CASE STUDY: MARSHANT MUSEUM OF ART AND HISTORY A.

COMPANY BACKGROUND Marshant Museum of Art and History (MMAH) was founded in year 1925. It is a not-forprofit corporation located in Universal City, a large metropolitan area in the western United States. This museum was originally chartered as the Fannel County Museum of Fine Arts and funded by an annual appropriation from Fannel County. In year 2000, the name was changed to the Jonathon A. Marshant Museum of Art and History to recognize the museum’s major benefactor, Jonathon A. MArshant. He is a wealthy local landowner and philanthropist who provided the museum with a sizable endowment. $25 million gift given to the museum upon his death,, the museum charter was revised and its name changed. The charter of the museum stated that its purpose was: “To provide an inviting setting for the appreciation of arts in its historical and cultural contexts for the benefit of this and successive generation of Fannel County citizens and visitors.” In year 1997, MMAH received $28 million county bond election, which led to the construction of a new and expanded facility in the central business district of Universal City, the county seat of Fannel County. The new building located at six blocks from the previous site had extensive parking space and access through public transportation. The museum has over 15000 works of art in its permanent collection. MMAH collection includes pre-Columbian, African, and Depression-era art, European, and American decorative arts as well. MMAH collection is open for viewing from Monday to Saturday (10am-6pm) and Thursday evening until 8pm. Sunday hours are from 12pm until 6pm. There is no charge for viewing the permanent collection. However, a modest fee of $3-$5 is charged for special exhibitions. MMAH is also available for private showings and often used for corporate, foundations, and various fund-raising events during weekday and weekend evenings. The museum is organized by 3 departments: (1) Collections and Exhibition, (2) Development and Community Affairs, and (3) Finance and Administration. Currently, Marshant museum has a staff of 185 employees. In addition, 475 volunteers work at the museum in a variety of capacities. MMAH has two distinct memberships: (1) personal and (2) corporate. These two memberships are further divided into categories based on dollar contribution and

benefits received. There are 6 categories of personal membership ranging from $50 per year to $5000 per year. Corporate memberships are divided into 4 categories ranging from $1000 per year to $10000 per year. These categories and participation levels were created with the move to the new building. In 2004, there were 17429 personal memberships and 205 corporate memberships. In conclusion, Marshant Museum of Art and History maintains a close relationship with local media to release stories about art and history, public programs, and human interest issues. This is to ensure the communication with the public about the latest update of museum. Besides that, MMAH also engages in programming to educate public for community involvement. Last but not least, public service announcements written by the museum are aired on local radio stations to promote special exhibitions.

B.

SWOT ANALYSIS • As stated in the purpose of the museum, it shown that museum is a place where to provide an inviting setting for the appreciation of art in its historical and cultural contexts for the benefit of this and successive generations of Fannel County citizens and visitors. It means that the museum gives an opportunity to the citizens to appreciate and show respect to the ancestors. • • Marshant Museum also offers an extensive parking availability and access through public transportation. The greatest strength is that it was publicly mandated. As stewards of the public trust, the museum can now focus on collecting significant works of art, and encouraging scholarship and education and decoding the history and culture art. • The museum has a uniformed and organized structure as it is held by 3 functions in which each function is headed by a director who reports to the Museum Director. It is also divided into respective departments, such as Collections and Exhibitions, Finance and Administration, the Development and Community Affairs, and etc. • Marshant Museum has the best balanced collection between Western and nonWestern art of any museum in the country.

Strengths

Weaknesses • Marshant Museum does not display all of its collection at the same time because of space limitations. Besides, Artworks in the collection are rotated, with some periodically loaned to other museums. • Basically the Marshant Museum has no identified and clear image. Many of the citizens are not interested in high culture and think this is a drive-in bank or an office building.

Revenues are more relied on the appropriations by Fannel County and also the memberships contribution.

Opportunity 1. MMAH offers a unique perspective on art and history • MMAH has its own unique charateristeric, that is being the only museum in the city to offer art and history collection. This enable MMAH differentiated with other museum’s collection that just provides history collection. By spanning both art and history, this gives an opportunity for citizens and visitors to gain additional knowledge and have more understanding in art, historical and cultural context. 2. MMAH has many art and history collection. MMAH exhibits more than other competitors in the same field. • MMAH has over 15000 works on art in its collection. These artworks enable MMAH an opportunity build stronger image in this industry. Visitors will have positive and good impression towards MMAH due to its collection. This will help MMAH build its reputation and customer loyalty in future. 3. MMAH’s artworks are loaned to other museum. • This action enables MMAH to gain additional profits and stabilize its financial strength. MMAH is a non-for-profit corporation; its revenue is depending on community. By loaned some artworks to other museum, this is a great opportunity for other museum to exhibit MMAH’s collection besides gain extra profits. People will have an opportunity to view the special artworks collection. Threat 1. Difficulty for a person to appreciate MMAH’s artworks collection • A person can only truly appreciate MMAH’s artworks collection if they are willing to become historically literate. This is a challenge for MMAH because nowadays people are lack of interest in historical artworks. Their perception towards historical artworks as outdated and boring.

2.

Advancement of technology • Technology advancement makes people more convenience and easy steps to view and search art and historical collection. Not like past time, people need go to museum if they are interesting in historical artworks collection. But the situation changes as introduction of technology, people just search through internet and there is lots of information regarding what they need to know.

2.

Compete with other competitors in the same industry • MMAH is competing with other museum in order to gain people attraction to visit their museum. Therefore, MMAH needs more promotion strategy to maintain its competitive advantage and build stronger reputation.

C.

RECOMMENDATIONS

1. Cost reduction In effort to reduce cost that bear by Marshant Museum of Art and History (MMAH), Ashley Mercer, Director of Development and Community Affairs, and Donald Pate, Director of Finance and Administration can suggest to implement reduction in personnel and administration costs. This is an effective way to help improve MMAH financial status. MMAH can reduce 10 percent in personnel and administration by reduce numbers of employees and the salary given to their employees. Supplement cost such as electricity and waters can be reduced also. 2. Admission and membership fees In order to help MMAH improve their financial status, Mercer and Pate can suggest implementing admission fee to visitors. The admission fees can be $1.00 for adult (with no charge for children under 12 years old). Mercer and Pate also can suggest to implement membership fees at $30 annually to instituting student ages 13 to 22 and senior citizen age 60 and above. The current membership fees are six categories ranging from $50 to $5000 per year

for personal membership and four categories for corporate membership ranging from $1000 to $10,000 per year. 3. Advertising and promotion In order to help MMAH to attract more visitors to gain more income, Mercer and Pate should suggest to increased advertising and promotion effort to highly promote MMAH. Since MMAH had only been promoting special exhibitions and events, it is a need to rise up the institutional advertising. The benefits given to members also needed to be enhanced. For example, discounts given at the Skyline Buffet and gift shop can be raise up to 20 percent. MMAH can also commissioning a “coffee table” book featuring major artwork at the MMAH to be given with personal memberships of $500 or more. This is also one of the effective ways to help improve MMAH financial situation. 4. Period Promotion • • • • • The Museum Association can offer the special discount to the members. For example, when the MMAH organizes special events, the members can enjoy the special discount on the related souvenir or ticket purchase. The MMAH can offer the special discount on membership application during special occasions. For example, on the Museum Anniversary, the public can apply the membership on discount. It can encourage membership involvement in the MMAH.

5. Museum Image • • • • Most art museum in America have a problem with image. MMAH should make a sufficient effort to create an image for itself. Increase the public awareness about the specialties and differences of the Museum if compared with the old style museum. Change the peoples’ thinking about the museum’s image and character.

• •

It is because most of the people do not know what nowadays the Museum offered in the way of lunch, dinner, brunch, shopping, movies, etc. Create a clear image about the Museum when they promote the activities organized by the Museum in order to enhance their image and display their unique to the public.

6. Education Program • • • • • • In the articles, Brent commented that many people think there is something wrong with the Museum. So, the Museum should take the responsibility to educate the public what the Museum is. For example, to educate the public about the Museum’s advantages and contributions to our society. The Museum can introduce their history, happenings and benefits through the press. The Museum can also enhance the education and outreach program. To attract more adults tours and school tours which directed toward educating the public.

D.

CONCLUSION In order to alter the deficit situation of Marshant Museum of Art and History, Ashley

Mercer and Donald Pate need to carry out appropriate strategic. Six recommendations are listed to transform the deficit net profit to positive profit retained. Consequently, our group consistently suggests that Ashley Mercer and Donald Pate should use sufficient advertisement and promotion to inflect the condition. We belief that sufficient exposal can increase and capture attention of public. The size of exposal induces the volume of visitors. Beside that, promotion will increase the participation rate of public. Promotion will drive public’s interest and loyalty to the museum.

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