Page 1

Nonie Hunter Steph Rose Steph Lee Alexander Trevisan

PROPOSAL


Only 64% of the area feel a part of which is significan Victorian aver


Maribynong City f their community, ntly lower than the rage of 70.6%.


CONTENTS Executive summary

[1-4]

The Hatch Initiative Hatch Lab Hatch Pop-Up

[5-6] [7-16] [17-20]

Company Description, Operations & Team

[21-30]

Market Analysis

[31-38]

Consumer Analysis

[39-44]

Competition Analysis

[45-60]

Marketing Strategy

[61-68]

Financials

[69-80]

Bibliography

[81-82]


EXECUTIVE SUMMARY


Theory of change Hatch Initiative is an eight week crash course that aims to inspire low-socio economic high school students to further their education through practical, alternative education and application of design/art skills. 1


Outline of the service and the audience

Service Hatch Initiative is an eight week program that teaches school students from low-socioeconomic backgrounds practical skills in design, business and project management. Students work collaboratively with a volunteer university and industry mentors to develop a design(s) and/or artwork(s) that is then produced and distributed through pop-up stalls. The Service ( Part A ) The Program - Hatch Initiative Lab : -Eight, two hour sessions, run after school. -Eight students from one lower socio economic background are partnered with a tertiary student who acts as their mentor and teacher. The Service ( Part B ) -The Hatch Initiative Lab (Students and mentors) will select a focus: -Photography and Photoshop skills -Illustration and Illustrator skills -Type and typography training -Tertiary students are also mentored with Industry professionals The Service ( Part C ) Pop Up stalls -In week six, the finished works will be sent to print as Postcards and Prints (A5 and A4) -Pop-up stalls will sell Hatch Initiative’s Lab’s works at: -Hatch Initiative Lab student’s school -Across Melbourne CBD -Local fair in the community 2


Audience

The pilot program will be held in three selected schools in the Inner West of Melbourne - specifically the Maribyrnong region, Why? It has a lower sense of community and community pride than the rest of Melbourne. This can be seen as 64% feel a part of the community which is significantly lower than the Victorian average of 70.6%. It has a High concentration of

low-socioeconomic schools. Out of the four schools in the region (Gilmore Girls, Braybook, Footscray City College and Caroline Chisholm) show the strongest numbers. There is possibility for expansion of the program to operate as a part of local community groups and organisations such as SAIL Footscray and REACH.

Hatch Initiative is made of four core audiences: 1 ) Lower socio economic school students in year nine and ten. This was chosen as compulsory secondary education finishes at the end of year ten. 2)Tertiary design students in their second or final year studying BA communication and BA digital design with a distinction (75) or above average.

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3) Industry mentors that are based in our target demographic. 4)Melbourne general public


Goals / Purposes

Hatch Initiative Lab: Motivate and inspire students to finish school through creative and practical education of design/art skills.

Hatch Pop- Up: Connect students / general public to a different part of Melbourne to encourage greater community participation. To practically showcase and sell Student works boosting confidence and learning soft skills in business.

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PRODUCT/ SERVICE OVERVIEW


The Hatch Initiative was born out of a simple idea, to use creativity to practically motivate and inspire low socioeconomic school students to finish school. As communicated above Hatch Initiative is created from two parts: ( A )Hatch Initiative Lab ( B )Hatch Initiative Pop- Up Store. 5


THE HATCH INITIATIVE: (A) THE HATCH INITIATIVE LAB


Participants ( High School ) Eight students from three Inner West of Melbourne schools will be selected to participate in Hatch Initiative Lab. These schools and the reason they have been selected are below.

School #1 Gilmore Girls: -Small all girls government school with just 355 students -Classified as a low socioeconomic school with a high proportion of students with English as a second language

-School retention from 2006 - 2009 leaving school to either further studies and full time employment is lower than the state average. -There are no art or design specific cocurriculum activities.

School #2 Braybrook College: -State co-ed secondary college of 1067 students -Classified as a low socioeconomic school with a mid-high level of students where english is a secondary language.

-School retention from 2006 - 2009 leaving school to either pursue studies and full time employment is lower than the state average. -There is no art or design specific cocurriculum activities.

School #3 Footscray City College: -Co-educational college of 895 students -Classified as a low socioeconomic school with a mid-high percentage of students with english as a second language . -However they have a strong co-curricular 7

program with creative arts including performing arts, visual arts and yearly exhibition but nothing specific to growing design skills .


Key Statistics These three school have a genuine need for the Hatch Initiative to increase retention rate and provide a service that offered a different type of education. With our objective to inspire and motivate students from lower socioeconomic status finish school we chose to focus on school students in year 10 that are 15 or 16 year’s old. There was two key reasons:

There is a significant increase in the percentage of young people not engaged in full time education or full time work from 16 to 17 years old. This can be identified that at aged 16, 5.6% aren't engaged in the above but this jumps significantly to 13.3%.

“As teenagers leave school in greater numbers by age 17, participation in full-time education declines. One in ten 17 year-olds was in full-time work in May 2011. But many young people who leave full-time education at this age do not find a secure place in the labour market.” FYA Report Affordable extra curricular activities is crucial to the students sense of community and that sense of community is crucial to their motive to continue higher education.

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Participants ( Tertiary ) Tertiary design students: Design university students that hold a H21 or H21 average can apply as Hatch Initiative facilitators volunteering approximately 5 hours a week for eight weeks. There are two reasons why we believe design university students are the perfect people to mentor this program:

There are seemingly countless design colleges and universities in Australia including Swinburne, Monash, RMIT and CATC. Monash alone has x intakes yearly. All these students have one thing in common, a need to build a great, professional portfolio that has various clients. The Hatch Initiative is a perfect way for high performing students to gain art direction, facilitation and project management skills.

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Volunteering is on the rise among young people. In 2006 one third of young people (18 - 24 years old) volunteered at least once a year. Between 1995 2006 this has increased from just 17 to over 30%.


Participants ( Industry ) Industry Mentors that work in the creative sector that support the Hatch Initiative Lab. We believe this will work because we’ve seen the creative industry practice with a strong sense of social justice. Here are two examples:

Y Media: Industry mentors work with a groups of students to develop media and communication needs for nonfor-profit organisation.

Creative Spirit: An initiative of Break Thru and Droga 5 this program gives disabled people an opportunity to intern at a design agency across Australia.

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What is the program built on?

The program was built modelling some of the best alternate creative education and successful non-for-profit organisations:

Project H School: This is an alternate education program in the United States that develops design projects for school students that directly benefit the local community. Projects have included designing and constructing a farmers market. The program builds practical skills and work experience.

AIME: Is an indigenous school based mentor program run by indigenous and non-indigenous volunteer mentors. In 2005 the first program was run with 25 mentors partnered with 25 students. 8 years later AIME is now partnered with 75 schools and 10 universities across 3 states of Australia. The aim of the program is to encourage educational success in indigenous students by increasing progression rates and encouraging further education.

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Y Media Challenge: Is a annual event that connects students, industry mentors and not for profit organisations to develop and execute a design brief. In 2010, 20 student teams worked with a student mentor to execute briefs for eight organisation. This was valued at $267, 900 worth of pro bono work. The students also received media and communication training.

Reach: Was born from Jim Stynes and Paul Currie’s desire to inspire every young person to believe in themselves and get the most out of life. Is a range of programs targeted towards youth in the school system and in the community. They aim to engage young people with one another and the community, while supporting them to improve their self-esteem, develop resilience and emotional awareness. Reach have 130 members; their mentors are aged between 15-25 and have been involved in the program; they run preventative programs for over 60,000 young Australians in over 580 metropolitan and regional schools and communities for participants aged 10-18.

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Week 1- Introduction and induction

Curriculum Breakdown ( 8 Weeks )

Week 2 - Idea Development

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Week 3 - The Pitch


Week 4 - Executing ideas

Week 5 - Executing ideas

Week 6 - Off to printing

Week 7 - Promotions

Week 8 - Pop up bonanza

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When is the Lab held?

Once a school term, four times a year. The project will start off in one school, Gilmore Girls High and then scope out to Braybook and Footscray Community High.

Where is the Lab held?

As the first school we will be looking at to participate is Gilmore Girls Highschool,the lab will be allocated to their classrooms and meeting places. This will then be the same for each of the school s that participate.

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THE HATCH INITIATIVE: ( B ) THE HATCH INITIATIVE POPUP


The Hatch Pop up is the concluding element of the Hatch Initiative School program. The pop up is the chosen medium to showcase the results of the 10 weeks of the Hatch Initiative program. Classically, gallery spaces are often used to showcase works. However, we wanted to take it outside of a space, to the streets and to the public to encourage the students to be proud of their achievement and create public exposure and discussion of the Hatch project.

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Pop - Up Stand Diagram

HANG IMAGE

HANG IMAGE PHOTOGRAPHY DESIGN

HANG IMAGE

HANG IMAGE

Front Panels X 3

Design Pillars X 4

Fully Constructed Diagram 18


Pop - Up Stand The Hatch Pop up is the concluding element of the Hatch Initiative School program. The pop up is the chosen medium to showcase the results of the 10 weeks of the Hatch Initiative program. Classically, gallery spaces are often used to showcase works. However, we wanted to take it outside of a space, to the streets and to the public to encourage the students to be proud of their

achievement and create public exposure and discussion of the Hatch project. A pop-up shop is a short term retail space held in a temporary location. As a growing trend, pop-up stores address the consumers need for exclusivity and uniqueness from their purchase.

Participants The mentoring of the students will continue through the pop up shop, university mentors guiding the students and acting as their responsible guardians while working the stores and Design Industry mentors overseeing their progress and setup of the stands. A Hatch Initiative staff member,

mentor and a student, will staff the stalls in 1-hour increments. They will rotate time spent at the stall; while the other mentors and students visit Galleries in the city or explore the city. It allows the students to see a side of the city they may not be familiar with and hopefully inspire their creativity.

When is the Pop-Up held?

The Hatch Pop Up will be located in Bourke Street Mall and Federation Square for 3 afternoons in week 10 of the program The stand will operate between the hours of of 3-6pm.

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On the Saturday of Week 10 it will be located at Footscray Arts Centre from 10am-3pm as a means of encouraging those from the Eastern Suburbs to make the crossing to the West and experience the Footscray community.


How will the Pop-Up run? In order for the pop-up stand to be carried out, there are permits that are required. All University mentors and Industry mentors must have a working with children permit which is part of their commitment and initiation into the program. This will be most important as the mentors will be responsible for the students in a public space. A written permission letter from the children's parent/guardian is also required to ensure they allow their child to participate in the excursion. To be able to hold a temporary retail space in the city, we require a seasonal trading permit from the City of Melbourne which is obtained by a tender process. The cost of this permit is $300 per month. A maximum of 3 locations may be used under one permit. Application is in the form of a tender process, which social enterprises are encouraged and supported by the Council. The Saturday pop-up in Footscray will be a collaboration with the Footscray Community Arts Centre to encourage visitors to the west. Through the support of the centre we can create a small market event for the day. An existing cafe and retail space at the arts

centre will be available to those visitors. A possible collaboration with a planned entertainment event may also be organised to ensure the day is a success. The Physical stand is to be made from cardboard. It will consist of 3 panels and 4 columns that can be arranged in various positions. The stand will be a base colour which will allow students to each take a panel for their works and “visually merchandise� their work to attract sales and consumer attention. We have the opportunity to use cardboard from Visey or donated cardboard which can be constructed from a pre-cut plywood template. The student work will be printed through sponsorship from local businesses. Spicers paper will donate the paper and printing will be carried out by Bambra press or Bond Imaging. Sponsors may request branding to be applied to prints. This will be located small and central, on the back of the print alongside the Hatch Initiative logo. Students will also sign their work for copyright and ownership.

Why are we doing this? As a means to continue the project education, students will be taught basic business and monetary skills before the launch of the pop-up shops. These skills are an important part of understanding how the design industry works and how to ensure as a designer, you are not taken advantage of as well as encouraging students to be confident in selling their work to make a small profit in the future. Other aspects

the Hatch pop-up hopes to achieve as an outcome of this part of the program is an increase in confidence in themselves and enthusiasm for design. By speaking to customers and members of the community, it encourages the students to interact on a personal level with people and their artworks and make them feel part of the wider community. 20


-COMPANY DESCRIPTION/ -OPERATION/ -TEAM.


Hatch Initiative is that uses the powe design to empow especially the u and marginalised educa


a social enterprise er of creativity and wer young people, underprivileged d, to further their ation.


The Hatch Initiative Team Alex TREVISAN Alex Trevisan is in his third and final year of a Bachelor in Design ( Communication Design ) . With Co Minors in Design Management and Branding Alexander represents an innovative way of thinking and both a deep understanding into the design aesthetic aspect and the design business aspect. He looks forward to a career path in conceptual design thinking, tied in with illustration and typography work. Nonie HUNTER Nonie Hunter is in her final year of a Bachelor in Design (Communication Design). With co-minors in Design Management and Branding and Advertising, she has a strong understanding of designing innovative and user focussed designs. Nonie looks forward to pursuing a career in Design, where her love for photography and illustration are a strong part of the creative process and outcome. Stephanie ROSE - feel completely free to make mine a bit funnier :) Stephanie Rose is currently in her final year of Communication Design/Business (Marketing). In 2011 she completed a year IBL internship with Monash Law School’s marketing department. She is now looking forward to a career in marketing and hoping to incorporate design and creativity into her future role post graduation. Steph LEE Steph Lee is currently the National Campaign Director at the Oaktree foundation - art directing and project managing initiatives including Live Below The Line and The Roadtrip 2013. She will be completing her BA of Digital Design with a minor in Managing Design in 2012. In the future Steph hopes to marry her work in the not for profit sector with design. 23


Objective and Purposes

1 ) Create best practice programs that powerfully uses design and creative as tools to educate high school students. 2 ) Provide exciting and innovative opportunities for students to practically distribute their designs. 3) Engage tertiary design students in meaningful volunteering opportunity that allows them to engage with the greater community, build skills and gain industry mentorship 4) Give the general public a chance to engage with a different type of produce and service

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Branding Business Name The business name 'The Hatch Initiative derived from the concept of growing youth. The concept revolved around a bright Idea that something hatched into a new brand of life, and theats how the name was born. The word Initiative came second. The Concept behind that was to find a word that rather involved the user then something that was telling them what to do. The word Initiative lets the user decide whether the have the strength in themselves to complete the full course, rather then using the word program. Which may imply that it has easy steps that the user can follow and merely use the Hatch Initiative as a tool of personal gain rather then experience.

Logo The hatch Initiative logo portrays the idea of community togetherness through the connection of the 'A' and the 'C.' The Idea of reaching out to those around us is an important aspect of the Hatch initiative business name and needs to be strongly portrayed through the business logo

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Identity palette The sections are colour coated to stop confusion amongst readers learning about the initiative.

EST. 2013

EST. 2013

POP - UP STAND

THE PROGRAM

ONLINE STORE

These eggs relate to the idea of each segment of the program itself.

Hatch Program

Pop-up Stand & Market

Online store

These eggs relate to the progression of the participants, in growth.

These eggs relate to the Hatch Initiative team.

ALEX

STEPH LEE

STEPHANIE

NONIE

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Operations

Day-to-day Opeerations The Hatch Initiative will run as a full time nightly job for each of the four members of the team for the first month. From then on in, they will only work one full day as a team but day-to-day emailing will be required to make sure the program is on track. If the business was to grow them team would then look into hiring one full time operations manager to help run the business, putting less stress on each of the team members. This is a probable outcome as the company

will be looking at making approximately a $30,000 profit by the end of the second year, giving them enough money to hire someone. The project will only move into the secondary stage once the participants and collaborators are looked in adn finalised. Another day- to day job would be staying in contact with schools, participants and mentors on a weekly basis.

Operating Issues and complexities

Some operating issues may be keeping the participants on track and getting them to arrive to their consultancey each week. To help fight this issue the Hatch Initiative team will be present at each StudentMentor meeting. This will help regulate the program and make sure the students are on track to presenting their final works.

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The second Issue for the program will be making sure we fix collaborations and donations before the program goes ahead. These are essential for the business to run. Although if we weren't to gain sponsorship we could still run off a bank loan and


Pricing Strategy

Covered Costs & Strategies All Printing costs through out each unit will be covered by our printing partners. This collates to $2700, which is not much considering the company will have 2 days of full advertising in the CBD region which would cost approximately the same amount as the printing service they are providing us with.

We will also receive a $5,000 service fee from each school that participates, this will help the Hatch Initiative to operate at a profit within the first.

Our Pricing strategy will work as 'demand pricing' this is selling our products and services through a variety or sources at differing prices based on the market demand at the time. The program itself will require a donation from the school in order for them to participate and pay for our services.

Initiative is trying to tackle. The Hatch Initiative is a low cost program providing well crafted goods. In order to reflect our integrity and longevity of the service, the $15.00 artwork price should stay consistent. As a pricing strategy this would be smart because the demographic that catches on and spreads the Hatch Initiative , by word of mouth would trust in us as a support service trying to make a difference not a corporate company trying to make a large profit. Prices would be adjusted elsewhere such as the online store to tackle this issue of demand or loss.

This starts at $5,000 and can be pushed to $10,000. This is purely used to cover the costs of our time and money put into the program. For a great Initiative providing a great service this is a small price to pay for under privileged students to get vital inspiration and experience in the industry. The second route of income will be from the Pop-Up stands. Students will be selling their works at $ 15.00 each which we estimate they will sell 100 each over a three day period. As the Works are only crafted by High school students this is a fair price, and in this specific market a cheap price allows us to gain empathy from the spenders as the feel their small donation is providing a big difference to the issues the Hatch

Hatch Initiative bases itself on the idea of growth through numbers, the more units sold the further our business can grow, and in order to capture the demographic of users we need to gain trust as a service that is dealing with important social issues. We will deal with fluctuation and growth subtly by using our online store to raise prices and moving the service fee for schools between the $5,000 and $10,000 mark.

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Management

The Hatch Initiative are an innovative design and business based program. Our business structure is a profit social enterprise, as this gives us the freedom to use the profits as they are needed. We are looking to encourage students in lower socioeconomic areas to stay at school and be engaged with the people around them. To achieve this we have a flat organisational structure. We want to know that we are heavily involved in every stage of the program.

Business structure We will be setting up our business structure as a for profit social enterprise. Using a business model of buying and selling goods or services that will assist us to fund and support youth education and community services. The advantage of our business structure is that our products - the program and the pop up stall are helping the students learn valuable life skills and the community can feel good about being involved. Our business model is a hybrid of the employment model (as we are teaching valuable work skills to the students), and we are using the goods and services model (we are selling the students work to the general public).

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Organisational structure Our structure is essentially flat - we have the Hatch Pop-Lab-King to oversee that everything is being delegated and to supervise the overall running of the program. We then have 3 coordinating roles for the program (Hatch Lab Coordinator), pop up stall (Hatch Pop Coordinator) and mentor communications and coordinating (LabPop Volunteer Coordinator). Under all of these roles Administration, Human Resources, Marketing and Finance will be covered. As we expand we will look to employ administrative and financial help.

Personnel and staffing requirement At establishment we will have four key staff members as outlined in the organisational structure. As the business expands we will look at first hiring administration and financial staff, and gradually employ more staff including human resources and marketing staff. Important members of our team who will potentially change regularly will be the mentors we have working with the program. Our university and industry voluntary mentors are essential to the program.

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MARKET ANALYSIS


There is a growing trend of volunteerism – for example 30% of young people in Australia volunteer at least once a year. (Australian Government Young People Report 2006).


Market Trends ( Program )

Creative art programs especially targeted to low social economic groups is a growing trend. For example in or target demographic in West Melbourne there are several services that provide art/ creative education including Footscray community art center and SAIL. However we don't think that the market is over-saturated and there are room for more competitors. Then we have Community art programs that are facilitated by University Students. This aspect is less common, although multiple volunteer opportunities exist for young people, there are few that are specifically for young creatives. This is a growing space – for example in the last ten years we've seen a resurgence of youth run organizations including Oaktree, Youth Tree, Y Gen etc and mentorship programs. It is evident that the Design/ creative Industry mentorship is the least developed aspect of our project. Although it may exist to a small level it doesn’t exist in an Australian creative program that partners school students, university students and industry professionals.

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Key Statistics

The overall market size is 3.5 million – young people aged between 12 – 30. Specifically within the Maribyrong district there are 3157 young people aged 12 – 17 years old. These figures demonstrate that there is a quiet large market for his service.

There is a growing trend of volunteerism – for example 30% of young people in Australia volunteer at least once a year. (Australian Government Young People Report 2006). This means that university and school students are more likely to engage in our program. The second trend is that more young people are finishing secondary and tertiary education. This means that the target market is increasing and has the potential to increase the amount of students to engage in cocurricular activities.

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This type of retail environment also creates a low cost means of selling and showcasing wares without the high overheads of a longterm retail lease. (Hopkins, 2012, The Age).


Market Trends ( Pop - Up )

Melbourne is a bustling arts centred city. Recognising current consumer trends within the city and within the marketplace was part of what defined the concept for the Hatch Pop-up shop. We wanted an alternative to the usual gallery exhibition, something that makes the designs and artworks more accessible to the public, much like the program itself, making design part of the community in a more meaningful way. As mentioned, pop-up stores are becoming more and more popular and present. This trend is driven by several things; consumer wants and needs, current financial state and retail trends. In Melbourne, it is becoming more common to discover popup shops across the city as part of this global trend. There are several positive reasons for this sudden infiltration on the market. Pop-up shops/stores have amy objectives. Their purpose is to open for a short time; days or weeks within a month to create a sharp increase in product purchase through sales, discounts or exclusivity of products. This type of retail environment also creates a low cost means of selling and showcasing wares without the high overheads of a long-term retail lease. (Hopkins, 2012, The Age). Pop-up stores are also a means to fill a vacancy in a shopping area, in turn benefiting the overall retail market of the area. In Melbourne, the popularity of pop-up shops as a marketing technique are apparent in South Yarra, Prahran, Richmond, St. Kilda, Hawthorn, Malvern, 37

Moonee Ponds and Brighton areas of high retail space, that are being hit hard by the current economic state. (Hopkins, 2012, The Age). Consumers have been dubbed “Transumers�, meaning they want to experience temporary, transient shopping experiences. (Max Cookes, CBRE's Retail MarketView, 2012) Consumers are also looking for exclusivity when they purchase, first hand information or a one-off-piece and pop-up stores are a means by which retailers can achieve this. As the Hatch Pop-up is a new context for selling artworks it is difficult to define the market competitor sales. However using case studies it is a way in which an outcome can be gauged. Specsavers Optometry have used pop-up stores in the past as a way to create brand awareness and ensure consumers were familiar with a new store opening (Westfield Shopping Centre, unknown). In order to grab consumer attention, Specsavers placed their pop-up in a location that would disrupt the constant flow of foot traffic. The popup purpose was to bring consumers into the store via offers and referrals by staff members. The outcome of the 2 weeks of exposure increased awareness and foot traffic into the store, as well as seeing an increase in visitors to the pop-up. Another example of pop-up retail spaces is that of Calendar Club by Angus Robertson during the christmas and new year season of retail sales. They are a short term retail space present in all major shopping centres


seasonally, once a year. The obvious need for a calendar or diary is only before the new year comes around so these retail spaces see a rocket retail affect, experiencing a sharp increase in sales for a short time before returning to store. There is always a growth in fine arts as buyers and collectors are always looking for something fresh whether it be in concept, aesthetic style or art derived from a deeper meaning. The growth of hand crafted and manual run markets across Melbourne continues to grow (ie). South Melbourne market, Vic night Market, Richmond Night market, Camberwell market, Bentleigh Market, Cheltenham Market. Allowing users to troll through market stalls is a far more empowering experience as they are not pressured into buying and can look and make decisions with freedom. Our pop-up on the other hand is targeted around fast sales and catching people on the move to make a sale.

awareness it is unlikely to be an overnight success. The Hatch initiative will hope to have an edge over existing exhibition or gallery sales as the artworks are reasonably priced, the consumer doesn't feel ostracised by having to enter a gallery space to make the purchase and they know they are getting a short run piece. The current market we are tapping into is to create empathy from the general public. In todays world people like to feel as if they are spending their money towards a better cause. By purchasing these prints users will feel as if they are supporting a great initiative to help support communities tied down by stereotype and egg the students on to become something. An example of people pushing for social sustainability would be the current campaign of KONY, which successfully tapped into the market of capturing users empathy and the idea for change.

TOMS shoes also shows this growing trend The arts and craft market competition for change by allowing the user to purchase isn’t overly strong between neighbouring a pair of shoes for themselves while the markets. Trends show that all market goers company sends a pair off to an orphanage enjoy exploring and find out about new which once again pushes the idea that they exciting market stalls through their own are helping for change. People in Melbourne research from blogs to newspapers and today are willing to spend money often as journals. long as there is a gain of some sort from both sides of the party. This allows the The Hatch Initiative could play a competitive consumer to feel as though they are doing role against opposing markets, as it will their part to create a better society. have a strong presence through marketing and advertising. This is a key factor in The Hatch initiative is a sustainable service order to get word of mouth to market goers for underprivileged children in the western and art lovers. The fact that it is also a suburbs. In order to make it a sustainable charitable initiative helping tertiary students practice, and continue into the future, we to further their career plus helping out would need to sell works. If we were able underprivileged communities is another to sell 50 works for $10each per child marketing factor which will play in their this would equate to (50 x 8 ) x10) total favour. of $ 4,000. We would also look to sell the same amount online over the break period The pop-up will require much carefully after the pop-up stalls have run, through considered promotion and marketing before advertising and market. This would add to it is launched for the 3 days of purchasing 800 buyers and a $8,000 taking opportunities. Without widespread

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CONSUMER ANALYSIS


HUGH

HEATHER

EGGANCIAL

HARRIETTE

HUONG


Program User Journeys

Hatch Initiative Hugh Demographics: High School Student Year 10 Vietnamese 16 years old Attends Braybook College Born and raised in Maidston Psychographic: Enjoys drawing and painting Plays saxophone Enjoys watching japanese animations Studio Gibli Wants to do well but is under pressure from his parents to excel Lacks the confidence to pursue his creative skills Quiet and well behaved Friends are similar ethnicity Behavioural information Hugh finds out about Creative Revolt in a school assembly Hops on the website and registers his interested School lets him know two weeks later that he has been accepted into Hatch Initiative beginning next term 39

HUGH

Week 1 Hugh is nervous in the first week but the detailed outlining of the program and the ice breaker games makes him feel more comfortable. Also being in a room with like minded young people and working on something that excites him helped too. Week 2 This is where Hugh really excells. He brings his drawings to help him out. The university facilitator finds out he loves Studio Gibli and gives him some great animators to research. He is nervous though when he has to pitch to the group but everyone applauding his idea of creating a series of pop-up cards that draws on his inspiration of pop up cards Week 3 Pitches pop up card to parents - they respond well and this gives him confidence He is also fascinated knowing a bit on finance and budgeting which he sees himself using in the future


Week 4 / 5 Hugh is immersed in the tutorials learning the basics of Illustrator and applying it practically to his Pop Up Cards. Week 6 Hugh is sad to see the project finishing up. He finds out about printing costs, the different types of printing that can selected and picks one. He can’t believe that this will be sold to the general public. Week 7 Hugh is even more excited now that it is up on the website. The talk about the pop up stall and how will work makes him understand that his works will be put to good use and be shown to lots of people. Week 8 Amazingly, all of Hugh’s work have been sold. He was even told by a few people that if he made more they would definitely sell! He is so excited to see what will happen at the school fete.

Benefit Information Knows: That he is talented in designer Core skills in Illustrator How to promote artworks Work in a team Basic business skills including project management and finance Experience as a shopkeeper and promoter Values: His contribution to the project by using something he loves, creativity Hard work Education and furthering his passion Illustrations Acts: With more confidence especially in his illustrator With greater boldness in class discussions With a stronger sense of purpose

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Program User Journeys

Hatch Initiative Harriet Demographics: Swinburne Design Student 3rd Year Communication - Distinction Average Anglo-saxon 22 years old Born and raised in Northcote Psychographic: Enjoys design (everything about it) Casually plays keys for a band Incredibly social - regular at gigs and bars Want to volunteer but can’t something that is relevant Realises that she is in her final year and needs more designs fro her portfolio Mid tempered and responsible Friends are across different backgrounds/ locations Behavioural information Harriet finds out about Hatch Initiative through Swinburne Email Portal. Hops on the website and registers to be a volunteer Hatch Initiative arranges an interview with Harriet Hatch Initiative gives her a call to tell her she is successful. She is incredibly happy to be given this opportunity Harriet attends the Hatch Initiative Induction day, meets the HI team and industry mentor. She feels confident of 41

HARRIETTE

what she is doing and is looking forward to helping out the kids. Harriet meets the teachers of Braybook College who run a brief afternoon training session to teach her how to best facilitate the students. Week 1 Harriet is really nervous, but is glad the HI is there to support her. She is excited that these kids chose to be here. She is also realising the facilitating is a hard skill to master and learning the basic skills is crucial. Week 2 Harriet realises that all her Idea development for briefs over the past two years have been really useful and can be used to help people. She is inspired by this. Week 3 Harriet is nervous when she sees all the parents and hopes that her art direction has brought out the best in the students. She almost cries tears of happiness when they give the students a standing ovation.


Week 4/5 Harriet teaches the students basics of illustrator following the modules that were developed by Hatch Initiative. She feels that she is doing something practical and the students are really enjoying the program. She is also feeling empowered after having her portfolio looked over by the industry mentor. Week 6 A bit of a rush to get the final Illustrations to print and she is slightly stressed. But calling the HI team and talking through it helped. Week 7 Harriet is upset that she has to leave this program. The students and her are really excited about seeing the work displayed online and can’t wait for the pop up stall. Week 8 Harriet is surprised that all the logistics for the pop up stall have been organised. The students are incredibly excited to arrive at Flinders Street to see it already set up with their works hanging. She nervously leads them to the front counter. It is roaring success.

Benefit Information Knows: That design can be used for a good cause What her portfolio has/ lacks to succeed in the industry About a community that she wouldn’t normally interact with Art direction Facilitation skills Management skills Values: Design Doing something good with her skills The contribution of young people The industry input she got Acts: With a greater confidence to pursue a career in design With a greater knowledge of project management and art direction With more compassion to communities outside the one she interacts with Which target markets are the most attractive? Develop a consumer profiles - schools; students; uni students; industry (show as a graphic)

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Pop - Up Stand User Journeys

HEATHER

EGGANCIAL

The Hatch pop-up aims to target a consumer audience ranging from the age of 20-60. These individuals can be divided into primary and secondary target market. The primary target market are aged 27-50, both female and male, who are residents of Melbourne and a 20km radius of the CBD. They are students, designers, art enthusiasts, CBD workers and commuters who frequent the city on a weekly basis. Living in a city like Melbourne they are proud of where they live and are forever seeking new, exciting places and ideas and ways to diversify their city further.

Heather is our persona for the Primary target market. She is 29 years of age and works in Finance in a high rise on Collins Street. Earning an average wage, Heather loves Melbourne and its art and design elements and although she works an average job that does not allow for any creativity. As a resident of Melbourne Heather knows where to find the best coffee and bacon and egg roll for her weekly breakfast treat. She lives in a 2 bedroom house in Brunswick East she shares with her best friend. When she gets home from work loves to relax on her couch with a glass of red wine listening to Leonard Cohen on her record player or reading a novel, surrounded by her eclectic artwork and possessions. Heather appreciates the creativity of others even though she lacks it herself. On weekends she visits Rose St Market, Garage Sales and any other market she can find, seeking uniqueness and something to brighten up her cold grey single terrace house. She likes to feel as though she is contributing to society by donating to the Guide Dogs foundation when they call, one day hoping that as a valued donator she will receive a puppy of her own. Heathers friends are from many divers careers; deisgners, curators, Small business owners and pencil pushers like herself.

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HUONG

Our Secondary Target market is visitors/ tourists to Melbourne CBD. These individuals are interstate or international visitors that are constantly seeking objects to remember their trip, the more lightweight and easy to carry, the better. They are almost and “accidental� target market that may come across the Hatch Pop-up whilst visiting the CBD. Huong is our persona for the Secondary target market. Huong is from Chinese/ Vietnamese heritage. He is 34 years of age and this is his first trip to Australia, and first trip to Melbourne. So far his favourite place is Brisbane for the river and waterside culture. Huong is travelling with a group of 20 other Chinese tourists. He is excited to be in Melbourne because he has read about its Art and multicultural uniqueness. He so far has collected souvenirs and memories form each city and is looking for something that sums up Melbourne to add to his collection.

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COMPETITION ANALYSIS


Direct and Indirect Competition Analysis in relation to the Hatch Initiative Lab ( Part A )


SWOT Analysis

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Direct Competitors

1. Footscray Community Arts Centre Strengths Leading centre for contemporary art and community engagement Offers the diverse communities of Melbourne’s West a place and an opportunity for cultural expression, participation and exchange Holds a range of events – and hires it’s spaces.

Opportunities To engage youth through programs within the centre Hire youth from the community to assist with events, exhibitions and administration work

Weaknesses Doesn’t directly target youth through schools No mentoring program

Threats Other centres that run more youth focused activities

2. SAIL Strengths Specifically targeted at Sudanese refugee population with campuses that teach English every Saturday Has an extended program one a week that teaches art, craft and other design activities. Well respected by the community

Opportunities Engaging a wider variety of people from the community for the Sudenese refugee community to mingle with Begin a buddy or group relationship between those involved to create strong relationships

Weaknesses Doesn’t directly target youth through schools No mentoring program

Threats The program may alienate some people and may inhibit the Sudenese community interacting with the rest of the community 48


3. AGIdea Schools program Strengths Targeted to children to inspire design thinking Connected students with leading professionals in the design field to encourage planting the seed of creative thinking Engages schools with the conference, design community and education

Opportunities To extend the program to more school’s Student/school engagement with the event leading up to it and following up with students post program

Weaknesses Only runs once a year in conjunction with AGIdeas conference Some students may miss out if their school doesn’t register interest or lack funding to visit the event

Threats Getting a variety of schools to be willing and also able to participate

4. Reach Foundation Strengths Mentoring young people, with young mentors who can relate to one another Effectively engaging and supporting them to improve self-belief, and to develop resilience and emotional awareness. Weaknesses The mentors have to have been extensively involved with the program themselves.

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Opportunities Further expansion to more schools and communities

Threats Managing expansion - or the program may lose quality and become less effective as it broadens


Indirect Competitors

1. Y Media Strengths Partners non for profit organisations with young people to fulfil specific communication and design briefs Provides training and education in design and project management

Opportunities Involve participants in marketing and selling their work to business

Weaknesses Doesn't cater to university students Doesn't provide a platform to sell or display their work Currently defunct

Threats New design/art programs that offers students more opportunity

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Direct and Indirect Competition Analysis, in relation to the Hatch Initiative Pop Up Stall ( PartB )


Direct Competition

CBD businesses: S – Diverse range of products and established loyal customers that would rather spend their money in store than on pop-up stores.

W – Hatch has a fresh identity and a new way of thinking, this being the idea of cumulative communities working together to create a sustainable future.

O – Further expansion to online sales and a longer pop-up residency

T – After the initial launch of the pop-up it may become forgotten and the novelty wear off.

This is explaining the Strengths, Weaknesses, Opportunities, Threats of the Hatch Initiative Pop-Up stalls in relation to current small businesses currently located in the CBD.

53


SWOT Analysis Pop-Up Competitor Analysis Direct Competitors. As the Hatch Pop-up is to be places within high density retail area of the CBD our biggest competitors will be existing retailers that specialise in Art and Design pieces as well as giftwares. We have identified the following to be the most significant competitors 1. ACMI/NGV Strengths Boast a large range of works from artists around the globe from all aspects and genres. Weaknesses Looks at things on an international scale, rather than small national scale. 2. Queen Victoria Market Strengths Offers a wide range of goods from food through to crafts, also boasts interactive classes for community members. Weaknesses Lacks a sense of professionalism and is more of a shanty style market. 3. Local CBD Businesses Strengths Have loyal customers who would rather spend their money at these stores than the Pop-Up Stand Weaknesses A fresh identity and a new way of thinking, this being the idea of cumulative communities working together to create a sustainable future. 54


Indirect Competition

Melbourne's Market scene: S – Strong, regular customer following.

W – Lack diversity and a meaningful cause behind them (excluding Camberwell)

O – Well thought out and strong promotion could draw visitors to Hatch's one off saturday pop-up

T - The Hatch pop- up stand may not be able to lure the numbers from the Eastern suburbs as they may not want to travel all the way to footscray.

This is explaining the Strengths, Weaknesses, Opportunities, Threats of the Hatch Initiative Pop-Up stalls in relation to current market scene in surrounding Melbourne suburbs. 55


SWOT Analysis

Indirect Competitors exist within Melbourne's Art and Craft Market scene, held on weekly, monthly or yearly across the city that may compete with our potential customers for the Saturday pop-up sale. These are identified in the Swot below: The arts and craft market competition isn’t overly strong between neighbouring markets. Trends show that all market goers enjoy exploring and find out about new exciting market stalls through their own research from blogs to newspapers and journals.

As a way to develop a customer relationship beyond the usual print, social media and audio mediums, the Hatch Initiative will use a personal approach through promoting the event by the artists themselves. One of the concepts behind the Hatch Initiative is to give our students the ability to be confident members of the community. A way in which we aim to do this is to create relationships and engage with their customers by working the pop-up stands and being there to answer the buyers questions or explain the concepts behind their works, giving the product personal context and an individual buying experience.

The Hatch Initiative could play a competitive role against opposing markets, as it will have a strong presence through marketing and advertising. This is a key factor in order to get word of mouth to market goers and art lovers. The fact that it is also a charitable initiative helping tertiary students to further their career plus helping out underprivileged communities is another marketing factor which will play in their favour.

There is the potential to extend the popup income earning aspect of the Hatch Initiative to include an online store that would allow the income of the sale of student works to extend and generate sales even after the group completes the program. It also would allow people who don't get a chance to visit the market to purchase works and still support the Hatch Initiative.

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Indirect SWOT Diagram

MARKETS

STRENGTHS

WEAKNESSES

O

Rose St Market

-Iconic Melbourne - Weekly regular crowd. -Tourist attraction -Steady customer flow -Close to Public transport & Brunswick Street.

-Small space -Not incredibly diverse week by week. -No longer advertised due to its status.

- Individua -Stronger -Quarterly -Include f Footscray

South Yarra Market

-Young, trendy, socially aware market of individuals.

-Not diverse; consists of vintage clothing and 1-2 food stalls.

- New, fre

-Market is based on making a change to the perception of South Yarra

- Narrow market targeting can push away potential customer explanation.

- New pla

-Prime location off Chapel St. -Very Social event. -Weekly.

The Melbourne Design Market/ Markit Fed square.

- Well promoted by Fed Square. -Ideal location to catch passers by through the city.

-In the carpark, sheltered but not the nicest position. -Biannual

-Expand t i.e. Quarte -Ideal loca and expos -Possibilit be a part o day.

-Minimal parking

- Not all v suburbs a travelling

- Exposes Melbourne talent. -Free for visitors. -Promoted by the Age, real estate magazine, Vogue Living,

Camberwell Market

57

- Weekly, strong following of regular customers. - Diverse range of stalls.

-Early morning bargain hunters, finishes at midday.

-Very well known; iconic.

-Large & always crowded.

-Driven by a cause: Rotary

-Difficult to navigate.

-Run by R is also an support th


S

week by

ue to its

f vintage alls.

OPPORTUNITIES

THREATS

- Individual, one-of-a-kind designs. -Stronger promotion -Quarterly event -Include food/ beverage and local Footscray businesses.

Rose St is driven by its weekly regular visitors and tourists. It is hard to draw these customers to Footscray to a Saturday pop-up market without much persuasion.

- New, fresh, designer market.

Are target market willing to travel across the city from South Yarra to Footscray.

- New place to spend a Saturday.

ng can tomer

ed but not

hunters,

d.

-Expand to a more regular event i.e. Quarterly. -Ideal location to extend marketing and exposure. -Possibility to draw stall holders to be a part of our Footscray Market day.

-Well organised and high exposure.

- Not all visitors are from eastern suburbs and therefore open to travelling for a good reason.

- Melbourne Icon, however our market won’t clash with timing, but may not attract this target market.

-Run by Rotary Victoria, Hatch is also an organisation trying to support the community.

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Competition Stratergy

Hatch program: Within the school environment the program will be promoted through face to face presentations by the Hatch team to the students to build interest and allow the students to first hand ask questions and be involved in what the program entails. The program will also be promoted by a kit distributed to the students and advertising in the school newsletter. A similar approach will be provided to universities, using presentations and an information pack to persuade them of the benefits they can gain as well as how they will be helping the school students. Industry promotion will be via industry word of mouth and studio dropins. Pop-up stand: As a way to develop a customer relationship beyond the usual print, social media and audio mediums, the Hatch Initiative will use a personal approach through promoting the event by the artists themselves. One of the concepts behind the Hatch Initiative is to give our students the ability to be confident members of the community. A way in which we aim to do this is to create relationships and engage with their customers by working the pop-up stands and being there to answer the buyers questions or explain the concepts behind their works, giving the product personal context and an individual buying experience. 59


Through research into existing in school programs it is apparent that although there are many programs that are present to support children from low social -economic backgrounds. However, The Hatch Initiative has an advantage over them through using design as the means of change. It allows student to follow an interest that is not often promoted in schools. The Hatch Initiative has a competitive advantage in the way that our aim is to create community and encourage confidence in these students through a medium they find interesting. Through launching our program in the Western suburbs we hope to expose people to the community that is present in the Western Suburbs. The pop-up stand and market has an advantage over other market and pop-up competitors in the way that the idea is not only to sell the students works and generate income but to create discussion surrounding the Hatch initiative and the underlying message and concept behind it. 60


MARKETING STRATEGY


The main Marketing Strategy for the Program is using the Pop-up stand as a tool to sell it to collaborators and the students participants.


Marketing Strategy for Program

The main Marketing Strategy for the Program is using the Pop-up stand as a tool to sell it to collaborators and the students participating. The other aspects of the strategy are to create an aesthetically sound Program which makes it easy for those to understand what they are undertaking. These marketing tools will be all the collateral elements that convey information to the potential collaborators and users. All these will be listed below.

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1 ) A ' The Hatch Initiative ' Website which will contain:( A ) A program section. This will include a clear outline of the program and what we want to achieve as a business. ( B ) A Pop-Up section, describing the reasoning behind the need for the pop-up stands. ( C ) An online store, which allows us to sell further works beyond the Pop-Up stands.

3) Visual Information Video, this will go for 10 mins, a bold exciting video to capture the attention of potential participants. This will then be followed by a hand out of the hatch Initiative pamphlet which will then be explained in full by Us as a group. Finally the presentation will end with the sign-up.

2) At the start of each year we brief 4 new schools to gain participants. At the start of the Year we also approach fresh 2nd Year university students to gain new mentors, with a new presentation every year encouraging new students to participate.

4) Posters at Universities and schools which include how to go about signing up, sponsors, the design studio supporting and the monthly theme. The poster will contain dates of seminars, which will be compulsory through school art classes and University Lectures.


Marketing Tool kit

Website EST. 2013

THE PROGRAM

POP - UP STAND

EST. 2013

ONLINE STORE

EST. 2013

EST. 2013

What is ‘The Hatch Initiative?’

THE PROGRAM

What is the need for a Pop-Up Stand?

POP-UP STAND Pop-Up Stand Diagram

What are we trying to achieve?

Poster EST. 2013

Video Pres Dates :

64


Marketing Tool kit Pamphlet - Which will be the most important aspect in explain what the concept behind the Hatch Initiative is and how it will benefit the user.

65


Logbook - Will be showed to teachers and students to explain what the program actually involves through its 8 week course.

66


Marketing Strategy for Pop-Up

The Pop -Up stand marketing will begin along side the actual program. The Media marketing will begin 4 weeks before the Pop-Up stands are erected. The pop up stand covers such a diverse demographic so it is important that we cover all media bases in order to cause hype. This being the want and need for people to visit the pop-up stands. Here is a list of the marketing tools we will be using to convey our brand in the 4 weeks leading up to the Pop-Up Stalls.

1) Train station billboards 2) Tram stop Billboards 3) Free Newspaper Advertising ( The age lifestyle lift out which runs on a Saturday, Herlad Sun , Sunday Melbourne entertainment whats on section MX once a month) 4) Online Blog Reviews in week 6 of the program ( Broadsheet, 100 pound Bend ) 6) Facebook Page 7) Twitter Page 8) Handout Gift Cards for those who 9) The first day of each Unit that the PopUp stand begins, people pay $5 to throw an egg shaped ball covered in chalk, at a big target style 'The Hatch Initiative' banner. When they hit certain spots they win a piece of one child's work. The throwing of the egg 67

can be the hatching of creativity , it also allows the children to get their work out to a wider audience and could be another source of profit. The Banner will be placed at the different end of the city to spread the word to a larger range of commuters. 11) Mystery marketing for the first week of advertising to get traffic to the website. This would be the first run of posters witch don't give much away. The second run will then fully describe the event. 13) community radio stations for CBD area, Triple R, PBS, Triple j which will defiantly support anything creative through music and art. As long as we host them as a collaborator 14 ) Online store to keep buzz and selling of works after that current Unit has finished


Marketing Tool kit

Train and Tram Stops

Blogs

Radio

Newspaper

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FINANCIALS


Pre- Collaboration Profit & Loss statement

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This Profit and Loss spreadsheet contains the printing costs as an expense, showing that if we stick to our pricing strategy we can make profit by the 3rd Year of trading without collaboration or donations from the schools.


Post Collaboration Profit & Loss statement

This Profit and Loss spreadsheet does not contain the printing costs, because technically they would be covered by our collaborative printing partners. Each term we would also receive a 5,000 service fee from the schools to run the Initiative. This would push us as far as to break even in the second unit of the program as long as we sold the quoted amount of works.

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*Without Printing Collaboration & Donation

Start Up Cost's

4x Stationary = $200 ABN Bank Account Set Up = $ 80 Domain Name = $75 Paytent Logo & Business Name = $ 100 Website = $ 8000 Pamphlets = $ 2000 Posters = $ 2000 T-shirts = $ 150 Application Form = $ 500 Informative Video Presentation = $ 0 Total Start Up Cost = $11,650

For the Hatch Initiative to run for a single term ( a ) Fixed Costs Student Excersize Book ( 8 X Colour booklet ) at $25 dollars each = $200 Website Update = $300 Application Form (5,000 X A4 Black and white ) at 10c Each = $500 Blog Advertising = $0 ( Pre Review Writings ) Train Stop Posters ( 40 X A1 Colour ) at $ 25 each = $ 1000 Tram Stop Posters = ( 40 X A1 Colour ) at $ 25 each = $ 1000 Advertising Board Hire = $ 2000 Newspaper Advertising = $ 0 ( Pre Review writings in weekender magazines ) Web Advertising = $ 0 ( Pre Review Writings ) Framing (8 x $ 31.25 A5 frames from Ikea ) = $250 Art Canvases ( 8 X $ 12. 00 A5 from Moorabin Arts ) = $ 96.00 Tshirts for Students and mentors ( 16 X 20 shirts at $20 each ) = $ 320 Hanging Clips ( 16 X $ 5 each ) =$ 90 Studio Lighting = $ 500 Radio Advertising = $ 500 for a week on community stations ( Triple R, PBS, SYN FM, Triple J ) Fed Square Permit = $300 to run for a week Insurance = $ 300 to cover space Pop-Up Stand Cardboard = $ 0 ( free through Visy

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Initiative ) Cardboard Printing = $ 2000 ( Done once a year for new colour scheme ) Money Till = $ 500 Receipts Gift Card ( 5000 black and white A5 prints ) = $100 ( b ) Variable Costs Colour Printing (8 X ( $1.50 X 50 ) ) = $ 600 200 GSM paper ( 8 X ( $1.50 x 50) ) = $ 600 Developing Photos ( 50c each ) = $ 200 Test Prints ( 10c each ) = $ 40 dollars ( c ) Costs only included at the start of the first unit 8 x Macbook Laptops = $ 11, 000 3 X Cannon SLR = $ 3,000 Stationary = $ 2,000 Excersize Paper = $ 2,000 The cost for the very first Unit will include ( a ) + ( b ) + ( c )= ( d ) ($9946) + ($1240) + ($17000) Total Cost = $ 28 168 The cost for the next three Units will include ( a ) + ( b ) = ( $9946) + ($1240) Total Coast = $ 11,186


*With Printing Collaboration & Donation

Start Up Cost's

4x Stationary = $200 ABN Bank Account Set Up = $ 80 Domain Name = $75 Paytent Logo & Business Name = $ 100 Website = $ 8000 Pamphlets = $ 2000 Posters = $ 2000 T-shirts = $ 150 Application Form = $ 500 Informative Video Presentation = $ 0 Total Start Up Cost = $11,650

For the Hatch Initiative to run for a single term ( a ) Fixed Costs Website Update = $300 Blog Advertising = $0 ( Pre Review Writings ) Advertising Board Hire = $ 2000 Newspaper Advertising = $ 0 ( Pre Review writings in weekender magazines ) Web Advertising = $ 0 ( Pre Review Writings ) Framing (8 x $ 31.25 A5 frames from Ikea ) = $250 Art Canvases ( 8 X $ 12. 00 A5 from Moorabin Arts ) = $ 96.00 Tshirts for Students and mentors ( 16 X 20 shirts at $20 each ) = $ 320 Hanging Clips ( 16 X $ 5 each ) =$ 90 Studio Lighting = $ 500 Radio Advertising = $ 500 for a week on community stations ( Triple R, PBS, SYN FM, Triple J ) Fed Square Permit = $300 to run for a week Insurance = $ 300 to cover space Pop-Up Stand Cardboard = $ 0 ( free through Visy Initiative ) Cardboard Printing = $ 2000 ( Done once a year for new colour scheme ) Money Till = $ 500 Receipts Gift Card ( 5000 black and white A5 prints ) = $100

( b ) Variable Costs Nil ( c ) Costs only included at the start of the first unit 8 x Macbook Laptops = $ 11, 000 3 X Cannon SLR = $ 3,000 Stationary = $ 2,000 Excersize Paper = $ 2,000 ( e) School Donation = $ 5,000 The cost for the very first Unit will include ( a ) + ( c )= ( d ) ($9946) + ($17000) Total Cost = $ 26 920 - $ 5,000 - $2,700 = $ 19220 The cost for the next three Units will include ( a ) + = $9946 Total Coast = $9946 - $5,000-$2,700 = $ 2246

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Income Summary

As the Unit runs four Times a Year, we will have an estimated income of $24,000 from the Pop-Up Stalls and $ 15,000 from school donation in the first year. Making the total income amount for the first year an estimated $39,000. The Initial $11,000 to get the business going will be provided by the four members, which will be paid back when the business starts to make profit. So this will not be Included in the break even point. Our total expenditure for the first year comes to a cost of $34,531. Expenditure - Revenue = Estimated Profit of $4,469 This shows that by the end of the First year with collaboration from printers and donation from schools we shall break even around the 11th month mark of the first year.

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*With Printing Collaboration & Donation


*With Printing Collaboration & Donation

Income Summary Graph

Time Of Breaking Even

40

Revenue

DOLLARS ( Ten thousand scale)

Expenditure Break Even 30

20

10

1

2

3

4

UNIT ( X 4 a year )

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Summary of Profitability

Summary of profitability, annual sales forecast.: After the first year of trading we including collaboration from printing companies worth $4,100 and a $ 5,000 donation from each school that participates in the quarterly service we will be at a profit of $ 4,469. Second year will draw an annual profit of $ 29,293, Third Year will provide an annual profit of $ 38, 057

This forecast is made on the estimate that after one year of trading each artist can raise their sales from 50 works to 75 works for the second year. The third year is then once raised again by for the demand that artists will be selling 100 works each quarter, this including from the pop up stand and the online store.

DOLLARS ( THOUSANDS )

40

30

20

10

Not run in year one 75

1 ( 50 )

2 ( 75 )

3 ( 100 )

Years ( + 25 extra Units per artist per Year )


Future Estimate

Estimate of future profitability As you can see after only 1 year we will be able to break even. This gives a great platform for the business to expand Australia wide too regional areas and surrounding cities. The profit generated would be put into the business to hire staff and have a strong team working around

the clock. After 5 years the business could possibly make a profit of at least $100,000 in one financial year. This is if the pricing demand strategy is kept in place, which is keep the prints to the public a constant but raising the price of the online store and the service fee towards the schools.

DOLLARS ( THOUSANDS )

80

60

40

20

1 ( 50 )

3 ( 100)

5 ( 150 )

7 ( 200 )

Years ( + 25 extra Units per artist per Year ) 76


Profit & Loss Statement

*Without Printing Collaboration & Donation

Pre Collaboration and Donation Profit & loss First Year = - $ 28,209 ( loss ) Profit & Loss Second Year = - $ 3447 ( loss ) Profit & loss Third Year = $ 2412 ( profit )

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Profit & Loss Statement

*With Printing Collaboration & Donation

Post Collaboration and Donation Profit & loss First Year = $ 4,469 ( Profit ) Profit & Loss Second Year = $ 29,293 ( Profit) Profit & loss Third Year = $ 38, 057 ( Profit )

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BIBLIOGRAPHY


Bibliography Hopkins, P., 2012, Pop-Up shops bolster retail strips, The Age, 14 March, viewed: 10th May 2012, <http://www.theage.com. au/small-business/trends/popup-shopsbolster-retail-strips-20120314-1uzcn. html#ixzz1vsxqUAVO> City of Melbourne, 2011, Street Activity Policy 2011: Seasonal and casual street trading, <http://www.melbourne.vic.gov. au/enterprisemelbourne/promote/Pages/ ShortTermStreetTrading.aspx> Date and Author unknown, Pop-Up case study: Spec Savers, Westfield Shopping Centre, viewed: 20th May 2012, <http:// www.westfieldpopup.com.au/inspiration/ case-studies/> About this city, Maribyrnong Council <http://www.maribyrnong.vic.gov.au/page/ page.asp?page_id=2002 > Well Being Report, Community Indicators <http://www.communityindicators.net.au/ wellbeing_reports/maribyrnong> Education Facts and Figures , Victorian Department of Education <http://www. education.vic.gov.au/about/publications/ newsinfo/factsandfigures.htm > Footscray City College, Footscray City College <http://www.footscray.vic.edu.au/ > Braybrook College, Braybrook College <http://braybrooksc.vic.edu.au > Gilmore Girls College, Gilmore Girls College <http://www.gilmoregirls.vic.edu. au/ >

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Studio H, Studio H <http://www.studio-h. org/> Creative Spirit, Creative Spirit <http:// creativespirit.org/> Victorian Department of Education 2010, 2010 Annual Report to the School Community Gilmore College For Girls School Number 7941, Victorian Department of Education 2010, Victoria Victorian Department of Education 2010, 2010 Annual Report to the School Community Footscray City College School Number: 8836, Victorian Department of Education 2010, Victoria Victorian Department of Education 2010, 2010 Annual Report to the School Community Braybrook College: 7645, Victorian Department of Education 2010, Victoria Australian Government - Office for Youth 2009, State of Australian Young People, Australian Government of Youth, Australian Capital Territory Foundation of Young Australians, How young people are fairing 2011, Foundation of Young Australians, Victoria Y Media Challange, Y Media Annual Report 2010, New Zealand

Hatch Initative Report  

Alex Trevisan, Nonie Hunter, Steph Rose and Steph Lee. That Hatch Initiative is a business proposal for an eight week creative crash cours...

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