Marketing Plan for -...

Marketing Plan for

Marketing Management

MKTG-3832-604

Professor Williams

By:

Kathryn Davis

Doug Gold

Thomas Knight

Tamara Myers

December 8, 2014

Davis, Gold, Knight, and Myers 2

Executive Summary

Starving Artists is a non-profit organization that operates a gallery that displays the works

of local artists. The organization is the only visual arts charity in town. At this time, the

organization often struggles to pay its bills. The mission statement of Starving Artists is:

Starving Artists is a non-profit organization seeking to support and inspire our local artists and

our community.

The goal of the Board of Directors is to see a five percent increase in membership,

thereby increasing revenue and making the organization financially stable. The demographics in

the community that Starving Artists serves have significantly changed from the previous decade,

and the organization desires to market successfully to the diverse community. The strengths,

weaknesses, opportunities, and threats have been identified, allowing Starving Artists to set

marketing objectives.

The marketing objectives may be obtained by following the strategies that have been

developed for target markets and positioning, product, pricing, promotional, and supply chain.

Action plans have been developed, along with responsibility guidelines to implement the plan, a

timeline, budget information, and measurement and control for the plan.

By implementing this marketing plan, Starving Artists will become a viable organization

in the community. The artists will be supported and inspired, and a world of creativity and

excitement will be brought to the community and beyond.


Situation Analysis

Internal Environment

Starving Artists is a local non-profit organization that operates an art gallery to display

the works of local artists. The business mission statement is: Starving Artists is a non-profit

organization seeking to support and inspire our local artists and our community.

The organization is run by a Board of Directors. In addition to the Board of Directors,

the organizational culture of Starving Artists includes a paid staff that consists of an Executive

Director and three part-time gallery attendants. The Executive Director is overworked as she has

no business development support from the gallery attendants and has very little support from the

community. The organization has a tight budget and often struggles to pay the bills. As a result,

there has been little money or time available for marketing activities; and membership has not

increased in the past year.

In the past, Starving Artists has mainly chosen an undifferentiated targeting strategy, with

the entire community serving as one market. The visual arts products that the gallery displays

and sells include oil and water paintings, photography, ceramics, pottery, and sculpture. Each

artist prices his or her own artwork. The annual membership fee is $40 for an individual member

and $35 for an exhibiting member. With limited resources, the organization has had very little

promotion. The local newspaper provides a free Community Calendar listing, and the local radio

station offers a free community calendar announcement. An attractive window display serves as

an advertisement to prospective customers. At this time, there is no established website or social

media. The supply chain consists of the Executive Director assessing the kinds of art that are

currently in demand and making sure that the supply offered by the exhibitors equals the demand

of the consumers. All exhibiting artists are responsible for obtaining their own art supplies.


Starving Artists is unique in that it is the only visual arts non-profit organization in town.

Artists are provided with adequate space to display their works in the gallery for everyone in the

community to see and buy. The Executive Director and Board of Directors are passionate about

the arts and promoting the arts to the community. In the past year, a limited number of

workshops were conducted to create additional revenue and expose people in the community to

the visual arts.

The goal of the Board of Directors is to increase membership by five percent. Marketing

supports the organization’s mission, objectives, and growth strategies. These marketing

strategies will increase membership, enable the organization to bring in more funds, create a

greater awareness in the community, provide assistance to the Executive Director, and position

Starving Artists to become a successful non-profit organization that supports the local visual

artists and the community.

External Environment

In defining Starving Artists’ market size, limitations must be first delineated

geographically and secondly defined by demographics. With time being a critical factor in

today’s fast-paced lifestyle, determining a hard geographic boundary for a market is difficult.

Approximate figures show 34,000 people are located within a 10-mile radius of Starving Artists,

with numbers jumping respectively to 109,000 and 314,000 at the 20- and 30-mile radiuses.

According to a Kaiser Family Foundation 2012 report, North Carolina ethnicity breakdown is 63

percent white, 21 percent black, 8 percent Hispanic, and 7 percent other (“Population

Distribution by Race/Ethnicity”). As will be discussed further, Starving Artists’ future success

relies on diversifying its consumer base to reflect active involvement representing the ethnic

diversity of its market.


Although there are no public art galleries within a 23-mile radius of the location of the

organization, competition is experienced in the cultural arts market from two separate

performing arts groups, one specializing in theatrical performances and the other in musical

performances. Even though neither of these is a visual arts genre, both venues are representative

of the various non-profit organizations struggling to capture the finite sponsorship dollars and

consumers within the same geographic area.

Examination of the organization’s respective donors list indicates successful

philanthropic marketing among local government, businesses, and private individuals. From an

outsider’s view, it appears that revenue and attendance from the actual performances are not

regarded as a primary marketing concern or a self-sustaining source of funding. This fact,

combined with the prominent names of benefactors, leads one to believe that marketing choices

are based upon psychographic lifestyle segmentation focused toward the socially outgoing upper

classes.

A continued nemesis of Starving Artists is the floundering economy, which challenges

marketing on several fronts. With less disposable/discretionary monies available to local

government, businesses, and families, charitable donations have taken a direct hit. Reduced

income and higher unemployment for families exacerbate the situation, as not only the financial

capability to attend the gallery is curtailed, but the time available for family outings is

diminished as parents work longer hours and second jobs to make ends meet.

No trends are seen in the regulatory environment that would threaten the non-profit status

of Starving Artists or change the taxable donation benefits for its donors. Technological changes

in the environment provide both challenges and possibilities. The Internet provides consumers a


tool that enables them to explore the world of visual arts without ever leaving home; this same

tool can be used to entice them to experience the splendor of the arts firsthand at Starving Artists.

A common thread in the marketing plan is a focus on the social and cultural environment

of the Starving Artists’ community. The region has witnessed a significant change of

demographics and influence from not only the influx of families relocating from the

Northeastern states, but as research from the UNC-Charlotte Urban Institute shows, North

Carolina’s Hispanic population in 2010 had almost doubled from the previous decade (Chesser).

Starving Artists’ financial stability is linked to marketing successfully to its diverse community.

SWOT Analysis

Strengths

Only visual arts charity in town

Local artists being given a chance to display and potentially sell their works

Workshops being offered for all ages to ensue creativity among those who participate

Exemption from corporate income tax on profits from activities related to the purpose

of the organization (e.g., gallery exhibits and functions, workshops)

Executive Director passionate about visual arts and the organization’s success

Weaknesses

Lack of funds to pay bills without struggling

Executive Director overworked with trying to keep the business organized

No business development support from gallery attendants

Lack of volunteers to support the day-to-day operations

Absence of a strategy for the organization to create awareness and gather community-

wide support


Failing to fill the needs of the diverse cultural background in the community

Minimal membership growth in recent years

Lack of action by Board of Directors to establish a supportive, stable organization

Online presence not established

Opportunities

Memberships increased by adding workshops and exhibits

Community ties strengthened and donations increased through featured artist exhibits

New customers attracted and new markets entered through targeted marketing

Additional marketing opportunities created with website development

Social media presence established through Facebook, Twitter, Instagram, Vine, and

blog

Additional customer (family/parent) demographic attracted by establishing art

program for children

New clients drawn and value-added services created by offering facility for use in the

community for conferences, seminars, or meetings

Community awareness raised and donations increased for Starving Artists by hosting

an annual gala and arts festival

Overall operating capital increased by submitting applications for visual arts grants

Threats

Less family disposable income, meaning higher perceived importance placed on

getting the most value for the dollar

Multitude of other options for family/personal outings (movies, sports, parks, etc.)


Less time in life for family outings with more parents in the workforce and longer

working hours

Deficits in education budgets, meaning reduced/removed field trips to art locations

and less exposure to art

Children and teens more interested in their “real world” of social networking and

dynamic gaming, and less interested in the arts and culture

More opportunities available for the art enthusiast within reasonable driving distance

Fewer profits correlated to reduced corporate advertising through community-

sponsored events

Less state and local money available for grants to the arts community

Multitude of other options for sponsorship dollars; i.e., sporting events/teams,

national organizations with local chapters (Red Cross, United Way), Boys and Girls

Clubs, etc.

Artists drawn to their own subcultures, generally found in larger metropolitan areas,

making it difficult to maintain an adequate inventory of quality displays

Marketing Objectives

The main marketing objective of Starving Artists is to see a five percent increase in the

total current membership of 2,000 members by the end of December 2015. To reach this goal

and increase revenue, the organization needs to increase personal donations by $10,000 and

corporate donations by $50,000; hold a rebranding event or gala where corporate sponsors are

announced; double the number of visits per year to the gallery from 500 in 2014 to 1,000 in

2015; add 20 additional volunteers; apply for available grants for the visual arts; develop and

promote a website; create and promote social media channels; ensure that both the art displays


and visitors are representative of the community ethnic demographics and that diversity is

embraced; and display the work of at least 25 new artists. To create more awareness of Starving

Artists, the number of workshops and school field trips should be increased by at least 50 percent

from 12 in 2014 to 24 or more in 2015; a minimum of one traveling exhibit per year should be

planned; and at least one community arts festival per year should be organized. Additional

revenue should be realized by renting space for private events.

Marketing Strategies

Target Markets and Positioning

Because of the unique nature of non-profit organizations, multi-faceted plans must be

created to target the divergent markets that are encountered. In general, the focus is on three

distinct categories of consumers. The first is the “art observers,” which includes schools,

families, and individuals who visit the gallery as a means of personal and cultural growth.

Members of this group are expected to be a minimal source of income through donations and

spontaneous purchases of less expensive art work and gift shop items.

The second target market is that of the “art collectors.” Whether novices or experienced

consumers, this group is defined more by disposable income than delineated social classes and

demographics. Recognizing that consumer tastes in art work will be eclectic and that these items

represent social displays and/or personal statements of the purchaser, a primary positioning

strategy will involve rotation of artists, styles, and themes at the gallery. Buying decision

involvement at this level ranges from limited decision making for practiced collectors or smaller

dollar value items, to extensive decision making for novice enthusiasts or high value purchases.

Art collectors are expected to be a moderate income source with more substantial acquisitions of

original art, repeated visits, membership purchases, and possible donor involvement.


The third target market is that of the “benefactors.” This target market focuses on

businesses (both local and regional) and individuals, primarily from the upper social classes.

Social visibility is the primary concern of benefactors and patrons of the arts and the major

driving force in deciding on the fit between organization and non-profit. Investment in non-

profits makes a bold statement about the social values of businesses and individuals.

Although benefactors represent possibly the most influential reference group and embody

the greatest financial opportunity for Starving Artists, blindly accepting sponsorship is not

advised. Members of this group will become the public faces of the organization; and before

committing to a mutual alliance, due diligence is required. The Starving Artists name must be

represented in a positive, socially acceptable manner.

The combined marketing strategies are focused on repositioning the organization in the

minds of the consumers. Paramount to the success is changing existing beliefs about Starving

Artists from a “been there, got the T-shirt” gallery to that of consumer anticipation, leaving

consumers wondering what surprises will be in store on their next visit. In addition, the

organization will be adding new beliefs with regard to the uses of the facilities, such as providing

a unique event location for local groups and businesses. Shifts in beliefs are geared toward

recognition of core changes in the positioning bases, including expanded attributes and

emotional enjoyment.

Product Strategies

Although Starving Artists is a non-profit charity that operates a local gallery, the

organization still aims to sell products on behalf of the artists it represents. The artwork sold can

be viewed in three levels: the core product, actual product, and augmented product. The core

product of the artwork is the benefit of the art to the buyer, which can be defined as the beauty or


interest he or she finds in the art of the product. The actual product is the tangible product, or the

artwork itself. The augmented product is the added value of the art, which can be added

customer service or post-sales services to enhance the value of the product, and can be especially

important to an organization like Starving Artists. To add value to products and services,

Starving Artists can offer to roll, secure, wrap or frame products sold through the gallery and

provide the supplies needed to do so through community partnerships and supply chain

strategies.

The product line and mix offered by Starving Artists is largely dependent on the artists

and the pieces they display on their behalf. To display the differentiation of the product line,

Starving Artists may utilize various specialty gallery events to showcase similar art forms

separately, such as paintings, sculptures, pottery, or photography, to appeal to customers drawn

to those specific types of art. The gallery may also implement live art shows in order for artists

to allow customers to watch artists create pieces or for customers to make personal requests to

initiate further product sales.

All products sold through Starving Artists should include the artist’s signature, to ensure

the artist receives proper credit for his or her piece. Starving Artists’ logo should be added to

any frames sold through the gallery, as well as on the back or bottom of any pieces sold through

the gallery. The logo should also be included on any packaging used for transport from the

gallery to allow the brand to be dispersed and recognized throughout the community.

Pricing Strategies

To increase membership by five percent during the course of the year from January 1,

2015-December 31, 2015, Starving Artists will offer various membership levels. These are the

levels of membership offered and the different perks for each:


Exhibiting Member - $35 per year plus 10 percent of profit from artwork sold

Able to put any art up for exhibit during the course of the year

Recognition on social media sites as an up-and-coming local artist with artwork

displayed at particular galas or events

Individual Member - $40 per year

Includes a five percent discount on classes and workshops

A five percent discount on purchases from the gallery

Recognition on social media sites, along with the monthly newsletter

Family Membership - $60 per year

Includes two adults and all children

Includes all perks of the individual membership

Rembrandt Contributor - $250 per year

Includes all perks of the family membership plus:

An additional five percent (total ten percent) off classes and workshops

One free ticket to the annual gala

Da Vinci Contributor - $500 per year

Includes all Rembrandt perks plus:

A ten percent discount for rental of the gallery for social events

One additional free ticket to the annual gala (total of two tickets)

Picasso Contributor/Corporate Benefactor - $1,000+ per year

Includes all Da Vinci perks plus:

Two free classes or workshops of choice

One additional free ticket to the annual gala (total of three tickets)


Recognition on the gallery wall as a Picasso contributor

Company branding on publications for corporate benefactors

Promotional Strategies

Starving Artists is dedicated to supporting and inspiring the local artists and the

community. This consistent message should be portrayed throughout the community with

excitement about the art gallery, workshops, and other fun events sponsored by Starving Artists.

Artwork and activities provided by the organization should embrace diversity. The organization

should continue to advertise in the newspaper, on the radio, and in window displays. However,

additional promotional strategies must be added:

A website should be developed and promoted. The website needs to be user-friendly

and attractive to both youth and adults. The web address should be posted on all

publications and advertisements.

Facebook, Twitter, Instagram, Vine, and blog accounts should be created. To

encourage people to join, all new followers will be entered into a drawing for a free

workshop or small piece of artwork. On the blog, the artists will offer art techniques

to the organization’s followers.

A brochure explaining all that Starving Artists has to offer should be designed. The

brochures can be distributed at the gallery, community events, schools, churches,

clubs, businesses, and on the website. The information will include the types of art

that are available for purchase; a list of the workshops that are held; special events

that the organization conducts; an announcement about rental space for private

events; and a link to the website and social media sites.


The Executive Director, a member of the Board of Directors, or an active volunteer

should ask to speak to clubs or other community organizations to convey the message

that Starving Artists is an exciting place for people of all ages to come. Pictures of

the artwork on display at the gallery should be shared with the groups.

A monthly newsletter should be sent by e-mail to all supporters of the organization.

The newsletter will also be posted on the website.

The community arts festival should involve the entire community and promote the

organization.

Field trips by schools should be encouraged to promote the visual arts to youth.

A traveling exhibit should be organized to further promote the organization and its

artists.

Corporate sponsors should be announced at a rebranding event or gala to benefit

Starving Artists.

Applications for visual arts grants should be submitted.

Gallery volunteers will be available at all times to promote the sale of the artwork of

exhibiting artists. The volunteers must express excitement for the arts and be

knowledgeable of all products offered for sale.

Due to the lack of funds of Starving Artists, direct marketing postal mailings to

community households or paid advertisements should not be considered at this time. In an effort

to secure corporate sponsors, a letter and brochure will be mailed to local and regional

businesses. The promotional strategies listed above should increase membership and create an

excitement throughout the community and beyond.


Supply Chain Strategies

To ensure that artwork sold through the gallery is received by customers in the best and

most efficient ways possible, Starving Artists should utilize supply chain management and

integration processes to obtain quality product devices to secure the artwork, such as packing

paper, boxes, packing tubes, and frames. This will ensure safe transportation of the artwork

during the customer’s commute and create a value-added service by extending the offerings of

the gallery. Due to limited funding, Starving Artists can pursue partnerships with local and

franchised material suppliers to request donated or discounted products as a tax savings to be

claimed as a charitable donation due to their non-profit tax-exempt status. These partnerships

will also provide network opportunities to increase membership potential throughout the

community (Lamb, Hair, and McDaniel 230-232).

Starving Artists should also pursue donated or discounted services for a foil logo sticker

to affix to all packing products, frames, and artwork leaving the gallery and again, encourage

donation of services to a non-profit organization with tax-exempt status to be claimed as a

charitable donation. In addition to tax savings, vendors that donate free supplies and services

will receive recognition on the gallery wall as a charitable contributor to the organization.

Implementing and Controlling the Marketing Plan

Action Plans

Generally, the first step in making a marketing plan happen is creating an environment

for strong employee commitment. Fortunately for Starving Artists, the director and part-time

staff are passionate and dedicated to creating a self-sufficient, thriving gallery. Overviews of the

marketing plan will be available to all employees as the implementation timeline demonstrates

the need for quick, cohesive, and fluid movements during initial phases in order to stay on track.


Priorities will be based on the promotional strategies with emphasis on the creation of

social media sites, procuring a detailed contact list for businesses within the community, and a

concentrated effort on an immediate and substantial increase in the pool of volunteers.

Manpower will be a primary asset in implementing the marketing plan.

Responsibility

The Board of Directors will need to approve the marketing plan. The Executive Director

will then be responsible for implementing each aspect of the plan. The three part-time gallery

attendants will assist the Executive Director and provide business development support. The

new volunteers will assume the duties of the part-time gallery attendants.

Timeline

By the end of January 2015, Starving Artists will have all their social media sites

available for public viewing to include Facebook, Twitter, Instagram, Vine, and blog, along with

their own website. By January 16, 2015, Starving Artists will have their brochure completed,

and by February 13, 2015, distributed to community organizations throughout the city. A letter

and a brochure will be sent to local and regional businesses by February 13, 2015, to secure

corporate sponsors. The Executive Director will follow with a telephone call to each business by

the end of February. During the months of January-March, Starving Artists will find five

volunteers eager to promote the gallery and what it has to offer. Five additional volunteers will

be added every three months until December (e.g., five volunteers for April-June, five more for

July-September, and five more for October-December). Planning for the rebranding gala will

begin on February 2, 2015. The gala will take place on May 23, 2015. Planning for the traveling

exhibit will begin March 2, 2015, and the traveling exhibit will take place from July 11-August

15, 2015. Beginning on June 1, 2015, Starving Artists will begin to organize the annual


community arts festival, which will take place on October 3, 2015. Public speaking events for

groups, clubs, or other community organizations will occur on multiple dates throughout the year

in various locations, beginning in January 2015.

Advertising for each event will begin approximately three months prior to the event. The

events will be advertised on the organization’s website and social media outlets, the monthly

newsletter, the local radio station, the Community Calendar in the local newspaper, fliers posted

in local businesses, and word-of-mouth advertising. The local television station will be

approached about the possibility of promoting the events on the local news. A breakdown of the

timeline is presented in the table below.

Breakdown of Timeline

Task Start Date End Date

Public Speaking Events January 2 Ongoing

Brochure Created January 2 January 16

Social Media/Website January 2 January 30

Five Volunteers Added January 2 March 31

Letters/Brochures Distributed January 20 February 13

Gala Planning February 2 May 23

Corporate Calls February 13 February 27

Gala Advertising February 23 May 23

Traveling Exhibit Planning March 2 July 11

Five Volunteers Added April 1 June 30

Traveling Exhibit Advertising April 13 August 15

Gala May 23 May 23

Community Arts Festival Planning June 1 October 3

Five Volunteers Added July 1 September 30

Community Arts Festival Advertising July 6 October 3

Traveling Exhibit July 11 August 15

Five Volunteers Added October 1 December 31

Community Arts Festival October 3 October 3

Budget

Starving Artists’ current financial status is relatively poor as it is difficult for the

organization to cover its expenses each month. The current budget for the fiscal year is allocated

to the salaries of the director and three attendants, with the remaining donations reserved for


gallery utility and maintenance expenses, with limited room for advertising. Successful

implementation of the marketing plan will result in improved financial status, allowing for more

funds to be dedicated to advertising and promotions, as well as hosting additional community

events in future years. Potential income from successful implementation and control of the

marketing plan are summarized in the table below. The table does not represent a collective total

of membership revenue potential, but the maximum that could be collected from each level of

membership if no members joined at any other level.

Potential Income Examples

Membership

Level

Exhibiting Individual Family Rembrandt Da Vinci Picasso/

Corporate

Revenue

per 100

Members

$35 * 100

=

$3,500

$40 * 100

=

$4,000

$60 * 100

=

$6,000

$250 * 100

=

$25,000

$500 * 100

=

$50,000

$1000 * 100

=

$100,000

In addition to receiving funding from increased membership potential, current members

may elect to upgrade their membership level to receive perks available through new marketing

programs, adding further to revenues. Effective implementation of the marketing plan will also

result in an additional $10,000 in annual personal donations and $50,000 in annual corporate

donations. Up to twelve percent of annual donation funding can be used to increase advertising

and host additional community events to draw awareness and increase memberships and

donations, which will also add to future revenues. This could allow for future consideration of

additional promotional strategies unable to be used due to funding, such as direct marketing

postal mailings to all households in the community and paid advertisements. While these

promotional strategies are not advised at this time, they may be reconsidered in the future when

the financial outlook has improved.


Measurement and Control

At Starving Artists, progress will be measured during the year by using key performance

indicators. Financial figures will be continually monitored. Profits and revenue generated will

be measured, along with the amount of donations and contributions, both private and corporate.

Success will also be measured according to the increases in membership. In addition, surveys

will be given to all stakeholders during the course of the year to measure the successes of the

organization and ways to improve. In order to continually improve the experience of their

customers, the Executive Director will review all feedback from surveys and social media.

The page views will be monitored on the website and blog, along with the number of

followers on Twitter, Instagram, and Vine, and the number of likes and friends on the Facebook

page. The number of volunteers that are working on-site will be measured. Starving Artists will

also monitor the completed membership/attendance forms they receive during the course of the

year. These forms will contain information that indicates:

The number of memberships obtained

The number of people attending workshops or classes

The number of people attending the annual gala and traveling exhibits

After establishing the marketing objectives and performance standards at the end of the

first calendar year, ending December 31, 2015, results will be compared with existing standards.

The following will be assessed:

The number of volunteers and employees and whether either should be increased,

decreased, or kept the same for the next calendar year


The number of social events, including exhibitions, the gala, and the arts festival, and

whether the events should be increased, decreased, or kept the same for the next

calendar year

The amount that is being charged for memberships and whether the price of

memberships should be increased, decreased, or kept the same during the next

calendar year

The Board of Directors will meet at the end of each quarter to evaluate how Starving Artists is

progressing. An annual report will be compiled and presented to the Board of Directors to

document yearly progress made by the organization.

Summary

By implementing this marketing plan, Starving Artists should realize a five percent

increase in membership and increased revenue in 2015, while supporting and inspiring the local

artists and the community. The organization will become financially stable and continue to

grow. Starving Artists will reveal to the diverse community its unlimited potential in the visual

arts.


Works Cited

Chesser, John. “Hispanics in N.C.: Big Numbers in Small Towns.” UNC Charlotte Urban

Institute. The University of North Carolina at Charlotte, 12 Aug. 2012. Web. 20 Oct.

2014. <http://ui.uncc.edu/story/hispanic-latino-population-north-carolina-cities-census>.

Lamb, Charles W., Joseph F. Hair, Jr., and Carl McDaniel. MKTG8. South-Western, Cengage

Learning, 2014. Print.

“Population Distribution by Race/Ethnicity.” The Henry J. Kaiser Family Foundation, 2013.

Web. 20 Oct. 2014. <http://kff.org/other/state-indicator/distribution-by-raceethnicity/>.

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