The Northfield Arts Guild 2016 Strategic Marketing Plan

Maya, Tram, Brice, Evan, Luke

Management Studies 250

Table of Contents Organization Mission and Objectives Overview……………………………. Mission………………………………………………………………... Vision………………………………………………………………….. Guiding Values…………………………………………………………. History……………………………………………………………………... Goals of 2016­2018 Strategic Plan……………………………………. Marketing Plan Objectives……………………………………………... Current Target Market/Strategy………………………………………………. Target Market…………………………………………………………….. Current Marketing Strategy……………………………………………... Highlights from Current Marketing Strategy in 2015……………….. Opportunities for Improvements from 2015 Marketing Strategy…... Competition…………………………………………………………………….... YMCA……………………………………………………………………. St. Olaf College/ Carleton College…………………………………………

Northfield Dance Academy……………………………………………….. Northfield Public Schools………………………………………………… General Industry Considerations………………………………………….. Arts…………………………………………………………………….. Entertainment via Theater…………………………………………………. Non­Profit Organizations…………………………………………………. CDSTEP………………………………………………………………………….

Social/Cultural Trends………………………………………………….. Demographics…………………………………………………………… Technological Considerations………………………………………… Economic Environment…………………………………………………. Political Legislations…………………………………………………….

SWOT Analysis……………………………………………………………….. Competitive Advantage……………………………………………….. Conclusion……………………………………………………………. STP, Implementation, and ROI………………………………………………..

Segmentation…………………………………………………………… Retirees…………………………………………………………. Hispanic Community…………………………………………… Parents with kids aged 12 and under…………………………

Targeting………………………………………………………………... Target Market Profile…………………………………………..

Positioning……………………………………………………………… Product………………………………………………………. Place……………………………………………………………

Promotion………………………………………………………. Price…………………………………………………………….

Implementation………………………………………………………… Co­Branding and co­locating arts events……………………. Family Oriented Memberships and Events………………….. Social Media Campaign………………………………………..

Return on Investment……………………………………………………

Northfield Arts Guild Organization Mission and Objectives Overview: 1

Mission: To inspire our community by developing, supporting, and providing quality inclusive artistic opportunities. Vision: An evolving community where the arts fuel vibrant growth. Guiding Values:

1. Creativity 2. Respect 3. Collaboration 4. Joy 5. Quality 6. Heritage

History: 2

NAG was established as a non­profit organization in 1961. serving Northfield for over 55 years..

In 1988, NAG raised enough funds to purchase an historic building from the city of Northfield. This building provides space for classes, galleries, and administrative offices.

Many of the classes, events, and showcases are made possible by volunteer efforts. The Guild had their most successful year to date in 2013 when over 31,000 people

frequented the Guild for classes, displays, and showings. Since it’s inception, the Guild has always upheld the “Community Based...Member

Driven” motto. Goals of the 2016­2018 strategic plan:

1. Maximize the Northfield Arts Guild’s role as a leader in the development, support, and production of art in the community.

2. Serve more community members through the Northfield Arts Guild program offerings. 3. Strengthen the Northfield Arts Guild’s financial position. 4. Increase the awareness and understanding of the Northfield Arts Guild’s value and

impact. 5. Strengthen the Northfield Arts Guild’s organizational infrastructure to enable the

organization to meet its strategic goals. 6. Maximize the use and effectiveness of the current Northfield Arts Guild facilities.

1 http://northfieldartsguild.org/ 2 http://northfieldartsguild.org/about/history/

Marketing Plan Objectives: 3

Goals 1. Increase awareness and understanding of the Northfield Arts Guild’s value and impact. 2. Develop and implement a comprehensive marketing and communications plan that

includes touch points with all key stakeholder audiences. 3. Align communication plans for NAG with all key initiatives and programs to ensure clarity

of message. 4. Develop an institutional marketing plan that promotes the long­term sustainability of the

Northfield Arts Guild. Current Target Market/Strategy Target Market: The Northfield Arts Guild currently targets residents of Northfield:

Local gallery showings (Tandem Bagels, Archer House, F­Town Brewery), theater productions, and classes are directed at appealing to residents of Northfield as the majority of these events take place throughout the Northfield community.

Current Main Audience: Older Population of Northfield

More likely to be members and more likely to be donors to NAG. Continued reliance on an aging demographic is not sustainable. 42.9% of respondents to the October 2015 survey were over 56 years old. 4

Events appeal to large and diverse age groups:

Young Kids: Dance, music, ceramic classes.

Middle Aged Adults / Young Professionals: Music concert series (411 Series), art classes, and Social Ballroom and Latin

dance classes. Older Population of Northfield:

Theater productions, art showings, and musical performances.

3 https://moodle­2015­16.stolaf.edu/pluginfile.php/31256/mod_resource/content/2/NAG.pdf 4 see survey data in appendix

Current Marketing Strategy : 5

Products: Variety of classes (theater, visual arts, ceramics) Dance courses (tap, ballet, adult ballroom, line and more) Art showings and galleries (Visual arts are the activities most frequented by current NAG

members) 6

Theater productions and special theater events (Theater events are a close second frequented event)

Music Events (411 Concert Series which brings in a variety of international artists recording artists to perform in more intimate settings)

Place:

Classes: Variety of locations around Northfield and Faribault such as the Northfield City Hall, the Arts Guild Theater, St. Olaf College, and the Northfield Senior Center.

Galleries: Tandem Bagels, F­Town Brewing Company, the Archer House, and the Guild Gallery.

Being located close to the Twin Cities means that NAG has the opportunity to attract larger audiences to some of its events; however, this also means that people from Northfield will also be attracted to other art events in the cities that are of a bit higher quality/professionally done.

Classes and other programs appealing to kids that are not offered at the school or in close proximity mean that the kids need some form of transportation to get to the events.

Promotion:

Online: Facebook: NAG has an active presence on Facebook, with frequent posts

7

(several times a week) and 775 likes. Instagram: NAG has an Instagram account with only one post and 14 followers e­Newsletters: Outline upcoming events and programs. Website: A detailed website offers information about programming, events,

classes, its mission, history of the organization, and the current strategic plan. However, the website does not provide users with links to any NAG social media pages.

In print: Printed newsletters mailed to members and flyers placed around town. Prices: 8

Dance classes: $100 to $200 for 3 months of weekly classes Theater production tickets: Approximately $13 for seniors and students and $18 for

adults (varying on production).

5 http://northfieldartsguild.org/ 6 see survey data in appendix 7 https://www.facebook.com/northfieldartsguild/?fref=ts 8 http://northfieldartsguild.org/

Special music events and orchestra concerts: Tickets run around $15 The Guild offers a lot of free events to their members and the community as a whole. 411 Concert Series: Tickets for individual concerts run $25 per person with season

tickets for the 411 Series going for $95. Membership: 4 different levels of membership with benefits (based on an annual fee that the 9

member pays). Student Member ­ $25: Receive a 10% Class Discount.

1. Individual ­ $60: Receive one Arts Guild Theater or CVRO ticket voucher ($18 value), 10% class discount, and 10% off room rental fees.

2. Household ­ $95: Receive two Arts Guild Theater or CVRO ticket vouchers ($36 value), 10% class discount, and 10% off room rental fees.

3. Guild Plus ­ $150: Receive two Theater or CVRO ticket vouchers ($36 value), 10 % class discount, and 10% off room rental fees.

Donations (of money and time):

Money: Contributions to NAG totaled $66,876 in 2015 or approximately 18% of total annual revenues. 10

Donations, in this sense, provide a valuable source of capital and allow NAG to provide more opportunities and programs for the community

Retirees have the most money to donate and report that spending money on others brings them more happiness than spending it on themselves. 11

Time: Volunteers have a large impact on the success of NAG and its variety of events 12

and offerings Help with all aspects of NAG from painting sets, hanging pictures, helping with

administrative work, performing in the orchestra, running the clay studio, selling items in the gift shop, and more.

Highlights from Current Marketing Strategy in 2015: 13

Organization Wide: Over 30,000 people served. 25% increase in membership since January 2015. 71% increase in donations from individuals since 2014. Access to over 600 committed volunteers annually. No balance on line of credit. 38% increase in Facebook likes from 09/01/2014 to 08/31/2015. First “Art and Ale” fundraiser brought in over $4,000 to NAG.

9 http://northfieldartsguild.org/ 10 http://northfieldartsguild.org/_file/Report­FY2015­FINAL­8.5­X­11.pdf 11 http://money.usnews.com/money/blogs/on­retirement/2015/11/16/7­reasons­to­volunteer­in­retirement 12 http://northfieldartsguild.org/support/become­a­volunteer/ 13 http://northfieldartsguild.org/_file/Report­FY2015­FINAL­8.5­X­11.pdf

Increase in grant revenues. 72% increase in event revenues. 61% increase in admissions revenues.

Theater:

All theater productions made their ticket sales goal (many shows selling out). Over 25 volunteers in a 2­day period helped repaint and organize the theater. New lighting and equipment added. Online ticketing implemented.

Visual Arts:

Artist receptions growing, averaging over 150 people. Contributing local artists as well as those from far away (New Mexico). Expanded galleries to Tandem Bagels and F­Town Brewery in Faribault.

Music:

Hosted the sold out grand finale concert of the Gypsy Jazz Jam series, by NAG member Martha Larson, which featured internationally acclaimed guitarist Stephane Wrembel.

Education:

Expanded reach into youth involvement with over 271 (separate) youth served through educational classes with 46% taking two or more classes with NAG.

First year of Purple Door Youth Theater included a full roster of 40 students and 3 sold out performances.

Approximately $2,000 raised for the A+ Scholarship fund through the BUZZ theater campaign sponsored by the A+ Art Club.

Opportunities for Improvement from Current Marketing Strategy in 2015: Fewer people served compared to 2014

30,000+ in 2015 compared to 34,000+ in 2014 Competition YMCA:

14

Offers variety of programs at competitive prices across all age groups Youth Membership ­ $27.50 per month Adult Membership ­ $42.00 per month Family Membership ­ $69.00 per month

Primary focus on promoting healthy lifestyle through sports and physical activity Dance Team/Classes After School/Summer Programs

14 http://northfieldymca.org/membership/

Child Watch Hours Arts & Crafts Events

Brand new YMCA facility in Northfield 31,000 square foot facility with a pool, gymnasium, indoor track, Group Exercise

studio, wellness floor, Child Watch, and locker rooms.

St. Olaf College/Carleton College: 15

Student and professional galleries featuring new and alternating art exhibits. “Making it in the Arts” conferences and presentations meant to support artists and

provide tips for artists trying support themselves as artists. Many if not all events are free and open to the public. Largely attractive to college students (convenience) as well as young professionals. Summer camps open for students to explore and study the arts at St. Olaf ($700 for one

week living and studying on campus). Music Camp Piano Academy Organ and Church Music Academy Theater Camps

Northfield Dance Academy:

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Dance programs/classes for all ages. Musical Theatre Ballet, Tap, Jazz, Pointe, etc. Adult classes

Largely attractive to younger girls in the community. Include registration fees + tuition and costume fees. Tuition ranges from $45/month to $248/month depending on how long of lessons the

student takes. Northfield Public Schools: 17

School­run music and theatre programs. Free for students

Band/Orchestra programs and concerts (essentially free music lessons). After school programs.

These programs and after school activities are extremely convenient because kids do not need transportation in order to get to them ­ they take place at the school where the young students are already at and this is a lot easier for parents

General Industry Considerations: Arts:

15 http://wp.stolaf.edu/arts/ 16 http://www.northfielddance.com/ 17 http://northfieldschools.org/

Declining rates of arts attendance: The percentage of U.S. adults attending at least one benchmark arts activity (i.e. musical, non­musical play, opera, ballet, classical music or jazz performance, and art museum/gallery) in the past year has fallen from 39.0% in 1982 to 33.4% in 2012. In addition, the average number of attendances per person fell from 6.1 in 2002 to 4.8 in 2012.

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Arts and higher education: Young adults, ages 18­34, that are attending a college or university full time, as either an undergraduate or graduate student, attend more arts events than their peers who are not obtaining a degree. 74% of students ages 18­24 and 64% of students ages 25­34 have attended one or more art­related event in the past year, in comparison to around 55% of non­students. 19

Arts and Aging: 20

More than other art attendees, retirees state experiencing high­quality art as a reason for attending.

Retirees are less concerned with price of admission or the venue of the arts event.

For people age 55 and over, the greatest barrier to arts attendance is challenges accessing the location of the event.

41% of retirees were accompanied to arts events by only their spouse/partner, while 33% of non­retirees were accompanied by more than their spouse/partner.

A typical retiree spends about 30 minutes each day volunteering or involved in religious or civic activities. 12.1% of Northfield’s population is over the age of 65, and 21.1% is over the age of 55, so these make great potential volunteers for NAG.

21

The average retiree spends about 1.7 more hours per day doing leisure activities than a non­retiree. 22

Arts and Latinos:

23

Income is not a predictor of arts attendance among Hispanic families ­­ These families tend to save their money for big events they hope to attend. However, they do look for free or inexpensive entertainment.

90% of Latinos say that entertainment about/from Latino culture is important in their lives. 80% say that entertainment that is not from a Latino culture is important to them.

60% of Latinos say that attending arts events as a whole family is best thing to do, but only 41% of families put their money toward events for the whole family.

Latinos attend more visual arts events, such as museums and arts galleries, than performing arts, like theater or symphony.

18 https://www.arts.gov/sites/default/files/2012­sppa­feb2015.pdf 19 https://www.arts.gov/sites/default/files/2012­sppa­feb2015.pdf 20 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf 21 http://money.usnews.com/money/retirement/articles/2013/07/08/how­retirees­spend­their­time 22 http://www.retirement­living.com/proaging­network/study­reveals­how­retirees­spend­their­time/ 23 https://www.azmc.org/wp­content/uploads/2012/12/arts_culture_and_the_latino_audience.pdf

Attendance rises in the highest income group, in comparison to middle and lower income groups.

Latinos respond well to discounts. Language proficiency determines participation in arts events for Latinos. Latinos

who are bilingual or have English as a first language participate in the arts more.

Entertainment via Theater: 24

Ticket prices for theater and live entertainment have become too expensive, turning off potential consumers.

Younger generations of students have not received proper and consistent arts education through school, and, thus, do not have the same appreciation as similar generations and are not supporting or contributing to the arts as much.

Institutional and societal focus on Science, Technology, Engineering, and Mathematics (STEM) rather than the arts is harmful to the future of organizations and their donations

Decreased government funding for the arts: During the Great Recession, local government support for the arts fell 18%, while state funding dropped 27%.

Many small to medium sized arts/theater organizations are being forced to merge with other similar organizations in order to survive.

A call for arts organizations to improve the quality, the excitement, and the dreaminess of their work in order to ensure a sustainable future.

Non­Profit Organizations:

25

Non­profits are challenged to find sustainable and sufficient funds. There is a pressure to fulfill growing demands of nonprofit causes in communities.

The state and local governments have cut down funding for non­profits to reduce their budget deficits.

There is a trend among non­profits to share office operations, space and even expanding to administrative functions.

Keeping up with technology and communication/marketing strategies has become necessary for non­profits to engage donors.

Most non­profits lack plans to attract the younger generation, which is crucial to future growth and sustainability as the Baby­Boomers become older.

Macroenvironmental Analysis Social/Cultural Trends: Alternative Forms of Exercise:

24 http://www.americantheatre.org/2015/06/18/the­performing­arts­headed­for­a­perfect­storm/ 25 https://www.councilofnonprofits.org/sites/default/files/documents/2015­nonprofit­trends­to­watch.pdft

More adults are finding alternative ways to exercise and stay active. For this reason, the dance industry has expanded and different kinds of dance have become popular among adults, such as Jazzercize, Zumba, Hip Hop, Ballroom, and Belly Dancing.

Zumba and other dance programs ranked as the #9 top fitness trend for 2012. 26

The growth in popularity of dance television programs has also contributed to this dance revolution. 27

NAG has the opportunity to take advantage of these new exercise forms with its dance offerings.

Time­Poor Society:

Although it seems that students and professionals have become busier in recent years, the amount of leisure time in the United States has actually increased since 1965. 28

Perception of leisure time has changed in the past 50 years, making it seem as though there is not enough time in the day.

Emphasis on achievement and financial success in the American lifestyle has increased the pressure to make every moment valuable.

As people are paid for the time they work, they strive to maximize output in a minimal time frame. This mindset has now extended beyond the workplace, into leisure choices and social lives.

Opportunities for NAG to combine/partner with other events and organizations in order to draw more consumers to shared events rather than compete for community member attendance.

Consumers looking to combine as many activities/events as possible in order to minimize the time they spend outside of work and leisure.

More accessible goods, along with increasingly instantaneous options, have caused the perception of leisure time to decrease, as people do not have time to consider or sample the copious options the Internet provides.

29

Arts as a Social Gathering:

The primary reason U.S. adults give for attending arts events is to socialize with friends and family. 30

Across the country, art teachers are finding more and more retirees joining arts classes. Retirees are drawn to socialize with others at the same stage in life.

31

Parents with children under the age of 6 are more likely to attend visual and/or performance arts events with their child(ren) than without. They bring children to socialize, learn new things, and celebrate cultural heritage.

26 https://www.acsm.org/about­acsm/media­room/news­releases/2011/10/27/survey­predicts­top­20­fitness­trends­for­2012 27 http://www.ibisworld.com/industry/dance­studios.html 28 http://www.econstor.eu/bitstream/10419/55560/1/508634636.pdf 29 http://www.economist.com/news/christmas­specials/21636612­time­poverty­problem­partly­perception­and­partly­distribution­why 30 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf 31 https://www1.cfnc.org/Plan/For_A_Career/Career_Cluster_Profile/Cluster_Article.aspx?articleId=fulChZnhtf1pEcUWCmaXAP2FPAXEAXAP3DPAXXAP3DPAX&cId=kYnSn39SYnIIIwm6AsxmpQXAP3DPAXXAP3DPAX&sectionId=3

However, when specifically looking at ethnic minorities, non­Hispanic Blacks and African American do not report socializing as their biggest reason.

Instead, they wish to support community events and organizations. Hispanic minorities, especially first­generation immigrants, attend arts events to

celebrate their culture and heritage. As more Hispanics immigrate to the U.S. and Northfield, there will be less of a social emphasis placed on the arts and an increase in cultural pride.

32

Operating in a small community, NAG can build upon the arts as a social gathering to attract and sustain members Thrift:

33

Emerging from the recent recession, organizations have seen an overall shift in consumers to focusing on thriftiness and frugality.

The recession made discretionary thrift an acceptable and appealing lifestyle. Consumers less willing to spend extravagantly on goods and their entertainment.

Northfield ­ a Strong Arts Community:

NAG is in close proximity to the larger arts communities in the area such as Minneapolis/St. Paul, Rochester and Mankato. While these areas are strong competitors, they also contain a vast amount of potential customers. Northfield is voted as the #1 town for retirees in the country because of these and other attractions. 34

There are many other arts organization such as the Riverwalk Arts Quarter and the Northfield Arts & Culture Commission which frequently host arts events such as art gallery openings, theater productions, music events and dance recitals.

Collaboration of the guild with the Northfield Arts and Culture Committee could establish greater awareness and participation in local arts. Also, collaboration with the Southeastern Minnesota Arts Council for future grants.

Demographics: Age:

35

Key Facts (unless otherwise noted reflect 2013 information):

Total population in 2013: 20,228 17.9% of the Northfield population is under the age of 18, with 10.1% being under the

age of 10. 32.4% of the Northfield population is between 18 and 24 years of age (primarily college

students).

32 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf 33 https://hbr.org/2009/07/understanding­the­postrecession­consumer 34 http://www.startribune.com/money­magazine­northfield­is­best­place­to­retire­in­u­s/280526212/ 35 http://www.socialexplorer.com/tables/ACS2013_5yr/R11038971

The number of adults 55 and over has increased by 4.9% since 2000, evidence of the town’s aging population and more retirees settling in Northfield. 21.1% of Northfield’s total population is above age 55.

36

According to the 2010 census, the percentage of the Northfield population age 62 and over (retirement age) is 14.2%. In 2000, this value was 11.9%, showing an aging, older population in Northfield. 37

By 2030, 1 in every 5 Americans is expected to be over 65 years old. 38

Age % Northfield population 2000 39 % Northfield population 2013

% Change (2013­2000)

Under 5 5.1 5.6 0.5

5­9 5.7 4.5 ­1.2

10­14 6.1 5.0 ­1.1

15­17 3.4 2.8 ­0.6

18­24 32.1 32.4 0.3

25­34 9.2 7.1 ­2.2

35­44 11.9 10.2 ­1.7

45­54 10.4 11.4 1.0

55­64 5.7 9.0 3.3

Above 65 10.5 12.1 1.6

Gender:

40

According to a 2013 census survey, 47.5% of the Northfield population is male, while 52.5% is female.

Ethnicity:

41 42

36 http://www.socialexplorer.com/tables/ACS2013_5yr/R11038971 37 http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF 38 http://www.npr.org/sections/thetwo­way/2015/03/04/390672196/for­u­s­children­minorities­will­be­the­majority­by­2020­census­says 39 http://www.socialexplorer.com/tables/C2000/R11065648 40 http://www.socialexplorer.com/tables/ACS2013_5yr/R11038972 41 http://www.socialexplorer.com/tables/ACS2013_5yr/R11041437 42 http://www.socialexplorer.com/tables/C2000/R11043507

The Hispanic population constitutes to 8% of population in Northfield with 1,685 Latinos 43

living in the area in 2014 44

The Hispanic/Latino population in Northfield has grown 3.7% which reflects opportunities for increased cultural art and performances.

By 2020, the majority of children in the United States are expected to be of ethnic/minority origin.

45

The Hispanic population in the United States is expected to increase 114.8% between 2014 and 2060.

Nationally, the percentage of of Hispanic students in non­charter schools has increased from 19.6% in the 2005­2006 school year to 23.6% in the 2011­2012 school year.

46

In the Northfield Public Schools, the percentage of Hispanic students in non­charter schools has increased from 7.8% in the 2005­2006 school year to 12.2% in the 2011­2012 school year.

47

Ethnicity % Northfield Population 2000

% Northfield Population 2013

% Change (2013­2000)

White 93.9 85.3 ­8.6

Black or African American 0.7 1.6 0.9

Asian 1.9 4.5 2.6

Hispanic or Latino 3.0 6.7 3.7

Income:

48 49 50 51

Northfield Median Household Income 2000

U.S. Median Household Income 2000

Difference between Northfield and U.S. Median Incomes

$53,438 $42,148 $11,290

Northfield Median Household Income 2013

U.S. Median Household Income 2013

43 https://suburbanstats.org/population/minnesota/how­many­people­live­in­northfield 44 https://suburbanstats.org/race/minnesota/northfield/how­many­hispanic­or­latino­people­live­in­northfield­minnesota 45 http://www.npr.org/sections/thetwo­way/2015/03/04/390672196/for­u­s­children­minorities­will­be­the­majority­by­2020­census­says 46 http://publiccharters.org/dashboard/students/page/race/year/2012 47 http://publiccharters.org/dashboard/students/page/race/district/MN­41/year/2012 48 http://www.socialexplorer.com/tables/ACS2013_5yr/R11041441 49 http://www.socialexplorer.com/tables/C2000/R11043757 50 https://www.census.gov/hhes/www/income/data/incpovhlth/2000/statemhi.html 51 https://www.census.gov/content/dam/Census/library/publications/2014/acs/acsbr13­02.pdf

$59,233 $52,250 $6,983

Total Change (2013­2000) Total Change (2013­2000)

$5,795 $10,102

2000: 2.5% of families below poverty level, 6.4% of the population of Northfield, ages

18­64, below poverty level 2013: 6.2% of families below poverty level, 10.3% of the population of Northfield, ages

18­64, below poverty level Average income per capita is $23,057, less than that of the state of Minnesota at

$30,656 and the national average of $28,051, perhaps influenced by the 5,000 college students residing in Northfield.

Median Household income is $59,233 (less than that of the state of Minnesota at $59,836), perhaps reflecting the fact that almost 5,000 citizens of Northfield are college students. Median male earnings are $58,250, well above that of the state of Minnesota at $51,911. Median female earnings are $43,086, above that of the state of Minnesota at $41,320.

The unemployment rate of Northfield is 4.1%, below that of the state of Minnesota at 5.0% and the national average of 5.1%. The percentage of the population below the poverty level is 10.0%, less than that of the state of Minnesota at 11.5%.

Income % Northfield Population 2000

% Northfield Population 2013 % Change (2013­2000)

$0­$24,999 17.2 24.5 7.3

$25,000­$49,999 28.0 20.2 ­7.8

$50,000­$74,999 25.6 15.0 ­10.6

$75,000­$99,999 13.4 14.7 1.3

$100,000­$124,999 8.0 10.0 2.0

$125,000­$149,000 3.8 6.5 2.7

$150,000 or more 4.0 9.3 5.3

Education:

52

The Northfield population with at or below a high school degree as their highest level of education has decreased by 9.3% since 2000.

52 http://www.socialexplorer.com/tables/ACS2013_5yr/R11041457

The Northfield population with a Bachelor’s degree or higher has increased by 12.0% since 2000.

98% of NAG survey respondents have a Bachelor’s Degree or higher, indicating that the adult population associated with NAG is very well­educated. 53

Educational Attainment of Population 25 and over

% Northfield population 2000

% Northfield population 2013

% Change (2013­2000)

Less than high school 11.2 6.6 ­4.6

High School Graduate 23.4 18.7 ­4.7

Bachelor’s degree 23.1 28.5 5.4

Master’s degree 9.5 12.0 2.5

Professional or Doctorate degree 4.9 9.0 4.1

While the percentage of the population with a Bachelor’s Degree or higher is 32.6% for

Minnesota, Northfield’s average is 49.5%, reflecting the effects of the 2 colleges located in Northfield.

54

Technological Considerations: Opportunities of Technology : 55

Arts organizations finding that social media and the internet have increased engagement throughout the community and shaped art to be a more participatory experience.

Internet has played a huge role in contributing to a more diverse art audience and has broadened the boundaries of what is considered art.

The use of Internet is no longer exclusive to younger generations such as Generation X, Millennial and Generation Z, as a report indicates that Baby Boomers now spend an average of 19 hours per week on the Internet, more than any other forms of media. 56

Consuming the arts through technology:

A 2012 survey shows that 71% of U.S. adults consumed the arts through electronic media. 54% of adults reported watching or listening to arts broadcasts through the TV or radio, while 45% use the Internet. Literature was the only type of art that was consumed more through the Internet than TV or radio. Around one­third of adults use a handheld or mobile device to watch or listen to music. Dance and theater performances had the lowest rate of downloads through handheld/mobile devices.

57

53 see survey data in appendix 54 http://quickfacts.census.gov/qfd/states/27/2746924.html 55 http://www.pewinternet.org/2013/01/04/section­6­overall­impact­of­technology­on­the­arts/ 56 http://www.marketingprofs.com/charts/2013/11209/how­baby­boomers­use­the­web­social­networks­and­mobile 57 https://www.arts.gov/sites/default/files/2012­sppa­feb2015.pdf

Spotify: Spotify offers thousands of popular songs and albums to users through

their computers and/or phones. Its ease and accessibility has contributed to its substantial growth since its launch in 2008. In 2014, Spotify recorded more than 50 million total users, with 12.5 million of that total paying for their service, just 8 years after launching their service. They grew from 6.67 million users in 2011 to

58

20 million users in 2012 and more than doubled that number from 2012 to 2104. This growth is expected to continue. 59

YouTube: YouTube gives users the ability to watch numerous different forms of entertainment and listen to music without having to leave their house. It has partnered with Vevo, a video hosting service that provides music videos from several of the leading recording labels. In the past three years, there has been

60

a 50% growth in the amount of time users spend watching YouTube videos. 61

Growth of Social Media

In May 2008, the percentage of adults using the internet who also engaged in social media was 29%. In July 2015, that number was 76%, an increase of 47%.

62

The use of social media has especially increased for people ages 18­29 and 30­49. Between 2005 and 2013, the percentage of users on social media increased from 9% to 90% for adults ages 18­29 and from 7% to 78% for adults ages 30­49.

63

Trends of specific social media sites : 64

Facebook: The percentage of online adults using Facebook increased from 67% in 2012 to 71% in 2014.

LinkedIn: The percentage of online adults using LinkedIn increased from 20% in 2012 to 28% in 2014.

Twitter: The percentage of online adults using Twitter increased from 16% in 2012 to 23% in 2014.

Instagram: The percentage of online adults using Instagram increased from 13% in 2012 to 26% in 2014.

Pinterest: The percentage of online adults using Pinterest increased from 15% in 2012 to 28% in 2014.

NAG has the opportunity to take advantage of the social media growth and use it this tool to market and target new audiences (noted growth in its Facebook page number of likes is especially promising).

58 https://news.spotify.com/us/2014/11/11/2­billion­and­counting/ 59 https://growthhackers.com/growth­studies/spotify 60 http://webtrends.about.com/od/pr6/a/What­Is­Vevo­Youtube­Video.htm 61 http://marketingland.com/youtube­says­growth­still­strong­despite­push­facebook­118890 62 http://www.pewinternet.org/data­trend/social­media/social­media­use­all­users/ 63 http://www.pewinternet.org/fact­sheets/social­networking­fact­sheet/ 64 http://www.pewinternet.org/2015/01/09/social­media­update­2014/

Economic Environment: 65

Arts and the Economy: 66

The 2007­2009 recession had a major impact on the arts industry. The percent of the U.S. GDP from arts fell from around 3.6% in 2006 to 3.2% in 2009. See graph below.

In 2011, around 2 million workers were employed by the arts and its production. The

number of workers employed by the production of arts decreased by 170,000 workers in 2009 as a result of the recession.

The areas that contribute the most to the arts industry revenues are motion picture, video production, advertising, publishing, and performing arts.

General funding for the arts decreases every year in most states, with the more classical disciplines ­ dance, classical music, and theater ­ facing especially severe cuts. In 2009, according to a report conducted by Americans for the Arts, 41 percent of nonprofit arts groups reported a deficit, up from 36 percent in 2008. Attendance at museums and performing arts events decreased 19 percent and 22 percent, respectively, between 2003 and 2009. 67

Overall funding from the government has declined, with only about 10% of funding coming from government. The reliance on ticket and gift sales (50%), and private sponsorship (about 40%) leaves organisations at the whim of the strength of the market. 68

Art events and the demand for art have been proven to be quite price elastic. 69

Political Legislations:

65 http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk 66 https://www.arts.gov/news/2013/us­bureau­economic­analysis­and­national­endowment­arts­release­preliminary­report­impact 67 http://www.huffingtonpost.com/2011/11/07/art­in­the­recession­national­endowment­for­the­arts_n_1080100.html 68 http://www.theguardian.com/culture/2010/feb/19/arts­funding­global­recession 69 ftp://www­bsg.univ­paris1.fr/pub/mse/cahiers2002/Bla02044.pdf

Funding for the Arts: 70

Direct public funding (NEA; state, regional, and local arts agencies)

Within the direct public funding sector, the NEA is the largest arts funder in the U.S. Other funders range from federal, state, regional, and local art agencies.

These grants contribute to roughly 7 percent of the total nonprofit arts investment nationwide.

Direct public funding is merit­based and not a way to enforce arts policy. Direct grants enhance but do not provide exclusive support for artistic activities.

Other non­federal arts funding are thus required. Other public funding, direct and indirect (various federal departments and agencies)

There are other federal agencies with the ability to fund the arts directly, such as National Endowment for the Humanities (NEH) and Institute of Museum and Library Services (IMLS.)

Other agencies operate their own artistic activities for the public’s benefit and to advance their strategic mission, such as The Smithsonian or National Gallery of Arts.

Private giving and tax incentives (individuals; foundations; corporations) Individual giving contribute to approximately $13 billion to the category “Arts,

Culture, and the Humanities” in 2011. Corporate giving by the top 10 institutions accounts for roughly 48 percent of arts

funding, as estimated in 2009. Small private or family foundations also contribute significantly to the arts.

70 https://www.arts.gov/sites/default/files/how­the­us­funds­the­arts.pdf

“Tax incentives” include a tax deduction for the donor and the yearly tax payments waived for the nonprofit, if the receiving organization is considered tax­exempt nonprofit, encouraging individuals and corporations to support the arts.

Arts in public schools:

Arts education in public schools fell between 2000 and 2010. Visual arts, dance, and theater in elementary school curriculum decreased, while music education stayed constant (see Figure 1). Secondary schools saw similar trends.

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Northfield Arts Commission:

The Northfield Arts and Culture Commission (ACC) meets once a month to discuss and improve arts facilities and the general existence of the art/culture scene in downtown Northfield.The ACC advises Northfield City Council in arts­related legislation and development of the arts in Northfield. In a meeting on August 29th, 2015, topics of discussion included better arts facilities, the proposition of a large concert hall, better cooperation between arts groups, and funding for future projects.

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The ACC has specifically targeted the Northfield Arts Guild to establish ties and collaborate to achieve the goals of both groups.

In 2011, The Southeastern Minnesota Arts Council (SEMAC) awarded the ACC of Northfield a grant of $7,100 for the 2012 Sidewalk Public Poetry Project and a $4,150 dollar grant for the Northfield Young Sculptors Project.

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The potential for collaboration among NAG and ACC means opportunities for NAG to offer more cultural and educational events to the Northfield community which is important as the diversity of Northfield is growing.

The demographics in Northfield explain some of its cultural and social trends. A majority of the population in Northfield falls into the age range of 18­24, which is comprised of the large number

71 http://nces.ed.gov/pubs2012/2012014rev.pdf 72 http://www.ci.northfield.mn.us/index.aspx?NID=99 73 http://patch.com/minnesota/northfield/an­­arts­and­culture­commission­city­of­northfield­an023f243dfa

of college students. Students fulfill the time­poor lifestyle as they are consumed by academic, social, and extracurricular activities. Lack of time and income makes it hard to engage in the arts, which reflects in the challenge to sell the arts and productions of the Guild to students. However, the educated population as a whole, echoes the high density of arts activities in town, as education often means higher incomes and an appreciation for the arts. SWOT Analysis:

Strengths: Established guild, having served

Northfield for 55 years with a solid membership base.

Clear direction established for the organization in its newly created 2016­2018 plan.

Variety of programming and events appeals to a wide range of consumers (young and old, families with children and childless professionals, etc).

Growing interaction and reach with Northfield youth, serving over 270 unique children in 2015

Successful new events such as the “Art and Ale” and BUZZ Theater campaign bringing in significant donations for NAG.

Implementation, expansion, and success of programs focused on gaining student participation and involvement in the arts, such as the Purple Door Youth Theater.

600+ volunteers dedicated to supporting and serving NAG and its events and future (theater renovation).

Increased annual membership base by 25% and contributions from individuals by 71%.

Strong presence and year­to­date growth (55%) on Facebook provides a solid base for NAG to expand its social media presence.

Detailed, updated, and user­friendly website as well as newly implemented

Weaknesses: NAG’s current main audience is the

older population of Northfield (evidenced by 42.9% of survey respondents being over the age of 56) which highlights the importance of NAG attracting a younger, more sustainable membership base.

All of NAG’s programs geared towards children take place around Northfield and not at the schools meaning that students need to find transportation from school to the NAG programs which is very inconvenient for parents

NAG’s growth/membership base is limited to the community of Northfield.

Decreased customer reach in 2015 compared to previous years

NAG’s social media presence is primarily limited to Facebook. They currently are not active on Twitter, Instagram, or YouTube. The NAG website does not provide links to social media pages.

online ticket purchasing availability.

Opportunities: Located in a city with low

unemployment and well­educated citizens which means community members tend to value and appreciate attending and supporting art events.

Two well­known liberal arts colleges in the community ­ NAG could attract students of this age group or partner with the arts programs of the colleges to attract more customers and expand offerings.

Existence of a lot of cultural capital in Northfield that is waiting to be transformed into economic capital which could allow for a sustainable art market/guild.

Growing diversity and ethnicity in Northfield community means increased opportunities for cultural and educational events.

Close proximity to the Twin Cities means the potential to draw large audiences from those areas.

Opportunities for increased collaboration with the Northfield Arts and Culture Committee as well as other events within Northfield to establish greater awareness and participation in local arts as well as increased convenience for consumers in providing shared events

Continued collaboration with the Southeastern Minnesota Arts Council for future grants.

Adults are turning to dance, including classes and workouts, as an alternative form of exercise and an opportunity to socialize, allowing NAG to expand its dance education to fit this exercise­centered demand.

The arts/entertainment industry is at a pivotal point in determining how it responds to changing consumer

Threats: General trend of decreasing

government funding for the arts and arts organizations.

Younger generations of students have not received a proper and consistent education in the arts and thus do not have the same appreciation as similar generations and are not supporting or contributing to the arts as much.

Recent institutional and societal focus on STEM rather than the arts is harmful to the health and future of art organizations and their donations.

Newly built YMCA building could attract larger audience and draw customers away from the Guild.

Northfield Dance Academy attracts large numbers of young students interested in studying dance.

Northfield Public Schools offer very convenient, on site after­school programs which could attract students who may otherwise visit and participate in programs through the Guild.

Colleges in Northfield host many public art events each year, the majority of these being free.

The consumption of arts through technology is growing, as music and entertainment are easily accessible over the Internet and phones. Social media and music sharing sites are gaining popularity which means that people can have access to the arts and entertainment from the comfort of their own home.

Declining arts attendance across the board.

In today’s time­poor society, the perception of leisure time has decreased. The activities adults choose to pursue in their leisure time

demands, and NAG has the opportunity to refresh itself and position the Guild as an exciting and innovative center for art and entertainment.

need to seem valuable and efficient, as each activity competes for a portion of the limited free time, and the arts is an easy activity for adults to cut out of their hectic schedules.

Competitive Advantage: The Northfield Arts Guild is a leader in the development, support, and exhibition of art throughout the community of Northfield. The Guild sustains its position by ensuring quality in all of its productions, programs, performances, and showings while also promoting community engagement. It makes use of skilled volunteers and emphasizes a collaborative approach to the arts. Furthermore, it capitalizes on the diverse community of artists and professionals that reside in Northfield to ensure a robust consumer and membership base. Conclusion: The Northfield Arts Guild is an established guild with 55 years spent serving the community. It has a very clear direction as established by the Executive Board in its 2016­2018 Strategic Plan. Overall, it offers a wide variety of events and programs with the potential of attracting a diverse audience. It is attempting to expand its appeal and services to the younger generations as it is observing its main audience base grow older. The sustainability of NAG is closely related to its target audience and thus, it has a great opportunity to expand its reach into a younger audience which could provide it sustainability. Being in Northfield, the Guild is forced to compete with the Northfield Dance Academy, the new YMCA, Northfield Schools, and St. Olaf and Carleton Colleges. Many of the schools and colleges offer art events and productions that are free to the public. Overall, NAG is located in a great city with high earning, educated individuals that appreciate and value the arts as well as close proximity to the Twin Cities from which it could draw audiences. The art industry as a whole is being forced to push the limits of creativity in order to drive excitement and interest. This is a great opportunity for NAG to reposition itself and become a leader in the changing art organizations market. One large threat that NAG faces is the fact that younger generations are not receiving a commensurate art education as similar generations and are thus less involved and supportive of the arts. Declining funding, a time­poor society, and the easy access to art entertainment through the internet are large issues facing the sustainability of NAG. However, these issues and risks can all be mitigated with the proper responses from NAG. Segmentation: Retirees (62+): The average age of retirement in the United States is age 62.

21.1% of Northfield’s total population is above age 55 and 12.1% of the population is above the age of 65. With this in mind, we are approximating the percentage of the population 62 and

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over (retirement age) to be at 15%. This works out to be around 3,035 community members of Northfield. Time­rich:

Retirees are able and willing to devote more of their time to the arts and leisure activities. The average retiree spends about 1.7 more hours per day doing leisure activities, and

thus is able to devote more time to NAG­specific activities. 75

Involvement/Volunteering:

42.9% of our survey respondents are considered to be of retirement age and over half of these have been members for over 7 years, showing their loyalty and interest in long­term membership with NAG. 76

A typical retiree spends about 30 minutes each day volunteering or involved in religious or civic activities, time they can spend volunteering with NAG. 77

Retirees note that being generous with their time and money provides a significant source of their happiness and provides them with a greater sense of self­purpose and self­value. 78

Across the country, art teachers are finding an increasing number of retirees joining arts classes.

79

Retirees are less concerned with price of admission or the venue of the arts event. #1 Retirement Community:

Northfield is voted as the #1 town for retirees in the country. 80

Active retirees can take advantage of all of Northfield’s attractions, including arts­related activities/events, because they spend more time doing leisure activities. 81

Reachability

Some retirees don’t have access to computers or the Internet, thus traditional advertising such as flyers around town, newsletters in the mail and radio advertisements are the best way to advertise the events to them. 82

A number of retirees, however, especially the Baby Boomers, are active internet users. They respond well to both traditional marketing and online promotional campaigns. 83

74 http://www.socialexplorer.com/tables/ACS2013_5yr/R11038971 75 http://www.retirement­living.com/proaging­network/study­reveals­how­retirees­spend­their­time/ 76 see survey results in appendix 77 http://money.usnews.com/money/retirement/articles/2013/07/08/how­retirees­spend­their­time 78 http://money.usnews.com/money/blogs/on­retirement/2015/11/16/7­reasons­to­volunteer­in­retirement 79https://www1.cfnc.org/Plan/For_A_Career/Career_Cluster_Profile/Cluster_Article.aspx?articleId=fulChZnhtf1pEcUWCmaXAP2FPAXEAXAP3DPAXXAP3DPAX&cId=kYnSn39SYnIIIwm6AsxmpQXAP3DPAXXAP3DPAX&sectionId=3 80 http://www.startribune.com/money­magazine­northfield­is­best­place­to­retire­in­u­s/280526212/ 81 http://www.retirement­living.com/proaging­network/study­reveals­how­retirees­spend­their­time/ 82 https://www.psprint.com/resources/marketing­to­retirees/ 83 http://www.marketingprofs.com/charts/2013/11209/how­baby­boomers­use­the­web­social­networks­and­mobile

Evidence of their internet adeptness is that 42.9% of our survey respondents are over the age of 56.

Hispanic Community: 84

Quickly Growing: The Hispanic population in Northfield was 1,685 as of 2014 , making up of 8% of 85

Northfield’s population. 86

The Hispanic population is expected to increase by 114.8% between 2014 and 2060. The documented Hispanic population of Northfield has grown by 3.7%, the largest

growth of any ethnic group. In the Northfield Public Schools, the percentage of Hispanic students in non­charter

schools has increased from 7.8% in the 2005­2006 school year to 12.2% in the 2011­2012 school year.

These percentages are higher than what is reflected in the census, indicating that there may be undocumented Hispanic residents.

It could also mean that the population under 18 consists of more Hispanics, while the older population has less people of Latino origins.

Attracted to Cultural Events:

In general, Latinos are interested in cultural events. They are more engaged in events related to their own culture, rather than non­Latino

cultural arts events. Even still, 80% of Latinos are interested in non­Latino cultural arts events.

Spending on the Arts:

Income does not predict arts attendance among Latino families. However, the majority of Latinos in low income groups tend to find free or inexpensive events to go to.

Latino families save up for big, expensive events. Attendance rises in the highest income group, but the middle and lower income groups participate in the arts similarly. Price and income are not barriers to arts attendance, but Latinos respond well to discounts.

Arts Event Attendance:

Latinos attend more visual arts events, such as museums and arts galleries than performing arts like theater or symphony.

Many Latino families value attending arts events as an entire family.

Language: Language proficiency determines participation in arts events for Latinos. Those who are bilingual or English­dominant participate in the arts more.

84 https://www.azmc.org/wp­content/uploads/2012/12/arts_culture_and_the_latino_audience.pdf 85 https://suburbanstats.org/race/minnesota/northfield/how­many­hispanic­or­latino­people­live­in­northfield­minnesota 86 https://suburbanstats.org/population/minnesota/how­many­people­live­in­northfield

Responding to Their Image in the Media: Can be reached through advertisements that tailored specifically to address Hispanic

culture and image. 87

Parents with Kids Aged 12 and Under: 24% of all U.S. family households consist of married parents or adults related by birth with kids aged 12 and under. In Northfield, this would equate to be approximately 973 households 88

(4,054 family households X 24%). The average age of mothers having their first child is now 26 years old. This means that our 89

target audience (parents with kids under the age of 12) are between 26 and 40 years old. Most of our age group falls within the generation of millennials which has now become the demographic with the most buying power. 90

Educated and Working:

More millennials have a college degree than any other generation of young adults. 91

It is also known that parents with at least a Bachelor’s Degree are more likely to ensure their kids receive a formal arts education, to take their children to arts events, and to sign them up for participation in arts activities. This is something that NAG can take

92

advantage of, especially in a well­educated community like Northfield. Most families with kids 12 and under will feature both parents working. Millennial

parents feel that both parents should make contributions toward the family income as well as put an emphasis on sharing the household chores and that moms working outside of the house serve as positive role models for the children. 93

The overall time­poor society trend noted in our macroenvironmental analysis is definitely a large factor with this target audience.

Millennials really value learning and this extends to the entertainment that they make available to their family. This gives NAG an opportunity to provide entertainment that 94

also educates the family. The top two reasons listed in the survey as to why people attend NAG events are

entertainment and education, confirming this value. On a Budget:

95

87 http://www.latinpost.com/articles/29110/20141229/expert­marketing­opinions­3­top­hispanic­marketers­discuss­2014s­marketing­strategies­and­what­to­expect­in­2015.htm 88 https://www.census.gov/prod/2013pubs/p20­570.pdf 89 http://www.businessinsider.com/average­age­of­mother­having­first­child­going­up­2015­6 90 http://www.forbes.com/sites/micahsolomon/2014/12/29/5­traits­that­define­the­80­million­millennial­customers­coming­your­way/ 91 https://www.whitehouse.gov/sites/default/files/docs/millennials_report.pdf 92 http://www.venicearts.org/assets/media/27037.PDF 93 http://www.cnn.com/2014/04/04/living/millennial­moms­new­report­parents/ 94 http://www.entrepreneur.com/article/243862 95 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf

While these families have often have 2 incomes, 88% millennials classify themselves as good at living within their means and 67% would say that they save “by any means necessary,” such that 74% percent said feel better saving and investing their money rather than spending it. 96

This age group looks for cheap events, as they are young in their careers and generally do not have a lot of money to spend on entertainment and arts events.

This means staying locally around the community for entertainment rather than taking a trip to the cities.

Many NAG events are free and open to the public which can draw families in. For some of these millennials, they graduated into the Great Recession and had difficulty

finding jobs, and so a habit of thrift has been instilled in them which impacts their decisions with regards to spending on entertainment and how price sensitive they are.

Shared Consumption:

Among these families, attending the events or taking classes usually involves the participation of all members in the household. 97

Parents who take leadership roles want to inform and excite their children in many regards. 98

A cover charge for the event means more income for The Guild Regular attendance of the family can increase the probability of future attendance of the

children, bringing a sustainable market for the Guild in the long run. 99

Association of good memories with The Guild tends to allow for the creation of routines and willing returns to that which caused the good memory. 100

Social:

Attending art events with their children gives parents the opportunity to spend time with family and socialize with friends, which is one of the most common motivations for attending arts events. 101

Provides parents the opportunity to get out of the house and meet other families and parents outside of work and school.

Arts and Children: 102

Hierarchy of art events that parents will take their children to: a. Art Exhibits: More convenient for families with young children as they offer a

wider range of hours during the day, families are allowed to stay as long or short as they would like, and they can move around without disrupting others

96 http://www.forbes.com/sites/maggiemcgrath/2015/06/22/millennials­the­money­conscious­generation/ 97 http://www.artsmarketing.org/sites/default/files/documents/practical­lessons/lesson_7.pdf 98 http://www.pacer.org/mpc/pdf/titleipip/SupportingInvolvement_article.pdf 99 http://www.nycaieroundtable.org/files/Handout_3_Young_Peoples_Theatre.pdf 100http://extension.psu.edu/youth/betterkidcare/early­care/our­resources/tip­pages/tips/creating­a­sense­of­place­considering­routine­ritual­and­belonging 101 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf 102 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf

b. Dance or Theater Performance: Likely to captivate young families with children interested in these art forms. Tend to be longer, though, and may cause kids to lose interest or become restless.

c. Live Concert: Usually long and loud, not the best environment for young children. Want to support creativity and expressionism in their children Millennials cite the #1 reason for supporting their children’s creativity as to foster their child's

healthy development (28%), and the #2 reason as to make their child “more successful," (21%). This demonstrates that millennials link creativity with success and overall 103

development which is encouraging as support for the arts. Parents with children under the age of 6 are more likely to attend visual and/or

performance arts events with their child(ren) than without. They bring children to socialize, learn new things, and celebrate cultural heritage.

Mobile, Social, and Responsive: 104

85% of millennials own smartphones so it’s critical that organizations target the millennial audience through this method, making their websites mobile friendly and encouraging millennials to use their smartphone to interact with the organization.

Millennials are a non­traditional generation, have different meanings for traditional ideas such as “family” or “community” and so traditional life­stage advertising is not effective. Rather, marketers need to target social groups and social movements that millennials are very passionate about as they relate to these social issues more than specific life stages (i.e. buying a house).

Millennials have grown up with access to technology and the internet so they expect organizations to be engaging with them and relevant to their lives.

95% of millennials cite their friends as their most credible source of information, thus, it is critical for organizations to engage with their millennial customers and create brand loyalty so that those loyalists spread the word to their friends.

Targeting: We chose young parents with children aged 12 and under as our target audience because they are a substantial market in Northfield and offer the greatest potential for sustainable membership and bringing in long­term customers to NAG at a young age. They are looking to find arts entertainment and education for not only themselves, but their families, as well. They are also profitable in the sense that they value education and experience with the arts such that they are willing to pay for this experience for their kids. Even though the other two segments are very attractive, they have certain drawbacks. Retirees currently offer strong support to the Guild, however, an aging membership is not sustainable in

103 http://www.prnewswire.com/news­releases/94­of­americans­say­it­is­important­for­their­children­to­have­creative­experiences­300033841.html 104 http://www.entrepreneur.com/article/246199

the long run. The Hispanic community is growing, but a focused interest in their own cultural events limits programming and marketing for NAG to appeal to a wide audience. The Northfield Arts Guild should make use of a market penetration strategy to target parents of children aged 12 and under. These millennial parents are busy, economical, reside in Northfield, and value education along with how it relates to the arts. Target Market Profile: Value education:

These Northfield parents have a college education and value an education centered around the arts for their children.

Millennial parents are already saving up money to cover the costs of college for their kids, emphasizing the importance that they place on providing education for their kids. 105

Raised by helicopter parents, millennials are eager to be involved in their child’s education and artistic expression, in addition to activities that encourage education in the community. 106

Leisure time and spending : 107

A majority of Millennial parents and their kids in the survey indicate that they enjoy spending time with their family, which is a great advantage for the Guild’s family­centered events.

Millennial parents tend to budget for higher entertainment budgets than non­millennials (36% of millennials increased 2013 entertainment budgets compared to only 17% of non­millennials).

21% of Millennial dads say that they spend over $300 on entertainment per month, compared to 11% of older dads and 7% of Millennial moms.

Even with this trend of higher budgets for entertainments, 29% of families cite limited budgets as a barrier to attending certain activities.

With both parents working and other extracurricular activities of the kids, time/availability plays a huge barrier in the family attending different events, such that families look to combine as many events/activities as possible so as to fit in all that they can.

Tech­savy:

Their childhood coincided with the innovation of technology and so they expect technology that functions and incorporate innovation and creativity into their own lives. 108

105 http://money.cnn.com/2015/09/24/pf/college/millennials­saving­for­college/ 106 http://time.com/3154186/millennials­selfish­entitled­helicopter­parenting/ 107 http://www.mintel.com/press­centre/social­and­lifestyle/millennial­parents­especially­dads­spend­more­dough­on­family­entertainment 108 https://www.whitehouse.gov/sites/default/files/docs/millennials_report.pdf

Being that this target audience grew up with technology, they are very early adaptors to the newest and different technologies on the market because they are not afraid or intimidated by change/updates as technology has always surrounded them.

Receive and exchange information mostly on the internet, most notably social media. Well­connected with and identify strongly with their network consisting of people who

share similar social purposes and are of a similar age. Positioning: Product: This audience of millennial parents cares about providing both educational experiences and entertainment centered around the arts to their children. They have limited leisure time, which means the Guild’s double approach of providing education and entertainment coincides greatly with their priorities. In order to make the Guild’s events appeal to this group and turn them to loyal patrons, the events need to be “engaging, personalized and entertaining” in order to compete with other more appealing forms of entertainment, according to a marketing report by Goldman Sachs . Another trait of this group is being socially motivated 109

to meet other families with kids, such that it is advantageous to the Guild to promote strong social events. To millennials, value is a holistic experience that includes price, service, quality, time, culture, convenience, and experience. In this sense, they really value experiences such 110

as those afforded by the Purple Door Youth Theater which allows students to join together and collaborate on the entire theater production experience.

Classes: Offer an opportunity for students to learn about and take a hands­on approach to

experiencing a variety of the arts. The continuous classes with different levels establish engagement in students

and promote an ongoing and growing relationship between the family and NAG. Target the demand of busy parents to keep their kids occupied with activities

while also providing them with educational opportunities that will help them develop and be more successful individuals.

Social Events: Offer an opportunity for students to interact with other peers interested in arts

events and make friends in their same age group. Encourages students to bring friends and family, which is a great opportunity to

attract new members to NAG. Productions/Performances and Art Exhibits/Showings:

Incorporate different forms of arts into one event to break the intimidating traditional perception of arts events (i.e. having bands playing during an exhibition in order to make the atmosphere more fun, social and casual which is attractive to families with young kids.

109 https://museumhack.com/feature­article­about­millennials­and­museums/ 110 http://saatchixblog.com/the­six­things­marketers­must­know­about­millennials/

Integrate comedies production into theater programming to break the threshold between institutional arts and entertainment

Take advantage of the special place that informal arts occupy:

These forms of art occupy a significant place in the social infrastructure of communities, in that they help to build both individual identity and group solidarity.

Informal arts are great for families because they offer an opportunity for hands on experiences that tap the creativity of children and expand one’s artistic participation from just being an audience member to someone actively involved. 111

Place: This audience is busy and enjoys the convenience of taking advantage of opportunities in the immediate local community. They also want to provide their children with the ability to meet other kids their age in Northfield and expand their social network. The largest challenge and potential opportunity for NAG is that they need to be in all of the right places so as to make getting to NAG events/programs as convenient as possible. If they can achieve this, the convenience factor of NAG will be greatly increased and their target audience will reward them for it.

Northfield: The variety of local settings throughout the community means that our target audience is immersed in the arts and opportunities to be engaged with NAG and arts events wherever they are (i.e. Tandem Bagels, the Archer House, etc.). This also promotes collaboration among artists and local Northfield businesses.

Town’s dedication to the arts/live performances Families live in a time­poor society that forces them to limit time for leisure

activities, including travel time to those activities. Providing local arts events around Northfield eliminates that travel time for Northfield families and makes the activities more appealing.

NAG needs to co­brand and co­market events with organizations around Northfield so that it can benefit from families attending those events who may not have time to attend solely NAG events. Families are much more likely to attend events that feature multiple activities and organizations because they provide a stronger source of entertainment and education. (see Implementation section 112

below for more specific ideas) Proximity to Minneapolis/St. Paul:

Collaboration with artists/museums from the cities will give the Guild a wider scope of visibility as well as bring in a larger array of artistic work and talent.

Center for the Arts: NAG’s Center for the Arts is not a convenient location in terms of providing after

school activities and programs. Currently, parents would have to pick up their

111 http://www.darkmatterarchives.net/wp­content/uploads/2011/11/Informal_Arts_Full_Report.pdf 112 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf

children after school and drive them to the Center in order for the students to be involved with NAG.

As most families feature both parents working, this simply is not practical and is a large impediment to NAG’s overall involvement in after school activities and programs.

NAG would strongly benefit from offering after school classes at Northfield Schools or by providing transportation from the school to the Center so that students can participate without needing to find a ride.

Promotion:

Focus on the use of Social Media: These young parents are early adopters of technology advances. They are more

likely to find information and updates about events on social media platforms rather than by reading a printed newspaper or seeing flyers around town.

Having a large network of connections in similar age on social media means that their virtual endorsement of the NAG will be likely to spread awareness among other young families in the proximity.

The use of event pages on social media will encourage the parents to invite their connections and raise attendance for NAG.

Both the parents and their kids can get involved with NAG on social media ­­ Kids can bring their parents’ attention to upcoming events that they are excited about so that NAG engages with the children and the parents.

Social media is a cost­effective promotional tool that spreads awareness of the Guild quickly among this particularly technology­savy group who mainly rely upon social media in order to know what is happening and what events are coming up.

NAG could launch a campaign urging that users and community members “Like to Learn”. This would allow NAG to promote the educational experiences and entertainment that it offers (which is very popular among this group) while also growing its social media presence. Members who like the page would then be supplied with updates about NAG’s newest offerings and upcoming events so that this technological group is always in the know.

Partner with Northfield Schools: Seeing that NAG’s target audience is the parents of children that attend

Northfield Public Schools, NAG should partner with the schools to promote its activities and the opportunities that it offers for families. Having an advertisement on the schools’ websites as well as putting flyers up around the school and emailing information out to the students’ parents would be a very effective way of spreading the message that NAG has a lot to offer the families.

Attendance reward system A system of tracking attendance will help the Guild collect data on customer

demand and members’ behaviors. Rewarding based on attendance will create an incentive for arts­goers and

increase loyalty among members.

Price:

Value/Price­Oriented This targeted segment is focused on saving and following a budget, such that

they are very price­conscious. If a trip to the theater or other art exhibit is out of their budget, it is an easy decision to forgo that trip.

However, they are value­conscious as well, such that if a trip to an exhibit seems educational or exciting for their child(ren), that will prove to be worth the price as encouraging and fostering creativity is viewed as having a direct link on the overall success of their children. 113

Family Discounts These young families will respond very well to family deals or discounts because

of their tendencies to do activities as a family. Free or discounted prices for child admittance will boost family trips to the gallery or theater as well as gain exposure for NAG.

Similarly, family deals for classes will be both educationally valuable and monetarily reasonable for these young families as they value providing their children with access to the arts.

Implementation: Below are some suggestions for NAG to consider in order to increase their membership, customer reach, revenues, and sustainability. See the timeline below for rollout actions and deadlines. Co­Branding and Co­Locating Arts Events:

114

By partnering with other businesses/attractions that appeal to young families, NAG will

further spread its name and the products that it offers while also reducing the cost of attendance for families by reducing the travel time.

We expect that co­branding and co­locating will increase NAG’s event revenues by 20% ($3,400) and cost it $1,000 in terms of advertising and implementation costs.

Winter Walk ­ December 10, 2015 ­ sponsored by Northfield Chamber of Commerce: 115

Partner with Northfield Chamber of Commerce, surrounding businesses, and the college choirs and/or local musicians to offer holiday music on the streets.

113 http://www.prnewswire.com/news­releases/94­of­americans­say­it­is­important­for­their­children­to­have­creative­experiences­300033841.html 114 https://www.arts.gov/sites/default/files/when­going­gets­tough­revised2.pdf 115 http://www.uniquelyminnesota.com/activities/northfield­mn­winter­walk.htm

Christmas crafts for kids: Set up a tent or partner with a business to offer Christmas coloring or Gingerbread House making for kids.

Sponsor a coloring contest so as to get young children excited and involved with NAG to promote an early relationship that can then turn into classes, activity involvement, etc.

Encourage a dance class to prepare a routine from The Nutcracker or other holiday­themed productions that can be premiered at Winter Walk

Contact Northfield Chamber of Commerce by submitting this form: http://business.northfieldchamber.com/contact/

Jesse James Days ­ September 7­11, 2016 : 116

Request to have NAG dancers in the Grand Parade. Offer opportunities for NAG students to participate in the re­enactment of the bank heist

and other acting activities Sponsor drawing or painting contests for students to create their own sketches of Jesse

James, a wanted man, to be provided to police so that they can catch the criminal. This will get students involved and the sketches can then be displayed at a NAG booth for all event­goers to enjoy.

Contact the Board of Directors by submitting this form: http://www.djjd.org/contact­info/ Bridgewater Elementary Boosterthon ­ Mid­May 117

The Bridgewater Elementary Boosterthon is a 7­10 day campaign to raise money for the school. The week culminates in a Fun Run for the kids after they spend this week asking community and family members for donations.

Collaborate with the Bridgewater PTO and Northfield School District to bring in art education and activities into the school during the week.

Sponsor a contest in which students create drawings for a Fun Run t­shirt that will then be provided to all the students through Northfield business donations. This will encourage creativity as well as create a tangible product that students will wear around Northfield providing advertising for NAG and the businesses that donate the shirts.

Take advantage of PTO and parent volunteers already involved with this event. Get the NAG brand on the marketing materials for the Boosterthon. See Facebook page: https://www.facebook.com/BWBoosterthon/info/?tab=page_info Contact Principal Nancy Antoine at NAntoine@northfieldschools.org

Family­Oriented Membership and Events:

Increase art event offerings to appeal to young families as a whole As noted previously, these types of events offer longer hours during the day while

also giving the visitors the flexibility to stay as long or short as they desire, while also allowing the families to walk and move around without feeling like they are causing a distraction or disruption.

116 http://www.djjd.org/ 117 http://www.southernminn.com/northfield_news/article_90ad29a5­8d23­5718­82ff­385957206629.html

Offer weekend events, as children are not at school and families have more time for leisure activities.

Increased family events will increase NAG event revenue by 10% ($1,700) but increase costs by $500 in terms of the extended events that NAG will end up offering.

Create a promotion/campaign that encourages parents to buy a family “household” membership to NAG as a Christmas present to the entire family

Our target greatly desires to please their children and feels responsible to providing them with exposure to the arts, and the household membership would allow parents to feel better about fulfilling this responsibility.

Build on the idea of starting a new year off right by making the arts a priority in their children’s upbringing.

This household membership campaign will increase membership by 15% ($4,270) but cost a total of $1,000 in mainly advertising costs.

Social Media Campaign: Establish the digital presence of NAG through various channels of social media such as Twitter, YouTube, and Instagram. By creating these respective NAG online accounts, fans can interact with the Guild and engage in a more comprehensive NAG experience away from the establishment.

Twitter: Excite and engage members with updates of events, discounts and volunteer

recruitment information. Tweet artwork and arts news to excite followers. Increase fan engagement with polls and contests, such as small quizzes related

to an artist or a performance of upcoming events. Regular tweets about ‘Volunteer of the Month’ to engage more volunteers and

spread awareness of volunteer opportunities at the Guild. Facebook:

Promote the NAG Facebook page on the NAG website. Create Facebook events for all NAG events relevant to families regarding

upcoming attractions and events. Make a series of posts aimed at potential volunteer artists and performers. Post photographs and videos of events so as to highlight the fun and excitement

that people experience at NAG events. Ensure to take and post pictures of entire families of the target age group doing activities together so that potential target families can visualize themselves participating in the activities.

Share articles in line with NAG’s vision to promote local arts and artists. “Like to Learn” campaign mentioned earlier.

Instagram: Post images of “sneak peeks” of art exhibits, behind­the­scenes of music and

theater performances, and art classes.

Pumpkin carving contest on social media: followers post pictures of pumpkins they have carved. Winners are chosen on Halloween and they receive a gift card to a local restaurant or the NAG gift shop.

Exhibit work done by attendees to NAG followers. Promote customer engagement by holding contests (i.e. “selfie with your favorite

work of art”). YouTube:

Post musical events (i.e. concerts, theater performances) on YouTube to allow customers to experience events before attending them.

Share these YouTube posts on all of NAG’s other sites. Allow NAG attendees and fans to post videos of their talents in hopes of being

chosen to perform or exhibit their work in a local event. This will encourage community members to share their talents and generate conversation around the artistic talent available within the Northfield community

Post music videos or theater production trailers onto YouTube so as to generate excitement and stir conversation about their upcoming events.

This campaign will cost $300 in labor costs but increase event revenues by $500.

Reward System:

The purpose of a reward system is to draw in parents from kids’ participation (i.e. Enrollment of child(ren) in an educational class is accompanied with admittance for two adults to a theater production).

Include a participation tracking system on a membership or punch card and announce a reward to promote attendance to NAG’s programming (i.e. Discounts on membership fees, Lottery prizes, etc.).

This system will cost $500 to implement but bring in $1,000 in membership and event revenues.

Return on Investment: ROI = Profit ­ Investment Cost

Investment Cost = (($1700 + $4270 + $3400 + $500 + $1000) ­ ($500 + $500 + $1000 + $1500 + $300))/($500 + $500 + $1000 + $1500 + $300) = 1.86

This calculation tells us that we will see a return of $1.86 for every $1 invested, confirming that our implementations are valuable.

Timeline:

December 2015

By December 1, contact the Northfield Chamber of Commerce to request to participate in Winter Walk. For next year, think about how early dance classes would need to being preparing holiday themed dance material.

By December 1, have the proposed coloring contest pages printed in the Northfield newspaper so that students can begin their coloring.

By December 9, collect coloring page submissions and get them ready to be displayed at a booth at Winter Walk.

December 10: Winter Walk January 2016

January 1: Start off the year with the first “Volunteer of the Month” post to Facebook, Instagram, and Twitter.

January 1: Implement the “Start off a New Year of Learning with NAG” so as to appeal to parents who feel like they have not been doing an adequate job of providing their children with arts experiences.

February 2016

February 1: “Volunteer of the Month” post By February 15, contact Nancy Antoine at Bridgewater Elementary to request to

collaborate with them for Boosterthon and the Fun Run. March 2016

March 1: “Volunteer of the Month” post April 2016

April 1: “Volunteer of the Month” post May 2016

May 1: “Volunteer of the Month” post Mid­May: Bridgewater Elementary Boosterthon By May 15, contact the Board of Directors for Jesse James Days and request that NAG’s

dance classes have a spot in the Grand Parade. June 2016

June 1: “Volunteer of the Month” post July 2016

July 1: “Volunteer of the Month” post August 2016

August 1: “Volunteer of the Month” post August 15: Contact Northfield Chamber of Commerce about participating in Jesse

James Days. September 2016

September 1: “Volunteer of the Month” post September 1: Begin practice and work with DJJD volunteers to incorporate NAG

students in the re­enactment of the bank heists September 1: Issue the sketch competition details so that students are made aware of

the opportunity to sketch their own Jesse James. September 7­11: Jesse James Days September 15: Contact Northfield Chamber of Commerce about participating in Winter

Walk October 2016

October 1: “Volunteer of the Month” post October 24­31: Pumpkin carving social media campaign

November 2016

November 1: “Volunteer of the Month” post December 2016

December 1: “Volunteer of the Month” post December 1­25: Offer discounted “Family” membership for the Holiday season. Added

benefits may be free entrance into events and/or entrance into a gift card raffle. Mid­December: Winter Walk

Appendix: October 2015 NAG Survey Results: