Marketing Strategy: Burke Museum - Case Study Example

Marketing Strategy: Burke Museum Case study s Executive Summary The main aim of this report is to undertake the analyses of the Burke Museum and the opportunities for the Museum in the Australian market still remained unexplored. The report will also undertake the evaluation of the opportunities for the Museum to attract more and more visitors from the Australian Market by implementing new marketing techniques. The report contains a Marketing Plan for the next one year which needs to be introduced by the Museum in order to achieve its objectives. First part of the report provides information about the collection and the features of the Museum and its operations. The report also contains the evaluation of the social, economical, technological and political factors. The competition which can be posed to the Museum and its position is also evaluated. The report will also define the segments which need to be addressed by the museum in order to enhance its business. The later part of the report explains the marketing plan which needs to be implemented by the Museum which would be helpful to achieve targets, and finally it concludes with the sales forecast and the Marketing Mix. Although museum visiting trends patterns are substantial in Australia, still there are many factors which will play an important part in the acceptance of the Museum in a society where visiting library is a preferred leisure activity for people. Introduction: Museums play an important role in providing the people with entertainment in their leisure time. In order to enhance their market share Museums should focus on implementing new marketing strategies in order to attract more customers and increased market share (Peschiutta, 2001). Many established museums and cultural organisations cannot only rely on income generated; the public funds are decreasing with an increase in the attendance of people visiting these museums. With the increasing demands of greater accountability from government and funding bodies the planning and implementation of successful marketing strategies has become more important (Laczniak and Murphy, 1977). Weak or no marketing practice can lead to a big trouble for even a well-established Museum. The challenges facing the Museums are to adopt appropriate marketing strategies and technologies in order to make its presence well felt by the customers to generate and get as much. Burke Memorial Museum, Loch Street, Beechworth, Victoria 3747. Over the past several decades the Historical Burke Museum has served the purposes of research and education of the local community related to the history of Australian culture. Furthermore, without neglecting the necessity to provide knowledge, education, and entertainment through a highly aesthetic presentation, the museum's directorate is also seeking to blend the new concepts of muse ology and the scientific theories regarding the interpretation and presentation of material and immaterial cultural heritage in a way that the modern visitor can understand. Privately founded Museum has a total of 7 staff members with 15,000 objects in the collection and a current income of approximately 136.500,00 AUS$. The Museum is now aiming at increase in the revenue at least to 800.000,00 AUS$ in order to bear the expenses in new building. To achieve the purpose it is important to plan a marketing strategy, which can eke the management in acquiring the desired target. Mission Statement of Burke Museum: Burke Museum aims to: - Collect, keep, and preserve objects from the area of Victoria as well as related evidence of the life of the local people in the pre-industrial and early industrial period - Help the local people to become aware of their cultural identity and its history - Promote education - Introduce visitors from Victoria and all over Australia to local culture. 1.2 Objectives: The museum's broad objectives are: - To increase visitor numbers by a policy of communication, public relations, and collaboration. - To make use of the new technologies which will help the museum to promote itself all over Australia, and internationally too. - To blend the new concepts of muse ology and the scientific theories regarding the interpretation and presentation of material and immaterial cultural heritage in a way that the modern visitor can understand. - To ensure permanence through: i) Premises, implying continuity ii) Consistent, steady revenue, guaranteeing development and progress. Situation Analysis In order to analyse the marketing and strategic situation first of all SWOT analysis have been under taken, which has been presented as under: 2.1 SWOT Analysis of Burke Museum STRENGTHS Huge Collection: The collection of the Museum count over 15000 objects Steady revenue: Funded by state, local as well as European Union's support programs. Free entrance Culture centric educational activities for school groups and culturally sensitive social groups The Museum's Informative printed material (successful bulletins, leaflets) Presence awareness despite the lack of proper marketing - Marketing Department. Enthusiastic stuff Friends organisation (approximately 3000 subscribed members) - keen volunteers Good relations with local media WEAKNESSES Over-reliance on state and local authority funding No ticket income No shop Lack of marketing department - marketing efforts No relevant researches regarding Museum competitiveness Majority of its visitors is schoolchildren in the age of 5 to 12. Lack of proper space and exposure. Lack of online presence. Lack of proper parking area Lack of facilities for people with special needs OPPORTUNITIES Major national trend of promotion and introduction of cultural activities related to conservation and heritage issues More people moving into area Computer technology for promotion purposes Imminent relocation to its own brand new building THREATS Current economic climate, e.g. Announcements by the Greek government for financial reforms with negative impact to middle and lower social classes' income - less spending on culture Shop and leisure city centre expanding Results to be achieved in future can be less than projected After performing the SWOT analysis the following objectives are found important to be considered urgently. In order to formulate the goals it is important to align them according to their importance. 1. Marketing Research: The Museum should try its level best to get the primary and secondary data regarding its audiences demand and taste regarding their cultural educational programs and leisure activities. Because before formulating a marketing plan the opinion of the customers is important to know. 2. Development of MIS system in a cost-effective manner. Consumer Evaluation: "3.4 million People living in Victoria attended a selected cultural venue or event at least once during the 12 months prior to interview in 2005-06, representing 85 percent of the population aged 15 years and over. ATTENDANCE RATES AT CULTURAL VENUES AND EVENTS (a) (b), Vic., 2005-06 (a) In the 12 months before interview. (b) Persons aged 15 years and over. Source: ABS, Attendance at Selected Cultural Venues and Events, Australia, 2005-06 (cat. no. 4114.0). 94 percent of young people (15-24 years) in Victoria attended a cultural venue or event in 12 months prior to interview in 2005-06. In the 12 months prior to April 2006, over two thirds (71 percent) of Victorian children aged 5-14 years attended a public library, gallery, museum or performing arts event at least once outside of school hours. 22 percent of people in Victoria aged 5 years and over with a disability visited a museum or art gallery at least once in the 12 months prior to interview in 2003. Many people in Victoria participated in cultural activities as a hobby only in 12 months prior to April 2007: 548,500 in art and craft, 85,700 in writing and 67,800 in music. Nearly one third (31 percent) of children in Victoria, or 197,700 children, are involved in cultural activities outside of school hours, including playing musical instruments, singing, dancing and drama in the 12 months to April 2006. 52,400 people in Victoria undertook volunteer work in an arts or heritage organisation during 2006, equating to 1.4 percent of the total population" (National Centre for Culture and Recreation). The Museum has effectively addressed the group of school going children age between 5-15 years. The potential segments, which needed to be addressed, are: Teachers & Researchers: The new customers can be the group of teachers and researchers, which have not been addressed before. This potential group can also play an important role in the expansion of the audiences. By satisfying the research and education needs of this group the Museum can get exposure to the students and colleagues of the related researchers and teachers. Hence by selecting the group from the target market which have exposure to more masses the no. of addressed individuals can be increased without putting additional efforts. Young and Adults: In order to improve the economical situation of Museum it is also important to address the group of individuals who can donate and contribute to the improvement of the economic condition of the Museum. The youngster can also play an important role in the exposure of Museum to more masses. Long Term Objectives: After achieving short-term goals, the vision of marketing plan will be enlarged to the long-term goals, which are as follows: SMART Objectives for the Burke Museum Objectives Activity Time Scale Required Responsibility Promotional Objective: Improvement in promotion by introducing new methods. methods 1. By implementing Web based advertising. 2. By sending e- newsletters. 3. By using the relationship with media more effectively. 4. By hanging billboards on important educational places March 2009 Marketing Staff Market Share Objectives: Increase in visitors for 25% 1. By using aggressive marketing techniques. 2. By gaining knowledge about the competitors steps through continuous research 3. By continuous performance evaluation and improvement. 4. By introducing new services. June 2009 Management & Marketing Staff. Profitability Objectives: Increasing revenue for 30-35% 1. After gaining promotional and market share objectives. Increase in profit to be attained by continuing above-mentioned tasks. 2. By introducing new and attractive programs for other age groups. 3. By introducing new culturally enriched educational programs. 4. By improving the Museum shop. June 2009 Management and Education Staff. Product: "The Museum has a considerable collection of early collections of the Museum, including Aboriginal artefacts from south-eastern Australia purchased in 1868 and an unusual natural history collection of the 1860's" (Burke Museum, 2009) Rate books for the Municipality of Beechworth from 1856; Local court records; Mining registers - including: water rights, mining claims, Mining Warden's reports; Electoral Rolls and Directories - including: 1857 Ovens Directory, 1866 Beechworth Directory; Indexes to Beechworth pioneers; Photographs of Beechworth's pioneers; Street directories; Local newspapers from 1855 - present - (The Ovens and Murray Advertiser; the Constitution and Ovens Mining Intelligencer and The Ovens Register)." (Burke Museum) The 'Women Vote: They Picked Up the Patter with Amazing Fluency' exhibition tells the stories of the women of Beechworth and particularly those of the 154 women who signed the Monster Petition in 1891 that was presented to the Victorian Parliament to demonstrate women wanted the vote. It explores the considerable achievements of women and their in the public life to the present time. 'In an extraordinary effort to gain the right to vote for all Victorian women, a handful of dedicated women took to the streets in 1891 to collect signatures for a petition to present to the Parliament of Victoria. The result was an impressive collection of close to 30,000 signatures from women from all walks of life. Tabled in Parliament in September 1891, with the support of then Premier James Munro, the petition sought that 'Women should Vote on Equal terms with Men'. Now one of the State's archival treasures, the Women's Suffrage Petition (1891) reflects the dedicated work of those women, who went from door to door across Victoria to collect the signatures. Its tremendous length earned it the name of the 'Monster Petition'. [From http://www.parliament.vic.gov.au/WomensPetition/] (Burke Museum) Services: The opening hours are 9:00 am to 5:00 pm. Temporary Exhibitions: "The Museum organises every year temporary exhibitions with interesting and original subjects, which concern the Australian traditional culture. Museum's Shop: "The Museum's shop has postcards, block-printed kerchiefs, a ceramic copy of a Byzantine cup, history and ethnography publications." (The Hellenic Ministry of Culture) Library: The Museum's library comprises a total of 2.394 history, ethnography and art books. The library is informed and enriched with purchases and donations." (The Hellenic Ministry of Culture) Price: The prices of art pieces and the collection at the Museum shop should be moderate in order to make them affordable to customers. The Museum has free admission. Promotion: The present promotion strategy is not very strong. The informative bulletin of the Museum is the only source of information for the people regarding the policy and actions of the Museum management. Other than this the temporary exhibition is announced in the mass media well in advance of its opening, and the announcement regularly repeated as long as it is on. Marketing Strategy Initial Plan As marketing consultant, we strongly suggest that in order to gain the above objectives the management of the museum needs to change its vision towards marketing. The Museum urgently needs a MIS in order to effectively undertake the marketing activities and related decision making. "A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision markers. To carry out their analysis, planning, implementation, and control responsibilities marketing managers need information about developments in the marketing environment. The role of the MIS is to assess the manager's information needs, develop the needed information, and distribute that information in a timely fashion, the information is developed through internal company records, marketing intelligence activities, marketing research, and marketing decision support analysis." (Kotler, 2002) In order to suggest the desired population to be addressed and the customer's inferences the marketing staff will undertake the different primary and secondary research surveys. The cutting edge of these surveys is that they are designed while keeping in view the financial position of the Museum. These survey designs are cost effective and easy to be undertaken. Although it is a time consuming job but not very difficult to undertake. The following table gives an indication of the research objective, with the suggested respondents/sources and best methodologies. The method has been taken from the Market Segmentation Study for Robben Island Museum. Research Objective Respondents/sources Methodology 4.1 To identify and understand the different profiles of market segments To source from: Attendance registers, including comments on experience Any applicable surveys conducted in the recent past Any other source provided by the client (verbal and/or written) Client, stakeholders & selected individuals of key market segments (e.g. retail, education & heritage institutions, touring organisations) Desk research Desk research Desk research Interviews (sample) In-depth Interviews (sample) Other, suggested by client and/or service provider 4.2 To identify key suppliers of customers Any applicable surveys conducted in the recent past Any other source provided by the client (verbal and/or written) Stakeholders and/or selected individuals of key market segments (e.g. retail, education & heritage institutions, touring organisations) Desk research Desk research Interviews (sample) In-depth Interviews (sample) Other, suggested by client and/or service provider Research Objective Respondents/sources Methodology 4.3 To identify future market segments Any applicable surveys conducted in the recent past Any other source provided by the client (verbal and/or written) - Stakeholders and/or selected individuals of key market segments (e.g. retail, education & heritage institutions, touring organisations) Desk research Desk research Interviews (sample) In-depth Interviews (sample) Other, suggested by client and/or service provider 4.4 To determine the satisfaction amongst current markets - Visitors to Museum - Stakeholders and/or selected individuals of key market segments - Fact-to-face interviews - Telephonic interviews (sample) (Market Segmentation Study for Robben Island Museum, 2005) These surveys will be undertaken in the first 30 days as the initial step towards the implementation of the marketing campaign. Week 1 & 2: In the first phase, the four members will be divided in two groups, one of which will undertake the on desk survey of visiting individuals to know about the satisfaction level of the customers. The other group will do survey interviews by randomly selecting samples on the famous streets of Victoria in order to gain knowledge about the needs and tastes of the target population. The marketing team should also contact the educational institutes and universities in order to get the lists of the professors, teachers and researchers, who will be the second group of target population. After taking the information about the second group of target population, the samples will be selected and interviewed in order to gain knowledge about their inferences. Week 3 & 4: In the second phase the secondary research will be undertaken by extracting the relevant data from books, periodicals, journals and newspapers. The data will provide information about the market environment. The primary and secondary data will be sorted compiled in order to get the information, and will be stored properly in order to help the management in undertaking effective decisions regarding the marketing and strategic issues. Hence the information will be the base of the future steps for marketing. Marketing plays an important role in undertaking transaction between the audience and the museum, sales manifests (or closes) the transaction. Advertising is crucial in effectively undertaking promotional campaign of a museum. "In the case of the Ethnographical Historical Museum of Larissa stress should be given to the sales improvements can also be realised in the gift shop, at the membership desk, and when anyone calls the museum for information. All of these are sales opportunities. Just as in business, success in the non-profit sector demands sophisticated marketing. Done correctly, marketing links museum collections, products, and services to customers so well that selling becomes easy. To be most effective, marketing should be a museum- wide view that guides board, staffs, and volunteers." (Will 2004) Product variety variables: The Burke Museum has unique special features to offer its visitors. The museum undertakes special educational programs for the school children. Programmes are also arranged for special social groups. Services: A range of customer services should be provided to serve the needs of customers. Arrangement will be made in future for the needs of special customers. To facilitate the facility to use credit cards and other modes of payments will be implemented. The reservations for institutional can be undertaken on Internet. Customer satisfaction will be seen as the foremost priority. A comment box will be placed at the most prominent place in the museum to take the comments of the visiting customers, which will help, in undertaking service betterment process. The customers will also able to register their complaints through these boxes and on Internet. The quick complaint handling will be undertaken in order to satisfy the customers. The timings of the museums should be increased from 4 hours to at least 8 hours daily. This increase in time will increase the chances of increasing traffic to the Museum. The representatives should treat the customers and visitors with Position: In order to increase the sale income and generate the admission fees revenue the Museum needs to attract the customers from the target group of teachers and researchers. The second important group, which needs to be targeted, is the adults and earning members of the community who can serve the purpose of providing donations and fund-raising for the purpose of Museum. Price: Keeping nominal entry charges can increase the income of the museum. Museum should have special admission prices for members, groups, families, seniors, students and kids. Coupons and value packages should also be implemented. Place: The building is an eye-catching venue, which is located on the Loch Street. It is big enough building, which can cater the present needs of the Museum. The main necessity is to provide the building with the proper parking area. Establishment design: Interior layout will be designed in an effective manner to attract the customers. All the items in the museum will be played in an easy to reach and highly visible manner. To keep the environment clam and pleasing atmospherics-scent, lighting, colour, mirrors and music, will be used. The music will be light and related to the cultural background of Thessaly. The environment will be kept soothing to make the visitor enjoy the historical monuments and to feel himself as the part of the ancient times. The signage will contain all the relevant and important information regarding the history of the displayed object. Cleanliness of the displayed objects and fixtures will be an important priority. The present building has a capacity to accommodate 500- 600 people easily. Sine most of the clientele will be from educated background the directions to follow will be mentioned on all the main walls and passages. Promotion: In order to establish a brand image it is strongly suggested that the museum should establish a logo and advertising message. In order to promote the products and services to the target audiences the management needs to follow the persuasive advertising. Advertisements can be given in newspapers and magazines. Museum can place ads in trade publications/tourism guidebooks in order to attract the earning individuals. In order to effectively approach the target market it is important to advertise on television on regular basis. But due to budget constraints it is not feasible for the museum advertises on television. Another cost effective technique is to send mails and promotional promos through Emails. Another important approach is telemarketing. Direct mail is another option. Sales promotions such as coupons and contests are also important to be undertaken. It is also important that the museum should also take care of the past client experience for future business, school field trips, as well as walk-ins sine it is important to retain the old customer rather than attracting the new customers. In order to achieve the higher level of customer satisfaction it important for museum representatives to pay special attention to each and every visitor and should treat the customers in welcoming and friendly as well as helpful manner. Plan Control The Museum for the first time will launch a planned marketing campaign in its history. This will cost the management a sum total of 20,000 which are approximately 15% of the total income of the museum. The campaign will constitute all the marketing techniques strategically in order to minimise the cost of the marketing campaign. A specially designed label will appear on each and every art piece and in the print and web based ads. This will enhance the museum fame in the community. The advertisement campaign will include direct mailing, ads in magazines and newspapers, advertisements on Internet and promotional emails. The above-suggested advertising channels will help the best to convey the message of museum management to the masses. The financial allocation of the campaign is as follows: Ad in local Newspapers and Magazines: 2000 AUS$ Advertisement on Internet and E mailing: 1000 AUS$ To deal with the changing situation of the market and consumers inferences the marketing plan needs to be monitored and controlled. For the museum I recommend to use annual plan control. The annual plan control is undertaken through setting small term objectives. The management should keep on analysing the performance in the market place. If there is deviation in the performance from the goals specified in the annual plan the reasons should be analysed. To check the plan performance sales analysis and expense to sales analysis should be undertaken. Through using market based score card two purposes can be served. 1) Provision of early warning signals. 2) Provision of early warning signals. The customer performance scorecard will use the analysis of following in order to analyse the performance of the Museum. It will measure increase in the new customers. Number of lost customers. Quality of services provided. Quality of products presented. Right awareness of target market. The preferences of target market. Conclusion: Marketing variables play an important part in the presentation and exposure to the target population. Age and geographic variables are also important factors. It is important for the Museum to target new segments in order to remain at the cutting edge. In order to remain competitive in the market it is important to present timely and effective information for the target population. The creation of a proper Marketing Information System and its updating on regular basis is very important for the Museum to not only keep its presence felt but also to increase traffic. A step by step marketing plan should be undertaken in order to achieve the desired result. The management should undertake an annual evaluation of the plans and goals designed to achieve. This will help the museum to correct its action towards the right direction. Continuous updating proves and promotion will make it possible for the Burke Museum to achieve its goals in future. References Burke Museum, (2009). Currently on Show, available at http://www.beechworth.com/burkemus/index.html Kotler, P., Marketing Management, Millennium Edition, Prentice Hall, 2000, United States. Laczniak, G. and P. Murphy, 'Marketing the Performing Arts', Atlanta Economic Review, Nov./Dec., 1977, 4-9 Market Segmentation Study for Robben Island Museum, 'Quantitative/ Qualitative & Desk Research', May 2005 [Accessed 2 February, 2009] National Centre for Culture and Recreation Statistics of the Australian Bureau of Statistics (2008). Arts and Culture in Victoria: A Statistical Overview, available at http://museumvictoria.com.au/Collections-Research/ Peschiutta, Claudia, 'Major Institutions Band Together to Market Museums', Los Angeles Business Journal, Vol. 23, No. 23, June 4, 2001, 9. Will, P., 'Museums Misinterpret Marketing', Management briefing, 2004, [accessed 2 February, 2009] Read More