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Soho Art Gallery Business Plan Proposal Report

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Updated: Sep 13th, 2021

Introduction

Soho Art Gallery is an organization that provides customers with art production of high quality and embraces the best artists who orient themselves to creating competitive products. The expanding of the company’s business activities pose new challenges to its development and makes urgent the task of elaborating comprehensive strategy for its development.

The development of comprehensive management strategy for Soho Art Gallery is conditioned on designing effective business plan for future projects and models of development. The strategic planning of current business activities should take into consideration existing problems and priorities connected with transition to artist-to-consumer model of business activities. Soho Art Gallery has come across with some problems tied with expansion of its activities.

Its accounting practices were initially designed to regulate the low-scale business activities but growing sales made current accounting practices in Soho Art Gallery ineffective. Thus, this company should take into account the need for creating comprehensive and effective accounting system in the enterprise. The entrance of Soho Art Gallery into the market of art production creates necessity for making use of the existing technologies as for instance Internet for improving business capabilities and promoting Soho Art Gallery interests not only in the territory of its operations but to the most faraway regions of the world.

The design of cost-effective and beneficent Internet-site thus is regarded as an important priority for Soho Art Gallery development and needs concerted efforts from all stakeholders such as artists and administrators. This component of the strategy goes in line with enterprise objective to become competitive vis-à-vis other organizations in getting local and state grants which are given for small businesses in the region:

  1. As was noted above the primary precondition for accountability is effective organization of the business process. This includes developing accurate, timely and reliable reports which are necessary for organizing business process. Utilizing DSS reports and introducing new technologies needed for reducing administrative costs and overheads will provide with opportunities of efficient distribution and utilization of existing financial and organization resources which is the main prerequisite for good performance of the company.
    In this view, Soho Art Gallery is planning to ascribe accounting and other control and regulative practices to the group of professional rather than imposing additional responsibilities on existing staff. In addition Soho Art Gallery considers as a primary necessity the differentiation of staff’s responsibilities and reorienting the bulk of function from artists to administrative workers to make them more focused on their immediate work.
  2. The expansion of existing business activities means that new methodology for developing projects and making evaluation of their cost-effectiveness should be introduced. The department which task is collecting and analyzing relevant information needed for existing and future project should be created. For instance, Soho Art Gallery plans to make exhibitions of its artists’ works which means that comprehensive and relevant analysis of the market opportunities and constraints is needed for these exhibitions to be beneficent and profitable. These undertakings are new for the company, thus different projects connected with organization of exhibitions in the Shire district discussed in this business plan deal with analysis of available but not necessary contain full information on other art galleries’ activities in this sector of the market.
    By means of stakeholder analysis we will try to assess the prospects of these projects and outline the steps that are to be taken to guarantee the effectiveness of exhibitions’ organization. Building comprehensive intellectual capabilities presuppose the growth of the company’s structural elements and attracting new analytical minds and professionals. The task of strategic planning can not be understated and new capacities for analytical work should be properly developed.
  3. The strategic planning of future Soho Art Gallery activities should take into consideration the necessity of marketing as the main means for improving company’s image in the community and attracting new perspective customers and achieving popularity among the wider population. It is important also to tighten the ties between Soho Art Gallery and other art galleries having activities in the community.
    The mutually beneficent cooperation between galleries presuppose permanent meetings of artists for discussing relevant professional problems thereby increasing the domain of business activities to encircle academic and scientific exchange, pooling common capacities for organizing joint exhibitions and other art events in the community. The developing of cooperation framework is also relevant in terms of designing joint projects and gaining governmental and nongovernmental grants which foster art galleries development.

Stockholder’s analysis

Soho Art Gallery expands its activities in the local area which presuppose careful analysis of business climate and designing appropriate strategies for development.

The primary opportunity and perspective for the expanding of gallery’s activities in local area is making exhibitions serving both marketing and entertaining functions. As the experience of Soho Art Gallery supposes the artist- to- consumer model is best realized through comprehensive unification of sales strategies with exhibition activities. Moreover, such undertaking supposes making comprehensive stakeholder analysis of the business possibilities.

First of all it is important to note that other art galleries having activities in Shire community encircle Yarra Valley which stretches from Yarra Glen to Marysville.

The Soho gallery engages in effective cooperation with famous galleries operating in communities such as Benalla studios and Beechworth. But before closer cooperation will be established the analytical work necessary for company development should be done. It includes careful analysis of these companies’ past activities in exhibition events, i.e. the analysis of such factors as success, attendance, gender of those who visited exhibitions, their age, the issue of first time versus revisits, the issue of demographics, artworks. The exhibitions of other galleries proved to be effective, which is conditioned by several factors such as organization, marketing strategies, and involving the best artists and works.

For instance the joint exhibition of Benalla and Beechworth which had taken place in 2004 gathered more than 5 thousand people in 7 days. Such high number of visitors can be explained by the fact of viable marketing strategy utilization. Benalla and Beechworth galleries spent more than 3000 dollars for branding and marketing programs in mass communication campaigns on radio, television and local newspapers. Moreover some employees of the company were assigned as promoters to spread information between people on the future events. Such components as availability of necessary information on the future exhibitions in the places of civil activity, its comprehensiveness and interesting content were the main reasons for the great interest of community in these exhibitions. The level of exhibitions revisit was very high due to the flexible timetable and comparatively long time of its operation. The level of revisit was evaluated by issuing and giving special cards with last names of the visitors.

The demographics of the visitors were much differentiated including all major age categories. The exhibitions particularly attracted young people interested in art – this is in part was caused by effective marketing strategies of the abovementioned galleries. The gender divisions were not articulated during the work of exhibition with men and women showing equal interest in this event. This can be explained by the fact of the great interest to art and other cultural issues in community. Therefore, the analysis reveals that gender and demographics issues can not be regarded as the most important in the course of exhibition organization.

The artists’ works exhibited were very diverse presented by more than 15 artists cooperating with art galleries. The artists gave press-conference before the opening where over 50 representatives of media communication outlets were present. Issuing press-releases and giving press-conferences was part of the marketing strategy. This allowed attracting additional attention to exhibitions and fostered enhancing these companies’ image and reputation among the lovers of art. Moreover the participation of artists in public events increased their popularity and helped strengthen reputation and professional recognition of young artists among professionals. Artists’ interests in exhibitions were stimulated by effective business activities which generated profit for artists as their works were sold.

The proportion of exhibition profits distribution not only covered the expenses of its organization but created additional sales profits distributed between all stakeholders. The synergies of cooperation between Benalla and Beechworth galleries were highly effective in terms of stimulating their market opportunities and rising demand on their production. Several drawbacks inherent in the organization of these exhibitions should be taken into consideration while organizing exhibitions of Soho Art Gallery.

Thus, this analysis shows that the main prerequisite for developing cost-effective program of exhibition is its efficient organization allowing to pool together all company’s available capital and human resources. Planning the exhibition project should be tailored depending on the gallery’s existing organizational and financial capabilities and capacities taking into consideration past experience of other galleries and art companies.

Taking into consideration available funds ($ 20,000) Soho Art Gallery planning process should be established. The organization of exhibition is premised on analysis of its cost-effectiveness. The expenditures include marketing, expenses for accommodation, additional payment for staff engaged in the process of organization, artists share in sales and current expenditures. The funds available for the project are $ 7,000.

Project’s expenses

Marketing strategy due to the number of available resources is limited to press-releases, advertisement in press, radio and promoter’s activities in public places. Soho Art Gallery shop itself will serve the role as a marketing platform guaranteeing that its permanent clients have necessary information on the future exhibition. Placing advertisement on radio stations will cost approximately $600, in newspapers and thematic press about $400 and costs paid for promoters’ activities – approximately $500. Moreover, the promotion of the future exhibitions will be made through Soho Art Gallery Internet site that is being designed in the framework of another project. The total cost of all marketing efforts is approximately $1,500 though some additional expenses are taken into account.

The exhibitions will last 7 days that is why the total cost of premises rent is about $100 per day which is $700 for the weak when the exhibition will be open. Additional staff necessary for organization and servicing exhibition is to be hired according to exhibition project.

As the part of exhibition organization the contracts with artists will be negotiated in the view of creating framework for sales profit distribution between company and its art contributors. The contracts will be made on the individual basis taking into consideration the need of meeting the interests of artists and stimulating their present and future cooperation with Soho Art Gallery. Soho Art Gallery plans to establish effective communication with other galleries such as Beechworth in attracting artists whose works were exhibited during previous exhibitions to cooperation on favorable conditions. The Soho Art Gallery is planning to involve more than 20 artists who will be present on the press-conference and exhibition’s opening. The presence of artists is one of the most crucial components of successful marketing strategy since it attracts new people to visit exhibition.

The work of permanent staff will not be paid on the extra basis; therefore, these expenses are not included in project proposal. Soho Art Gallery is planning to organize banquet for all stakeholders participating in the opening ceremony including artists, representatives of other art galleries, government officials, members of nongovernmental organizations as well as other members of community. The approximate cost of banquet reaches $1,500 but some additional resources are foreseen.

In the course of exhibition organization Soho Art Gallery will work with Shire council and regional tourist organization and companies in the view of attracting the interests of tourists to exhibition as a wonderful place to spend their time and receive positive impression of this country.

Planned revenue

As it is quite difficult to predict the financial outcomes of the exhibition and guarantee its cost-effectiveness Soho Art Gallery can only rely on the efficiency of marketing strategy and proper analysis of existing information on the previous exhibitions organized by other art galleries. Notwithstanding the fact that exhibitions organized by Benalla and Beechworth Art Galleries were profit-oriented the revenues were not sufficient as representatives of these companies told Soho Art Gallery. These shortcomings according to this analysis are caused by considerable drawbacks in sales system and organization strategy.

The price for the majority of arts products was set at very high level that is why not many pieces of art were sold. Moreover, the organizers of these exhibitions created unfavorable conditions for the visitors prohibiting buying art production during the starting days of exhibitions due to their concern about the number of art products available at stock. Soho Art Gallery strategy is designed to overcome both these shortcomings.

First of all Soho Art Gallery plans to ensure that exhibition’s stock has sufficient reserves of art production guaranteeing that sales of exhibited pieces is not harmful in terms of visits and revisits. Value proposition provided for the visitors and customers is favorable as they can buy any work not waiting for the termination of exhibition. This will ensure the high turnover of proposed products and raise the interest of all stakeholders strengthening company’s reputation and image. Providing customers with favorable value proposition ensures high revenues for Soho Art Gallery which is crucial in terms of attracting new artists, developing art-to-customer strategies and other strategic goals of the company.

The number of artworks provided by the artists collaborating with Soho Art Gallery reaches 30 works per artist which totals 600 works of art. In addition to art products kept in the Soho Art Gallery shop this constitutes an immense number. The formulation of price policy is the most important factor of creating favorable value proposition. The prices for art products vary depending on the reputation and popularity of the artist from $50 to $1000-2000$. It is difficult to define the exact revenues but Soho Art Gallery hopes that they will reach the mark of $15000-20000 which covers all resources spent on exhibition’s organization. The final scheme of Temper Tinglary SOHO Art Gallery expected expenditures for this project can be presented in the following table. Revenues is very difficult to plan thus we avoid placing any ungrounded predictions.

Table 1. Expenditures for exhibition project

Marketing Rent Banquet Staff Additional expenses Total cost
Expenditures 1500 700 1500 $2500 $800 $7000

Internet project

Using technological resources such as Internet for promoting business activities is regarded as primary opportunity for successful strategic development of Soho Art Gallery and strengthening its position vis-à-vis companies and art-galleries. Internet space provides Soho Art Gallery with possibility of widening the scope of its audience and business activities. The majority of Internet-users are very active in consuming art production through on-line purchases of pictures, jewelry etc.

The using of the web-site gives opportunity for attracting new artists to participate in on-line conferences and forums discussing relevant and interesting problems. The development of virtual artists’ community is important investment in Soho Art Gallery reputation among its counterparts and other organization.

Web-site will be designed to allow the purchases of arts through on-line payment system and auctions. On-line auctions is one of the most effective means of generating profit since no expenses are needed for its organization besides those connected with web-site operations. The market of on-line auctions due to its high size should be regarded as the main priority in terms of pursuing artist-to-consumer strategy of Soho Art Gallery.

The structure of the web-site is designed to provide Soho Art Gallery’s customers and clients with adequate and up-to-date information on its activities, programs and available art products that will be properly rubricated in order to make navigation of the web-site interesting and helpful for the customers. Moreover, Soho Art Gallery’s web-site will be designed to provide clients with full-spectrum coverage of upcoming events, exhibitions, meetings and round-tables with famous artists as well as various catalogues containing much relevant information.

As in the case with exhibition project Soho Art Gallery web-site can be used as one of the main components of company’s marketing strategy. The visitors of the web-site are provided with relevant information on the upcoming events and exhibitions and possibility to ask questions that are interesting to them and give feedback.

In sum Soho Art Gallery web-site is a crucial components of the company’s strategic development and its management should take all necessary steps to ensure its effectiveness in terms of company’ s short-and-long term objectives.

The estimated cost of web-site design is $8000 which includes expenses for employing professional web-designers and informational technology specialists which are responsible for maintaining its operations. Taking into consideration possible benefits connected with this web-site the cost of its construction is quite affordable for Soho Art Gallery.

The realization of abovementioned projects together with improving organizational structure of Soho Art Gallery including reformation of accounting practices are the main components of the new development strategy. Widening the scope of business activities through organizing exhibitions and creating the web-site are regarded as the main factors providing Soho Art Gallery with possibility of occupying new market niches and strengthening costumers’ confidence in its artworks. The process of Soho Art Gallery mobilization gives significant dividends to this company in terms of reputation, popularity and improving its social capital.

Controlling and participating in major future art events in Shire and possible participation in regional traveling shows are regarded as the main components of this strategy. Moreover, Soho Art Gallery management looks forward to improving cooperation with other famous and developing art galleries such as Benalla and Beechworth art galleries which is intrinsic for company’s development.

Furthermore, Soho Art Galleries business and public initiatives will improve its overall positions and competitiveness which in its turn raises company’s position to compete successfully for governmental and non-governmental grants.

References

Plagens, P. May 1998, ‘SoHo Hum’ Artforum International, Vol. 36.

Piazza, S. ‘Walking, Talking Art Gallery’, Arts & Activities, Vol. 130.

‘Soho –the Gallery’. 2007. Web.

Stewart, M. 1997, ‘Bernice Steinbaum: Life in a SOHO Gallery’. School Arts, 97, 38-65.

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