Individual
Research Brief
MKT20019 - Marketing Research and Analysis
VUONG BAO KHANH
104064288
Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
1. Executive summary........................................................................................................... 2
Marketing problem..............................................................................................................2
Research problem.............................................................................................................. 2
Research Objective No.1................................................................................................... 2
Research Objective No.2................................................................................................... 3
2. Background........................................................................................................................ 3
Internal background........................................................................................................... 3
External background.......................................................................................................... 4
3. Marketing problem and research problem...................................................................... 5
Marketing problem..............................................................................................................6
Research problem.............................................................................................................. 6
4. Research objective and research question..................................................................... 6
Research Objective No.1................................................................................................... 6
Research Objective No.2................................................................................................... 7
5. Reference............................................................................................................................8
6. Appendix............................................................................................................................. 9
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
1. Executive summary
Ladder Art Space (LAS) is an art exhibition located in Kew that provides Paint and Sip
sessions. Despite the high quality of its goods, LAS encounters competition within the art
sector. Competition can also be influenced by external variables such as municipal art
installations and cultural events. Gender disparities have a discernible impact on the target
demographic, with women exhibiting higher levels of engagement in the domain of art. In
order to tackle the obstacles at hand, the LAS organization endeavors to ascertain its
intended recipients and employ efficacious promotional tactics. The research objectives
encompass the exploration of demographics, interests, and preferences, with a particular
focus on elucidating the impact of gender on levels of engagement. The objective of LAS is
to identify the most effective marketing channels, communication strategies, and optimal
user engagement times. Also, focusing on increasing the reach of the Paint and Sip service
and augmenting the prominence of the brand.
Marketing problem
Ladder Art Space faces competition from other art-related alternatives and has difficulty in
reaching its target audience and creating awareness of Paint and Sip.
Research problem
Identify who is most likely to participate in Paint and Sip and how they want to receive
information about the services
Research Objective No.1
In order to gain insight into the demographic layout, interests, and behavioral patterns of the
target audience for Ladder Art Space
●
Does gender (male/female) affect the difference in interest in the three services
Public Workshops, Public Paint Your Pet workshops, and Private Painting Parties?
●
What are the demographics of individuals most likely to become the customer of
Paint and Sip?
●
What are the differences in customer interest in the three services?
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
●
What is the difference in interest between the art exhibition service and the Paint and
Sip?
●
What is the difference in demographic (age and gender) between the art exhibition
service and the Paint and Sip?
Research Objective No.2
●
To acquire valuable insights into the optimal marketing strategies and methods for
effectively engaging with target audiences and enhancing awareness of the Paint
and Sip service
●
What is the best social media platform in terms of getting a high engagement rate?
●
Which form of communication raises the most awareness about the services? (Email,
Cold call, etc)
●
What time of day are users most interested in art content?
2. Background
Internal background
Ladder Art Space is a painting exhibition in the heart of Kew, discovered by Maryam Safina.
The arts have long been viewed as therapeutic (De Petrillo & Winner 2005). Based on that,
LAS was created with the mission of providing an active destination, a platform where we
can all move forward together.
More than just a painting exhibition that changes monthly, LAS also offers Paint and Sip
workshops, which are art classes for all ages and levels. LAS has done a great job in paying
attention to customer experience when this factor is the core value of a service business.
LAS workshops are designed so that people of all levels can participate. For those who have
no experience in drawing, LAS with its dedicated staff will guide participants step by step.
Additionally, to further enhance the customer experience, LAS allows participants to bring
food and drinks during the session.
Customer experience is becoming increasingly
important for service organizations as a source of sustainable competitive advantage
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
(Teixeira et al., 2012). For service designers like Ladder Art Space, it is essential to consider
it as the foundation for any service design.
Starting from that core element, Ladder Art Space offers 3 different types of workshops to
diversify products and personalized services for many interests and preferences. In
particular, customers want to receive personalized services or products based on their
preferences (Hong et al., 2009). LAS has created public and private service groups and an
even smaller group of animal lovers, there are Public Workshops for socializing, Public Paint
Your Pet Workshops for animal lovers, and Private Painting Parties for customized events.
Although Ladder Art Space offers good quality products that are unique and have a high
level of customer experience, they are having difficulty raising awareness among customers
about the Paint and Sip. Ladder Art Space has not yet conducted a marketing campaign
about the services on social media platforms such as Facebook and Instagram. On those
two platforms, customer awareness about Paint and Sip has not been created as there is no
content mentioned about it (Appendix 1). According to Oosga, throughout 2022, there were
an average of about 21.2 million monthly active social media users in Australia and an
average of about 1.95 hours spent on social media. This fact proves that the entertainment
of social networks is huge, affecting customers' shopping decisions. In this aspect,
Instagram and Facebook score highest among social media platforms. If an advertiser has
the right content to fill an empty moment, these platforms are very useful (Voorveld et al.,
2018).
External background
The Art Galleries industry has low market share concentration according to IBIS World 2023,
with the four largest companies expected to account for less than 30% of industry revenues
(Appendix 2). Market share concentration is important because it can show the level of
competition in a market, the lower market share concentration means higher competition in
the field as the top firms are not contemplating the market production (The Economic Times
2023). Art Galleries are highly dispersed, with many small-scale venues holding 70% of the
industry, according to ABS. Those venues are Ladder Art Space's direct competitors as it is
considered to be an SME.
According to Visiting Victoria, in Melbourne the number of art galleries numbers over 100
ranging from large public galleries to smaller independent commercial galleries and artist-run
spaces. One of the biggest competitors is Artvo, a "trick-art", self-guided gallery, suitable for
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
all ages and visitors. Artvo has an impressive number of reviews with more than 4,000 and
an overall of 4.7 stars on Google Maps, becoming one of the places with the highest number
of reviews in Melbourne (Appendix 3). Compared to the number of 235 reviews and a total
stars of 5, Ladder Art Space is much lower than Artvo in terms of the number of reviews and
the total star difference is not much. A statistic by Samstemler in 2021 shows that 92% of
customers will read Reviews before making a decision. The key is that when deciding
between two or more options, customers often choose the place with more quantity and
quality of reviews (Chen et al., 2022).
According to The Conversation in 2017, Australia is considered a creative country with 98%
of the population of all ages and genders having been exposed to art. Among them, 97% of
people aged 15 - 24 have been exposed to online art. This shows that art has had a positive
influence on Australia, with young people recognizing this most clearly. This effect seems to
diminish with age, as with most art forms.
Gender differences are also a factor that greatly influences the target customer building.
While women spend a lot of their free time on one form of art, men are completely focused
on games and computers (Marner et al., 2013). Another study published in 2012 showed
that the rate of exposure to art for women was 66.9%, of which men accounted for only
36.4%, with the remainder being of unspecified gender (Davis et al., 2012). As for the
proportion of people currently living in Kew in 2021, women account for 51.9% of the total
population and 48.1% is the proportion of men (ABS 2021). These numbers will be a
measure for Ladder Art Space to have a clearer insight into its audience.
3. Marketing problem and research problem
Based on both internal and external background, it is possible to give an overview. Although
Ladder Art Space has potential products with Paint and Sip, the market is very competitive
with a market concentration rate of less than 30% and brand awareness is not high for new
services because the marketing campaign does not meet the effectiveness. Therefore, it is
important that Ladder Art Space answer the two questions Who and How? Who are the
target customers? and How to reach them.
Ladder Art Space's goal for the next 12 months is to grow its Paint and Sip service and
reach a broader customer group. This knowledge will be utilized in future study efforts aimed
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
at identifying a particular marketing problem and defining appropriate courses of action.
Furthermore, it enables the identification and examination of a specific research problem
through the analysis of focused and precise subjects.
Marketing problem
Ladder Art Space faces competition from other art-related alternatives and has difficulty in
reaching its target audience and creating awareness of Paint and Sip.
Research problem
Identify who is most likely to participate in Paint and Sip and how they want to receive
information about the services
4. Research objective and research question
Research Objective No.1
In order to gain insight into the demographic layout, interests, and behavioral patterns of the
target audience for Ladder Art Space
●
Does gender (male/female) affect the difference in interest in the three services
Public Workshops, Public Paint Your Pet workshops, and Private Painting Parties?
●
What are the demographics of individuals most likely to become the customer of
Paint and Sip?
●
What are the differences in customer interest in the three services?
●
What is the difference in interest between the art exhibition service and the Paint and
Sip?
●
What is the difference in demographic (age and gender) between the art exhibition
service and the Paint and Sip?
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
Research Objective No.2
●
To acquire valuable insights into the optimal marketing strategies and methods for
effectively engaging with target audiences and enhancing awareness of the Paint
and Sip service
●
What is the best social media platform in terms of getting a high engagement rate?
●
Which form of communication raises the most awareness about the services? (Email,
Cold call, etc)
●
What time of day are users most interested in art content?
These objectives and research questions assist in building a foundation in business
development for Ladder Art Space and solve research problems by providing information
about the differentiation between subjects (age, gender) with the Paint and Sip services that
LAS is providing. Also solving the problem of how to reach those audiences, to maximize
engagement rate.
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
5. Reference
ABS 2021, 2021 Kew (Vic.), Census All persons QuickStats, Australian Bureau of Statistics,
viewed
1
October
2023
<https://www.abs.gov.au/census/find-census-data/quickstats/2021/SAL21336 >
Chen, T. et al. 2022a ‘The impact of online reviews on consumers’ purchasing decisions:
Evidence
from
an
eye-tracking
study’,
Frontiers
in
Psychology,
13.
doi:10.3389/fpsyg.2022.865702.
Davies, C.R. et al. 2012 ‘Defining arts engagement for population-based health research: Art
Forms, activities and level of engagement’, Arts &amp; Health, 4(3), pp. 203–216.
doi:10.1080/17533015.2012.656201.
De Petrillo, L. and Winner, E. 2005 ‘Does art improve mood? A test of a key assumption
underlying
art
therapy’,
Art
Therapy,
22(4),
pp.
205–212.
doi:10.1080/07421656.2005.10129521.
The Economic Times 2023 What is market concentration?, The Economic Times viewed 1
October 2023 <https://economictimes.indiatimes.com/definition/market-concentration>
Hong, J. et al. 2009 ‘Context-aware system for proactive personalized service based on
context
history’,
Expert
Systems
with
Applications,
36(4),
pp.
7448–7457.
doi:10.1016/j.eswa.2008.09.002.
Jo, C. 2023 Creative country: 98% of Australians engage with the Arts, The Conversation,
viewed
29
September
2023
<https://theconversation.com/creative-country-98-of-australians-engage-with-the-arts-80145
>
Marner, A. 2013 ‘Digital media embedded in Swedish art education – A case study’,
Education Inquiry, 4(2), pp. 355–373. doi:10.3402/edui.v4i2.22078.
Social Media in Australia - 2023 stats & platform trends (2023) OOSGA. Available at:
https://oosga.com/social-media/aus/#:~:text=How%20are%20users%20distributed%20in,82.
(Accessed: 02 October 2023).
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
Stemler, S. 2022 30 impactful statistics about using testimonials in marketing, Boast.
Available at: https://boast.io/20-statistics-about-using-testimonials-in-marketing/ (Accessed:
02 October 2023).
Teixeira, J. et al. 2012 ‘Customer experience modeling: From customer experience to
service
design’,
Journal
of
Service
Management,
23(3),
pp.
362–376.
doi:10.1108/09564231211248453.
Vining, A.R. 2011) ‘Public agency external analysis using a modified “Five forces”
framework’,
International
Public
Management
Journal,
14(1),
pp.
63–105.
doi:10.1080/10967494.2011.547819.
Voorveld, H.A. et al. 2018 ‘Engagement with social media and social media advertising: The
differentiating
role
of
platform
type’,
Journal
of
Advertising,
47(1), pp. 38–54.
doi:10.1080/00913367.2017.1405754.
IBIS World 2023 ‘Art Galleries and Museums in Australia’, IBIS World, viewed 29 September
2023, <https://my.ibisworld.com/au/en/industry/r8910/at-a-glance>
6. Appendix
Appendix 1: Ladder Art Space’s Facebook and Instagram profile as of September 29th, 2023
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Vuong Bao Khanh | MKT20019 - Marketing Research and Analysis
Appendix 2: Market Share Concentration of the Art Galleries and Museums Industry in
Australia from 2018 to 2023
Appendix 3: Artvo’s Google Map Profile as of September 29, 2023
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