The Merchant City Tourism & Marketing Co-operative was formed in 2008 with 230 local businesses in Glasgow's historic Merchant City area as members. It uses collaborative online marketing strategies including a website, social media, and branded merchandise to promote the area and increase footfall. This has led to a 150% rise in website visits and significant growth in social media followers. The co-operative allows members to share costs and improve the area's image, giving it a stronger brand and higher profile to attract more visitors.

1. Merchant City Tourism &
Marketing Co-operative
Co-operation adds
up for city hub
Consortium co-operative case study
MAIN BUSINESS
Location marketing
Annual TurnoVer
£150,000
NUMBER OF members
230
WEB ADDRESS
www.merchantcityglasgow.com
Since it was set up with help
from Co+operative Development
Scotland (CDS) in 2008, Merchant
City Tourism & Marketing
Co-operative has used an
ambitious online marketing
strategy to attract new visitors
and trade to Glasgow’s historic
Merchant City.
The co-operative represents around
230 local businesses including
bars, restaurants, theatres, visitor
attractions, shops and music venues.
By collaborating, the members
have created a brand, a website,
merchandise and a marketing plan
that promotes the area’s features
and facilities across social media
platforms including Facebook,
Twitter, Flickr and Youtube.This has
been hugely successful, fuelling
a 150% rise in website visits over
the last year and jumps of up to
6,000% in online follower numbers.
“The purpose of the co-operative
is to promote the Merchant City
and to bring more people into the
area to add to its vibrancy,”
explained Chair Gordon Matheson.
“Using integrated social media
campaigns to do this has given us
a real edge within the industry and
is delivering results for our members.
What the businesses are telling us
is that their footfall has increased
and their take at the tills has gone
up as a result of the activities that
we have been promoting.”
Scottish Enterprise and
VisitScotland have provided
funding to grow the co-operative’s
online presence. Revenue is also
being generated through
membership subscriptions.
The Merchant City is one of the
oldest quarters of Glasgow and the
cultural heart of the city.

2. The purpose of the
co-operative is to
promote the Merchant
City and to bring more
people into the area
to add to its vibrancy.
Gordon Matheson, Chair,
Merchant City.
HOW CDS HELPED
+ A specialist CDS adviser
considered the members’ purpose
and outlined collaborative options.
Focusing on the consortium
model, he showed how it applies
in other situations and how it
could operate for this group.
+ CDS guided the members through
the set up stage, providing
memorandum and articles of
association and developing a
customised members’ agreement.
THE CHALLENGES
Logistics - co-ordinating joint
activity involving multiple businesses
has required clear systems and
regular communication.
Technology - some members used
to traditional advertising methods
have taken a while to get to grips
with online and social media
marketing tools.
MEMBER ENGAGEMENT
Board of Directors - six local
business leaders sit on the board
to represent the members.
Quarterly meeting - members are
invited to a quarterly open meeting
to discuss promotions, opportunities
and marketing strategies. These can
include presentations from experts
in areas such as social media.
Online portal - regular blogs and
flyers are distributed to registered
members through the co-operative’s
website.
Newsletter - members receive a
monthly newsletter with information
such as new businesses in the area
and current promotions.
THE BENEFITS
Increased footfall - analysis shows a
150% rise in footfall around the local
area in the three years to April 2009.
Shared costs - collaborating allows
the members to share the cost
of joint promotions such as City
Breaks advertising.
Improved image - helping members
develop ‘rich content’ including
professional photography and video
footage is enhancing the area’s image.
Higher profile - marketing the
Merchant City and its attractions
through a single portal and related
activity gives the area a much
stronger brand and presence.
Skills development - with the
support of the co-operative, local
businesses are developing new skills
such as social media marketing.
For more information or advice on
starting your own co-operative,
please visit www.cdscotland.co.uk
or call us on 0141 951 3055.
Co+operative Development Scotland is a subsidiary of Scottish Enterprise working
in partnership with Highlands and Islands Enterprise.