Business plan for online art gallery
Table of contents
The development of internet business has taken the world by storm and art business is no different. Today all most all the established galleries of past have adopted to this new medium and new ventures are mushrooming across world almost everyday. Internet has specifically opened the art industry as two of the major barriers are removed – distance and limitation of choices.
Previously if somebody has to buy something unique they have to travel to the place where that specific art is nurtured and secondly there was limitation of choices as scanning through a lot choices use to take lot of time and traveling expenses. Now if you like to purchase an Egyptian painting you are not restricted by choices nor have to go to Egypt to get the best in the world.
The growing level of prosperity in the western countries has also given a fillip to the art industry across the world, as more and more people today can afford a collection of their choice. In an organized exhibition by the Art Dealers Association of America (ADAA) in New York, more than 10000 people (Vanessa Silberman, 2001) flock around seeing and buying paintings, drawing, prints, sculptures and photographs by artists of almost all periods.
Online Art Gallery Business Model
The art gallery is focusing on three core areas – education, open and vibrant platform for artists and a personalized solution one-stop shop for business and real estate clients.
Education is one of the booming sectors of the economy. People today are spending more on their kids’ education than ever before. The school and colleges are slow to react with the change in technology and still follows rudimentary method of teaching art and culture. Most of the schools either don’t have relevant material or even if they have it is in form of old pictures. The gallery will try to develop the material as per the subject requirements. So the schools and colleges can ask for development of material and can buy outright for school purpose.
The second revenue model is that by digitalizing the art collection, it can be sold to each student as aid to subject curriculum. This model will help in first generating the revenue and secondly it will expose students to company’s products at a very early age.
Platform for young artists
Most artists look for avenues on internet to sell their products. Not every artist has his personal website as driving traffic to customers is one of the challenges of new marketing. The website will provide a ready platform for young artists and will help in selling their crafts. The selling model will vary as per the contract between gallery and artist. So the artwork can be sold at a fixed price on which the gallery will earn commission from the artist. The other method will be asking for bids for a particular artwork and the revenue model for the gallery will be same, commission will be charged from the artist.
Additionally the artwork like photographs of a current event will be shared with the latest media agencies across the world and a royalty will be charged as per the number of uses.
Personalized paintings and artwork
The housing industry is growing at unprecedented rates in the last few years. The demand for new houses are growing with increasing level of prosperity in the western markets and graying of baby boomers that are looking for comfortable and classy homes away from the normal bustling and noisy city life. The company will focus on such clients to provide them customized art solutions for their homes.
The success probability is high as baby boomers generally are very technology savvy plus it will be a transition for the company from an artwork seller to a company which makes helps people to make their home beautiful. The revenue model will be healthy as people will freely spend their saved money to decorate their last possible home of their lives.
As we have already defined our three core markets, which will bring the most the revenue for the company. We can safely build our marketing plans targeting these groups of people.
It is a classic case, where customers are different from consumers. The schools and colleges will be the customers of the artwork while the students will be consumers. To target this market, the most efficient way is to employ personal selling.
Efficient Personal sellers will be hired to focus the schools and colleges region wise and try to sell the products through product demonstrations.
The gallery will take initiatives to conduct workshops and art exhibition in schools to increase the awareness level of art and culture in schools and colleges. This will also help in projecting the company as an institute that cares for nation’s art and culture.
The company will sponsor various college festivals and organize various competitions to give an opportunity to talented students. Scholarships and financial benefits will go a long way in grooming kids on their way to make them better artists.
Increasing awareness will provide initiatives to younger people to join the company’s platform for young artists section.
Platform for young artists
The company will try to attract a healthy pool of young and talented artists who are willing to display their products on the website. The revenue generated by sale of the artwork will shared according to the contract between the company and artist.
To attract young talent the company will:
Advertise in the cultural magazines and employment magazines.
Advertising on Internet – To advertise on internet efficiently the company will focus on four core ways (Heather Conary, 2006) .
Traditional Banner advertising with other websites. Its one of the earliest form of advertising on internet displaying a fixed message on particular spots. The company will try to advertise on all the cultural websites, employment websites etc.
Pay per click contextual advertising – as a large pool of artists keep looking for opportunities to display their work on internet, the company will target them through contextual banner advertising (Keyword specific advertising) on various search engines and relevant sites.
Peer to Peer Network – As the artists’ community is reasonably close in the particular regions the company will try to establish a peer network system which will help in building affiliation and earn additional revenue for the artists.
Promotions to prosperous customers
As explained earlier in the paper, the company will zero upon the booming housing sector and baby boomers that are making their post retirement homes. The company will provide customized solution to each house hold. To grow this sector of business –
Target the customers that are buying society or community houses, the company will focus on real estate developers these projects and try to sell to them how intelligent use of artwork can help them in fetching a good price. Personal selling will be used to get more people on board.
Secondly the customers who are making their own homes, the company will advertise in home development magazines like Essence, Home and Garden, Country Living, Crafts ‘n’ Things etc.
Direct Mailing – The potential customers will be sent direct mail regarding the products of the company, with information explaining how they can get the customized artwork for their dream homes.
Affiliate Program – The Company will make an affiliate program with other websites on internet. The program will be broadly based on the present affiliate program run by amazon.com. Under the affiliate programs the webmasters displaying art company’s products will be paid a commission on the sale of the products. This Advertising policy will achieve two benefits – first will increase the display of the products and secondly with increasing links on the internet it will help the company in securing a higher ranking at search engine.
To be successful, the gallery must provide an engaging, enjoyable experience with great products so that the customers will come back and recommend the website to their friends. The company will divide the year into various seasons and try to divide the advertising budget accordingly. The four major seasons are –
Christmas and New Year season
This is the biggest season for any retailer in the western world and company will start its preparation early. Secondly artwork is considered to be precious gift so customers usually take time to decide upon the products (Jennifer Wong, 2001). Keeping these things in mind the campaign will start in august and mailers and web advertising will be run to sell the products, it will accomplish two things first it will make room for the fresh content and secondly it will make the customers start thinking about the holidays and Christmas season early.
After Christmas Valentine day is the biggest occasion for shoppers in America and the company will focus to position products accordingly. The products will appeal to youths and will go with contemporary lifestyle.
After Valentine day, Easter will be the next big occasion to drive sales and Promotion plan will start from second half of March reaching its peak in the Easter week.
Back to school
Back to school will be particularly big season for the school side of the business and feelers will be sent to schools two months before the official opening. In between the company will focus its energy on holding live demonstration and working with school staff to produce a customized and relevant solution for students.
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