If you have a group photo taken with iPhone or synced to your iPhone photo library and the faces are of a reasionable size, you can zoom in on individual faces for their contact photo.
- View a photo from your Camera Roll or Photo Library.
- If the controls are not visible tap the screen once.
- Tap the Share button on the bottom left. (It's the one with the arrow coming out of the photo.)
- Tap Assign to Contact.
- Choose their name from your Contacts list.
- Double tap on the image to enlarge it.
- Drag the image to fit it into the square. Pinch in if you have to shrink it a little.
- Tap Set Photo.