Process Art House IMC Program by Amanda Koontz

CAMPAIGN OUTLINE INTEGRATED MARKETING COMMUNICATIONS PROGRAM

FORWARD MARKETING AMANDA KOONTZ ISHANI PATEL ASHLYNN RANDOLPH CRYSTAL VALDEZ APRIL 27, 2016

SPRING 2016 PRINCIPLES IN ADVERTISING DR. KING - MKT 4342 70

CAMPAIGN OUTLINE TABLE OF CONTENTS 2 5 7 9 9 10

INDUSTRY & COMPANY OVERVIEW COMPETITIVE REVIEW TARGET MARKET MARKETING POSITIONING BUDGET REQUEST CREATIVE STRATEGY

11 14 14 14 16

IMC & OBJECTIVES CAMPAIGN TIMELINE EVALUATION CONCLUSION WORKS CITED

AGENCY PHILOSOPHY Our approach used to efficiently and effectively complete this assignment were based off of our desire to satisfy our client with a sufficient and coherent campaign. We were able to make this possible by conducting group meetings where we were able to divide and conquer tasks that were given to us in a timely manner.

EXECUTIVE SUMMARY

Process Art House has impacted the Amarillo art community, showing creative progress and opportunity within the Panhandle. Modern Creator is the business’s new service branch that creates carefully crafted and unique interior spaces for clients, balancing architecture and interior design. This integrated marketing communications campaign will target the 806 Innovators, a group of Amarillo professionals who have business decision making power and support the local arts. This campaign will be business-to-business focused, positioning Modern Creator as the area’s principal custom spatial design group offering unique services that lead to “Created Spaces”. CAMPAIGN OBJECTIVES WILL: Increase Modern Creator brand awareness and knowledge of services Drive business interest leading to purchase intentions Distinguish Modern Creator separately from Process Art House The campaign incorporates digital and traditional media in Amarillo, Texas with a budget of $24,263.33 that will be evaluated by new business leads, website traffic, social media engagement, and local earned media.

CAMPAIGN OUTLINE INDUSTRY & COMPANY OVERVIEW Process Art House competes in the Art Dealers industry within the United States. This category is composed of art actioning, private art retailing and art retailing through galleries activities. These companies generally purchases artwork from artists or individual owners, then sell artwork to consumers for commissions. The annual revenue for this industry is $11.3 billion with an average annual growth of 3.4% (IBISWorld, 2015). Products primarily sold in this category include paintings (54%), drawings (33%), and sculptures (8%) (IBISWorld, 2015). Industry drivers leading the development of art retailing and dealing include: increased per capita disposable income, consumer confidence and households with earnings more than $100,000. These households make the majority of fine art purchases. Art is considered a luxury good as a “symbol of taste and learning reflecting values, personality, education and income” (IBISWorld, 2015). Artwork is also purchased for collection, aesthetic and investment reasons. The majority of this industry’s market are art collectors (66%) and companies (24%) (IBISWorld, 2015). Demand for art is expected to grow throughout the next five years. HISTORY Process Art House was founded by Jacob and Rhoda Breedem who have over a decade of experience in the world of artwork. It’s located in Downtown Amarillo. They pride themselves on being family owned, artist operated as well as artist centered. They are a company in which they feel they can solve any problem, art related, an individual or a business may run into. No matter if it’s a hotel, hospital or even a personal home, they will find the perfect artwork to fit the environment. They are also a full service consultation and brokerage firm. Process Art House offers corporate leasing, private brokerage services, transportation for artwork, installation, lighting consultations, archiving advice as well as complete art customization. After meeting with the client, Process Art House would like to focus on Modern Creator for this campaign. Modern Creator is a business within the Process Art House umbrella that facilitates creative collaborations without boundaries. It brings together creatives from graphic design, animation, engineering, videography and architecture to create functional artistic solutions to client problems. Solutions can be spatial design for buildings, interior design, public and municipal art work. The client did not disclose its company sales history, but mentioned that since Process Art House’s beginnings, it has been able to deliver over $400,000 into the hands of local artists. TARGET MARKET Process Art House’s target market is segmented on the psychographic interest of supporting the local fine arts. Purchasing artwork is considered a luxury that satisfies the target market’s desire for art attraction. Segments that share this psychographic include, cultured individuals with high discretionary income and established businesses. Further target market segmentation is discussed in the Buyer Analysis section.

CAMPAIGN OUTLINE CURRENT MARKETING MIX PRODUCTS & SERVICES Products offered include art leasing, retailing, rental and brokerage for individuals and businesses. Process Art House also holds an art gallery space for local artists to display work. In addition, the company has artist development services. An experimental twist to its business model, Process Art House also provides fabrication, classic design, and spatial design services. PROMOTION Process Art House uses an organic promotional strategy to gain clients and communicate to the community about its presence.

PRICE Price at process art house varies with each art piece and also with project scales. Artwork price is not fixed, but based solely on design. Process Art House refuses to have discounts, sales and price promotions. PLACE Process Art House’s location is on 700 South Van Buren in Amarillo, Texas. It’s location serves as an office, gallery and workshop space. Modern Creator freelances across the country with creatives to complete client projects as well.

Previously, Process Art House has relied on grassroots level promotion within the Amarillo Community. Art gallery showings and space rentals have served as on-location promotion within the community. Process Art House has a weekly email blast with over 1,000 subscribers that discusses community cultural activities throughout Amarillo. Social media is lightly used through company pages and owners’ personal Facebook pages. Process Art House promotes events and activities to news sources through press releases that gains local news coverage. Jacob Breeden regularly appears on midday and morning shows on KAMR CH 4 and KVII CH 7, teaching creativity and art skills through monthly segments. Jacob also attends paid public speaking events throughout the community. Speaking events generate the majority of business leads.

CAMPAIGN OUTLINE MARKET SHARE Process Art House owns the majority of the art retailing and leasing market share in the Amarillo region. It competes with local galleries and online retailers, but leads in name awareness. The company is developing its spatial design services, but competes against other established local interior designers and architects. The ironic thing is, they also partner with them on projects. AN ARTIST’S SWOT SWATCHES STRENGTHS

WEAKNESSES

• • • • •

Large domestic market Existing distribution networks Experienced management Skilled workforce Reduced labor costs through collaboration & freelance work

Audience limitation Low profitability Small business Established brands not carried Low productivity

OPPORTUNITIES

THREATS

• • • • • •

• • • • •

New talent & product acquisitions Growing economy New products & services Global reach of business Growing demand for artwork Expand clientele base

Limited financial capital Price changes External business risks Increasing costs Low cash flow

PROCESS ART HOUSE BRAND IMAGE Process Art House and associated artists are seen as leaders in the Amarillo artist-creative community. The company has developed work and gained local credibility through its client list, including: Amarillo National Bank, The Amarillo Club, WTAMU Enterprise Center, WTAMU College of Business, and Proffer Surgical Associates. It’s brand blends artistic styles of Santa Fe, New Mexico and galleries of the Chelsea Art District in New York City. The brand also places emphasis on the creative process from the initial brainstorm to the final artistic product. Modern Creator lacks current branding and promotion. The market does not have brand or product capability awareness or perception. This is a campaign opportunity for Process Art House.

CAMPAIGN OUTLINE COMPETITIVE REVIEW Through our analysis, we’ve identified key direct and indirect competitors within the local area that includes local art galleries, Amarillo architecture firms and individuals. CERULEAN GALLERY - PRIMARY LOCAL ART GALLERY Cerulean Gallery primarily uses digital and social media to communicate with its audience. Main promotional activities are done through numerous art exhibitions, representing more than 30 artists. Exhibitions are not limited to artwork but have showcased home furnishing and accessories. Cerulean Gallery has an advantage holding a sister gallery in Dallas, Texas. Benefits of being a local gallery include closer connections with local artists and clientele. Partnerships with local charities and businesses like Martha’s Home of Amarillo and Panache of Amarillo. Cerulean Gallery has a known brand presence in the area. Art is also exchanged between Dallas and Amarillo. STRENGHTS WEAKNESSES · Small business · Barriers of market entry · Low debt rating · Reduced labor costs · High costs · High profits · Specialized competition · Experienced management · High loan rates · Large Domestic market · High sales growth rate

CAMPAIGN OUTLINE AMARILLO ARCHITECTURE FIRMS AND INDIVIDUALS Amarillo architects and firms have capabilities to create spatial designs, competing with Process Art House. Though Process Art House collaborates with these architects, they are still considered competitors due to their individual projects and specialized capabilities. These groups use social media, local newspapers and magazines to communicate with their audiences. They also participate in the American Institute of Architects serving as the local voice for architecture. Firms and individuals have profiles and portfolios available on Houzz.com, web site and online community about architecture, interior design and decorating, landscape design and home improvement Amarillo Architects are involved with the local community. They help fund events and focus on making communities stronger, allowing them to make strong and new connections. This places their work for others to see and promote. Benefits architecture firms have include specialization and experience in creating unique designs. STRENGTHS WEAKNESSES · Growing Competition · High Profits · Barriers of Entry · Specialized Skills · Dependent on Fluctuating Economy · Experience · Challenging & Demanding Client Needs · Growing Profession · High Accountability · Licensed Professionals COMPETITORS INCLUDE: · Charles R. Lynch Architect, AIA LLC. · Gregg Bliss Architect · Dekker Perich Sabatini · Lanvin Architects

CAMPAIGN OUTLINE TARGET MARKET LOCAL CONSUMERS Local consumers are the standard, walk-in customer. These customers live nearby and thus share the demographics of the Amarillo area. These customers are primarily interested in decorating their home or office, and represent a majority of Process Art House customers. ONLINE CONSUMERS Internet consumers are worldwide, and include anyone with access to the Internet. These customers typically have the same motives as local consumers, but have chosen to use the Internet to make their purchase. LOCAL BUSINESSES & ORGANIZATIONS These customers are typically interested in framed art to decorate a large area or production framing for a group of pieces. Businesses also are more likely to seek spatial design services from Modern Creator. Although this group represents is growing with the time, these customers typically make larger purchases. WHO THEY ARE Our campaign target market proposes on directing communication towards the Second City Elites and Upand-Comers based on their geographic proximity, influence, discretionary spending power and perception of art as a representation of high culture. SECOND CITY ELITES Second City Elites are prosperous professionals that collect art and wine. They hold college degrees and enjoy cultural activities, commuting to theatre and dance productions in luxury vehicles. Second City Elites are over the age of 55 with upscale incomes purchasing elite products. (2016 Nielsen PRIZM Segmentation). UP-AND-COMERS Up-and-Comers are single or partnered adults between the age of 25 to 44. They are college graduates interested in athletic activities, technology and nightlife entertainment. Up-and-Comers have professional careers with upper middle income. (2016 Nielsen PRIZM Segmentation).

CAMPAIGN OUTLINE CONSUMER PURCHASE FACTORS Process Art House has a wide range of buyers. This includes individuals, hospitals, hotels, restaurants or any kind of business for that matter. Within the businesses who buy, the person who decides to purchase the artwork can be business owners, office managers, decorators, as well as an independent individuals. Purchases can be influenced by competing or partner local businesses that have decorated with Process Art House’s artwork. Business employees can also influence the buying process. Process Art House is a local influencer in the Amarillo art scene. PURCHASING BEHAVIORS Process Art House is affected by cultural trends as well as social classes. There are also psychological factors that influence like a specific business or individual’s perception of art. Process Art House consumers are a mix of extensive and limited problem solving. Some know exactly what artwork and artist they would like to purchase and support. Then some lack knowledge of aesthetic or what artwork would best complement their home or business environment. These consumers seek the help of Process Art House to make final decisions to fit their needs. Based upon our client meeting, it is perceived that the services Process Art House provides are highinvolvement purchases. Artistic taste and project need are highly individualized. Process Art House understands this and strives to satisfy and create exactly what the client seeks. Their buying behavior process of businesses and individuals for art is complex. Artwork and design projects have higher price points. 806 INNOVATORS Our campaign target market proposes on directing communication towards the Second City Elites and Upand-Comers based on their geographic proximity, influence, discretionary spending power and perception of art as a representation of high culture. These segments make up the target audience we call, the 806 Innovators. 806 Innovators are concentrated in the Amarillo, Texas area and are ages 25-64. With high purchasing and decision making power in commercial business operations, they hold administrative or ownership statuses –ideal candidates for deciding the layout of new office spaces or store fronts. 806 Innovators aren’t afraid to splurge on making their business look its finest and can afford the products and services associated with Modern Creator. These operations leaders are gregarious, ambitious, and compulsive. Our target audience’s lifestyle is settled, established, active fun and loving.

CAMPAIGN OUTLINE POSITIONING STRATEGY Our objective is to position Process Art House’s Modern Creator as the area’s custom spatial design group able to fulfill local businesses’ design desires. Through this campaign, we position Modern Creator as a situation specific, quality service. Since the light usage rate for these particular products and services is costly, our intention is to inform 806 Innovators about Modern Creator. Messaging will be targeted through traditional direct response and digital social media tactics.

CAMPAIGN COMMUNICATION OBJECTIVES Communication objectives must: · Increase Modern Creator brand awareness and knowledge of services · Drive interest leading to purchase intentions · Distinguish Modern Creator separately from Process Art House and not confuse audience

BUDGET REQUEST An estimated total campaign budget of $25,000 is requested in order to reach our audience in digital and physical spaces to make objective impact. Budget will cover video production costs, media placement, message analytics and agency contingency fees. At this time, we estimate 60% of the campaign budget to be allocated to traditional advertising mediums and 30% allocated to digital advertising mediums.

BUDGET BREAKDOWN

31%

40%

1% 2% 3%

TV Spot Press Kit

OOH Magazine

16%

Newspaper Social Media

Direct Mail

CAMPAIGN OUTLINE CREATIVE STRATEGY KEY FACT Modern Creator offers unique and individualized spacial design services for personal and commercial spaces. ADVERTISING PROBLEM Modern Creator isnâ&#x20AC;&#x2122;t known in an area where spatial design is not a demand. If the service is used, it is primarily contracted out to architects and interior designers. ADVERTISING OBJECTIVE Modern Creator needs to emerge as a brand in Amarillo, Texas by establishing a unique and desirable quality design capabilities that will get them noticed. Ads will target urban, creative, professional men and women and convey Process Art House distinctive harmonica-modern-urban-vintage design that isnâ&#x20AC;&#x2122;t found in the market. Presenting Process Art House as unique, offbeat and quirky brand in a grassroots style way will convince target consumers. TARGET CONSUMERS Second City Elites and Up-and-Comers

TONE Modern vintage appearance through video content, that outlines services Modern Creator offers through simple copy. Ads will be quirky, buzz worthy, natural, offbeat and fun. MANDATORIES Logo, website address, and imagery of previous spaces designed by client in Amarillo.

CAMPAIGN OUTLINE IMC MIX & OBJECTIVES FACEBOOK SPONSORED ADS Sponsored Facebook video ads will be used to behaviorally target and serve potential customers aged 2560 years-old interested in business, management, small business, arts, and design interests. These individuals have purchasing power and are business oriented looking to expand and improve their businesses through implementing different architectural or modern designs that can be constructed through Modern Creator. Posts will be pulsed throughout the campaign in spans of two 14-day sessions. Rationale: Facebook sponsored posts give powerful insights, ROI measurements and highly targeted segmentation. Video posts average 62% more engagement than photos and the average American spends more than 40 minutes per day on the social platform (Beese, 2015). LOCAL TV SPOTS :30 Local spot ads will be placed on KFDA NewsChannel 10 during the 10 P.M. news broadcast. This spot will be the same video used to promote Modern Creator on Facebook. Spots will run for two weeks nightly. Rationale: Media placement targets key broadcast time with highest ratings of 25-48 at 2.2. VIDEO STORYBOARD

LOCAL PRESS KIT Press kits will be sent to developed and established local media outlet relationships like KVII, AGN and radio stations to drive buzz and earn media coverage. These boxes will contain a press release, story content pieces regarding interior design and local arts along with USBs containing Modern Creator branded photos and video. These boxes will contain a one-sheeter describing Modern Creator with its social media and web links.

CAMPAIGN OUTLINE

IMC MIX & OBJECTIVES

OUT OF HOME BILLBOARD A OOH board will be placed for 8 week at the beginning of the campaign in a highly transited local area where businesses are downtown in Amarillo. Placement will drive awareness of Modern Creator and a website CTA. Location is I-27 WS S/O 13TH. This billboardâ&#x20AC;&#x2122;s location is positioned to reach our target market and reduces waste coverage. Rationale: OOH reinforces Modern Creator television messages when viewers are away from their homes during the course of daily activities (OAAA, 2016).

FULL PAGE AMARILLO GLOBE NEWS NEWSPAPER AD Full-color, full-page AGN Newspaper ads will run MarchMay within local business sections. Amarillo Globe News placements can be modified easily and can effectively reach our target market. Rationale: Target audience consumes print media and actively reads on finances and local activities. Ad will be placed where consumer is already.

CAMPAIGN OUTLINE IMC MIX & OBJECTIVES FULL PAGE AMARILLO MAGAZINE AD A full-color, full-page Amarillo Magazine will run March on Cover 2 position. Rationale: Amarillo Magazine is the leading local magazine. Much of target audience consumes this content and magazine has high pass-a-long rate. Cover Two, the inside of the front cover, is the top-performing position, with about a 40 percent increase in ad recall (Tucker, 2011).

DIRECT MAILERS TO KEY BUSINESSES Direct mail pieces will be sent to local medium to large businesses in the Amarillo area through Panhandle Presort Solutions. Customized lists will be highly targeted and the mailer will be sent in May after awareness has been driven through TV, Print and OOH support media. Rationale: 79% of consumers will act on direct mail immediately (Neale-May, 2016). Direct marketing will allow us to tailor our marketing efforts to reach our target market effectively.

SOCIAL MEDIA CONTENT Throughout the campaign, social media content will be created to create a brand image and online presence for Modern Creator on Facebook and Instagram. Content will be video and photo heavy featuring spacial design, local arts movements and how to improve business interiors. Social media is one of the most effective ways we can reach our target market. Rationale: Social media content helps drive brand awareness, increase web traffic and gain consumer insights. 8 out of 10 small and medium business owners use social media to drive business growth (Karr, 2014).

CAMPAIGN OUTLINE CAMPAIGN TIMELINE Due to a constrained budget and local media push, this campaign will begin in February with OOH, digital content, and local earned media. Tactics finalize in April and will be followed through with digital media push. Campaign evaluations will occur in May. Media Tactic OOH Billboard

February

March

April

May

Impressions

199,242 Impressions/Week, I 27 WS S/O 13TH

Cost

CPM

1,593,936 $4,000.00

$2.50 $82.75

Full Page AGN News Ad

CMYK, 30-Day Rate, 750 in, $32 Daily PCI, Business Section

20,000 $1,655.00

Full Page Amarillo Magazine Ad

Position 2, Month

10,000

$350.00

$35.00

913

$741.00

$494.00

Local Business Direct Mailers

Mail list, Postal Services & Printing

Social Media Content Sponsored Social Media Video Ads

Content Pushed Organically FB targeting, 25-60, Business and Arts interests

Local TV Spots

Local Press Kits

FB targeting, 25-60, Business and Arts interests

$9585.33

$12.50

31,209

$7532.00

$241.34

KFDA Ch 10, News Broadcast Spots :30, 2 Weeks

News Releases & Promo Kit to Established Media Relationships

Evaluation

766,827

$400.00 -

Evaluation

Total

2,422,885 $24263.33

$10.01

EVALUATION The campaign will be evaluated through various methods. Success will be determined by: • • • •

Number of new business leads generated after campaign Moderncreator.com website traffic before vs. after campaign Social media post reach, engagement and shares Earned media content and mentions by local outlets on-air and digitally

CONCLUSION After meeting with the client and analyzing the market we recommend that Process Art House launch a local media advertising campaign to bring awareness of Modern Creator to the area and target potential prospective clients. Our campaign budget and tactics will effectively increase Modern Creator awareness; drive business leads and online engagement. Following the campaign, we recommend Modern Creator continue a social media strategy and that Process Art House continues to build brand awareness through local marketing efforts.

CAMPAIGN OUTLINE WORKS CITED Art Dealers in the US. (2015). IBISWorld Industry Reports, May 2015(45392), 1-36. Retrieved February 9, 2016, from http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1104 Breeden, J. (2014). Process Art House. Retrieved February 16, 2016, from http://www.processarthouse.com/ Beese, J. (2015, June 20). 17 Powerful Facebook Stats for Marketers | Sprout Social. Retrieved April 20, 2016, from http://sproutsocial.com/insights/facebook-stats-for-marketers/ Karr, D. (2014). 2014 Statistics and Trends for Businesses on Social Media. Retrieved April 20, 2016, from https://www.marketingtechblog.com/2014-statistics-trends-businesses-social-media/ Neale-May, D. (2016). Direct Marketing. Retrieved April 20, 2016, from https://www.cmocouncil.org/facts stats-categories.php?category=direct-marketing Outdoor Advertising Association of America, Inc.(2016) Media Comparison. Retrieved April 20, 2016, from https://www.oaaa.org/OutofHomeAdvertising/MediaComparison.aspx The Nielsen Company. (2016). Nielsen BestSegments ZIP Code Look-up: 79109. Retrieved from https:// segmentationsolutions.nielsen.com/mybestsegments/Default jsp?ID=20&pageN ame=ZIP+Code+L ookup. Tucker, L. (2011, July 12). True or False: Magazine Positioning Really Matters. Retrieved April 20, 2016, from http://richards.com/blog/true-or-false-does-magazine-positioning-really-mat/

NOTES: