ArtSphere

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Art School Gallery Business Plan

Market Analysis Summary

The offerings by ArtSphere require, by their very nature, an investment of time on the part of the purchaser. Three customer groups have been identified based on the availability of time on their part:

  • School-aged (over 10 yrs).
  • Retired/non-working.
  • Working/evening class.

This accounts for virtually everyone in Birmingham, AL older than 10 yet younger than 75. It would be more accurate to state that these people will seek, during their respective free hours, some hobby, some pleasant, time-filling activity, or other form of relaxation.

4.1 Market Segmentation

Market Group Time Slot Size of Market
School-Aged (Over 10 years)3:30 P.M. to 5:30 P.M. 1,666
Retired/Non-Working 9 A.M. to 3 P.M.2,645
Working/Evening Class 7 P.M. to 9 P.M. 12,042
TOTALAll time slots16,353

The total figure of 16,353 accounts for virtually everyone in Birmingham, AL older than 10 yet younger than 75. Even though there are people older than 75 and younger than 10 who actually take art lessons, the market analysis should not be taken to mean that 16,353 persons in Birmingham, AL are in search of art instruction.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
School-aged 1% 1,666 1,683 1,700 1,717 1,734 1.01%
Retired/Non-work 7% 2,645 2,830 3,028 3,240 3,467 7.00%
Working/Evening Class 9% 12,042 13,126 14,307 15,595 16,999 9.00%
Other 0% 0 0 0 0 0 0.00%
Total 7.94% 16,353 17,639 19,035 20,552 22,200 7.94%

4.2 Target Market Segment Strategy

Our ultimate goal is to fill all of our scheduled class offerings and fully utilize our newly expanded teaching space. To do that we have looked at the daily time periods when we wished to teach, and then identified the market segment most likely to seek art instruction during those times. We then tailored our class offerings to appeal to the interests and life styles of those people.

We then priced the classes competitively for adults and children and then grouped the lessons into prepaid monthly blocks to fit peoples' various budgetary needs.

4.2.1 Market Needs

There currently is a need in Birmingham for regularly scheduled, moderately priced, locally sited art instruction classes, available at different times of the day. Existing venues are either fully booked and unable to serve a larger market segment, are membership groups, or are sideline businesses.

The people of Birmingham need more art instructional opportunities, especially ones focused and tailored to the interests, skill levels and time availabilities of the students.

4.3 Service Business Analysis

Art instruction is offered in several ways:

Artists who teach classes

  • To supplement or support their own fine art endeavors.
  • Sideline businesses.
  • Poor setting, usually taught in "extra" or crowded space.
  • Limited class offerings.
  • Prices vary.

Private tutors

  • Very focused instruction for serious students.
  • Expensive.

Arts associations/museums

  • Offer classes to members or the general public.
  • Limited offerings.
  • Often taught by volunteers.
  • Prices generally affordable. May vary with membership.

Galleries

  • Employ artist instructors - classes are marketing tool.
  • Sponsor classes by artists currently displayed.
  • Class offerings often limited to gallery's genre.
  • Prices vary.

Schools and Colleges

  • Classes may be academia focused.
  • Travel may be necessary.
  • Time slot offerings may be limited.
  • Long term committment to class.
  • Prices may vary.

4.3.1 Main Competitors

Outside of the ArtSphere there are other locations in Birmingham where art lessons are available:

ART SCHOOL OF BIRMINGHAM

This school is located in a room of the Professional Building at 1331 Milgray Lane. Paul Nash has been teaching there in the evenings and on Saturday mornings  since 1975. He has room for about 12-15 and teaches a structured approach. Paul is well-known within the town, having taught art on the local TV channel. The main thrust of his business appears to be his portrait business which is located on School Street across from the Cafe Roma. Lessons are sold in blocks of four for $56. Each lesson is an hour and one half.

Paul mentioned that his classes are generally booked up. He does not offer lessons during the day.

The Art School of Birmingham is listed in the Yellow Pages, Nash's artwork is shown in several local galleries, and as a teacher, he gives a convincing impression of professionalism when talking about his teaching method.

BIRMINGHAM ART WORKS

Hannah Rogerson Nash has a studio located on the second floor of the same School Street building which houses Paul Nash's portrait studio. Hannah has, using her own description, a very unstructured approach to teaching art. She is willing to teach anything a person might want to learn. Her Friday afternoons are completely occupied with children, but other than then she is wide open. She did mention teaching two women and a 12-year-old. No schedule of classes or fees is posted outside her studio door and she is not listed in the Yellow Pages. She has placed a small ad in the local paper offering an "Art Workshop." Within the same ad she offers "orchids, plants, & plant care" indicating that art lessons are not her major line. She mentioned on the phone a price of $20 for a two hour group lesson and $30 for a private lesson. Being able to offer a "private" lesson would indicate a rather light teaching load.

BIRMINGHAM ARTS ASSOCIATION

Birmingham Arts offers a selection of four art classes during the day. They are described in their news letter which is mailed out only to members. Enrollment in the classes does not always reach the cut-off point of six in which case the class is cancelled. A typical class is two hours one morning a week, and runs for six weeks. Cost is $84 for members, slightly more for non-members. This works out to $7.00 per instruction hour.

There are also some courses offered in near-by Bessemer:

BESSEMER STATE COLLEGE

The Bessemer State College Community Enrichment Program offers several art classes in the evenings. A typical class (Introduction to Drawing) is offered Thursday evenings from 7:00P.M. to 9:30 P.M. and costs $68 for six sessions. Average cost works out to be about $4.50 per instruction hour. Notification of these courses is mailed to all residential addresses in Birmingham.