Napoles, Hannah Vaniza D.

BSMA 3A 3/23/2022 1

MARKET ANALYSIS ON MASTERPIECE

I. Executive Summary

A. Company Background
In the year 2020, Catherine Primak discovered the MASTERPIECE. Within six months,
while she was teaching art, she had developed her own art style. Her experiences within the art
studio has evolved and deepened her passion, especially that she gets to socialize and learn from
the several novice and local artists. The MASTERPIECE is a successful and an independently
owned paint and sip studio located at Mandaue City, Cebu. The business offers public painting
classes aimed for novice painters, and encourages the attendees to bring their own wine and
snacks to enjoy during the two-hour classes.
As the community welcomed this new and innovative business , the first two years were
extremely successful for MASTERPIECE. The holidays continue to be profitable; many local
businesses and civic groups hold holiday or year-end parties there. It began offering paintings
designed specifically for children during the summer. No alcohol is allowed on the premises
during the classes marketed toward children. However, class size at MASTERPIECE has been
declining for the last several months at both regular classes and children’s classes. Once a
customer has painted two or three paintings, there is no need to acquire more artwork. While the
experience is positive and reviews are outstanding, it is difficult for customers to justify more
than two or three pieces of homemade paintings.
Currently, MASTERPIECE’s customers are predominately women. Since over 80% of
our clientele are female, in order to ensure the growth of business it is suggested to focus on the
demands of female consumers. Women and shopping as Koudelka et al. (2008) stated, the
buying behavior is influenced by biological sex. Men and women perceive, believe and behave
in ways unique to their gender. A survey was conducted and later found a strong link between
female and fashion. Hence, the marketing analysis wants to expand the company’s operations by
providing Wearable Arts. Wearable Arts is a term that the company will use in referring the
products such as hand painted bags, scarves, and earrings. As fashion is also an art, it is viable
for the company, likewise conforms to its vision and mission.

B. Vision
To build a world enriched by artists and designers who are empowered to create with profound
and practical impact.

C. Mission
Making the arts accessible, inclusive, and meaningful through diverse approaches.
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D. SWOT Analysis

Internal factors

Strengths
- We are innovative and engaged in
the creative entertainment market.
By providing art and social event.
- Located in a strip mall which is just
accessible.
- Flexible schedule for the customers.
Weaknesses
- Sales are declining
- No other products are being
offered.
- No other mediums of painting,
only painting in canvas is
available.

- Additional service are offered such - No promotions or discounts

as private parties. offered.

Negative influences
Positive influences

Opportunities Threats
- Provides us unlimited opportunities - Declining rate of customer’s
to sell our service and products to repeat purchase.
200,000 people.
- Economic downturn that affects
- MASTERPIECE’s customers are purchasing/spending power.
predominately women
- Change in prices of raw
- Adapting to market trends and materials.
changes.
- Competitors that offer similar
- Other ways to express art. goods and services to the
customers.

External factors

II. Statement of the Problem

Class size at MASTERPIECE has been declining for the last several months at both regular
classes and children’s classes. Once a customer has painted two or three paintings, there is no
need to acquire more artwork. While the experience is positive and reviews are outstanding, it is
difficult for customers to justify more than two or three pieces of homemade paintings.
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III. Alternative Courses of Action

A. Launching Wearable Arts

Launching products as an extension of our service. Currently, MASTERPIECE’s customers are
predominately women. Since they are the target users with greatest potential lifetime value, to
ensure the growth of business it is suggested to target female consumers. Studies have found that
there is a strong relation between female and fashion. The company can launch new products
such as hand painted bags, scarves, and wooden earrings– which we will call as Wearable Arts.
The company can also offer services that teaches female clients how to personalize and hand
paint themselves our newly offered products. In this way, we can deliver our art while catering to
what the female consumer’s demand.

B. Create promotions
To ensure increase of repeating consumers the company can create promotions, such as:
- Payday sale (10-20% discounts every mid and end of the month)
- We can purchase BOGO items for customers (Buy one, get one)
- Increase online presence by posting in Social Medias or collaborating with YouTube
artists that is inclined with art.
- Hand painted ads and signs.
In this way we can encourage new customers, and associate their brain by letting them comeback
at a specific date to avail our products and services.
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C. Café-meets-art space
Coffee shops are the top market trends of today. By taking advantage of this fact, the company
could provide hybrid spaces like café-and-art space. This way we can capture the increase of
repeating customers. Hence, they can go our shop to grab a coffee and take advantage of the Wi-
Fi. It might be to browse the art from local artists on the walls, or might be to take in an art class.

IV. Pros and Cons

A. Launching Wearable Arts
Pros Cons
Launching these products can Additional effort, time, cost,
encourage diverse means of and expenses.
expressing arts.
It can cater to female target
market consumers which are
dominant in our business.

B. Create promotions Entice customers, and can Changes customers' price

increase the rate of repeating perceptions which can limit
customers. your revenue.
It can also encourage habit
building.
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C. Café-meets-art space
Provides new and refreshing Additional effort, time, cost,
experience for the customers. and expenses.
Can capture wider target Cannot directly target female
market that eventually will consumers, since males are
give us more opportunities. the top consumers of coffee.

V. Recommendation and Plan of Action

After the thorough analysis, the most viable and recommended action is letter A and B– by launching
Wearable Art products and implementing promotions. This way we can ensure the company’s growth in a
way that is still in accordance with its vision and mission. Aside from capturing the future growth of the
business, the company could also employ more people, and introduce innovation that could help fill
important gaps in the market, while boosting productivity in the economy.