The competition is divided between quality photographers and digital photo studios. Our service and photo quality is high compared to other quality professional photographers. Our rates are comparable to theirs, but we add value through personal contact and easy dissemination of digital images.
UNIQUE SELLING POSITION
Our innovative approach makes the most of consumers' fascination with the latest digital imagery. By playing to this market trend, we gain new customers and provide added value, with high-quality, small file-size images our clients can easily share with friends and family members. Morty’s Studio will use several digital cameras, and will require a computer fully loaded with image-manipulating software, such as Adobe Photoshop. We will also need an ongoing maintenance agreement for the computer and software, and nightly backups of image files, in the event of computer failure, theft, or fire.
In order to gain market share quickly, Morty’s Studio will apply the penetration pricing, in which the price charged for a product/service is set at a deliberately low price. Since this is a new venture the firm will focus on loyalty-building by offering a high quality photos and videos at a much lower expected price. This will help the business enter a new market even when strong competitors exist, and it builds loyalty with new customers from the beginning. It increase the lifetime value of customers, because they're "hooked" with the outstanding first product offering and--assuming future products are just as high quality—potential market are more willing to buy additional products from the company long into the future. High-Low Pricing
Morty’s Studio will also use high-low pricing. It involves alternating between high and low prices. Initially, the product is offered at a high price, which establishes the value of the item in the minds of consumers. The...