Business Information. Business Plan: art online gallery ... My business would be
an online-shopping art gallery called JeiKei. Mission .... artists for free. − We can
BUSINESS PLAN ART ONLINE GALLERY
JK JOOYEON KIM
Business Information Business Plan: art online gallery
OWNER: Jooyeon Kim Business Name: JeiKei Address: Halandri City: Athens Zip code:15231 Telephone:201234567 E-Mail: [email protected]
Table of Contents
Table of Contents ..................................................................................................... 3
General Company Description .............................................................................. 4
III. Products and Services ............................................................................................. 5 IV. Marketing Plan ........................................................................................................ 6 V.
Operational Plan .................................................................................................... 10
VI. Management and Organization .......................................................................... 12
General Company Description
My business would be an online-shopping art gallery called JeiKei. Mission Statement: Our vision is to be the international online company that can help the fair trade between Artists and Art purchasers. Company goals and objectives: Jeikei is seeking to have a more variety of genres and media of artworks that are supported by Artists and consumers. Since our role is to make a convenient connection between Artists and Art purchasers, our profit and benefit are fairly distributed: purchasers can experience an artistic satisfaction and suppliers can have fair trades with their demands. Business Philosophy: − The most important factor to JeiKei is care or attention from whoever appreciates Art. We need both suppliers’ and consumers’ cooperation with our company. − JeiKei has positive possibilities of growth because nowadays most of the service is online-based and especially Art is limited items that cannot be advertised to many consumers; therefore, in order to increase the profit, the consumers’ demands should be increased through easy way of purchasing Arts. The higher profits will be reinvestigate to a growth industry. − In a long term, JeiKei is looking forward to have a individual manager at many different countries as possible who can speak the local language and English and with a overall knowledge of Art and business. − JeiKei is not only a company that is looking for demands from individual consumers, but also looking for bigger businesses with higher and greater demands, such as hotel decorations, gallery exhibitions, and etc. − JeiKei’s strengths are professional and critical views on Arts. It seems merely a website that sells artworks, however, we are preparing different styles of Art for different target market.
Legal form of ownership: JeiKei is a private sector company with a sole trader, which is a form of legal organization that has unlimited liability. Because online-based business only requires little start-up money compare to other businesses. Also JeiKei is expecting to engage the huge delivery companies for private securities for consumers and for less cost of sales.
Products and Services
JeiKei is an Internet based survive business, therefore our focus is always on customers’ satisfaction. Online shopping has a limited experience of the products, so it is sometimes considered to be unreliable way of consuming. Other than the good quality of products, we will design our websites professionally, advertise in many ways, and be clear about privacy policies in order to gain the reputation of being reliable and responsible. We also will engage a great effort on the design of the website because it is only way to contact with them. Compare to other art online websites, we will manage the website as simple as possible. For instance, we will promote one specific theme or artist every month rather than many at once for higher demands as a concept of limited edition. The advantage of our website is knowledge on art. Arts requires some knowledge of the background or influences in order to understand. And from the experience, before and after hearing the explanation of an artwork is significantly different in the way of appreciating it. So we will ask for famous art critics to respond the artists’ works briefly in order to allow the consumers to gain the professional view. The disadvantage is the level of brand awareness is very low, and it is hard to sell the products because of the high price. So we are expecting to spend great amount money on advertisement to attract people, but it is again hard to gain the trust from them to be consumers. The owners decide price of artworks, and the price is decided according to the cost of materials, time consumed, and extra cost of labor. And we ask for separate photograph, art critic response, and delivery costs to the owners. And when the product is sold, we gain certain percentage as a profit. The delivery costs to consumers is not inclusive to the product price.
Secondary market research: Ugallery, LLC www.ugallery.com
About: Ugallery is a online art gallery that sells original work by emerging artists. It sells original paintings, photographs, prints, drawings, sculpture and more. The company was founded in June 2006 by Stephen Tanenbaum, Alex Farkas, and Greg Rosborough. When the site launched in October 2006, it was the first and only gallery representing student artists. And in October 2009, it started to accept all the artists with a new logo and website. Ugallery has opened a new site called Paperwork in 2010 that sells limited edition prints. It releases new artwork every week. Advantage: Ugallery has a very simple and convenient design of website homepage. It is divided into categories of medium, style, collection, size, color, artists, and price. It is now engaging “Japanese Red Cross Society” help for Japan, gaining the reputation of the company. Also it lends some artworks so people can experience the art within their environment, not only through Internet. It is promoting its business through Ads by Google, so the advertisement can be easily seen on the Google searched homepages, and Youtube as well. Disadvantage: There are no options for other languages, and it is hard to find the information about delivery costs unless you purchase the product. With only one sentence of explaining about the work and profile of the artists are not adequate enough to make the consumers to purchase. The products could be relatively cheaper, however, it is still a high price that consumers would want to consider carefully. There is no target market of different age level, probably from the age of people who are able to buy cheapest $100 to people who are young enough to use Internet. Source: http://en.wikipedia.org/wiki/Ugallery
Primary market research: 11 questions were asked to people randomly chosen. 1. Please check your age. Under 18 [40%]
under 40 [40%]
2. Would you like to organize artwork on your walls? Yes
3. Do you have a certain design/style of artwork that you would like to possess? Yes
4. Do you know where to buy artworks? Yes
5. Do you know how much an artwork costs? Yes
6. Do you have any original artworks? Yes [40%]
7. If you have any, where did you get it? Exhibition, museum shops 8. Do you think online shopping is reliable? Yes
9. Why do you think online shopping is not reliable? Not trustworthy, it could be fake, feel uncomfortable without seeing first hand. 10. If you are an artist, don’t you want to sell your works? Yes
11. When you buy something, what do you consider the most? Brand
Economics: − Size: JeiKei’s total size of the market will be international scale. Every country has one office that will manage phone service to delivery. Starting with developed countries that have a high consumerism tendency and a high GDP, and continually develop to a bigger scale of the market for different variety of demand level.
− Market share: For online gallery market share, we would like to exceed 50%. And for the overall world’s market share, we own 5%, with 15% of growth rates annually. − Demands:
The demand from Suppliers is very high because according to market survey, 100 percent of the people answered that they would like to sell their works if they are artists. However only 50% answered that they want to organize their walls. And considering 50% of people who want to organize their walls with nonoriginal artworks, the total demand would be less than 50%. And in general, most of our supplies are limited to one. And the demand is low because not everyone is willing and able to purchase our products, especially for original artworks. The price is decided by the demands; therefore raising demands is crucial to our business management. We can control the demands by advertising, improving services, or etc. − Trends: Our Company will have many professional groups of people who will study the demand movement. The information about the demand movement will provide results of a higher demand, a higher profit, a growth trends in consumer preferences, and a trend in product as well. − Growth potential: Consideration of few startup costs, it has many possibilities of keeping the business for a longer time than the other types of business. And nowadays people’s standard of living is keep getting better, which means people are getting more interested in purchasing decorative products. And Internet is spreading fast; it is the most convenient and easy way of communication and other aspects. The
reliability of the Internet will positively increase. For these reason our Company has a good vision and potential for the future.
Products: − Benefits: Our products will meet variety of paintings, drawings, sculptors, and other form of artworks. According to the market research, people consider more about quality rather than other considerations, and also artworks are hard to defined by certain price level, therefore our products will have simple and concise explanation in order consumers to understand the reasonable pricing. Competition and strategy: − The major competitor is Ugallery.com. Ugallery is growing in a fast rate, and its advertisement is easily seen from a websites, such as youtube, through google-advertisements. This will be the most challenging point, being well-known to consumers. Our company will advertise our websites more than that for example, by selling famous celebrities’ artworks. − We also have many indirect competitors for instance, art galleries and artists who sell their works in a different ways. Any trade between artists and purchasers could be our indirect competitors. In order to eliminate indirect competition, our company should differentiate our products to be cheaper, easier to access, and many product options.
Production: − JeiKei’s products will be provided by the professional and even student artists for free − We can attract suppliers through the advertisements for consumers. − According to the trend, we are going to promote specific style of artworks. For example, fashion is always in trend and high demands, so we are expecting high demands for fashion-related artworks. − For consumer services, we are going to send monthly or regular update news to their emails. And for Asian countries where people use phone messages more than emails, we will send a brief text message to them. − Young artists have a great potential to be creative and unique and at the same time cheap. So we will discover young artists by visiting Art institutions and by promoting to the schools. − On our website, we would like to create an environment where people can leave positive and serious comments and critics about the artworks, for product development. Especially young artists would have multiple opportunities of not only gain money, but also gain the vague position in Art market. Location: − The office does not require a place for consumers but it must have a big space to have all the products. Within the office, there are different departments, such as consumer service, deliveries, photo shooting set, and creative director. And it will be located mostly one for each country except large countries (states, and china), and should be located in the capitals for better and quick access. Personnel: − Number of employees: It will be decided according to the number of consumers who has visited our website. Number of their visit is crucial to our business because we can assume and predict many aspects about our company’s growth and management. − Type of labor: most of the employees should be studied or worked in Art history, Business, or Economics. It is important to acknowledge the art information.
Managing accounts receivable/payable: − It is impossible to return back the products because consumers can see the product through the Internet with information about the size and the product. If a consumer finds something different from the picture that we provided online, we must allow them to return back. However consumers should take a consideration that it is an online shopping product, which means taking a risk of looking differently from the photo and the actual product. This information will be asked when consumers purchase the product.
Management and Organization
Business organizational structure:
Board of directors
Sales & Marketing