MKTG 4800: Marketing Strategy Decision Assessment. Foto Moto.

Foto Moto Assessment Case
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Foto Moto Assessment Case
How is the market segmented? What additional segmentation schemes can you think of?
Market segmentation is a practice where companies divide their markets into small and manageable size based on the characteristics of potential customers to improve their sales efforts, advertising, and product promotion (Camilleri, 2018). 
Foto Moto market is segmented based on price and quality. Foto Moto has segmented the market on the ground that their films are of high quality hence affecting pricing. Therefore, consumers make choices using pricing. Some of their products are based on age and education level. For instance, ES films target serious amateurs and professionals. I suggest psychographic segmentation whereby the company uses intrinsic traits to divide its markets by modifying its films in a way that attract the subconscious mind of their customers. For instance, introducing points for more rolls bought which are redeemed to rolls when a certain limit is reached.
2. What is the product of Foto Moto and who is the target market (Hint: tie together)?
Foto Moto sells photo films and categorizes them into three brands which include Gold Star, ES, and Fojun. These brands are priced differently based on film classification and specifications. The three brands target customers who need quality films but at different affordable prices.
3. What is Foto Moto’s positioning strategy? Does it appear to be successful relative to Hiku’s? 
Positioning strategy is when an organization decides to use one or two aspects in some areas and concentrate on them. 
Foto moto's positioning strategy is a quality and pricing approach. They have developed three products with different superior qualities so that prices are varied based on quality, and customers will make the decision based on price. Both Foto Moto and Hiku have positioned their products in a way that they are seen to be of high quality.
Foto Moto is successful than its competitor Hiku because it enjoys a higher market share. However, Hiku has an advantage in its economy brand because it is low-priced and the experts say that its gains will be based on how the entire market responds to its prices. Therefore, if it becomes successful, it will dilute the market share hence increasing their market share while Foto Moto’s market share drops.
4. Discuss the price/quality relationship in this market in terms of the concept of perceived value from a customer's perspective, given the information in the case. (Hint: there are quality ratings and relative retail prices…what do these tell us about this market that we can use from a marketing perspective?)
Big companies such as Foto Moto and Hiku have an advantage of advanced technology hence can produce superior quality films. Therefore, they use quality to influence pricing, although differences in the quality of films were not apparent. The research found out that their films were no better as compared to those of their rival companies hence yielding comparable quality; therefore, it is a psychological mechanism.
5. How could Foto...