Notes

Outline

Market Research Presentation/Report

Table of contents

Table of contents Introduction Background Research Objectives Research Approach Main Findings Consumers’ Views Retailers’ Views Other Issues Conclusions & Recommendations Appendix

Introduction

Introduction This is a report of a new qualitative research study into consumer photography in Australia, which follows the completion of market research conducted for PICA during 1999/2000 In that earlier work, a number of issues were identified which were resolved by PICA as being worthy of further attention Accordingly, this more recent study involved further investigation with the following objectives: Determine the reasons for disappointment in photography and how these could be rectified Understand why people blame themselves for poor photography results and whether this impacts on their motivation for taking photographs Determine the level to which digital technology has impacted on the consumer photographic activity Explore the level to which the in-store experience impacts on people’s enthusiasm for photography Determine retailers’ views on the state of the industry and how it should move forward

Introduction (cont.) In this report we firstly set the context, in terms of briefly outlining some of the key issues identified in this research This is supported by some of the findings of the earlier research and the implications which arose from those findings We then go on the confirm the objectives for the new work and describe the approach taken to the research Lastly, we present the findings of the new work in detail, before summarising our conclusions regarding action that the photographic industry should consider taking

Background

Background Our previous research identified clear segments in the market, defined as…..

Background In terms of film ‘burn’ rates (even allowing for respondent understatement): around 26% of the Australian market ‘under-performs’ when it comes to taking photos but even the 58% of ‘over-performers’ do not over-perform significantly In addition, arguably, in the USA/Japan/UK: there are higher proportions of consumers who are ‘Functional Creative’ or ‘Trigger Happy’ photographers the ‘over-performance’ of these segments considerably exceeds that in Australia, ie. they take relatively more photos Furthermore, recent industry information suggests that ‘burn’ or usage rates of film and paper have plateaued in Australia, possibly due to the introduction of digital photography plus other factors Digital has had an impact on the market and the way it operates Current and future population shifts can also not be ignored as an element to the changes being experienced

Background Key issues In summary, some of the key issues include: How to increase consumer perception of photo opportunities and their willingness/interest in taking photos, particularly for less formal or spontaneous occasions How to get consumers to ‘remember to take the camera along’ How to increase consumer satisfaction with the photos they take (including determining whether it is really ‘their’ fault) How to get digital photographers to have prints made of the pictures they take Further detail to the background on these issues can be found in the Appendix Prior to commencement of the formal research program, a preliminary workshop held with representatives of the PICA Steering Committee also identified some other issues which needed to be covered in the research These more specific issues are discussed in the next section

Research objectives

Research objectives The broad aim of the research was to explore the lowered motivation of people in taking photographs and to determine how enthusiasm for (or at least interest in) photography could be re-ignited A number of hypotheses were developed to explain this, which formed the basis of the research objectives*, being: Determine the reasons for disappointment in photography and how these could be rectified Understand why people blame themselves for poor photography results and whether this impacts on their motivation for taking photographs Determine the level to which digital technology has impacted on the consumer photographic activity Explore the level to which the in-store experience impacts on people’s enthusiasm for photography Determine retailers’ views on the state of the industry and how it should move forward

Intended outcomes Ultimately the research needed to address these objectives in order to provide guidance for the future development of the industry It is intended that part of this future development will involve a motivational campaign to encourage the general public to increase their participation in photography generally (ie. taking photographs) At the same time, it is intended that there be a number of specific initiatives dealing with individual issues (eg. how to encourage consumers to increase the number of prints they make from the digital photographs they take)

Research approach

Research approach Methodology To address the research objectives, an essentially qualitative research approach was devised, involving: group discussions with consumers face-to-face depth interviews with retailers This work was undertaken during February and March/April, 2002 Among consumers, eight group discussions were conducted with: Careful clickers Trigger happy Disapppointeds Digital users Among retailers, 10 depth interviews were conducted with: Kex retailers Agfa retailers FIP retailers Speciality retailers Mass merchandisers

Research approach Program The research program was structured as follows:

Research approach Consumer definitions Based on the segmentation work conducted for the original PICA research project (see Appendix), respondents recruited for the consumer groups had to agree that they were best described by one only of the following definitions: Careful clickers - I like to take my time when I set up my shots and I choose my shots carefully so as not to waste too much film, although I’ll sometimes take several shots of the same subject using different camera settings to make sure I get a good photo Trigger happy - I tend to take lots of photos and will often get double prints, and even though I don’t think I am a very good photographer, I’m happy with the quality of the photos I take Disappointeds - I really don’t feel that comfortable taking photos and I find that when I do, I am generally disappointed with the way they come out and I would like to be able to do better Digital - I have a strong interest in digital photography and I use a digital camera to take a lot of my photos

Main findings

Main findings Introduction This section presents the main findings from the research It is separated into three key sections: Consumers’ Views Disappointment in Results Self-blame Impact of Digital In-store Experience Retailers’ views Other Issues to Consider

Consumers’ views Disappointment in results

Disappointment Introduction Previous research had indicated that a large proportion of people were both disappointed with their photography taking, and mostly blamed themselves A number of hypotheses were explored in this context:

Disappointment Introduction Let’s look at each of these issues in terms of: its definition - what is actually meant by this terminology in consumers’ eyes the credibility or reality of this problem - is it actually a real concern for consumers that prevents them from engaging in photography the impact it has on the industry - what should the industry be considering based on this outcome Collages that were developed by consumers who participated in the groups have also been included to demonstrate the issues as identified

Disappointment Lack of ability

Disappointment Poor quality prints

Disappointment Incorrect/ damaged film

Disappointment Lack of advice

Disappointment Lack of storage

Disappointment Forget to take camera

Disappointment Meaning for consumers We have assumed however, that “disappointment” leads to  a decrease in photography taking - this is not necessarily the case! “Disappointment” is not necessarily a negative for consumers “Disappointment” can be a positive in the following ways:

Disappointment Meaning for consumers As such, “disappointment” may not be as strong a negative nor as large a barrier as anticipated Consumers expect that there will be some disappointing moments in photography “It’s the nature of photography.  You’re never going to get it 100%” “I just take bulk photos and surely some have to turn out” Disappointment is more likely to occur where the occasion/ event has greater meaning: an overseas holiday  - the memories can not be captured again a child’s birthday party or special moment “I missed the first 10 weeks of Ben’s life because I forgot to put film in the camera” a particular place or event that has meaning “If it is an exotic shot you really hope the camera picks it up”

Disappointment Satisfaction While ensuring to analyse what makes consumers have a disappointing experience, we need to understand what makes a satisfying experience so that these can be a focus These elements include: Reliving the memory:  Knowing that there is a way of sharing a moment either with yourself at a later stage or with others Satisfaction in a good result:  Particularly among Careful Clickers who are looking to maximise results utilising their skill and knowledge Proof:  Evidence that you were at a particular location / event and took part

Disappointment Implications for industry The main implication for the industry is that “disappointment” as such, does not necessarily lead to a poor photographic experience by consumers There are some fundamental issues that the industry will need to explore in order to assist consumers in enhancing their experience: camera ability and knowledge forgetfulness & portability of the camera advice in correction quality of outputs But these, by and large, are not the heart of the barrier to photography

Consumers’ Views Self-blame

Self-blame Introduction Of further concern in previous research was not just that many consumers were “disappointed” with their photography, but that they mainly blamed themselves for it This is of concern to the industry as it may be incorrect and leading consumers to a level of inaction in rectifying these problems

Self-blame Reasons There are several reasons why consumers tend to blame themselves for poor photography results

Self-blame Time poor Many consumers claim that it is their own lack of time that creates disappointing moments in photography for them This relates primarily to the lack of time to: take the photo “I would take more photos if I had more time” properly set up and frame the shot ensure that film is properly processed “When you want them, you want them quickly” check for poor quality and/or have reprints made of poor quality processing “I couldn’t be bothered taking them back” Coupled with this is a general apathy and/or impatience for photography which dictates that other things in their lives take priority of their time

Self-blame Naivety There is no doubt that there is a large gap of knowledge among consumers in identifying the cause of problems experienced in photography This is acknowledged by consumers themselves As such, they tend to blame themselves because they don’t question the processing and/or recognise the subtleties that occur between labs Indeed, there appears to be a lot of acceptance of variation in quality and/or an acceptance of poorer quality processing as the norm.  This is especially so among the “Disappointed” and “ Trigger Happy” segments who appear to be driven more by price than quality of processing That said, not all are this undiscerning.  Some do take action and/or have taken courses to improve their general photography knowledge

Self-blame It’s true Consumers feel that that there is valid reason to blame themselves This is borne from a lack of knowledge and/or experience in using the camera to its fullest potential (as discussed previously) and can include: not knowing how to use the camera properly not being aware and/or making use of all the camera’s functions inexperience in framing and placing a shot “I don’t think enough.  I look at the photo and say ‘there’s too much light there’” That said, there also appears to be (for many but not all) a latent interest in mastering these areas However, for some it is a “chore” to master them, as it is considered less of a hobby and more as a household appliance - ease of use being the key “You read the book (manual) and it’s really thick.  It’s too much to read”

Self-blame Easier to accept Part of the photography process is the enjoyment in creating something - no matter what level of quality or standard that creation is As such, photography becomes very personal in nature and it is is easier to accept and/or ignore problems and “disappointments” when it is so personal Making it easier to accept problems means that the enjoyment is not lost in the process of photography Recognising that someone else might be responsible for a poor outcome may lead to a greater level of dissatisfaction and/or anger This is avoided by accepting responsibility personally

Self-blame Implications for industry There are a few key implications for the photographic and imaging industry: Time(or the lack of importance in allowing time for photography) is a key factor in preventing consumers from taking more photographs.  This may also relate to identifying the opportunities.  This may mean that the industry needs to focus on helping consumers identify the opportunities to take photos (ie don’t just save it for special occasions) There appears to be a need for the industry to re-educate consumers on acceptable levels of quality and what to look for in the photographic results There also appears to be a need to educate consumers to take action on poorer quality outcomes (ie don’t just accept that what you get is OK) The emotional motivation behind accepting blame for these problems means the industry will need to address these issues carefully

Consumers’ Views Impact of Digital

Digital Introduction There is no doubt that digital photography has had a major impact on the photographic experience, particularly for those who use it Part of the research objectives required exploring the issue of digital photography further to identify how this has impacted on the industry generally and whether this partly explains the downturn in burn rates The following explores consumers’ points of view on digital photography Retailers’ views on digital photography are covered in a later section

Digital Positives vs Negatives From consumers’ point of view, there are clear positives and negatives associated with digital photography Not surprisingly, those that have embraced digital photography see largely the benefits and advantages associated with it In contrast, those that have not, exhibit clear barriers to entry

Digital Positives vs Negatives The contrasting positives and negatives are as follows:

Digital Habits We know that it is primarily younger people who have the interest in digital photography So the opportunity is to teach them ‘good digital habits’  which reflects the facts that: They will probably be using digital cameras anyway They will simultaneously be moving into that stage of life when there are things of interest to take photos of (eg. children, holidays, travel) How do we teach ‘good digital habits’? There are two aspects: Cameras -  in terms of what is purchased by consumers in the first place, and what is purchased in addition to the basic camera Processing - in terms of whether and to what extent consumers have prints made commercially from their digital images

Digital Cameras When we sell a new camera to a customer, we have the opportunity to capitalise on the inherent weaknesses of current digital products: Digital cameras need batteries, lots of them They need extra memory (eg. 64mB or larger Flash Cardstm) so consumers can take lots of high-res photos without worrying about whether they will ‘run out of film’, and without worrying about the cost implicit in each extra shot they take (and thus moving some from Careful Clicker to Trigger Happy status) Cameras need cases, to protect the consumer’s investment Consumers who are going to print at home (ie. until we can persuade them otherwise) are going to need printing supplies and paper All of these are up-selling opportunities that retailers can take advantage of today

Digital Processing What about processing and printing? We know that digital photographers take many more photos than conventional film users We also know that they have far fewer prints (if any!) done by commercial processors The new wave of digital labs provides additional processing and printing opportunities for the industry We need to tell consumers of the huge advantages in having their digital images dealt with by commercial processors

Digital Would you like fries with that?* Through digital (and other) labs, they can get automatic improvement and/or correction to print quality, to deal with: excessive contrast ‘thin’ images ‘fuzzy’ images other image faults They can choose which images are printed, how many of each, and which ones get cropped, add captions They can ask for a file of images back on a CD-ROM disk for later re-printing or attachment to emails They can order prints for friends and relatives to pick up from their local store, whether in Australia or another country They will pay the same as before, or less, just for the prints they want, not dupes of the pictures that “didn’t come out”

Digital Summary of issues Younger people have the primary interest in digital Younger people are getting older As they move into a different stage of life, their propensity to take photos will increase With digital cameras they will take more photos anyway (again, moving some from Careful Clicker to Trigger Happy status) but continue not to print them The inherent capabilities of digital (and other) labs mean that consumers do have access to a significant number of cost-effective options for dealing with their digital images, to a far greater extent than any home-based system So we need to tell consumers of these options, before they come into the store to get prints made from their digital images, otherwise they will continue not to come in at all

Digital Implications for industry There are a few key implications for the photographic and imaging industry: There is obviously a lot of misperception about digital photography and this is a key barrier in further uptake.  The industry therefore needs to consider that if it wants to encourage uptake of digital it needs to re-educate and correct some misperceptions.  Some are not “misperceptions” as much as hurdles that appear greater than they really are (eg cost) There is also the perception that with digital you don’t get photos printed and this is also untrue.  Therefore, the industry needs to more widely promote the printing/ processing services of digital to overcome the loss of the tactile experience in photography

Consumers’ Views In-store Experience

In-store Experience Introduction Part of the research objectives required exploring the in-store experience for consumers to determine whether this impacts on consumers’ enthusiasm for photography This is largely a “non-issue” for consumers as the in-store experience does not play a major role in their overall photographic experience The main in-store issue would be the advice received from retailers regarding photographic outcomes.  This (as has been previously discussed) is: A positive experience for some (a learning process) A negative experience for others (the “school teacher” approach)

In-store Experience Implications for industry There are a few key implications for the photographic and imaging industry: This does not play a major role in consumers’ photographic experience However, it is one of the vehicles for the industry to make changes to consumers’ perceptions and motivations

Retailers’ Views

Retailers’ Views Introduction Part of the research objectives required exploring retailers’ views on the state of the industry as a whole and explore any further hypotheses for the downturns as being experienced This was also used as an idea generation forum to identify ways that issues with the industry at present could be addressed It should be noted that different retailers from both Sydney and Melbourne took part in this process including: Representatives from Kodak Express stores Representatives from Fuji Image Plaza stores Representatives from Agfa stores Representatives from specialty stores (Ted’s, Fletcher’s) Representatives from mass merchandisers (Kmart, Big W)

Retailers’ Views Key issues There a number of key issues that were raised as part of discussions with retailers:

Retailers’ Views Quality control

Retailers’ Views Quality control Training, for both industry and consumer is particularly necessary, as currently there is: Inconsistency in consumers abilities Inconsistency in the knowledge of consumers’ cameras and their capabilities “We’ve asked some customers to bring their cameras in and we’ve gone through the instruction manual with them” Inconsistency in quality of printing “The trade allows anyone to open a store with no trade history. Basically here’s your machine, go for it!” Confusion Is it the consumers taking poor photos, cameras being used incorrectly or the development of the prints? “I think customers tend to expect a lot more from their photos, they don’t want to think that it could be their own fault” “Promotion of one type of film so lab only has one channel to balance and sometimes another speed film will be burned on same channel without changes”

Retailers’ Views Quality control Solutions include: An industry standard for processing should be introduced that would allow the best quality printing at all times, and eliminate this aspect from the quality problems Train sales people who sell cameras to ensure they know what each camera’s features are.  Ask customers what they want to mainly use their camera for, how savvy they are with camera technology and suggest products that will best suit customers’ ability and usage criteria Provision for short courses for anyone who buys a new camera, to show them how to use their camera, to make the most of their picture taking experience Liaise with manufacturers to make user manuals more simplified … perhaps including a “cheat sheet” on how to maximise its usage

Retailers’ Views Push vs Pull of digital Some implications of digital are seen as good for the industry (in blue), some are seen as bad for the industry (in red)

Retailers’ Views Digital

Retailers’ Views Digital (good) New market Digital has provided consumers with the opportunity to take photos for more reasons (ie. to download and send to family and friends, not necessary to print out, but want to capture moment and let others share it ASAP) “We haven’t lost anyone with regards to regular film, we’ve gained heaps of digital” Educated consumers wanting the latest technology but understanding the positives of both conventional and digital photography Males taking more digital photos, viewed as  technology Particularly good for companies/corporate, can take own photos and use as required Exciting technology Digital cameras being advertised as accessory to home computers and the technologically savvy want the latest in all products, including digital imaging “Digital is focussed on the technology not the output”

Retailers’ Views Digital (good) Consumer empowerment Can print and manipulate photos at home in own time Can view photos immediately and make decisions on whether image is worth saving, or should be taken again Good for businesses Many stores are selling more digital items on top of what they previously sold, making their business more profitable Customers still want digital images printed professionally as their home computers and printing do not have high enough resolution to give picture professional look “We’d get a customer a day asking how can I get my digital photos printed out” Want images printed on professional paper to ensure longevity of print

Retailers’ Views Digital (bad) Loss of printing Consumers can print and manipulate digital images out at home Digital cartridges are expensive in comparison to 35mm film, therefore digital camera owners are downloading images to computer and using same cartridge over and over Fewer SLR cameras being bought means fewer films purchased and fewer films developed “If we can’t sell prints, the industry will collapse in 3 years” As a result, fewer printing opportunities and the flow -on effect of other sales that occur when customers enter a store: photo albums picture frames enlargements/reprints

Retailers’ Views Digital (bad) Market competition Camera specialists are no longer the only outlets selling cameras. Many electronic, computer, white good and department stores (traditionally “non-specialists” in this market) are advertising and selling digital cameras without the knowledge of the industry, consumers  and products The expanded market of the photographic industry could lead to misinformation conveyed to consumers about cameras and their capabilities and limitations. Printing digital images onto professional paper is not promoted widely enough, as computer store have own interests (sale of colour printers and ink cartridges) Again, there is a flow-on effect whereby if consumers are not entering a photographic store to purchase and cameras and associated accessories, they won’t buy photo accessories (eg. albums and frames)

Retailers’ Views Digital (bad) Memory Not selling the memory anymore, selling the technology Technology developing and changing rapidly that neither consumers nor retailers can keep up to date Technology may change so dramatically that in 10 years time we may not be able to read the disks that photo images are stored on “Our business is keeping memories, digital doesn’t do this”

Retailers’ Views Consumer dissatisfaction Burn rate hasn’t really gone down due to dissatisfaction Reasons for decline (according to retailers) include: Less overseas and interstate travel - more local travel Local travel is not an excuse to take photos September 11 and Ansett collapse (fear of travelling too far away from home) Economy: consumers taking films to cheapest available processor not preserving every memory, just the major milestones, therefore not as many photographic moments

Retailers’ Views Consumer dissatisfaction Many (but not all) retailers claim to advise customers of “tips” that they can improve on their photography “If we spend 10 minutes with each customer, they think that’s fantastic and they’ll keep coming back, and it’s only 10 minutes”

Retailers’ Views Inspiration Retailers recognise that consumers need to be further inspired to take more photos How this might be achieved is unclear, although it appears that inspiration has declined due to a number of factors: Less travel = less opportunity Less money = fewer photographic times Less advertising = fewer people picking up cameras Added cost GST = people think more before taking a photo and/or buying new cameras Forgetfulness = fewer opportunities

Retailers’ Views Inspiration As such, retailers are looking for ways to inspire consumers to: Take more photographs (broaden the scope of photography acceptability) Remember to take their camera (a campaign to encourage cameras to be taken everywhere) Update their cameras regularly (buy new ones to replace existing models, particularly non-digital) Purchase cameras irrespective of GST and other cost implications (perhaps by offering some cost or price incentives, or film/processing offer)

Retailers’ Views Implications for industry There are a few key implications for the photographic and imaging industry: Train Retailers use of machines and equipment how to communicate with customers how to help improve customers’ experience Train Consumers help them to learn their camera (simpler manuals and short courses available) advice on better photography (“tips”) put example photos in with each camera to show what the result should be

Retailers’ Views Implications for industry Co-operation between manufacturers, wholesalers and retailers digital (the technology and the way its promoted channels of sale (be more selective) Don’t neglect conventional cameras because:

Other Issues to Consider

Other Issues Introduction There were two other key issues arising from the research that were not outlined as key objectives, requiring further thought and analysis. These two issues are: Consumer Inspiration Changing Demographics Each of these issues is discussed in the following section

Other Issues Consumer inspiration It is clear that while some of the hypotheses discussed are contributing (to a degree) to the industry problems, the heart of the matter appears to be a fundamental lack of inspiration to take photographs This is cemented in a number of core issues:

Other Issues Consumer inspiration Family Changes Higher divorce/separation rates and lower birth rates in Australia mean that family composition in Australia is continuing to change There is no doubt that children are a key inspiration for taking photos - with lower birth rates, this may be contributing to a decline in photography A greater number of divorces may mean that there are less traditional family gatherings, typical of a photographic opportunity As such, these two factors combined have (possibly) led to fewer occasions and opportunities for consumers to take photos

Other Issues Consumer inspiration Social Changes It is possible that the very nature of social events and gatherings may have changed and these are no longer associated with “capturing the moment” The typical family gathering and/or child milestone is a classic photographic opportunity However, the increased range and access to differing social events may not have this same association.  They appear “ineligible” or “unworthy” of being captured For example, is taking your camera to the races and photographing your horse bolting over the line as worthy a memory as last year’s family Christmas dinner?

Other Issues Consumer inspiration Joy of Photography It would appear that photography has become a very results-oriented activity While a good result is indeed the desired outcome, there is still a joy to be gained from the photographic process: the composition the setting the subject the different camera functions This has been lost and may often be compromised by an impatient partner and/or subject

Other Issues Consumer inspiration Igniting Desire Digital has been a major revolution in the photographic industry and has re-ignited a lot of desire among some to re-explore photography (evidenced by digital photographers’ level of enthusiasm and knowledge in this field) Other than this, from a consumer’s point of view, no major revolutions have occurred to inspire their desire for photography and/or (perhaps more importantly) to re-invest in new equipment Furthermore, it is possible that video cameras have monopolised the occasions that were traditionally photographed Perhaps there is a need to inspire this desire through another technology revolution, perhaps even in standard cameras

Other Issues Consumer inspiration Street Credibility It would appear that consumers have stopped thinking about talking photos as a “normal” everyday activity, but one that is saved for special occasions only As such, there is a need to re-introduce the “street credibility” of photography as an everyday event and that it is not a “nerdy” thing to do This may provide a further reason and excuse for taking the camera everywhere This is also an opportunity to access children and young teenagers and spur their interest at a young age

Other Issues Changing demographics There is no doubt that the profile of Australia’s population is changing in terms of its demographic make up As referred to earlier, one of the industry’s concerns is how to convert Careful Clickers to Trigger Happy photographers At the same time, like it or not it, is clear that there is a massive shift occurring in camera sales and usage, from conventional film to digital In addition, the industry is arguably moving rapidly to digital labs All the leading manufacturers now have digitally oriented processing and printing products Is there a way to marry these aspects, to the ultimate good of the industry? Yes, there is !

Other Issues Changing demographics Changes in age distribution in the short to medium term are projected by ABS as follows:

Other Issues Changing demographics So in the medium term, the proportion of the population who are younger people (ie. aged 19 years or lower) will decline in importance (by around 8%) The proportion of the population who are of prime working age (ie. aged 25 - 54 years) will decline in importance (by around 3%) The proportion of the population who are older (ie. aged 65 years or higher) will increase by around 9% So our market is getting older … but there is more to it than this ..

Other Issues Changing demographics What do these numbers mean?  Consider that in four years time ...

Other Issues Changing demographics But this also means that: In four years time, over 1 million people, currently teenagers, will be of working age Nearly 1.5 million people, currently young working adults, will potentially be new parents We also know that Careful Clicker photographers are more likely to be younger than Trigger Happy photographers So, it can be reasonably argued that the initiatives we take with teenagers and young working adults today will determine whether we have 2.5 million customers tomorrow and, indeed, what type of customers they will be Couple that with our knowledge that younger people are more interested than older people in digital and the message seems clear

Conclusions & Recommendations

Conclusions There are a number of conclusions that can be drawn from this research.  There are however, six key points to be considered.   These are as follows: 1. There is a lowered inspiration for taking photographs.  Consumers are less inspired to “capture the moment” due to being more time poor than ever and possibly a crowding of other activities.  Photography has reduced its importance and relevance in consumers’ everyday lives. 2. The impending change in the demographic profile of Australia means that there is an opportunity to inspire desire among a younger population, particularly utilising digital technology.  This shift in the demographic profile should be harnessed. 3. There is a lowered “street credibility” of cameras these days, so that they are less acceptable in everyday life and really only reserved for “special occasions” and children’s milestones

Conclusions 4. While not considered a major barrier to photography there are some general industry issues regarding processing quality and consistency, that could improve the overall experience of photography.  The price factor appears to largely influence many consumers’ acceptance of poorer quality printing.  To some degree there is also a naivety amongst consumers regarding print quality. 5. While digital has revolutionised photography to a certain degree it has caused a major impact on the flow-on effect of photography; namely printing, framing and albuming. 6. One of the key barriers to greater photography is consumers forgetting to take their camera with them.  This indicates a not only a forgetfulness but a lack of priority that cameras have in consumers’ lives.

Recommendations Based on these findings the following recommendations have been made These recommendations have been designed to be directly transferable into action points for the industry

Recommendations

Recommendations

Recommendations

Appendix

Australian film usage In Australia, the estimated average household consumption of colour film is around 5.6 rolls per annum (giving a total market size of about 40 million rolls) This compares with estimates* of: USA 12.6 rolls Japan 13.0 rolls UK 11.6 rolls The Australian market would therefore seem to be under-developed relative to those overseas It has been suggested that the difference may lie partly in the relative proportions of ‘Snap shooters’ and ‘Occasionals’ in the respective populations

Segments To clarify: ‘Occasionals’ are literally occasional photo takers because they feel like there is nothing new to take photos of ‘Snap shooters’ like taking pictures, think it is fun and really enjoy the memories that their photos evoke - however they normally only take photos of traditional events In the Consumer Photography Study, conducted by RI for PICA during 1999/2000, segments were identified that more or less parallel those above: ‘Careful clickers’ ‘Trigger happy’

Careful clickers ‘Careful clickers’ (16% of photo-takers) share the following characteristics*: like to take time to set up each shot choose shots carefully so as not to use too much film find photography to be expensive, which limits increased activity are nonetheless likely to take several shots of same subject/different settings keep photos well-organised are interested in quick advice for taking better photos

Trigger happy ‘Trigger happy’ (32% of photo-takers) share the following characteristics*: have a perception of not being a ‘good photographer’ take lots of shots usually get double prints are happy with quality of photos taken are happy to take a camera along when going out

Holiday/specialists There is arguably also a third segment of potential interest in this context, namely ‘Holiday/specialists’ (20% of photo-takers) who share the following characteristics*: tend to take photos only on holidays/special occasions don’t really enjoy taking photos tend not to have a camera on hand

Functional creatives Not forgetting … ‘Functional creatives’ (26%) who: like to experiment with camera and manual settings are not as interested as others in camera portability think it’s worth taking time to set up each shot are more interested than others in the quality of the photo tend to see photography as a creative outlet are not unhappy with quality of photos taken

Disappointeds And … ‘Disappointeds’ (6%) who: tend to leave it to others to take photos don’t feel comfortable taking photos at social gatherings are disappointed with quality of their own shots would like to be able to take better photos can’t see point in taking lots of photos, as most don’t come out nonetheless, use albums and enjoy showing photos to others

So the market looks like ...

Film consumption by segment In terms of the relative consumption of film, the five segments mentioned rate as shown below* (index of 100 = market average)

So what does this mean … ? The upshot is (even allowing for respondent understatement): around 26% of the Australian market ‘under-performs’ when it comes to taking photos but even the 58% of ‘over-performers’ do not over-perform significantly In addition, arguably, in the USA/Japan/UK: there are higher proportions of consumers who are ‘Functional creative’ or ‘Trigger happy’ photographers the ‘over-performance’ of these segments considerably exceeds that in Australia, ie. they take relatively more photos Furthermore, recent industry information suggests that ‘burn’ or usage rates of film and paper have plateaued in Australia, possibly due to the introduction of digital photography plus other factors

What if … ? If each Australian household took just 6-7 more photos per year … the market would increase by 5% another 2 million rolls of film would be sold another 50 million frames would be developed and printed another $20 million dollars would flow into the processing industry This is still a long way short of USA/Japan/UK usage

What do people want? When we ask people what they are interested in taking photos of, we see the following result*:

What do they really want? But when we limit it to what they are really interested in, we see*:

Spontaneous opportunities That is, the attraction of the less formal, spontaneous situation with friends or family becomes more evident Is it because they don’t have their camera with them when they need it? We know that around 2/3 (two-thirds) of people ‘wish they’d brought their camera with them’ at least once in the last three months* If each such person had taken just six photos on these occasions, that’s a potential increase in burn rate of 1 roll per household per year That’s another seven million rolls of film per year, or an increase in the market of around 18 - 20% But that’s not the whole answer

So this means … ? As alluded to in PICA’s briefing notes for this project, consumer behaviour needs to be changed through: moving ‘Careful Clickers’ into the ‘Trigger Happy’ category increasing the propensity for ‘Trigger Happy’ consumers to take photos

Consumers are not satisfied ... From the original PICA research, around 50% of photographers are pleased with some of their photos and displeased with others When disappointed with photos, people are far more likely to blame themselves than anything/anyone else ‘Film’ and ‘processing’ received the lowest mentions

What about digital? Again, from the original PICA research: over half of all cameras owned are accounted for by compact/point-and-shoot very low ownership of APS (but possibility of confusion with compacts), and exceeded by Digital (and significantly increased sales compared with two years ago)

Digital photography (contin.) Awareness of digital photography was, however, exceptionally high (particularly in comparison with APS) - even higher nowadays

Digital photography (contin.) Interest in digital photography is stronger amongst males and younger photographers, in particular

Summary - the key issues Based on this background, some of the key issues include: How to increase consumer perception of photo opportunities and their willingness/interest in taking photos, particularly for less formal or spontaneous occasions How to get consumers to ‘remember to take the camera along’ How to increase consumer satisfaction with the photos they take (including determining whether it is really ‘their’ fault) How to get digital photographers to have prints made of the pictures they take Prior to commencement of the formal research program, a preliminary workshop held with representatives of the PICA Steering Committee also identified some other issues which needed to be covered in the research

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