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HomeMy WebLinkAboutC37180 FY 18-19 Addtl Market Researchmom MEETING DATE: .. 9 . A REQUEST Recommendation STAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT January 10, 2019 Thomas Soule, Tourism & Marketing Manager Authorize market research as additional extra work as provided for in Contract No. C37180 By Minute Motion that the City Council: Authorize $51,200 for market research to support the development of a new tourism advertising campaign, to be performed by Ideapeddler as extra work as defined and provided for in Contract No. C37180. Strateqic Plan Obiective The City's Media Plan supports the following specific objectives from the City's Strategic Plan: -,Tourism & Marketing Priority No. 3—Attract new and developing travel/tourism markets; and • Tourism & Marketing Priority No. 4—Support the City's tourism industry through enhancement of its marketing efforts with an allocation of additional City resources, the development of partnerships, and coordination of existing efforts. Executive Summary Approval of this request authorizes additional expenditures with Ideapeddler in a total amount not to exceed $51,200 for conducting market research to support the development of a new advertising campaign for the City. Funds are available in the FY 18/19 budget. Background Analvsis The City supports the tourism industry and local business through implementation of a comprehensive marketing program, which includes an advertising campaign that promotes the City as a premium travel destination. The current advertising campaign is January 10, 2019 — Staff Report Market Research for New Ad Campaign Page 2 of 4 now in its third consecutive year in market. Staff has worked with the City's creative agency, Ideapeddler, to freshen the existing campaign. However, this is only a temporary measure, and the time is approaching when it will be necessary to create a new campaign. Given the large annual investment that the City makes toward marketing, Staff is mindful of the importance of utilizing best practices in each step of this process. Current best practices in the marketing field favor a data -driven approach. The City of Palm Desert accordingly now collects data on its ad campaign, which enables the measurement of return on investment (ROI) and allows for modifications that maximize that return. The creation of a new ad campaign offers the opportunity to begin with the end in mind by conducting advance research on which to base the City's new creative direction. At its regular meeting on December 4, 2018, members of the Marketing Committee reviewed a proposal by Ideapeddler to conduct market research as the first step in the yearlong process of creating the new ad campaign. Although the Committee did not have a quorum at that meeting and thus could not take official action, those present expressed unanimous support for this undertaking. Because this is the only piece of the project that will take place in FY 2018/19, Staff is bringing it to Council for authorization as a stand- alone element. The remainder of the project will come before the Council at a future date. The goal of this research project is to provide actionable insights specific to Palm Desert that will enable Ideapeddler to develop an ad campaign designed to attract visitors from the City's drive markets in Los Angeles, Orange County and San Diego. Strategic insights collected will include: • Key drivers and expectations when looking for a quick getaway. • The competitive set for local getaways. • Current perception of Palm Desert. • Awareness of/interest in various attractions in the Palm Desert area. • Perceived differences/similarities between Palm Desert and Palm Springs. Ideapeddler's objective is to map the complete consumer journey of our visitors to uncover opportunities for the City to reduce "pain points" and capitalize on the pleasures of visiting Palm Desert. This includes identifying functional and emotional needs at every step, while seeking inspiration from other markets. The goal is to create the most compelling narratives that will provide a solid jumping-off point to breathe life into the City's next campaign. January 10, 2019 — Staff Report Market Research for New Ad Campaign Page 3 of 4 The proposed research project aims to gather these insights through interviews with focus groups comprising participants who match the City's target audience in the drive market. Utilizing existing demographic data provided by the CVB and gathered in the course of the City's current campaign, a professional research firm will assist in the selection of participants who match that target set. These participants will be interviewed in small groups of six or seven respondents in 90- minute sessions, with two such sessions in San Diego and four in Los Angeles, pulling participants from L.A. and Orange Counties. Within each geography, half the sessions would be among those who have vacationed in Palm Desert in the past two years, and half who have not but would consider visiting in the future. The estimated cost breakdown for this project is as follows: 1 PROJECT ANTICIPATED COST Facility Rental (San Diego, Los Angeles) $4,600 Recruiting Costs $9,850 Respondent Incentives $9,828 Respondent snacks/refreshments $580 Project management, recruiting screener, $20,820 discussion guide (2), session moderation, report/presentation of findings Creative Brief $2,100 Printing $2,600 Video Recap $2,600 Incidentals $300 Total Estimated Costs $51,200 This type of Palm Desert -specific market research has not been conducted in the past. The insight gained through such research would be an invaluable resource to help identify the unique selling points of Palm Desert, which will be a vital component in the creation of an ad campaign that complements the CVB's promotion of the valley while elevating Palm Desert in the minds of our target audience. This research would also be a useful marketing tool for the City's many community partners, including The Living Desert, The McCallum Theatre, Hotel Paseo, The JW Marriott Desert Springs Resort and others. Fiscal Analvsis Funds for this project were not specifically budgeted for in the current year's Marketing budget, however Staff anticipates budget savings in both the Professional Other Account No. 1104417-4309000 and Advertising Special Co-op Account No. 1104417-4322201 January 10, 2019 — Staff Report Market Research for New Ad Campaign Page 4 of 4 that would cover the cost of this program. No additional fiscal impact is created by this request. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A kartWin Alvarez �� Robert W. Hargreaves Director of Economic t M. Moore Lauri Aylaian City Attorney Development Director of Finance City Manager ATTACHMENTS: None