The Business’ Market
MOCA GA collects and preserves local contemporary art primarily for the Georgian audience. MOCA is located in Atlanta, Georgia, which has an estimated population of 456,002 with 82.9% of them being aged 16 years and over (“U.S. Census Bureau: Atlanta Region” par. 11). The number of people with a high school diploma or higher constitutes 88% of the population. Household median income and median age stand at $46,631 and 33.2 respectively (“FactFinder: Community Facts: Atlanta City” par. 4). Atlanta city is a multiethnic city with the dominant races being African American (54%) and White (38.4%). Dominant industries in the local economy include accommodation and food services, manufacturing, and trade. Atlanta has a buying power index of 1.265 with much investor activity being concentrated in the real-estate sector.
Contributions to the Local Economy
MOCA GA contributes to the contemporary visual art sector of the community in Georgia. The institution collects and preserves contemporary works created by local artists. Since beginning its operations in 2002, MOCA GA has 119 exhibitions of contemporary artworks, screened several films, and engaged local artists and the community in panel talks (“Museum of Contemporary Art of Georgia [MOCA GA]: Strategic Plan” par. 2). The panel talks expand social engagement and information sharing, contributing to the growth of visual arts and artists in Atlanta. Local artists also benefit from MOCA GA’s resource center and training program.
Type of Customers Targeted
MOCA’s targeted customers include visitors, donors, and institutions that value local contemporary art and artists. The institution targets visitors seeking to experience contemporary Georgian art at reasonable prices. MOCA GA generates its revenue from exhibition event/program tickets. The contemporary art market has seen a sharp rise in prices by over 70 percent between 2004 and 2014 (McGurran par. 11). Globally, growth in the art market stood at 12% in 2014 with the contemporary sector accounting for 15% of the growth (McGurran par. 12). Curators and consultants are the speculators driving prices upwards. The global sales are projected to grow by over 12% in 2015 to hit the $2 billion mark (McGurran par. 12).
Market Research
The growth of the contemporary art market in Georgia depends on investor bidding that drives demand for local art and artists. The increase in investments and donations has seen demand rise substantially with artworks selling five times of what they cost a decade ago (“Artprice.com: The Latest Trends” par. 7). The market increased by 12 percent in 2014, driven by increased outreach programs to bring more visitors into the city. Expanded media coverage has also contributed to the growth of the market, attracting contemporary artists across the globe.
Globally, sales of contemporary artworks grew by 33% in 2014 to reach 1.5 billion dollars. The top 100 artists earned over a billion dollars in 2014 compared to $102 million a decade ago (“Artprice.com: The Latest Trends: Records in the Art Market” par. 19). Works from the top artists attract the highest bids. In 2014, over 170 bids for artworks exceeded the million-dollar mark (“Artprice.com: The Latest Trends: Records in the Art Market” par. 21). Overall, the prices in the high-end sector are the highest in the market due to speculative pricing and targeted marketing activities.
Customer Behavior and Preferences
In the contemporary art market, product quality and type are the key drivers of customer behavior. As a result, the high-end market grew substantially in 2014 to account for half of the sales (Wallace par. 6). Top selling artworks include paintings and ink drawings of star contemporary artists based in museums. The demand for the works of younger artists from America, Europe, and China is high. Moreover, photography has emerged as a source of less costly works for most customers. The photograph’s date, uniqueness, and technique influence its market price. Thus, customers value historical artworks made by artists with a high price index.
In addition, customer demand for unique original works is high. Customers are driven by the desire to invest in affordable works with a higher return rate. However, in the high-end market, purchase decisions depend on individual passion. Opportunities for improvement in the contemporary art market include outreach activities and online presence to increase public awareness. Museums aim to expand their permanent collections of contemporary art to attract visitors. MOCA GA can compete effectively by digitizing its works to allow customers to access exhibitions and videos on the internet. In this way, students and other users can access educational resources and videos online.
Structure of the Business
MOCA GA’s business entails permanent collections, exhibitions, and a resource center. The institution’s public outreach program delivers digital works and videos to users through its website, something that local competitors do not offer. In addition, MOCA GA distributes its publications to schools and colleges across the state. Its resource center archives historical artifacts and works of Georgian artists for research.
Since its launch in 2002, MOCA GA has expanded its collections to 250 artworks and held 199 exhibitions and screened many films on contemporary art (par. 5). It receives an average of 50 works annually from local artists. In its 2014-2019 strategic plans, MOCA GA aims to raise a third of its budget from its exhibition programs and another third from donations (par. 7). The remainder will come from government grants.
Competitors Direct competitors
High Museum of Art
The museum is located on Peachtree Street, Atlanta. It was founded in 1905 and named after the High family that donated the building housing the museum. Its 14,000 permanent collections feature pieces by J. Harverty, 19th- and 20th-century art from Europe and the US, and contemporary art, targeting local and foreign visitors (Wallace par. 8). Investment in permanent collections is a key strength of the museum. However, its contemporary art collections are limited.
Atlanta History Center
It is located in Buckhead, Atlanta. Its products include six permanent civil war collections, temporary collections, and off-site trips. It targets visitors seeking to experience civil war artifacts. Its strength lies in its permanent and diverse collections. However, it mainly exhibits civil war artifacts.
Michael Carlos Museum
It is located in Emory University, Atlanta. It offers over 16,000 ancient Southeastern works comprising of permanent and temporary collections. It houses ancient Egyptian collections targeting Egyptologists and students. The ancient collections from a range of civilizations give it a competitive advantage. However, its contemporary art collections are temporary.
Indirect Competitors
MOCA, Chicago
It is located at Water Tower Place, Chicago. Established in 1967, the Museum contemporary art products, including visual art and curated exhibitions. It targets contemporary art lovers, collectors, and critics from Chicago who attend the museum’s exhibitions. As a non-profit organization, the institution generates its revenue from exhibition proceeds and donations. It provides diversified products, including curated objects, performance, and educational resources. However, the dependence on donations for its budget hampers its business growth.
MOCA, Denver
It is located in Denver, Colorado. It offers contemporary art products through exhibitions and public awareness forums. The museum, which was founded in 1996, exhibits artworks from the local contemporary artists. The Feminism & CO is a unique program that focuses on feminism and art. The institution’s target market includes local and foreign visitors. Its source of strength lies in Feminism & CO program that is unique to the museum. The museum has no permanent collections; it relies on exhibitions rotated once after two months.
MOCA GA should collaborate with local museums that provide complementary products to those offered by the institution. An example is the Michael Carlos Museum that provides permanent and diverse works from the ancient world. Such collaboration will allow MOCA GA to complement its contemporary art collections.
Future Growth of the Market
The contemporary art market in Georgia is projected to show an upward trend over the next five years. Currently, it represents 15% of the local art market, but projections indicate it will surpass civil war works to become the second most profitable sector in 2015 (McGurran par. 14). Contemporary visual arts are expected to drive growth in this market. In light of this, MOCA GA is expanding its social media presence and branding to attract more visitors.
The Business’ Role in the Market
MOCA GA plays a central role in the promotion of local artists and works. Its role in this market entails the “collection, preservation, and interpretation” of Georgia’s contemporary visual art and artists (par. 1). It provides a platform for social engagement between local and foreign artists and art critics. Its exhibitions feature local and international artists.
MOCA GA’s competitive advantage lies in its permanent local collections (325) that include sculpture, drawing, and films. The institution also holds major exhibitions featuring local artists. It runs a resource center and a public outreach program to engage students and the public across the state. MOCA GA’s potential partners include local museums, e.g., Michael Carlos, universities/colleges, and collectors across Georgia.
MOCA GA’s Place in the Future
MOCA GA’s mission is to become a leader in the promotion of local contemporary art in Georgia. In this regard, the institution focuses on expanding its permanent collections at the rate of 50 works per year. In addition, MOCA GA seeks to improve its public relations to become a top brand with a 25% recognition rating in the contemporary visual art market (par. 13). The institution has already undertaken to increase its social media presence to expand its reach in the market. It also aims to expand its educational programs and community partnerships within the next five years to become a leader in cultural work exhibition in Georgia.
Interpretation of the Analysis
Contemporary visual art is a fast-growing sector in Georgia. It achieved a growth rate of 12% in 2014 in terms of the price index of artworks and exhibition attendees (McGurran par. 12). MOCA GA seeks to expand its permanent collections to position itself as a leader in the contemporary art market. The main strategies the institution is using include public outreach activities, user engagement through social media, partnerships with stakeholders, and strengthening its educational programs/resources. To compete effectively and address changing market needs, MOCA GA provides an online access to videos and artworks created by leading local artists. It also provides a social engagement forum to boost the growth of the sector in Georgia.
Works Cited
Artprice.com: The Latest Trends: Records in the Art Market2015. Web.
FactFinder: Community Facts: Atlanta City 2015. Web.
McGurran, Brianna 2014, The Contemporary Art Market is Killing It Right Now. Web.
Museum of Contemporary Art of Georgia (MOCA GA): Strategic Plan 2014-2019 2015. Web.
U.S. Census Bureau: Atlanta Region 2010. Web.
Wallace, Lilla 2001, Service to People: Challenges and Rewards, How museums can become more visitor-centered. Web.