The document outlines the methodology used in a master's thesis on museum franchising. It involved a literature review from management, marketing, and arts management disciplines. Three case studies were analyzed: the Guggenheim, Louvre, and CaixaForum franchising models. A theoretical framework and best practices for museum franchising were developed based on the literature review and case studies. The framework identified key elements of franchising models like trademarks, products, know-how, and assistance. It also outlined considerations for when franchising may be suitable and a 5-step process for implementation. 40 best practices were identified related to general management, marketing, branding, and experience branding recommendations.
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Museum Franchising
1. MuseumFranchisingFebruary 17, 2010 Barcelona ProgramMSc in Marketing Management 2009/2010 Research ProjectMasterThesis Student Irene de Pedro Llorente Director/Advisor José María Álvarez de Lara Morel, CEIC Director
2. index 1. ExecutiveSummary 2. Goals of themasterthesis 3. Methodology 4. Mainlearnings 5. Furthersteps
3. index 1. ExecutiveSummary 2. Goals of themasterthesis 3. Methodology 4. Mainlearnings 5. Furthersteps
4. ExecutiveSummary It is worth doing a master thesis on museum franchising because… The trend is becoming increasingly relevant but lacks of specific (scientific) studies As a helpful strategy for museums to build successful and/or sustainable businesses, as well as strong brands in a moment especially crucial for the sector It contributes to museums with a guide & with reflections A guide of reference on museum franchising as a competitive advantage for museums: why, when & how, with recommendations & examples A series of reflections on the urgency of the introduction of managerial theories & practices in museums as a key for innovation, competitiveness & performance Self-benefits of the conducted research Contribution to improve my knowledge of the museum sector, especially regarding the marketing & management disciplines Opportunity to develop a “consultancy project”in the museum field, which is the professional path I would like to follow in my career
5. index 1. ExecutiveSummary 2. Goals of themasterthesis 3. Methodology 4. Mainlearnings 5. Furthersteps
6. The 3 biggoals of themasterthesis Understand the reasoning behind the museum franchising trend Understand the process and define a model for museum franchising 3. Analyze the suitability of the strategy in the Spanish museum sector Analyze and define why, when and howisitrecommendabletoinitiate a museumfranchisingstrategy
7. index 1. ExecutiveSummary 2. Goals of themasterthesis 3. Methodology 4. Mainlearnings 5. Furthersteps
8. Methodology Input Research & Analysis Output LiteratureReview 3 Case Studies 1 Model (Theoretical Framework) Researchtopicselection BestPractices
9. Methodology Input Research & Analysis Output LiteratureReview 3 Case Studies 1 Model (Theoretical Framework) Researchtopicselection BestPractices
10. Methodology: Input Researchquestions ?Ismuseumfranchisingworth, bothfrom a business and a cultural perspective? ?Mightitbecome a keycompetitiveadvantage in thelong-term? ? Mightitbe a suitablemodel in theSpanishmuseumnetwork? Mainhypotheisis Franchisingmightbecome a keycompetitiveadvantageformuseums in thelong-termMightbe a suitablemodel in theSpanishmuseumnetwork Secondaryhypothesis Worth from a businessperspective: + branding + economic performance Worth from a cultural perspective: + social impact + exploitation of museumassets ResearchTopicSelection> LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
11. Methodology Input Research & Analysis Output LiteratureReview 3 Case Studies 1 Model (Theoretical Framework) Researchtopicselection BestPractices
12. Methodology. Research & Analysis: LiteratureReview Perspective of thestudyform 3 academic disciplines… Management Marketing Arts Management ResearchTopicSelection > LiteratureReviewResearch+ 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
22. Methodology. Research & Analysis: LiteratureReview Structured in 5 groups of knowledgetowardsoneobjective ResearchTopicSelection > LiteratureReviewResearch+ 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
23. Methodology. Research & Analysis: LiteratureReview Main ideas fromtheliteratuereview ResearchTopicSelection > LiteratureReviewResearch+ 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
24. Methodology Input Research & Analysis Output LiteratureReview 3 Case Studies 1 Model (Theoretical Framework) Researchtopicselection BestPractices
25. Methodology. Research & Analysis: 3 Cases Studies 3 case studies Guggenheim Louvre CaixaForum +7 projects Since 2002 SPAIN +10 projects Since 1990s (1976) INTERNATIONAL +2 projects Since 2003 INTERNATIONAL ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis= A theoretical Framework + BestPractices
26. Methodology. Research & Analysis: 3 Cases Studies The Guggenheim as a referent Guggenheim Louvre CaixaForum +7 projects Since 2002 SPAIN +10 projects Since 1990s (1976) INTERNATIONAL +2 projects Since 2003 INTERNATIONAL ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis= A theoretical Framework + BestPractices
39. Franchisefee: 2 tax-free donations ($10M each)OPERATIONS & MANAGEMENT BUILDING & FACILITIES SET-UP DIRECTION OPENING: October 1997 STAFF PROFITS: tickets & gift shop BRAND PART OF COLLECTION TEMPORARY & ITINERANT EXHIBITIONS “ADVISORY CAPACITY ONLY” ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis= A theoretical Framework + BestPractices
40. Methodology Input Research & Analysis Output LiteratureReview 3 Case Studies 1 Model (Theoretical Framework) Researchtopicselection BestPractices
41. Methodology. Output: A Theoretical Framework of MuseumFranchising LiteratureReview Case Studies Triangular Analysis 1 modelforMusemFranchising HOW? WHY? WHEN? ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
42. Methodology. Output: A Theoretical Framework of MuseumFranchising Advantages & Disadvantages of MuseumFranchising WHY? ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
43. Methodology. Output: A Theoretical Framework of MuseumFranchising 4 elements are key in a museumfranchisingstrategy… 1 2 3 4 TRADEMARK themuseumbrandname PRODUCT part of thecollection, assets & products KNOW HOW staff ASSISTANCE pre-opening , acquisitions, partnerships, etc. HOW? ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
44. Methodology. Output: A Theoretical Framework of MuseumFranchising …and, althoughsomelimitationsmustbeconsidered,… Power of themuseum BRAND: Strongbrandimage & notoriety DIMENSIONS of themuseum: Largemuseums WHEN? ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
55. Methodology. Output: A Theoretical Framework of MuseumFranchising Publicfranchisee vs privatefranchisee HOW? ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
56. Methodology Input Research & Analysis Output LiteratureReview 3 Case Studies 1 Model (Theoretical Framework) Researchtopicselection BestPractices
57. Methodology. Output: BestPracticesidentified 40 BestPracticesidentified 4 GENERAL 5 MUSEUM MARKETING 10 MUSUEM MANAGEMENT 8 BRANDING 13 EXPERIENCE BRANDING ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
58. Methodology. Output: BestPracticesidentified GENERAL RECOMMENDATIONS GENERAL RECOMMENDATIONS To help museums anticipate and adapt to consumers needs and preferences and they can attract and maintain them, it is recommendable that those museums: Position themselves as institutions that provide society with meaning by paying special attention to the following areas: service quality differentiation and positioning, personnel differentiation and technological differentiation.218 Expand and diversify audiences to reach broader community support and use it as a source of revenues and a justification for funding Develop a performance management and development system (based both in collective and individual work) Promote collective leadership (a group of people is at the top of the organization, they share responsibilities and clear accountabilities to develop strategies together and reach decisions by consensus). However, it is worth noting that it is useful to select one single leader among all (primus inter pares). ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
59. Methodology. Output: BestPracticesidentified MUSEUM MANAGEMENT MUSEUM MANAGEMENT Self-organization, flexible position descriptions, democratic & non-hierarchical committees with rotating chairs in order to avoid a common risk: narrow mind/view and to promote creativity Multidisciplinary, multi-functional and cross-departmental teams to cross fertilizing the rich storehouse of knowledge, skills and experience inherent in museums. To develop programs, exhibitions, enhance general level of creativity, innovation and problem solving Avoidbusinesstribalism Leadership to cope with organizational change Second curve thinking to avoid decline. Requires: question, scenario planning, be skeptical, curious and inventive, ask front-line staff Self-reference as a foundation for change. A clear sense of identity -values, traditions, aspirations, competencies and culture- that guide the operations (self-reference) helps in sensible change in turbulent environment CSR consciousness: museums‟ functions are beyond entertainment and education. Therefore, they must adopt a new sense of accountability and seek long-term sustainability Especially in the case of public museums, governing authorities must get better at defining strategic futures for their museums & ensure that their boards are representative of the community diversity and aspirations Adopt some performance measurement tool to keep public trust and better justify the need of the museum of further financing Never lay-off the organization’s knowledge-owners. ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
60. Methodology. Output: BestPracticesidentified MUSEUM MARKETING MUSEUM MARKETING Develop branding on these three key issues: reputation (brand image), recognition (brand awareness/notoriety) and trust of visitors and supporters. Success: offer unique and distinctive value to consumers and capture their attention, commitment, and purchasing behavior. Transform exchanges as transactions (Single-time exchange) into relationships (long-lasting relationships = profit & stability) Ideally: Holistic marketing: 4 elements: INTEGRATED MKG (5ps mkg plan), RELATIONSHIP MKG (building mutually satisfying long-term relationships among stakeholders; 3 forces: consumers, society, competitive pressures), INTERNAL MKG (consumer-orient the whole organization) and SOCIALLY RESPONSIBLE/CAUSE MKG (the org embodies a commitment to the community & the society as a whole) An internal market orientation and inter-functional coordination applied to museums have both a direct and a moderating effect on effectiveness ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
61. Methodology. Output: BestPracticesidentified BRANDING Branding should be applied extensively in the following areas of the museum activity: Use exhibitions to communicate brand identity, mission, vision,… Use museum boards to further communicate the brand message and the brand promise as they normally have high visibility and credibility Use the education department as a guard of one of the museums‟ core function: education. Use the store(s) as a space for extending this function Staff (volunteers) are the most relevant touch point: keep them motivated. Fund raising activities are a good place to brand the museum as well. Membership actions and/or activities should also be related to branding as the most important source for brand building, reinforcement and loyalty. Theexpansion/renovationproject: Must be in line with the institution‟s renewal marketing strategies Can take 8 years approximately Spaces must be: dynamic. audacious, multi-functional and capable to integrate peripheral activities, natural light is important, welcoming, accessible and of varying sizes to welcome venues. also facilities for revenue, relaxation and enjoyment: coffee-shops, casual family restaurants and fine-dining rest, … they further enhance the museum experience. EXPERIENCE BRANDING: ICON BUILDINGS ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
62. Methodology. Output: BestPracticesidentified Make the building a must-see The design must transmit the museum brand identity Involve the state and local tourism groups early and often. Integrate the architect’s thoughts so that he/she articulates the museums image/identity and mission creatively Exhibit maps and miniatures of the new building and new location in the other museums and send preview brochures to members and donors (mailing list). This way, the new branch will be related to the mother brand creating an umbrella brand architecture. Consequently, brand visibility and brand image will increase potentially in a few time. Make the new space part of the community by inviting locals to opine on the appearance, types of activities there, etc. and invite the local orchestra to perform in the lobby, or the city council to meet there. Anniversaries: celebrate every commemoration you can Street signage: “a large surface to display the museum name and logo” ResearchTopicSelection > LiteratureReviewResearch + 3 Case StudiesAnalysis = A theoretical Framework + BestPractices
63. index 1. ExecutiveSummary 2. Goals of themasterthesis 3. Methodology 4. Mainlearnings 5. Furthersteps
64. Mainlearningsonmuseums & museumnetworks Museumspotentiality Museumscan be magnets of economic development & urban renewal 1 Networks can help a museum to fulfill its objectives and reach social impact in a cost-effective manner 2 Networks can help a museum to multiply social and economic effectiveness 3 Networks can help a museumtostrengthen the museum brand name, its brand image and brand equity 4
65. Mainlearnings: Whytoimplement a museumfranchisingstrategy? 5 learningsaboutthetrend Alive & relevantworlwide: growthstrategychosenbyleadinginstitutions (national & internationallevels). Impact in themarket, society and local economies. 1 Improvesmuseumproductivity. Betterresults in social and economicdimensions 2 Profitablestrategy in thelong-term. Contributestosustainability 3 Confirms a change in attitude in themuseum sector, more market-oriented 4 Contributestochangetheperception and relatonship of museumswithstakeholders 5
66. Mainlearnings: when & howtoimplementit? 5 determinantfactorstodevelop a museumfranchisingproject: Createstrongmuseumbrands and effective marketing (and management) programs 1 Touristlocation: settlethe new museumbranch in places withtourismpotential 2 Spectaculararchitecture: raiseiconicbuildingsthatwork as anattractionthemselves 3 Be open-minded and collaborativeregardingfranchisees 4 Respondtotheleisurenature of thedemandwith a competitiveoffer, thepropermanagementattitude, and thecorrectcommunicationstrategies 5
67. index 1. ExecutiveSummary 2. Goals of themasterthesis 3. Methodology 4. Mainlearnings 5. Furthersteps
