Average Percent Sales and Pricing. - Photo.net Business Forum."
School Photography: Average Percent Sales and Pricing. - Photo.net Business Forum. 12
Nov. 2012. Web. <http://m.photo.net/business-photography-forum/00b0MU>.
20. "Dallas / Fort Worth Art Galleries." Dallas/Fort Worth Art Galleries. Web.
<http://www.dfwart.com/dfwgalleries.html>.
21. "ARTISTS." Photographs Do Not Bend. Web. <http://pdnbgallery.com/SITE/artists.html>.
22. "Sun to Moon (Marilyn's Travel Tips)." Sun to Moon (Marilyn's Travel Tips). Web.
<http://www.suntomoon.com/pages/Tri_framesets/traveltips_tri_fs.html>.
23. "Sell Art Online." - How to Sell Art Online. Fine Art America. Web.
<http://fineartamerica.com/sell-art-online.html>.
Page 26 of 28
24. Bingham, Todd. "WHY DO PEOPLE BUY ART, ANYWAY? –." WHY DO PEOPLE BUY ART
ANYWAY Comments. Web. <http://www.toddbinghamfineart.com/blog/?p=103>.
25. "Light Stalking." 14 Commandments for Fine Art Photography Marketing. Web.
<http://www.lightstalking.com/14-commandments-for-fine-art-photography-
marketing-with-photos/>.
26. Marech, Rona. "Home Galleries, Artists' Friends in Tight Spaces." The Washington Post.
The Washington Post, 1 Sept. 2011. Web.
<http://www.washingtonpost.com/lifestyle/style/home-galleries-artists-friends-in-tight-
spaces/2011/08/19/gIQAZcdNYK_story.html>.
27. Noel, Levitz. “Projections of high school graduates by state and race/ethnicity for
strategic enrollment planning” http://blog.noellevitz.com/2014/03/10/projections-
high-school-graduates-state-raceethnicity-strategic-enrollment-planning/>.
28. Dallas High Schools (, All High Schools in Dallas County, TX)
http://publicschoolsk12.com/high-schools/tx/dallas-county/>
29. Dallas, TX Elementary Schools (Dallas, TX, Elementary school)
http://elementaryschools.org/directory/tx/cities/dallas/
30. Dallas Art Dealers Association. N.p., n.d. Web. <18. http://dallasartdealers.org/about-
dallas-art-dealers-association/join/>.
31. The Prime Buyer's Report. The Top 10 Art Delaers in Dallas County. N.p., n.d. Web. <19.
http://www.primebuyersreport.org/tx/dallas-county-tx-art-galleries.html>.
Page 27 of 28
32. ArtBusiness.com. Artist / Gallery / Dealer Contracts. N.p., n.d. Web. <20.
http://www.artbusiness.com/artist-gallery-dealer-contracts-agreements-
relationships.html>.
33. ArtBusiness.com. How to Increase Your Art's Market Value. N.p., n.d. Web.
<http://www.artbusiness.com/maxprice.html>.

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Final Report - NP

  • 1. DAVID RUBIN PHOTOGRAPHY Edith Banda Mamata Hatmode Okechukwu Maduka Nikolas Pethis TABLE OF CONTENTS  INTRODUCTION Page 3 o Company overview Page 4 o Competitors Page 5  REFINING CURRENT MARKET STRATEGY Page 6 o Market overview and trends Page 6 o Possibility of a studio/storefront Page 7 o Cost benefit analysis Page 7 o Social media usage in the United States Page 9
  • 2. Page 1 of 28 o Enhancing social media presence Page 10 o Connecting with customers through a blog Page 11 o Attributes of a great website Page 12  EXPLORING NEW BUSINESS INITIATIVES Page 13 o Dallas high school senior market Page 13 o Dallas county public school statistics Page 13 o High school market trends and opportunities Page 14 o Lifetouch photography Page 15 o Expanding DRP’s fine arts business Page 16 o Gallery shows vs. private home shows Page 18 o Dallas art gallery market Page 19  RECOMMENDATIONS Page 21 o Positioning Page 21 o Price Page 21 o Place Page 21 o Promotion Page 21 o Product Page 22 o People Page 23  REFERENCES Page 24
  • 3. Page 2 of 28 INTRODUCTION The concept of the camera, and of photography itself, has been around for several centuries and has been offered as a service in some form or another since the early 1800’s1. However, over the last 60 years, society has seen a surge in new technologies and an increased interest in the field of photography. Professional photography as an industry has grown to meet this demand and a sizeable workforce of professionals, approximately 136,350 individuals, now exist within the industry. New entrants into the market such as regular ‘point-and-shoot’ photographers as well as the increasing number of ‘do-it-yourself’ enthusiasts have made it
  • 4. Page 3 of 28 necessary for these professionals to continually monitor their environment and adapt to evolving trends in order to keep up and remain competitive. David Rubin Photography (DRP) is a firm that is owned and operated solely by Mr. Rubin himself. It provides professional photography services in Dallas/Fort worth (DFW), specifically the Park Cities area. Photography has always been a hobby for Mr. Rubin and he began operating as a professional in 2011. DRP’s main service offering is portraits for both families and events. The company does also offer printing services and a few other tangible products, such as framed photos, iron fine art pieces and glossy print outs; however these are not major sources of revenue. DRP is not a typical ‘photography studio’ in the sense that it does not have a centralized, brick-and-mortar location. What sets it apart from other traditional studio photographers is that Mr. Rubin is mobile and has the flexibility to work in various locations including natural outdoor settings. This allows himto create what he refers to as ‘captures’, spontaneous photographic moments where his subjects are not aware that they are being photographed… which provide an amazing collection of genuine moments. DRP is currently considering expanding and Mr. Rubin has expressed interest in better understanding his market and enhancing his current offering as well as exploring new business initiatives. The purpose of this analysis is to help define DRP’s current market, refine and enhance its current marketing strategy and explore possible new methods to exploit untapped markets. This report will provide valuable in-depth research into the company’s customer base and competitors, market trends, the costs and benefits associated with opening a physical
  • 5. Page 4 of 28 storefront, detailed information on a new secondary target market (high school senior portraits), and a conclusion with professional recommendations regarding future strategies. COMPANY OVERVIEW DRP positions itself as a low-to-average priced personal option for non-commercial portrait photography. Without collecting primary data, it is difficult to determine customers’ images and perceptions of the business and Mr. Rubin has stated his desire to increase overall exposure for the business in both the portrait and fine arts markets. Mr. Rubin has already set about doing so by participating in a few gallery shows…a feat that is an extremely rare accomplishment for photographers nowadays…and through public promotions of his work. Much of the current business promotion comes from word-of-mouth communication and from displays of his work on multiple websites. Mr. Rubin typically takes a couple hundred snaps during a shoot and then he picks out approximately 40 captures that are of the highest quality. Customers then receive a data file, or CD with the chosen captures within a day or two after each session. Mr. Rubin utilizes several mediums to sell his fine art pieces and has seen recent success with using aluminum based sheet metal for his art prints. The current product mix for DRP is split approximately 50/50 between family portraits and fine art. The current culture of DRP can be summarized using a direct quote from Mr. Rubin himself, “Have Camera, Will Travel”. This indicates his willingness to accommodate his customers as well as pursue his passion of art. This attitude is very evident in how he operates his company.
  • 6. Page 5 of 28 DRP’s future goals are to expand the business as a whole, but more specifically to shift the product mix ratio from 50/50 to 30/80, with a heavier emphasis on fine arts. Fine arts is the area for which Mr. Rubin has the most passion, and he would love to see an increase in the profit ratio derived from this area of service. COMPETITORS DRP has many direct competitors in the DFW area, with approximately 135,000 individuals registered as professional photographers. Some of the larger competitors are: James French Photography and John Derryberry Photography, which both have over 30 years of experience in the industry. Since DRP is much smaller in comparison, it also faces competition with anyone else who has a similar service offering. This includes some indirect competition from amateur photographers who are able to snap similar…albeit lower quality…‘captures’, which can be just as much of a threat as the other professional photographers3. The fine arts market in DFW is currently saturated; so many artists rely on websites such as Thumbtack which allow them to market their services online. This has proved to be convenient as customers who visit these websites can ask for any type of fine art that they are looking for and be provided with a free quote in a short period of time. REFINING CURRENT MARKET STRATEGY MARKET OVERVIEW The employment of photographers is projected to grow by four percent between 2012 and 20221. Even though this growth rate is slower than the average rate for all other
  • 7. Page 6 of 28 occupations, the demand for portrait photographers will continue to be sustained as the demand for new portraits has remained fairly steady2. The growing trend in the marketplace is the desire and ability to take and upload pictures and videos immediately via social media3. This trend, along with advances in mobile camera technologies, and the continued reach of social media is something that DRP needs to monitor and adapt to in order to remain competitive. DRP’s target market is geographically located in DFW, more specifically the Park Cities area. A brief demographic analysis of this area revealed the follows statistics4: Population: 23,040(Park Cities), Median Age: 29.7 years, Median Household Income: $120,000, predominantly white (95.14%). The company’s main target segment is families as much of its business comes from family portraits and photographing children at various sporting events. However, due to the nature and flexibility of the services offered, this target segment can include anyone else that desires or needs pictures or fine art. Recent data estimates the total number of households in this primary market segment to be 11,590, with 7,703 of them listed as families with kids. POSSIBILITY OF OPENING A STUDIO/STOREFRONT: The only tangible product DRP provides customers with is CD or soft copies of their photographs. Since the company is almost a pure service, the presence of a studio might make the photography service seem more tangible to customers. In the absence of a tangible product, customers rely on the business atmosphere and other physical cues to infer about the
  • 8. Page 7 of 28 quality of the service they are going to receive. Having a studio could help in creating a favorable first impression about DRP’s services and alleviate any difficulty customers might experience as they try to determine the quality of service offered. ANALYSIS ASSOCIATED WITH OPENING A STUDIO: Several factors would need to be considered before making the decision to open a storefront. Firstly, the basic requirements for opening an upscale photo studio are size and appearance 6. An upscale photo studio should not be too small, as it will need a nice reception and waiting area, a dressing room, a camera room with lights, as well as a working lab 7. The reception area could have a few of Mr. Rubin’s art pieces on display, a big TV displaying all the other photo collections and feature nice trendy furniture to add character to the place. The location of the studio should be as close to the target customer segment as possible; potential locations would include Dallas, Highland Park, Greenway Park, North Park and Preston Center neighborhoods 8. The specific shopping centers to rent studio space can be Highland Park Village, Snider Plaza or The shops at Highland Park. Opening the studio/storefront would provide a visible place and address to contact DRP, and could lead the customers to perceive the company as more professional and dependable. Upon visiting the studio, customers would take cues from the overall ambience as well as the displayed artwork and make assumptions about the quality of the services from DRP based on this physical evidence. Overall, having a storefront would definitely make DRP services more tangible.
  • 9. Page 8 of 28 As discussed above, the most substantial benefit from opening the studio would be the tangibility that the studio would provide. The studio could double as a gallery and also be used to display the best art pieces which may attract more profitable customers. However, there are some expenses associated with having a store. These expenses include rent, furniture, other photography gear, staff salary, telephone and internet, store insurance and legal and accounting costs. In order to cover these costs, Mr. Rubin would need to invest a lot of money upfront. An additional drawback associated with opening the studio is direct competition with other photography studios in the area. In addition to this competition, the increase in costs could force DRP to charge more to its customers thus threatening the company’s current position as a low-cost service for outdoor photography in the DFW market place. SOCIAL MEDIA USAGE IN THE UNITED STATES According to The Statistics Portal, the number of social media users in the United States as of 2015 is currently at 180.3 million 9. This number has increased from 165.7 million in 2013 and is projected to reach over 200 million by 2019. This continuous growth is due to an increasing number of Americans creating online profiles and opening accounts on multiple platforms. The table below was created by the Pewter Research Centre and breaks down social media usage in the United Sates by website 10. As the table shows, the five main websites that users utilized between the years 2012 to 2014 are Facebook, Linked In, Pinterest, Instagram and Twitter. The table also shows that all of the websites experienced positive growth since
  • 10. Page 9 of 28 2012 with the exception of Facebook, which seems to have reached its peak usage. Despite exhibiting slower growth rate, Facebook still dominates the other websites and boasts the largest percentage of adult users each year. ENHANCING DRP’s SOCIAL MEDIA PRESENCE In order to increase the company’s competitive advantage, DRP needs to incorporate social media in its daily operations and maintain regular activity on all its websites to keep customers updated and engaged. According to Jacqueline Woerner, the social media manager for Emarsys, “The challenges brands thus face involve a bigger, yet scattered audience; more diverse, yet fragmented social platforms.” Woerner explains that even though the number of social media users in the US is growing each year, these same users are being spread across more and more different websites that are being developed. While it is not possible for DRP to
  • 11. Page 10 of 28 post on every new trendy website that pops up, an effective strategy might be to pick only a few of the top websites mentioned earlier and focus on creating a tight knit group of followers and building loyalty and lasting relationship with them. DRP has already established a Facebook page which boasts over 800 likes. As the previous graph illustrates, Facebook has the most users compared to any other social media websites so investing in some paid promotion on Facebook to boost DRP’s exposure would be appropriate. Facebook allows businesses to set their own advertising budget, with the price paid dependent on how many users are reached, starting as low as five dollars12. In addition to promoting the Facebook page as a whole, single posts could also be further boosted if Mr. Rubin felt they were more important in grabbing customer attention and directing traffic to the company’s page. Almost all websites these days have a share function/button that allows users to share a post to all their various other pages without having to do so repeatedly on each one. This is a great function that DRP could take advantage of, as it would allow a post on Facebook to be simultaneously shared to Instagram and so on. Not only would this save time, but if the same message is posted across all websites, it creates consistency across all platforms which would be a great first impression for the business. Another growing trend with social media is the revolution of the mobile phone. “Because people are so easily and quickly connected to the Internet using their phones, mobile devices, and tablets, it’s absolutely imperative that your website looks great on these devices13”. All DRP websites need to be checked and monitored regularly to ensure that all the
  • 12. Page 11 of 28 photographs load correctly and create just as good of an impression on these devices as they do for computer users. CONNECTING WITH CUSTOMERS THROUGH BLOGS Creating a blog gives an artist the freedom to talk about themselves and fully express the thought process and ideas behind their work. Websites such as Twitter and Instagramhave word limits which prohibit writers from elaborating sufficiently. A blog would be one way for DRP to connect with customers who are interested in getting to know Mr. Rubin on a more personal level. “A blog allows you to build a fuller picture of who you are. Most people will meet you through other places…but if they like what they read on Twitter, then they’ll follow you back to your blog and find out more about who you are…14”. A blog would be especially useful for the fine arts portion of Mr. Rubin’s business, where individual pieces of art could be given names as well as accompanied by a short description of how the photograph came about. This could help potential buyers connect with, and understand, the story behind a piece that they are interested in purchasing. ATTRIBUTES OF A GREAT WEBSITE With the dominance of the Internet in business today, it is very important to have a strong web presence for any business. A company’s website is usually the first point of contact that a customer will have with a product or a service. Most small business experts argue that an effective website is one of the top three success drivers for any business. This is why it is important for our client, Mr. Rubin, to have a competitive website in order to be able to match his competitors.
  • 13. Page 12 of 28 According to Vladimir Bladogevic who writes about the “must-have elements of an effective landing page 14”, the three main attributes of a great website are that it grabs attention, is simple, clear and easy to navigate and lastly, builds trust and credibility. Contemporary customers have a lot of options and this gives business owners an even shorter period to grab a customer’s attention. The style, color and layout of a website determine whether or not a customer spends time on any page. A website should be simple, clear and easy to navigate: this is very important because the easier a website is to navigate, the more appealing it is to customers. Lastly, there is a popular saying that states, “People buy from people”. This quote can be extended further to say people buy from people they trust .Customers want to associate a product with a feeling. Since photography is a more personable service, DRP could further personalize its websites to give customers a better picture of what it represents. Having testimonials and reviews from loyal customers on the website would also add credibility and build trust. EXPLORING NEW BUSINESS INITIATIVES THE DALLAS HIGH SCHOOL SENIOR MARKET According to Dallas high schools data, there are 83 high schools in the Dallas independent school district (ISD) 28. This number is set to grow by 10% between the years 2014 to 2019 and this predicted growth will provide a good opportunity for DRP considering that most of the seniors at these schools want a high school portrait taken. The high school portrait market is a profitable line of business however it is also important to note that there are an additional 422 elementary schools in the Dallas ISD that DRP could also target.
  • 14. Page 13 of 28 DALLAS COUNTY PUBLIC SCHOOL STATISTICS / DEMOGRAPHICS HIGH SCHOOL MARKET TRENDS AND OPPORTUNITIES Our research indicates that the average prices charged for senior portraits continue to increase each year. Price is no longer a determining factor for purchasing these services and 0 50 100 150 200 250 300 350 400 450 elementary middle highschool Schools in Dallas Schools in Dallas Total no of students 445,007 Number of schools 675 Middle schools 422 High schools 83 Other 56 Number of schools district 55
  • 15. Page 14 of 28 portraits are becoming more expensive and elaborate with clients willing to pay premium prices for them. A Washington post article by Steve Hendrix stated “It’s growing every year,” in regards to why a certain photographer chose to drop family and baby photography work in favor of high-concept senior portraiture, which according to this source, can average $2,200 per package. This particular photographer now has a waiting list of clients, which he credits to word-of-mouth communication among high school peers. “When something becomes popular with teenagers, it just spreads. They see these pictures on Facebook, and they want to do what their friends are doing”. Prom Night is another important occasion in the life of any high school student. Capturing this moment provides a priceless memory for students and given the right social media and marketing tools, DRP could easily penetrate this market as well. The average prices charged for high school prom photos are as follows: Formal shots-$350, Entire prom night coverage- $850 and Prom photo booths - $1000. DRP could consider tapping into the high school prom market. Achieving success with high school senior portraits will require a sophisticated social media and technological presence among the school’s In Dallas. According to Norman K. Denzin in the Handbook of Qualitative Research, high school seniors are among the Generation Z demographic, which makes them part of a generation that is global, social, visual and technological. They are early adopters, brand influencers, social media drivers and pop-culture leaders. If they like something, they will quickly show it off on social media and recommend it to others as well. DRP could successfully achieve its expansion goals by entering this market.
  • 16. Page 15 of 28 LIFETOUCH PHOTOGRAPHY Lifetouch is a strong competitor of DRP in elementary schools and will provide a significant obstacle in Mr. Rubin’s attempts to break into the Dallas schools market. Lifetouch already has a firm foothold in the K-11th market and senior portrait market and has been in business for more than 50 years. Although Lifetouch has a fairly large share of the market place, many consumers have voiced their concerns about its lack of a personal touch and it has received significant complaints regarding its out of touch company structure. As stated by one customer - “I have contacted the company via email, I think using their online form, and the only response I ever get is the automated response saying they got my message and that someone would call me. No one ever calls me, despite repeated attempts at communication on my part via email and telephone17”. The above review is indicative of Lifetouch’s lackluster customer service. Building relationships is very important in the service industry and Mr. Rubin can differentiate his company by continuing to offer personalized one-on-one customer contact and emphasize the value of quick and efficient customer service. Lifetouch markets its service offerings mostly through its website, onsite representation at the different schools, and via word-of-mouth. The company uses several different companies such as Prestige Portraits and Flash Portraits as outlets for selling its services. Lifetouch positions itself in a fairly moderate price range, offering “5x7” glossy prints for different collage sets ranging from two to six photos for $6.99 18. An article regarding Lifetouch’s typical pricing model stated, “…not everyone will buy, - even a $10.00 package may be asking a lot…Lifetouch's cheapest package here is $15 or $20.00 - so if you doing 200 kids - figure a 40- 50% sales rate… but some of that depends on location and school population…if you don't sell
  • 17. Page 16 of 28 anything - you don't pay them anything.” These figures seemto be the average rate that DRP could expect based on similar research findings. EXPANDING DRP’S FINE ART BUSINESS If DRP decides to market itself as a fine arts business service, it will compete with many different fine artists who exhibit their work through more than 25 galleries in Dallas located at Fair Park in downtown, uptown Gallery district and the Design district. The Dragon Street located in the Dallas design district is a famous hot spot destination for purchasing fine art, and most of these galleries sell contemporary art by local Texas artists and photographers 20. Two prominent art galleries that specifically work in the fine art photography business are Photographs Do Not Bend (PDNB) 21 located at Dragon street Dallas and Sun to Moon 22 which is located in the Dallas Design District -South. The first gallery exhibits and sells fine art photographs taken by more than 60 artists through their website. The Sun to Moon gallery displays mostly traditional landscape photography and alternative printing methods by different national artists. It also publishes a travel blog written by a travel photographer which is available through the Sun to Moon website 22. Another option to sell fine arts photography is to do so through third party websites such as Fine Arts America.com 23.On this particular website, artists and photographers can upload their images onto the site, set their own prices, and instantly sell prints to a global audience of art collectors. Fine Arts America fulfills each order on behalf of the artists and takes care of the printing, framing, matting, packaging, shipping, collecting payments from the
  • 18. Page 17 of 28 buyers and sending profits to the artists. Each print is conveniently manufactured at Fine Art America's own production facility. Given that the two most prominent ways to sell fine art photography are through galleries and websites, the first important step for DRP will be to set up a separate website or convert one of the existing websites, exclusively for selling fine art. The introduction and description of this website will need to feature buzz words such as “fine arts”, “home décor” and “landscapes” etc. to help the website and blog be more easily found by customers who are looking for fine arts photography to redecorate their homes/businesses. The website should also be connected to a blog which can be used to write stories about the various pictures and places in the photographs. A recent blog post by Todd Binghamstated that people buy fine art as a benchmark to their lives, “they look at fine art as something memorable, something so meaningful that the experience of it is imprinted on our consciousness”24. It is therefore important to elicit those meaningful feelings about art photography in order to promote sales. Creating a blog about Mr. Rubin’s photographs and art pieces will help to emotionally appeal to art buyers and to encourage them to make purchases, “People purchase fine art photographs for emotional and sentimental reasons, and not for a bigger piece or discounted price”24. Fine art photography is a niche market segment and the customer demographic is not very sensitive to price. Therefore posting stories and descriptions about key photographs on the blog will help attract these customers. GALLERY SHOWS VS. PRIVATE HOME SHOWS
  • 19. Page 18 of 28 Joining one or two popular galleries at the price of a yearly membership fee of around $300 to $800 will help create increased recognition and develop the popularity of Mr. Rubin as a fine artist. These gallery exhibitions will also provide necessary exposure to target customers. Through these galleries, Mr. Rubin has a chance to reach a broad market segment. However, there are two major drawbacks to be considered. First, to be able to exhibit his artwork in these galleries, Mr. Rubin will have to pay upfront for the membership as well as some percentage of sales. Second, by displaying his art through these gallery websites he will be in direct competition with other well established artists. Private home shows generally display three to four artists’ work to a small group of guests, and allow the artists to interact with the potential client and create an impression about their art. This private home shows normally do not charge any upfront fees but they may take some percentage of sales. Through the private shows, Mr. Rubin would get a chance to directly connect with customers and promote his work. According to a Washington Post article, home or micro galleries are very popular in big cities such as Los Angeles or Chicago. “The mainstream galleries are too expensive for new artists who do not yet have the resources to afford to exhibit their art therefore these young artists turn their home or basements into small gallery where they invite 4-5 participants to show their art26” Based on this, the private home shows seem to be an appropriate venue for initially promoting, and selling DRP’s fine art because doing so would enables Mr. Rubin to avoid direct competition with other well-known artists as well as the membership fees associated with galleries. THE DALLAS ART GALLERY MARKET
  • 20. Page 19 of 28 Art dealers in Dallas County are not required by the law to obtain a license to buy and sell art. This means that art dealers do not necessarily have to follow strict standards regarding honesty and reliability. Several organizations such as the Dallas Art Dealers Association (DADA) were created to regulate the art gallery business and serve as a benchmark for ethical practices. “DADA is dedicated to promoting the highest standards of ethical practice within the profession and to increase public awareness of the role and responsibilities of reputable art dealers and non-profit visual art spaces 30”. A company called the Prime Buyer’s Report compiled a list of ten of the best art dealers in the Dallas County based on research that included past customer satisfaction, complaint records and verified liability insurance 31. This list, available on their website, is a good tool for artists such as Mr. Rubin to use when searching for credible art galleries to partner with. In addition to doing thorough research about the credibility of an art gallery, Mr. Rubin could further protect himself by requesting a contract every time he does business with any dealer. This does not have to be formally written up, as even a short informal agreement would be enough to clarify certain terms and conditions in case any misunderstandings arise. These contracts should include details such as who will insure the artwork in case of any damage? Who will have the final say over the layout and display of the artwork and who will incur costs for transporting the artwork to and from the gallery? 32. Such small details are often overlooked but can create problems if they are not agreed upon beforehand. A recent article on ArtBusiness.com compares an artist’s artwork to a business card or billboard that serves as constant advertisement 24 hours a day. The author stated that the
  • 21. Page 20 of 28 easiest way to create a “buzz” is to keep producing new pieces of art in order to keep the public interested and in anticipation of the next one. “Even when you're not generating sales, you're still sharing your art with others and maintaining a public presence. You never know who might see it and be impressed enough to spread the word”33. Dallas has plenty of upscale restaurants, boutiques and coffee shops that Mr. Rubin could explore as possible venues to display his artwork. Several major Art Festivals also go on throughout the year such as the Dallas Art Fair, Arts cape and Texas Crafts and Fine Arts Festival. Attending at least one of these events annually would provide a great opportunity to mingle and meet with fellow art lovers. RECOMMENDATIONS POSITIONING: Mr. Rubin should continue to position his company as a low to moderately priced family portrait firm. In addition, Mr. Rubin would benefit from entering into the elementary school market. Although there is already significant competition in the high school senior picture market, if Mr. Rubin emphasizes his customer service and concentrates on building lasting relationships with customers he can gain a strong foothold in the this segment. PRICES: No recommendations suggested for a change in price strategy
  • 22. Page 21 of 28 PLACE: We recommend that Mr. Rubin not establish a Store front location. This recommendation is based off the fact that a physical location would increase costs and jeopardize DRP’s current position as a low cost professional portrait photography business. We also believe that with the recent trends in the portrait business, having a store front will not necessarily pose a big advantage in the near future. PROMOTION: Mr. Rubin should hire a professional web developer to redesign his websites. We also recommend that he limits his websites to just two instead of three. One should focus solely on portraits and the other website on his fine art. This change will make it easier for customers to differentiate between his works and enable them to quickly navigate around his website. Mr. Rubin should consider having a testimonial page on his website where customers can express their comments about his service and masterpieces. This feature will go a long way in validating his exceptional customer service and personalize his brand. DRP should actively strive to gain a larger social media presence and following. Mr. Rubin can do so by using paid advertisements to grow his Facebook page and by increasing activity on the company Instagram account. In order to promote the fine arts side of the business we recommend that Mr. Rubin join a membership organization such as DADA. This organization has three membership tiers which are full member, friend of DADA and volunteer. Mr. Rubin could pick which ever level of
  • 23. Page 22 of 28 commitment suits his schedule and even if he decided to simply volunteer or attend a few meetings on a regular basis it would give him new opportunities to network with other art enthusiasts. We also recommend that Mr. Rubin revamp his business cards with a more professional and polished look. Lastly, we recommend that Mr. Rubin should start creating a customer database. This database can be helpful for future promotion activities such as sending out emails to reminding customers about booking appointments for approaching holidays or other special events. PRODUCT: As seen on other fine art photography websites, it is recommended to create separate categories of fine art photos on DRP’s website such as travel, landscape, food etc. PEOPLE: With DRP’s planned growth, Mr. Rubin should consider hiring an additional person to help him as the business grows.
  • 24. Page 23 of 28 REFERENCES 1. "Summary." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics. <http://www.bls.gov/ooh/media-and-communication/photographers.htm>. 2. "Photographers - Career Growth." Produced by the Department of Defense with Data from the Departments of Commerce, Education and Labor., 1 Apr. 2015. <http://www.myfuture.com/careers/growth/photographers_27-4021.00>. 3. Swanson, Jamie. "Will Your Photography Business Survive In 2014? 13 Predictions For The New Year." Photography Marketing Ideas Photographers Pricing Guide Get More Clients RSS. The Modern Tog, 1 Jan. 2014.
  • 25. Page 24 of 28 <http://www.themoderntog.com/photography-business-industry-trends-predictions- 2014> 4. "United States Census Bureau." Dallas (city) QuickFacts from the US Census Bureau. US Census Bureau 5. Wade, John (1979). A Short History of the Camera. Watford: Fountain Press. 6. 10 Steps to Designing the Perfect Photography Studio. Photofucus.com, n.d. Web. <http://photofocus.com/2010/07/28/10-steps-to-designing-the-perfect-photography- studio/> 7. http://www.city-data.com/city/Dallas-Texas.html 8. http://www.statista.com/statistics/278409/number-of-social-network-users-in-the- united-states/ 9. http://www.pewinternet.org/2015/01/09/social-media-update-2014/ 10. http://www.emarsys.com/en/resources/blog/the-7-social-media-trends-dominating- 2015/ 11. https://www.facebook.com/help/535832449882077 12. Swanson, Jamie. "Will Your Photography Business Survive In 2014? 13 Predictions For The New Year." Photography Marketing Ideas Photographers Pricing Guide Get More Clients RSS. The Modern Tog, 1 Jan. 2014. <http://www.themoderntog.com/photography-business-industry-trends-predictions- 2014> 13. http://www.searchenginejournal.com/7-reasons-why-blogging-is-still-important-in- 2012/39225/
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  • 27. Page 26 of 28 24. Bingham, Todd. "WHY DO PEOPLE BUY ART, ANYWAY? –." WHY DO PEOPLE BUY ART ANYWAY Comments. Web. <http://www.toddbinghamfineart.com/blog/?p=103>. 25. "Light Stalking." 14 Commandments for Fine Art Photography Marketing. Web. <http://www.lightstalking.com/14-commandments-for-fine-art-photography- marketing-with-photos/>. 26. Marech, Rona. "Home Galleries, Artists' Friends in Tight Spaces." The Washington Post. The Washington Post, 1 Sept. 2011. Web. <http://www.washingtonpost.com/lifestyle/style/home-galleries-artists-friends-in-tight- spaces/2011/08/19/gIQAZcdNYK_story.html>. 27. Noel, Levitz. “Projections of high school graduates by state and race/ethnicity for strategic enrollment planning” http://blog.noellevitz.com/2014/03/10/projections- high-school-graduates-state-raceethnicity-strategic-enrollment-planning/>. 28. Dallas High Schools (, All High Schools in Dallas County, TX) http://publicschoolsk12.com/high-schools/tx/dallas-county/> 29. Dallas, TX Elementary Schools (Dallas, TX, Elementary school) http://elementaryschools.org/directory/tx/cities/dallas/ 30. Dallas Art Dealers Association. N.p., n.d. Web. <18. http://dallasartdealers.org/about- dallas-art-dealers-association/join/>. 31. The Prime Buyer's Report. The Top 10 Art Delaers in Dallas County. N.p., n.d. Web. <19. http://www.primebuyersreport.org/tx/dallas-county-tx-art-galleries.html>.
  • 28. Page 27 of 28 32. ArtBusiness.com. Artist / Gallery / Dealer Contracts. N.p., n.d. Web. <20. http://www.artbusiness.com/artist-gallery-dealer-contracts-agreements- relationships.html>. 33. ArtBusiness.com. How to Increase Your Art's Market Value. N.p., n.d. Web. <http://www.artbusiness.com/maxprice.html>.