EXECUTIVE SUMMARY
The Coleman art gallery is a non-profit corporation in the heart of Universal City, currently recording its third annual loss consecutively. The art gallery is a timeless expression of art and culture placed in a historical context. It targets aristocrats, academicians, historians, and locals alike. Its management faces a number of challenges, including the projection of a 15% reduction in the total appropriation by Flannel County in 2005, which is its main source of revenue. The main issue to be tackled included how to source additional revenue and make enough profits to breakeven in the years to come.
A rigorous evaluation of the corporation’s external threats and opportunities alongside its internal strengths and weaknesses assisted in the base for strategic preparation of a marketing plan. The plan focuses on recommendations for the growth strategy of the corporation in ways that help it breakeven and adopt specialty advertising to better the museum’s image. Since the Coleman art gallery is primarily centered on its audience’s experience, it is considered a service providing entity and needs to be approached from that angle.
MISSION STATEMENT
Coleman art museum is an exhibition gallery with over 15,000 permanent works of art centered on providing its visitors a unique experience by offering a mix of culture and art in its historical context. We aim to curate pieces that resonate with our visitors and redefine your cultural experiences locally. At Coleman museum, we promote the learning of all of our viewers. We also value their various inputs and encourage their membership by providing incentives. We appreciate all our staff’s expertise and time they put into taking care and understanding the value attached to each curated piece of art.
We intend to generate just enough revenue to breakeven and ensure profitability to sustain the enterprise. Our museum is organized based on a function where each section is headed by a director. We maintain a multicultural and creative environment where our volunteers and employees can work together in the different sections to promote art and its viewership. We do not, in any way, impose on our staff tasks they are untrained for and give opportunities to everyone to participate in whatever capacity they are willing to. Coleman art museum aims to use this space to make a difference around us and bring entertainment to the community through art.
RESEARCH ON THE INDUSTRY
Museums and art galleries alike fall in the Arts, entertainment, and recreation industry. They are traditionally non-profit in nature and seek to promote learning while entertaining their audiences. The demand for these particular sites has dwindled with time because of the onset of new technologies that offer virtual entertainment. In the recent past, museums have had to step up their marketing techniques so as to fasten the link between them and their consumers. Museums are experience-based businesses that rely a lot on customer feedback and on how their needs were met during a particular visit. The feedback will help generate constructive criticism that will assist to better the quality of services provided.
In terms of marketing, the industry has faced a number of challenges because of the obsoleteness of previously used modes. Historically, museum marketing was considered a ‘defecting’ from the core principles that make museums what they are. With time, those who engaged in the fine art of curating artwork and managing cultural institutions came to terms with reality. They understood that museums need to be run like any other business while finding ways to maintain their pristine nature. A museum’s product can basically be likened to the overall experience that a person draws after a visit. Like any business, museums and art galleries must center on customer service and make a conscious effort to better these services. The kind of marketing that was used traditionally was experiential marketing that focused on how the customers felt after the visitation and spread the word later on. The downfall of this strategy was that many people were not even motivated to visit these museums in the first place. They either had no idea of the existence of the museums or lacked time to pay a visit. The marketing method could, therefore, be deemed useless in such a situation.
Contemporary marketing of these museums and art galleries have taken to the service approach of it all. It has centered itself on its audience. Major cities and towns are seeing the influx of new audiences. Immigrant communities of different and mixed origins settle in these towns, which end up becoming melting pots for various ethnicities. The marketing is about inclusivity and curating art that appeals to everybody. Pieces need to reflect the cultures of the new people that settle around the museum and attract them to seeking membership. These strategies attempt to make art more accessible in the sense that it gives visitors a social platform where they can interact and share experiences. The managers of these museums can then get to see how visitors interact with the art. These strategies seek to find ways to come up with new streams of revenue that will assist the museums to keep their original purpose without struggling to run. Marketers in charge of these museums could rent the spaces occasionally, which generates revenue to keep the operations running while showcasing their art. They could also opt to start other small businesses right outside these museums to raise supplementary revenue.
The industry has faced numerous challenges. Liabilities appertaining to loans and other debts need to be addressed before other operations continue. Financial directors need to raise such issues rather than sweeping them under the rug. Museums are increasingly struggling to stay relevant. The museums have, in recent times, failed to meet audience expectations because of the diversification of people and their expectations. Striking a balance between professional expectations of the institution and scholarly standards has become nearly impossible. Another of the issues is the interpretation of the art forms. Technology has brought ease in the exhibition but has rendered the art of visitation obsolete. These museums are now operating at losses because their expenditure exceeds their earnings. Financial analysts need to stay on top of such issues and balance the books by either reducing the expenses or multiplying income sources. Employees in museums need to be fairly knowledgeable about art. Some visitors complain that those selected to work in these art galleries have a questionable amount of knowledge, which makes them less enthusiastic. The issue could be linked with poor remuneration of these employees as the industry is mostly non-profit and mainly dependent on volunteer work.
The gaps left to be filled in this industry are numerous but not undoable. Further research needs to be done in the understanding of the multicultural nature of society. Special attention needs to be given to the specific section of museum-goers. The museum audience needs to share in the running of these institutions on a more practical level. A deeper investigation should be done to understand non-attendance seeing that this industry is a service industry depends on the satisfaction of the customers. Museums need to look into the development of new content that can provide financial sustenance in the future. The museums must also ensure that there is strong cooperation between professionals running the operations of this industry with academicians and other curators concerned with the art. The industry needs to consider using the digital space to its advantage rather than seeing it as a means of eroding a museum’s primary role. Collaboration between the existing literature and the digital space could potentially see to it that a modern solution is found for the marketing challenge as far as museums and art galleries are concerned.
SWOT ANALYSIS
STRENGTHS
- The corporation experiences little turnovers because its running is mostly dependent on volunteer work. It has 475 volunteers and 185 employees.
- The building’s impeccable architectural design that accents the art on display and has become the museum’s selling point.
- Positive profit margin contributions from auxiliary activities such as the gift shop and the Skyline Buffet restaurant that contribute to the museum operations.
- Its public corporation status allows for its popularity with the locals and perpetuates its duty in the enhancement of social learning.
- The museum has a centralized management hierarchy consisting of professionals that are qualified to come up with innovations and enforce them.
WEAKNESSES
- Poor marketing strategies and lack of appropriate image branding that has rendered the corporation unable to stay afloat based on future projections.
- Lack of enough product and service diversification and over-dependence on its current clientele ignoring the need for new memberships.
- Over-reliance on ‘word of mouth’ and marketing of special events through posters rather than incorporating newer, more reliable social media marketing techniques.
OPPORTUNITIES
- Due to technological advancements, advertising costs in the U.S have reduced significantly; hence its effectiveness should be exploited fully. The museum could revamp its website and focus on specialty advertising as a primary tool to effect change.
- Computerized-based calendars to prompt people to save the date on important and special events held at the museum.
- Incorporation of more premiums and gifts to increase customer relations with the museum.
THREATS
- Competition from museums that have ‘better branding’ and employ a mix of marketing techniques.