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Coleman Art Museum

Summary of Facts

A. Market –Education and Entertainment 1. Coleman Art Museum a. Not-for-profit corporation b. Dependent on contributions 2. Members a. 85% college educated b. 60% income over $70,000 c. 50% over 40 years old d. 98% white 3. Economic market – monopolistic competition

Product

1. Over 15,000 works of art in permanent collection a. Pre-Columbian art b. African art c. Pre-Depression Art d. European and American decorative arts 2. Memberships 3. Special Exhibits 4. Private Shows 5. Fundraising Events 6. Restaurant 7. Gift Shop 8. Parking 9. Benefits a. Client 1) Core – Experience Art 2) Secondary a. Education b. Entertainment c. Social Atmosphere b. Contributor 1) Core – Fulfillment 2) Self esteem 3) Tax Savings 4) Self esteem 2) Have fun with various looks 3) Affordable 4) Boosts fashionability and self-esteem 5) Provides conformity and acceptance 10. PLC – maturity

Price

1. Public Institution no charge to view permanent collection 2. $3.00-$5.00 charged for special exhibitions 3. 2004 MMAH membership

|Category |Number |Revenue |Benefit |Cost |
|Regular |$50 |13,672 |$639,664 |$631,016 |
|Associate |$100 |2,596 |$234,871 |$81,903 |
|Collector |$250 |364 |$81,415 |$64,135 |
|Patron |$500 |102 |$48,100 |$39,135 |
|Partner |$1,500 |604 |$815,666 |$99,567 |
|Directors Club |$5,000 |91 |$406,673 |$15,975 |

4. Elasticity – relatively elastic to relatively inelastic

Promotion

1. No advertising or in-store gift-with-purchase promotions 2. Socially/environmentally-conscious programs a. Back-to-M.A.C. rewards program for recyclable containers b. Viva Glam fundraiser for AIDS and HIV 3. Celebrity make-up artists employed at fashion shows/special events 4. Word of mouth repeats and media attention 5. Expansibility – somewhat expansible

Place

1. Partnered stores 2. Company Owned and Operated Stores 3. 1-800 customer service call center 4. Key distributors in New York and Los Angeles 5. Channel: M.A.C. – (Distributors) – Proshops/Stores/Partners – consumer/user F. Other 1. Public Image a. High brand equity b. Employees in all black apparel c. Unique shopping experience 2. No commission-based salary 3. Competition a. 10 new makeup brands on market by 1996 b. Non-mainstream brands for professionals c. Unofficial M.A.C. websites in Canada d. Competition becoming internet-based 4. Estimated online gross profit (in thousands) a. Information-oriented website: $3,150 b. Retailer website: $3,825 c. M.A.C. e-commerce website: $4,425

Problem/Opportunity

A. Primary – What type of online service to provide B. Secondary 1. Opportunity to affiliate with partnered stores through M.A.C. website 2. Losing professionals to new professional-only brands 3. Low consistency of service results from M.A.C. survey

Recommended Action

A. Primary – Information-oriented website B. Secondary 1. Offer partnered stores logo and link space on M.A.C. site 2. Mobile Proshops offering M.A.C-PRO product line 3. Customer service training programs

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