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-for-

profit 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

Strengths

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 non-

Western art of any museum in the country.

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.