Professional Documents
Culture Documents
Table of Contents
Executive Summary......... 1
Situation Analysis
Industry Information ....... 2
Client Background ... 5
Problem ..... 7
Target Market .... 9
Competition .... 11
Objectives ... 16
Strategies
Creative. 17
Media.... 18
Tactics
Outdoor Advertising...... 20
Print. 21
Social Media.. 22
Direct Marketing. 23
Internet Radio.. 24
Community Events... 25
Budget ... 26
Control & Implementation ..... 28
Conclusion ... 29
Bibliography ... 30
Appendix...... 36
Executive Summary
Vinos Picasso is a locally owned premier paint studio, wine bar, and art gallery. They currently struggle with brand
identification and having an online presence. This is an up and coming industry and although Vinos Picasso is succeeding, their
target markets do not instantly tie their name to a sip and paint business.
We have chosen to target females in the age range of 21-65 years. We have divided the target into two sub categories 1)
Females with established careers and finances in the upper middle class with ages ranging from 35-65, living in Fort Myers and
Naples, 2) Female undergraduates at Florida Gulf Coast University aged 21-24 years, specifically those who are affiliated with
Greek Life. The target market of Vinos Picasso has psychographics that consist of enjoying being social, like to drink wine, have an
artsy side, looking for new ways to bond with friends and like to try new things.
There are several measurable goals for this campaign. We have set two specific objects to focus on and for the company to
meet: 1) Increase brand awareness of Vinos Picasso in female aged 21-65 from 45 percent to 60 percent by the end of November
2015. 2) Increase the strength of social media presence by increasing Facebook Likes by 1,000 and increase Instagram followers
by 100 through an integrated advertising campaign by the end of November 2015.
The tagline of the campaign is Vinos Picasso is not about fine art but, FUN art! Come paint, pour, and play! reflects that
Vinos Picasso no painting experience is needed and it is a fun place to visit. It also touches on the fact that participants can drink
during the painting classes. This campaign features Vinos Picassos current logo with bright vibrant colors. This represents the fun,
upbeat feel of the company.
The campaign uses several strategic elements to ensure a successful advertising campaign through the use of outdoor
advertising, print, social media, direct marketing, internet radio, and community events. Our tactics will place advertisement and
increase brand awareness through billboards, road flags, Gulf Coasting The News Press, Facebook, Instagram, Valpak, Pandora,
and local art festival events. The majority of our budget is allocated to billboards, Pandora, and Valpak coupons.
This campaign is an effective and creative way to appeal to the targeted markets. The campaign was designed to develop
and increase brand awareness in Lee County for Vinos Picasso.
Industry Information
Vinos Picasso is in a unique industry that is referred to as the Sip and Paint Industry. Due to the fact that the Sip and
Paint industry is so new, there is technically no NAICS code, or SIC code, for this industry. Vinos Picasso is classified under the
NAICS code 61161001, which is under the category of a Fine Arts School (Reference USA, 2014). The industry first took storm in
the early 1990s in the southern part of the United States.
What is Sip and Paint?
The Sip and Paint industry is a young, but growing industry. The way a Sip and Paint studio works is, customers come into the
storefront, or in some cases the business will cater to the customer. Customers are able to choose from a monthly calendar, where
each night has a designated painting so they can pick one that fits their taste. The customers are provided with everything they
need to paint. Canvases, paint, brushes and an instructor, are at the customers disposal. During the class there is one painting
that is on display for everyone to try and replicate. The instructor is there to help customers create their masterpiece and provide
them with step-by-step instructions and helpful hints. This isnt your typical art studio, customers can consume wine and beer
during the class. Customers are allowed to bring their own wine and beer to approved classes, some studies also have a wine and
beer bar.
Classes typically range from $35 to $50 per person, and can have anywhere from 30 to 60 people in attendance. (Broda,
2014). The Sip and Paint industry offers a laid back form of entertainment. The studios are not just for advanced or talented artist,
people of all artistic abilities would be able to come into a studio and enjoy themselves. These Businesses have created a
different form of entertainment, mostly for adults, and I think thats whats nice is that they fit so well within creative
communities. (Broda, 2014).
Industry Information
Who are the Industry Leaders?
The Sip and Paint industry is dominated by small individually owned businesses, but there are a few big players who have
franchised their studios. It is estimated that there are around 200 businesses in the United States that are in the paint in sip
industry. (Max, 2014). Painting with a Twist, and Pinot's Palette, are the two major leaders in the industry. New Orleans-based
Panting with a Twist ranked first in the sip and paint category for Entrepreneur magazines Franchise 500 this year; it has more
than 120 locations in 25 states. (Broda, 2014). Pinots Palette is the second largest franchise in the sip and paint industry and
currently has 86 franchise units that are operating in the United States. (Max, 2012). There are other Sip and Paint businesses that
offer the option of owning a franchise, but none are near the size of Painting with a Twist or Pinots Palette.
What is the Cost of Starting a Store?
Breaking into the Sip and Paint industry is relatively inexpensive in comparison to other industries. Owners that choose to
open their own business without any help from a franchise can save themselves money. In order to start a Sip and Paint studio, all
that is needed is a commercial building unit, paint, canvases, brushes and a beer and wine licenses. The total investment cost to
get started on your own can range from $100,000 to $200,000 depending on location and size of studio. People that choose buy a
franchise will spend more upfront. Along with the average startup cost, owners who purchase a franchise will typically pay a
$25,000 franchise fee, additionally franchise owners will have to pay a royalty fee to the franchise. Painting with a Twist has a
royalty fee of 6% and the term of the franchise agreement is a minimum of seven years. Pinots Pallet has a royalty fee of 5% and
the minimum term of a franchise agreement is 10 years (Max, 2012). Once the store is up and running, it can cost anywhere from
$3,000 to $5,000 dollars a month when you include price of canvas, paint, brushes, overhead and other expenses.
Industry Information
Profits from Sip and Paint Industry
It is still too early to tell if this industry is here to stay or if it is just a fad. The success of a Sip and Paint studio lies in the
hands of the owners, and depends on how much time and effort they pour into their studio. With the average cost of starting a
studio ranging from $100,000 to $200,000, most business owners do not break even after their first year. In many cases it takes
two or three years for franchise owners to really start seeing a steady flow of income. Vinos Picasso, which is located in SWFL
took a couple of years before the store started to see quality profits coming in. The industry leading, Painting with a Twist
franchise owners also see some struggles in the first year. Franchisees in the top one-third of the company earn about $300,000 in
gross annual revenue; those in the middle two-thirds gross some $175,000 annually. (McCrea, 2012).
Client Background
Vinos Picasso is a locally owned premier paint studio, wine bar, and art gallery. They are a paint studio where you can
create your own work of art or join them for a session led class by a local artist. During artist lead classes participants can bring
their own wine and beer to enjoy or purchase it from the wine bar. Customers are able to pick what painting they would like to do
by looking at the monthly calendar and registering for that night. The calendar varies month to month as do the paintings. They
also have open paint sessions and children sessions scheduled throughout the month. On top of scheduled classes at their paint
studios Vinos Picasso also hosts painting events at local venues and include all supplies for the event (Florida Weekly, 2014)
Vinos Picasso was established in the spring of 2011 by Mercedes Price Harry. Mercedes was in the medical field, as a
pharmaceutical representative, for 10 years prior to opening Vinos Picasso (Interview, Price Harry, 2014). She was inspired to open
Vinos Picasso after visiting a similar establishment in South Carolina while visiting her sister.
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Client Background
Vinos Picasso has three locations in Southwest Florida. The first to open was the Fort Myers studio in 2011, followed by a
seasonal location on Matlacha Island, at Leoma Lovegroves famous gallery, which began in the winter of 2012, and most recently
the Naples location opened early spring of 2014 (Vinos Picasso, 2014). They also have a mobile party where they bring the Vinos
experience to customers in their homes, favorite restaurant, or other organizations. Currently Vinos Picasso employs ten people,
which includes the owner, managers, and local artist (Reference USA, 2014).
Vinos Picasso differentiates itself from other paint and sip businesses because they have a wine and beer bar within their
studio and are not a franchise. They aim to have a young, fun, hip atmosphere and an enjoyable place to be (Interview, Price
Harry, 2014). A portion of their studio is also gallery that showcases over 20 original pieces from local artist (Site Visit Vinos
Picasso, 2014).
One customer, Johnathan A, stated This is an incredible place to get the creative juices flowing, and I'm not just talking
about the wine! The atmosphere is extremely comfortable and reminds me a little of my art class back in high school. But of
course with the added bonus of imbibing alcohol (Yelp, 2014). I was amazed how well my painting turned out; it looks like a real
painting! I cant believe I painted this and it was so easy and so much fun! stared Bobbi Jesse after attending a class at Vinos
Picasso (Interview, Jesse, 2014).
Problem: Industry
The paint and sip industry as a whole faces four specific problems that all retailers face. The first is low awareness. Not
many people are even aware of the paint and sip industry. The second problem is low differentiation between competitors. The
vast majority of all the retailers in the paint and sip industry offer the same thing. Artist taught canvas painting classes and beer
and wine. The third problem this industry faces is low barriers to enter (Max, 2012). This industry is very attractive because of its
low entry costs and low overhead. The fourth problem the industry faces is high supplier power.
According to Vinos Picasso owner, there are only a handful of suppliers nationwide and only two of them are cost effective
and reliable (Interview, Price Harry, 2014). Wholesalers have recently increased the price of paint and brushes, they have put a
limit on the quantity of paint retailers are allowed to order per month, and even so they have limited stock available so
sometimes they cant even fulfill their orders. Independent retailers such as Vinos Picasso have a more difficult time creating
partnerships with wholesalers compared to franchising because they dont have economies of scale of high buyer power. Other
problems that the industry faces are seasonal customers, an unstable economy, and disposable income to spend on advertising
and awareness.
Problem: Client
On an individual level, Vinos Picasso faces other problems as well. The most important being having her artwork
copyrighted and her business plan and network copied by former employees. In the Fort Myers area, the owner of Vinos Picasso
personally knows a handful of women that have either worked for her in the past or have taken one of her classes and have then
copied her idea and started their own business. Vinos Picasso also must formulate a strategy on how they plan on competing
with the amount of franchise stores being created with proven successful strategies. In 2012, Painting with a Twist already had 67
franchises in over 15 states (Max, 2012).
Vinos Picasso also is dealing with the problem of low differentiation by offering more than just canvases to paint. They
offer wine glasses, baby onesies, coconuts, and live nude models. Vinos Picasso is also having a difficult time penetrating social
media outlets and staying current with their accounts. Currently, Vinos Picasso advertises in the Florida Weekly newspaper that
has over 960 different locations between Fort Myers and Bonita Springs (Florida Weekly, 2014). Vinos Picasso is unclear whether
this type of broad advertising is helpful or not at bringing in new clients and increasing awareness.
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Cancer with the relay for Life Team of American Cancer Society (News-Press, 2014). They promote that their classes are
a unique adventure for everyone.
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Competition: External
There are numerous external competitors for Vinos Picasso. Fort Myers and Naples have an abundance of options for
consumers to participate in for an evening out. The largest external competitors are shopping centers. They offer numerous
restaurants, bars, movie theaters, and shops.
In Fort Myers there is Bell Tower Shops which is located near Vinos Picasso. It consist of fourteen bars and restaurants, a
movie theater, and dozens of retail shops. They hold events weekly with a wide variety of themes, from animal shelter, chocolate,
kids, and music (Bell Tower Shops, 2014). This is an alternative for Vinos Picassos Fort Myers customers to attend instead of
going to a painting class.
In Naples there are the Mercato Shops which have a wide variety of attractions. There are twenty three dining locations, an
up-scale movie theater, and numerous retail shops. They hold weekly events that revolve around food, movies on the lawn,
children, and animals (Mercato Shops, 2014). For Vinos Picassos Naples customers this is an external competitor that they can
attend.
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Objectives
1. Increase brand awareness of Vinos Picasso in females aged 21-65 from 45 percent to 60 percent by the end of November
2015.
2. Increase the strength of social media presence by 1.) Increasing Facebook Likes by 1,000 and 2.) Increase Instagram
followers by 100 through an integrated advertising campaign by the end of November 2015.
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Strategies: Creative
When approaching the primary and secondary target markets, the campaign will portray Vinos Picasso as an artsy, fun,
and social company. The tagline Vinos Picasso is not about fine art but, FUN art! Come paint, pour, and play! helps the target
market understand that this is a place to have fun and that you dont need to be a painter to enjoy a class. It also touches on the
fact that you can drink during their painting classes. This tagline came from a mixture of Vinos Picasso current logo and a quote
found on their website.
We will be using Vinos Picassos current logo on all campaign material as well as social media logos. This will ensure that
the public will easily recognize the company and help to increase awareness. The social media logos will direct the public to their
social media sites.
Throughout the campaign we will use consistent colors. These colors are bright and will contribute the artsy feeling, they
coordinate with the logo which give the campaign a cohesive look. The font is Comic Sans MC, this is a fun font that is easy to read
and matches the logo.
Background
Accent Colors
Font
Strategies: Media
Outdoor Advertisement
The average person spends around 20 hours a week traveling in a car, during this time people are exposed to all kinds of
billboard ads (Olenske, 2014). Billboards have potential to reach even more people than social medial advertising, because 98% of
Americans travel in a car each month (Olenske, 2014). People see billboard ads and the question is do they actually work? The fact
is that billboard ads are still extremely effective when it comes to advertising. Billboard advertising is one of the last messages a
buyer receives before making a purchasing decision. 71% of people 18 years or older notice a billboard ad most of the time, or
each time they pass one (Williams, 2009).
Print
The number of people actually subscribing to newspapers and magazines has declined over the years, but print media is
still an effective form of advertising. Print media can be effective because of segmentation. When using an ad in a newspaper or
magazine, the target market has already been identified therefore the advertiser knows who will see their message. Also ads in
the form of print media are considered to be more credible than online ads and print ads are easier to read for people (Newtek,
2012). People read digital screen text 20%-30% slower than printed-paper (Prikryl, 2012).
Social Media
The use of social media continues to grow at a rapid pace; there are an estimated 169.5 million users in America alone
(emarketer, 2013). With half of the U.S. population on social media, this allows businesses to reach a large portion of people
through advertising on social media sites such as Facebook, Twitter, and other sites. Establishing a strong presence on social
media sites is a critical part of marketing for any business. Having a strong presence on social media can increase brand
recognition, and improve brand loyalty (DeMers, 2014). We will use social media icons on advertising material to help increase
social media and make this strategy more successful.
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Strategies: Media
Direct Marketing
Direct marketing can be used in the form of mail sent directly to homes of consumers. This means that businesses are able
to target a specific audience to hear their message. Coupons can be included in the form of direct mail, and can be beneficial to a
business and their advertising campaign because it is the only form of advertising that can be directly linked to sales. In a 2012
Channel Preference survey, exact target found 65% of people who receive direct mail have made a purchase (Parikh, 2013).
Internet Radio
Internet radio has been able to take off in recent years thanks to Pandora and other Internet radio providers. Internet
Radio differs from traditional AM/FM radio because it gives the opportunity for listeners to choose exactly what type of music
they want to hear. Internet radio users are more engaged both online and with broadcast radio, therefore listeners are more likely
to respond to and recall Internet radio ads (MarketingCharts, 2011).
Community Events
It is important for local business to be active in their community. Businesses can do this by participating in community
festivals and events can have great benefits for a business. Community events normally draw large crowds, and especially in SWFL
tourist are in attendance at these events. Involvement in your community demonstrates your concern for where you live or work
which can greatly improve your company or organizations public image as well as to build good will in your community (Bonnet,
2014).
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Tactics: Print
Gulf Coasting -The News Press
The weekly entertainment section inside The News Press, Gulf Coasting highlights fun activities and things to do in Fort
Myers. The article prints every Friday and is read by 86% of residents in Lee County, and 85% of those readers are adults between
the ages of 35-49 (The News Press Media Group, 2014). Gulf Coasting will run for a total of 26 weeks starting in December and
will be 3 long. We chose to advertise in Gulf Coasting Magazine because it is circulated every week and will increase awareness
about Vinos Picassos by offering a free glass of wine for all visitors who bring in the ad.
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Budget
We will be using a flighting schedule for this advertising campaign over the course of a 6 month period with rising intensity
between the months of December and April. The advertising campaign has a budget of $25,000 and is broken down as follows.
Ten percent of the funds will be allocated to research, preparation and execution of the campaign. The Annual Naples Art Festival
will cost $500 to rent a booth space and the Downtown Fort Myers Art Walk will cost roughly $100 per month with an estimated
$900 in supply and promotion costs. The two road flags that will be placed in front of the Fort Myers location will cost $493. We
will advertise on a billboard near the Fort Myers location in the month of December and January, which will cost $7,760. The
social media costs are based on a 5 hour work week paying $10 per hour for six months. The employee will use Hootsuite.com to
update all social media outlets. Pandora will cost $4,650 to advertise over a one month period with 5 ads displaying over a two
hour period from 4-6pm daily. Valpak coupons will cost a total of $3325, with a total of sending out 95,000 mailers. Gulf Coasting
Magazine will cost a total of $2,590. The total advertising costs for this campaign will be $24,518.
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Budget
Item
Quantity
Average Cost
Total Cost
Production Costs
1 Advertising Campaign
$2500
$2500
1 Event
$500
$500
6 Events
$100
$600
Art Event
Supplies/Promotion Costs
200 Canvases
$4.5
$900
Road Flags
2 Feather Banners
$246.5
$493
Billboards
2 Months
$3880
$7760
Pandora
$150
$4650
Valpak Coupons
95,000 mailers
$3325
26 Weeks
$2590
$1200
$24,518
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Conclusion
In conclusion, our advertising campaign blows the sip and paint industry competition out of the water. This marketing
concept has a lot of different ways to reach our target market and fits with Vinos Picassos vision. It is a bright, fun, campaign
targeted at increasing brand awareness. Our various strategies including social media, outdoor advertising, print media, direct
marketing, internet radio and community events will help achieve our objectives for this advertising campaign. With this
campaign Vino Picassos will increase brand awareness, customer growth, and sales.
Vinos Picasso is not about fine art but, FUN art! Come paint, pour, and play.
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Appendix: Survey
1. Have you ever visited a sip and paint business?
a) Yes: If yes, what business? _______________________
b) No: If no, do you know what this type of business does?
No
2. Would you be interested in participating in a painting class that you can bring your own or purchase wine/beer?
a)Yes
b) No
b) No
c) A discount of $10
b) Discounted price
6. What other objects would you be interested in painting? (Instead of just canvases)
__________________________________________________________________
Continue on next page
36
b) Male
c) 39-49 years
b) 25-38 years
d) 50+ years
9. What social media sites do you use? (Please select all that apply)
Facebook
Pinterest
Instagram
Twitter
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Yes 75%
No 25%
2. Would you be interested in participating in a painting class that you can bring your own or purchase wine/beer?
a) Yes 90%
b) No 10%
b) No 55%
40%
6. What other objects would you be interested in painting? (Instead of just canvases)
Wine Glasses (8), Mugs/shot glasses/beer glasses (8), Sorority Related (3), T-Shirts/Totes (4)
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b) Male 30%
d) 50+ years 5%
9. What social media sites do you use? (Please select all that apply)
Facebook 90%
Pinterest 80%
Instagram 45%
Twitter 20%
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