Marketing Optimization and Profitability Strategy for Local Makers’ Studio
Our client was a small, women-owned business that serves its local creative community through subletting studio spaces, offering workshops where artisans can teach their craft, and selling handmade products in a small retail space.
Situation
In COVID-19, the maker studio's profitability remained relatively stable due to its long-term leases. COVID-19, however, negatively affected both the retail and workshop components of the client's business, since the client only offered in-person shopping. In addition to COVID-19-related challenges, their subleasing business model had a poor track record of profitability for many years and could use improvement.
Challenge
In response to COVID-19, the team was challenged with improving the client's marketing strategy, particularly with regard to cost-effective digital marketing tactics. Due to the low foot traffic at the location, the client was interested in increasing its social media presence in order to improve local community outreach initiatives. Moreover, limited financial resources were available for expansion due to low margins and consistent reinvestment in the existing business model. The subletting business model limited expansion plans and threatened the company's survival. It was necessary for the company to devise additional strategies to overcome the challenges ahead, such as increasing capital flow, exploring new retail options, and adapting its long-term business strategy.
Approach
A six-objective approach, split into three short-term and three long-term goals, reflected the company's goals while accounting for these challenges.
Objective 1: Social Media and Website
Engagement, audience size, and customer conversion were analyzed for the company's current social media presence. After analyzing the situation, a comprehensive marketing strategy was developed, including a social media posting calendar and tracking system, a website restructuring strategy, and a social media expansion strategy. Additionally, the team developed Call-To-Action phrases for use on social media.
Objective 2: Other Marketing Channels
Several other channels were brainstormed to raise the makers' studio's local brand awareness. As a result of the team's efforts, signage was created for the retail store, a local podcast appearance planned, QR codes placed for customer feedback, and postcards used to attract foot traffic from local Airbnbs.
Objective 3: Intern
The team suggested hiring an intern or two from a local college to ease the business owner's operational constraints. An intern program was immediately implemented by the business owner near the end of the project. For intern onboarding and continuity in strategy, the team created a social media management strategy document.
Objective 4: Stepping Stone Pop-up Store
As a stepping stone, the team proposed a pop-up store strategy to prove the viability of a standalone retail store in the future. It was achieved with enthusiasm and a permit for hosting a small booth at a local market was obtained. Apart from the market table, the team produced a general pop-up strategy, location research, cost research, and a financial model.
Objective 5: Future Location & Profitability
To determine if expanding studio/retail/gallery space would be economically feasible, the team researched a variety of different commercial property leases. Based on the analysis, they reaffirmed the difficulties of their subletting business model and refined their future profitability strategies. In addition to location research, the team presented a holistic risk analysis of the business model and future business strategy for the company.
Objective 6: Capital Raising
As a final objective, the owner was educated on the capital raising process, and short-term financial constraints were eased. This objective included a SWOT analysis of several capital raising options, specific recommendations and next steps for pursuing several, as well as an overview of best practices for investment decks.
Impact
The team evaluated, analyzed, and improved many aspects of the business as evidenced by the quantity of deliverables. With this approach, future Rem and Company teams will be able to look at business problems from a different perspective when they cannot find simple solutions to meet clients' needs.
It is evident in short-term changes that the makers' studio partnership with Rem and Company has had and will continue to have a positive impact on the company in the future.
Short-term:
Two vacant studio spaces filled as result of increased social media presence according to owner
Increase in social media/website engagement…..
Farmers market permit obtained
Two interns hired to ease operational constraints
Long-term:
Ideated pop-up store strategy and laid foundation for future implementation
Raised long-term business model concerns for owner’s consideration
Provided future capital raising options, education, and resources
Team Breakdown
Team Lead: Elliott Thornburg
Strategist: Rhea Kumar
Strategist: Gabby Fries
Strategist: Britney Ni
Strategist: Faiz Khwaja
Strategist: Evan Jozkowski
Relevant Background Information
Business Type: Makers Studio
Industry: Commercial real estate, retail
Location: Savannah, GA
At Rem and Company, we're on a mission to keep doors open and dreams alive. Rem and Company started as a social impact initiative offering free consulting services to small businesses impacted by COVID-19. Rem and Company has become an information hub and digital community platform for small businesses in need. At Rem and Company, small businesses stay up to date on trends in their industries, learn new approaches from peers, build a network, and develop the capacity to adapt as the world around them changes. Our consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies and facilitate execution. If you are a small business owner and want to learn more about how we can help, request a free consultation.