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HomeMy WebLinkAboutMinutes - Marketing Commission 01/13/2004CITY OF PALM DESERT MARKETING COMMITTEE MINUTES January 13, 2004, 2:00 p.m. Administrative Conference Room I. CALL TO ORDER Mayor Robert A. Spiegel called the meeting to order at 2:00 p.m. and thanked the members for serving on the committee. II. ROLL CALL taken by self introductions. Members Present: Absent: Emily Bird Melinda Byrd Rick Darius Ric Mandelbaum Ray Rodriguez Michael Shimer Karen Wagner Others Present Robert Spiegel Jean Benson Jim Ferguson Sheila Gilligan Donna Gomez Piper Close Rodney Young Mike Osborne Michelle, Desert Sun Milt Jones, Palm Springs Life Page 1 Marketing Committee January 13, 2004 **************************************************************************************************** SWEARING IN OF COMMITTEE MEMBERS City Clerk Rachelle Klassen administered the swearing in of members and distributed Conflict of Interest information and forms which she asked be completed and returned. IV. ORAL COMMUNICATIONS None. V. NEW BUSINESS A. COMMITTEE STRUCTURING 1. Selection of meeting dates and times. By unanimous consensus, future meetings will be held the second Tuesday of each month, 2:00 p.m., in the ACR. 2. Determination of terms. Terms were selected by random drawing as follows: TWO YEAR TERM; Emily Bird and Ray Rodriguez THREE YEAR TERM: Michael Shimer and Karen Wagner FOUR YEAR TERM: Melinda Byrd, Rick Darius, and Rick Mandelbaum 3. Selection of Chair and Vice Chair Ray Rodriguez was nominated to serve as Chairman. After being moved and seconded, this appointment was made with unanimous consensus. After motion made and seconded, Melinda Byrd was appointed Vice -Chair, unanimously carried. Mayor Spiegel turned the meeting over to Chairman Ray Rodriguez. Page 2 Marketing Committee January 13, 2004 B. BACKGROUND ON MARKETING PROGRAMS AND NEWS BUREAU Before introducing Piper Close, Ms. Gilligan mentioned that the committee will operate under the auspices of the Brown Act. If a member has a financial interest in an item being presented to the committee, the member should be excused. Member Mandelbaum will be excused during the discussion concerning the proposal from the Desert Sun relative to sponsoring a new Palm Desert Magazine. Ms. Gilligan announced that the City Attorney will be at the next meeting to review Conflict of Interest regulations and the Brown Act. Ms. Close indicated that she has been under contract with the City for four years. The advertising campaign this past year has focused on shopping, dining, recreation, and the art program. Ms. Close passed around samples of ads relating to this. The City has done two co-op ads. This allows the smaller businesses in Palm Desert to piggy -back into a publication they may not have the budget to participate in. For instance, the City advertises in the Alaska Airlines publication with a dining ad which features Desert Willow, a restaurant, hotel, and a sporting goods shop. After the first of the year, Ms. Close begins planning and looking at the budget to determine how media dollars will be divided. Decisions are made in February and the budget goes to Council in March. By the end of June, the budget is in place. Collateral material is prepared for the Visitor Information Center, Art In Public Places, Waste Management/recycling, Business Support (Shopper Hopper, Shop Palm Desert campaign), Redevelopment Agency, Bus Shelter program, Airport pillar wraps, Hopalong Trail dedication, ATHENA awards, Summer of Fun concerts and movie series, Vacation Planner and Relocation Guide, and collateral pieces for Desert Willow. Ms. Gilligan indicated that the items Ms. Close was referring to are the types of items that will come before the Marketing Committee for input and direction. Page 3 Marketing Committee January 13, 2004 Chairman Rodriguez summarized the discussion by saying that both Piper Close, who is under contract with the City and not an employee of the City, and Kristy, a City employee primarily involved in publicity and news releases, work together. C. CONSIDERATION OF A PROPOSAL FROM THE DESERT SUN RELATIVE TO SPONSORING A NEW PALM DESERT MAGAZINE One of the first tasks of the committee will be to develop a recommendation based on the proposal received from the Desert Sun. Ms. Gilligan indicated that the staff report included in the agenda also included Minutes of the Council meetings where this proposal was discussed. A representative of the Desert Sun, Michelle, was in attendance to make a proposal, and Ms. Gilligan suggested that prior to committee discussion, the representative be asked to make the presentation. At this point, Ric Mandelbaum was excused from the meeting. Michelle, representative of The Desert Sun, explained that Bob Dickey, President and Publisher, was not able to be at the meeting as he was in Sacramento to meet with the Govemor. Mr. Dickey is with the California Newspaper Publishers Association. The Desert Sun desires to establish a brand new magazine that is exclusively devoted to the City of Palm Desert -- its lifestyle and unique characteristics. It is felt the magazine could capture the City's world class dining, shopping, and attractions. The City is built as the cultural retail center of the valley, and this can also be captured in the magazine. As slogans have referred to in the past, Palm Desert is paradise. For these collective reasons, the Desert Sun feels it is time to look at a magazine devoted solely to Palm Desert. The title of the magazine is a working title and just a concept of the magazine itself. Specifications are glossy and full color with 48-64 pages, depending on advertising sales and potential for special editions or special themes in particular issues. The magazine will be published ten times per year, with the summer months of June, July, and August being a combined issue. Distribution is a 4-prone strategy: (1) The magazine would be published 10 times per year Page 4 Marketing Committee January 13, 2004 **************************************************************************************************** and delivered to Desert Sun subscribers; (2) the magazine would be mailed to non -subscribing households; (3) it would be available in Palm Desert and perhaps Indian Wells hotels; and (4) the contents of the magazine would be available on TheDesertSun.com website with a link to the City's website. Michelle showed slides depicting the prototype of the magazine, which will have a high end look. The Desert Sun is requesting: 1. The City of Palm Desert purchase a full page ad at a cost of $3,000 per issue. 2. The City purchase hotel copies, estimated at 6,000 copies at $1.00/each per edition. 3. The City commit to a one-year contract. The Desert Sun highlighted the following benefits: • Magazine could be used as a tool to reinforce to its residents the value of living in Palm Desert. • Magazine could be used to showcase Palm Desert to hotel guests. Another advantage the Desert Sun offered is the efficiencies the Desert Sun has with the distribution network established in Palm Desert. For that reason, the Desert Sun feels it is well positioned to do this and now is the time. Chairman Rodriguez thanked Michelle for the presentation and entertained comments and questions from committee members. A question was raised as to the dollar amount of the commitment ($90,000) from the City for the first year, and what the expectation is beyond that. The reply was that at this point, the Desert Sun is asking for a one year commitment. Chairman Rodriguez asked what the survival rate is for this type of city magazine. Michelle indicated she did not know the survival rate, but said the Desert Sun has been working on this for a while and feels confident that it can be done successfully. One of the Page 5 Marketing Committee January 13, 2004 **************************************************************************************************** main reasons is the distribution. Part of the success of the magazine is to get it on every doorstep of people who live in the City of Palm Desert. Other cities have magazines; i.e. San Jose, Santa Barbara, Las Vegas, and San Diego. The success also depends on the support of the business community A question was raised as to the interest of the Desert Sun in also partnering with the City of Indian Wells and if it did, would it still be called the Palm Desert magazine? Answer was that at this point, the focus is on the City of Palm Desert. Initially, there was thought given to having it be a combination of the two cities, but the decision was made to focus solely on Palm Desert. A question was asked as to whether the Desert Scene magazine would continue to be published, and the answer was yes. A question was raised as to whether the magazine would go to print under another name if the City of Palm Desert didn't back it, and Michelle was not able to provide an answer. The Desert Sun really wants the support of the City of Palm Desert. Question on how the concept compares with the Desert Magazine as far as image, look, and finished product. Michelle said some of the differences are that the new magazine will focus on short bits and bites, whereas with Desert Magazine there are more in-depth stories. The idea with the new magazine is that even if you are browsing through it each month, you can learn something new about the City. They are comparable in size and quality. A question was asked as to what type the feature stories would be and the answer was editorials. There will be a separate staff that will develop an editorial budget and put forth the content without the influence of the magazine's advertisers. There was discussion about the importance of getting more dollars into the City, and attracting people from other areas like Los Angeles, San Diego, San Francisco. Michelle felt the City could use the magazine as a tool and possibly purchase overruns. A question was asked whether the magazine would be available for purchase, or would it be strictly a free publication, and Michelle said it would be a free publication. The Desert Sun wants to be able to say that they are reaching the entire community and re -enforcing Page 6 Marketing Committee January 13, 2004 **************************************************************************************************** the value of all the City has to offer. Michelle concluded her presentation. Ms. Gilligan introduced Milt Jones from Palm Springs Life, who indicated he was not in attendance to make a presentation, but to congratulate the new members on their appointments. His firm would like the opportunity to make a presentation to the committee at a later date. They are magazine publishers with 45 years of experience in the desert, Monterey, Vancouver, New Mexico, Houston, and Florida. If given the opportunity to come back for a presentation, he feels they have interesting caveats they can bring to the table. Chairman Rodriguez felt it was a bit premature for the committee to make a recommendation. He read the objectives and responsibilities of the committee and noted that some of them involve review of expenditures. Taking into account the presentation received from City officials regarding potential budget issues at the Mayor's State of the City address on January 13, he felt that the initial discussion should involve the direction that the committee should pursue rather than an analysis of the Desert Sun's presentation. Consideration should be given as to whether a magazine is good vehicle that the committee would want to recommend, whether it be with Palm Springs Life, The Desert Sun or another entity. If this is something the committee felt should be pursued, other firms should be contacted to see if there was an interest in providing this type of product. There was discussion about questions that would need to be answered before a recommendation to the City Council could be made. There was concern that as a new committee, although members were told what the budget was they did not know how the pie was split. There was a feeling that it was premature to entertain a new proposal when the committee did not know where it is starting from. Chairman Rodriguez summarized the discussion, indicating there was a consensus that there needed to be serious research done by the committee in order to make a recommendation that is meaningful. Suggestion was to suspend further presentations until the committee is oriented with a thorough understanding of the budget, the goals, and there was consensus as to the most Page 7 Marketing Committee January 13, 2004 **************************************************************************************************** effective way to direct that budget to those goals. He asked for discussion on how to proceed with that orientation process. Mayor Spiegel said that dollars are important to the City Council, but that does not preclude the committee from recommending something to the Council with not having the dollars as the big picture. The City lives off of sales tax and hotel occupancy. The City is concerned about what the Governor is going to do. The proposal the committee is considering is a one year commitment. The main consideration should not necessarily be the dollars, but whether it will have a major effect on revenues from the hotels and sales tax that the City is now getting from the various publications. Ms. Gilligan said that when Council reviewed this, two questions were asked: (1) Is this a publication we would use for advertising? The answer is yes. We could get our message out to people in hotels. It is a vehicle that could be used to advertise. (2) Would the hotels allow putting it in the rooms? This will need to be confirmed. Ms. Gilligan suggested that perhaps this proposal be considered as the City prepares for next year's fiscal budget. There was additional discussion that the mission should focus on bringing tourists to Palm Desert and not necessarily reaching out to those already here. It is clear in reading the Minutes from City Council meetings that there were diverse opinions among the Councilmembers. The committee asked Ms. Close for her perspective. Ms. Close believes the magazine is a good product. A ten month commitment to the degree being requested is more than the City currently commits to with any other publication. She agrees with what has been said about reaching those outside the City of Palm Desert. She would prefer the magazine being available in Palm Springs hotels rather than Palm Desert hotels, and in a newspaper in another community in order to promote Palm Desert some place else other than in Palm Desert. Ms. Close was asked what she felt would be a reasonable commitment and she responded that she did not know. She would first determine what the editorial calendars were going to be. This would not be the City's largest commitment. A lot of money is spent in advertising; i.e. Good Housekeeping. In order to be in Page 8 Marketing Committee January 13, 2004 **************************************************************************************************** Sunset Magazine, at the frequency we are, it is a 1/6 th page ad. She felt it would be good to support a magazine that has the City's name on it and which focused on the City, however, she would not recommend a full page ad every month. The current budget does not have the resources to support that. There was discussion about other city magazines. A comment was made that they are put out by magazine companies and not in partnership with a newspaper. There had been discussion in the City Council Minutes about the appropriateness of the City going into business with the press. There was concern about Desert Sun reporting if there is a partnership. Ms. Gilligan said that at a meeting with Tim Sullivan, he mentioned that if the Desert Sun did publish the magazine, he would want them in the rooms . There was additional discussion about the $90,000 sponsorship, since the magazine would likely proceed without it and the City could still advertise in it for a monthly fee. Also discussed was the concern that no one knew how the magazine would be received by the community. Thought was to see what happened, and then if the City wanted to step up participation, that could be done at a later date. Mayor Spiegel suggested the committee continue the item. The Marketing Committee made comments that The Desert Sun could now consider. Mr. Jones offered to make a presentation. The committee could then try to come up with a definitive answer at the next meeting. In the meantime, he will get the most recent figures on sales tax and restaurant sales in Palm Desert versus the other major cities in the valley, along with occupancy tax. Palm Desert does more restaurant business than Palm Springs and does the most retail sales of any city in the valley. The committee can then decide whether or not to recommend it to the Council. The Chairman asked the members if they felt additional information was needed or if there was enough consensus at this point to make a recommendation to pursue the concept but without any up -front costs to the City. He would be agreeable to postpone it, but if it can be done now, he is in favor of that. He asked the members for a motion. Page 9 Marketing Committee January 13, 2004 Ms. Gilligan asked for clarification on whether the motion would be to decline the proposal from the Desert Sun. Motion by Member Byrd that the committee would not specifically recommend to the City Council to pursue this contract with the Desert Sun, but perhaps there is room for a Palm Desert magazine, not financed by the City of Palm Desert, and it would be opened up to a competitive process. Palm Desert could develop its relationship with this magazine as an advertiser rather than an initial partner, seconded by Member Wagner. Motion approved by unanimous vote. Ms. Gilligan said that Palm Springs Life will be invited back to make a presentation and staff will continue to work with the Desert Sun as to whether there are options available. Chairman Rodriguez summarized that the committee feels there is room for a Palm Desert magazine, but on a different level and with a different commitment, with other entities making a presentation in the interest of an equitable decision. Ms. Gilligan was asked whether there was anyone else who should be included in the process, and she responded there are several publications, as mentioned in the staff report. Staff could write them indicating the Marketing Committee is looking into this and ask if there is interest. Mr. Jones asked if the City would be preparing an RFP, and Ms. Gilligan said no. Ms. Benson suggested that the committee be provided figures on the cost of certain advertising and projects as she felt it would be helpful for the committee to know what is currently being spent on what publications. Ms. Gilligan suggested the committee hold an unofficial brain- storming session to come up with ideas that would be helpful. This will be helpful information before the budget is prepared. The committee could then establish goals and objectives. Ms. Close mentioned that when she first got the contract to handle the marketing and advertising, she had been on the Promotion Committee for several years. There had not been a Marketing Plan, and the first one was written. There is now a Mission Statement and goals. When a new concept is presented, whether Page 10 Marketing Committee January 13, 2004 an event or a publication, committee members can refer to the Mission Statement and Marketing Plan to see if it satisfies the criteria. The budget can be built off of that and decisions can be made on buying the types of media and creating the types of products that will accomplish those goals. This is a process the committee should become involved in. [Ric Mandelbaum rejoined the meeting] VI. REPORT ON CITY COUNCIL ACTION(S) Nothing to report. VIII. REPORTS AND REMARKS Ms. Gilligan distributed pamphlets on avoiding conflict of interest. There was a question asked concerning the sales activity of the Visitor Information Center. Ms. Gomez responded that there is a small retail outlet at the Visitor Center and Palm Desert logo merchandise is sold. Ms. Gilligan mentioned that the Visitor Information Center responded to approximately 25,000 inquiries last year which is higher than any other year. There was a question as to how the agenda is prepared, and the response was that staff prepares the agenda. Members can contact staff to add items to the agenda. IX. ADJOURNMENT Chairman Rodriguez, on behalf of the members, thanked the City Council for the opportunity to serve on the Marketing Committee. Meeting adjourned at 3:45 p.m. KAREN RUSSO Recording Secretary Page 11 PALM DESERT MARKETING COMMITTEE MINUTES FEBRUARY 10, 2004, 2:00 P.M. ADMINISTRATIVE CONFERENCE ROOM I. CALL TO ORDER Chairman Ray Rodriguez called the meeting to order at 2:00 p.m. II. ROLL CALL Members Present: Emily Bird Norine Bowen Melinda Byrd Rick Darius Ric Mandelbaum Ray Rodriguez Michael Shimer Others Present: Robert Spiegel Jean Benson Sheila Gilligan Kristy Kneiding Donna Gomez Piper Close Mike Osgood, Desert Willow Dave Erwin, Best, Best & Kreiger Gary Sherman, Palm Springs Desert Resorts Mark Talboys, Sister Cities Committee III. ORAL COMMUNICATIONS Dave Erwin Palm Desert's City Attorney addressed the Committee regarding Conflict of Interest regulations and the Brown Act. Mr. Erwin Marketing Committee February 10, 2004 Page 2 passed out Conflict of Interest brochures and encouraged the Committee to call him should they have any questions. IV. NEW BUSINESS A. PRESENTATION RELATIVE TO BRANDING THE COACHELLA VALLEY AS PALM SPRINGS DESERT RESORTS Gary Sherwin, Director of Marketing for Palm Springs Desert Resorts gave a presentation to the Committee. Chairman Rodriguez asked Mr. Sherwin if he could give the Committee some background on the CVA. Mr. Sherwin said the CVA represents all cities from Desert Hot Springs to Indio. An executive committee called the Joint Powers Authority (JPA) governs the CVA. There is also a governing board called the Hospitality Industry & Business Council, which is comprised of industry leaders who review our marketing programs. The JPA oversees organizational efficiency, spending and governing ordinances. The third group is called the Technical Advisory Committee (TCA) consisting of City Managers. The TCA deals with issues relating to policy, procedure, and all governance of the organization. Mr. Sherwin said the CVA has a very broad range marketing program, which focuses on convention and leisure sales, individual visitors, and tour operators. The CVA has offices in Washington D.C., London, and Frankfort, Germany. They are a full -service marketing organization whose job is to bring as much business to the Coachella Valley as possible. There is a staff of about 38 people with a budget of $5 million. Mr. Sherwin began his presentation regarding the Branding Program, which he said began almost three years ago. The rational behind developing a definition brand was really pretty simple in that there was a lot of concern among our hotel partners about what was going on in the Phoenix/Scottsdale market. The Marriott, Westin, and Sheraton were all planning huge resorts at that time and the concern was the development would slowly erode the Coachella Valley's market share. Las Vegas was also starting to get into the convention market and had resorts that would accommodate that market. The hotels wanted to find a new way to compete with this new dynamic. One of the ways we felt we could enhance our competitive position was the fact that we all agreed we have a truly beautiful and unique destination here, and it is different than any place else. When people look to either vacation or bring a convention to town, they really think about the destination, will it meet their needs? This is where a destination brand comes into play. The brand is not about logos; it's not about tag lines. As we define it, it's really about Marketing Committee February 10, 2004 Page 3 creating a unique experience. Something you cannot replicate anyplace else. Our brand should be very different than that of Phoenix/Scottsdale, which is also a desert resort destination. Mr. Sherwin reiterated that the Brand Plan is not about the term "Palm Springs Valley." The Brand Blueprint says nothing about the Palm Springs Valley. It was developed by a lot of people in the hospitality industry, elected leaders, and Tim Sullivan from Marriott Desert Springs. He said the focus groups they tested were people who have come here; they tested people who choose not to come here. We have asked them what they think is unique, what sets us apart, and why people don't come here. We were very fortunate to work with a gentleman whose name is Duane Knapp who has written a book called "The Brand Mindset." He helped develop the "Starbucks" brand, "Westin" brand, "Holiday Inn" brand, and "United" brand and has been very involved in the hospitality industry for years. A brand has to have a unique and memorable experience. Take Starbucks, its nice to go there, you get treated well, and they don't give you a hard time when you want to order differently. It is a pleasurable experience. Disneyland, yes it is the happiest place on earth but part of the reason is because they train their cast members to be friendly, outgoing, service oriented. It's more than Cinderella's castle; it's the whole service experience, and the whole culture they created with their personnel. That's what we were trying to develop when we developed this Brand Program. Bottom line is that we developed a Brand Promise which reads: "The Palm Springs Desert Resorts provides the visitor the opportunity to enjoy the fun, glamour, and beauty of an authentic, relaxing California resort experience while escaping from the worries and pace of everyday life." That is really what this whole Brand Program is all about. We think there are some key words here that we own. Those of which are "glamour", "beauty", "fun", "relaxation", and the word "authentic." Even though we represent all of these very diverse cities, any city here in the Coachella Valley can take ownership of this Brand Promise and use it in ways that are meaningful for them. This concept of "glamour" is very important. Phoenix is a lot of things, but it is not particularly glamorous, but we are. We have El Paseo, we have the film festival, we have movie stars that live here, there are all sorts of great things that we can say are glamorous. This valley is a uniquely beautiful spot, and this Brand Promise is really designed to point out those key attributes and then work on capitalizing them. This document is a strategy document. It will tell you how we got there, what our plan is, and where we go from here. Marketing Committee February 10, 2004 Page 4 Mr. Sherwin said tomorrow at 9:00 a.m. at the Renaissance Esmeralda, Mr. Knapp will be presenting Brand 201. The material he is discussing today is Brand 101. We will be taking this Brand Promise and translating it into your business. We have developed a brand new educational curriculum program that will be starting on March 4, 2004, at the College of the Desert. This program is designed to help sales people learn how to sell a destination via our particular brand. This curriculum will be about a three-hour, half - day program. There will be a workbook and when completed, sales people will be credentialed in the Branding of the Palm Springs Desert Resorts experience. Eventually we would like to take this Brand Promise and develop it for front-line service personnel. We think this program will help give us a competitive edge. Mr. Sherwin said they are leading a national charge on Branding. The City of Santa Monica has contracted with Mr. Knapp to take the program that he developed with the Palm Springs Desert Resorts and change it to fit their Brand Promise. The City of Vancouver is doing it too. The International Association of Conventions and Visitors Bureaus is now doing the same thing modeled after this program, as is the California Travel Industry Association. The whole idea of branding is starting here, which is exciting. That is sort of the quick presentation on our Branding Program. Chairman Rodriquez asked Mr. Sherwin to elaborate on the meeting being held tomorrow in Indian Wells. Mr. Sherwin said it is in the Ballroom at the Renaissance Esmeralda, beginning at 9:00 a.m. It is called, "The Palm Springs Desert Resorts Brand The Next Steps." We will not be talking about the Brand Plan document. We are moving more into how do we make it real. We are going to get into some very specific service training issues. Ric Mandelbaum asked Mr. Sherwin if his focus groups went to the San Fernando Valley, West Los Angeles, or San Diego areas. Mr. Sherwin said the focus groups were conducted in Orange County because that is where the center was located, but they were not just Orange County residents. He said they drew people from Los Angeles and Orange County. Mr. Mandelbaum asked what the average person thinks about or identifies with the Coachella Valley, besides the tram, the golf and some hotels. Would the average person know about El Paseo and the fact that Tommy Bahama's is there and now Tiffany's? Would they know about all the fine dining? In fact, do people realize that each community has something unique to offer? Mr. Sherwin said he has made this comparison many times and in many respects, we are a little like Disneyland. You can choose to pick out whatever land suits your particular taste. There are people who come and want the high end shopping experience, that is something that is important to them. Marketing Committee February 10, 2004 Page 5 Some people want the boutique hotel experience, some people like rustic spots. One of the nice things about our destination is that it has diversity of product. To answer your question, yes, more people are learning about this destination. I think there has been more news about this destination over the last five years because of all the phenomenal growth. Mayor Spiegel asked Mr. Sherwin how the concept of "Palm Springs Valley" came about? Mr. Sherwin said during the early discussions, a number of hotel people picked up the concept because they said it made sense for their particular property. The Westin Hotel being one of them, and Rancho las Palmas was the other. We have taken no position, and we will take no position. I understand why they choose to do that; it helps their sell. I think it is floating out there, and I think people use it for their own marketing, but it is not a part of what this program is all about. Councilwoman Benson added that Rancho Mirage was about the only one who supported Terri Henderson at the time she floated that idea to the rest of the valley; other cities said no. That is the main reason the CVA did not take any stand on it and Rancho Mirage hoteliers, not the people, Westin mostly, was the one who came forward and liked it. Like Gary said, we can't say they can't do it; however, it was not a universal concept. Sheila Gilligan asked what a CVA Brand Stewart was. Mr. Sherwin said it is a person who deals with every little detail that drives everyone crazy. Jim Lebay works in our Art Department at CVA. He takes care of our general look such as signage and presentations to clients. He is sort of the Brand Stewart; he makes sure that packages sent out by the sales staff reflect the quality of our brand. In the old days they used to call it "quality management," but it is more than that. It is making sure that we are conveying the right message to people, and it takes a lot of time and detail work. Ms. Gilligan asked if there will be an ad campaign that will encompass all of the attractions in our city, or will the CVA rely on cities to do that individually? Mr. Sherwin responded that the JPA has asked them not to run ads touting individual attractions, i.e., golf, tennis, gay and lesbian, or nudist hotels. The CVA's job is to paint the picture of the diversity of the product in the Palm Springs Desert Resorts and all the great experiences therein. That is why the Brand Promise is so important because those key elements he spoke of earlier are universal for the valley. Palm Desert's idea of glamour and relaxation may be a little different than Desert Hot Springs. Nonetheless, it exists there to a degree. Having said that, are there programs that specifically promote El Paseo? Yes. We Marketing Committee February 10, 2004 Page 6 are also going to be doing a program to help promote the small hotel experience. It's called the Drive and Dine Program and will begin in the fall. We will ask the hotels to create a dining package, give us a rate and we will kick in a $25 gas card that will allow someone to get some free gas on their way home. Additionally, we have the El Paseo Merchants Association and Westfield who came to us asking if they could offer discount dining or shopping coupons that we can add into this package. We said, "absolutely". If someone wants to book the Mojave, they will get a restaurant, maybe Ruth Chris, they will get a gas card and discount shopping coupons. This package will be open to any small hotel in the valley. We are also doing a direct mailing program with American Express right now. We offer low cost opportunities that will allow people to get their message out. In the case of American Express, for a couple hundred bucks any merchant could have a coupon in the mailing, and it will go out to 50,000 American Express card members in Southern California. We need to do a better job educating the different groups in the Valley as to all the marketing opportunities we have. We are an organization that can offer this, but it is a true partnership. If you want to take advantage of it, you have to step up and say this is what I want, and the CVA will provide that to you. We offer a lot of things, but sometimes we don't always have people stepping up to the plate. Ms. Gilligan said there has to be a better line of communication with both organizations. Ms. Gilligan said she has invited Mr. Sherwin to attend the marketing meetings on a monthly basis. Mayor Spiegel said next year's budget looks tough depending on what happens in Sacramento. Out of CVA's $5 million budget, 40% is for convention sales, but the only hotel that Palm Desert has that does much with conventions is the Marriott, and they pretty much do that on their own. They have their own people who go out and get the conventions and bring them in. Mr. Spiegel said he believes Palm Desert is the second largest contributor to the CVA; what would justify us to continue spending that kind of money? Mr. Sherwin said you have to understand how our convention sales people work with the Marriott. Last year the Convention Visitors Authority booked 14,000 room nights in the Marriott. We give them monthly reports with lead numbers and confirmed numbers of business that we develop. Tim Sullivan has that report, and Bill Wallace at the Sales Department has that report. I think you will find that the sales people need destination leadership training to help them sell their product. They can't just sell it alone. They need to be able to see the overall destination experience. That's why when we go to trade shows, we have representatives from the Marketing Committee February 10, 2004 Page 7 Marriott who are sitting in our booth because they find that it is easier to get clients to come to a Palm Springs Desert Resorts booth than a Marriott Desert Springs, or a Renaissance, or a La Quinta booth. It makes it an easier sell. The City of Indian Wells recently attended a trade show where they had a booth next to the Palm Springs Desert Resorts booth. The Palm Springs Desert Resorts booth had more leads than Indian Wells because the customer understood what it meant to go to Palm Springs Desert Resorts; they didn't quite understand the Indian Wells stuff. So, part of being a destination sell is delivering tangible room nights, which we do. It is also being part of the leisure sale, which the Marriott is intimately involved with as well as some of the other marketing things, for example, public relations and some of the promotional efforts. Mayor Spiegel said your suggestion is that we are getting our monies worth. Is that what you're saying? Mr. Sherwin responded, that he would leave that to your hotels to make that value judgment or your retail folks. They are the best barometers as to whether or not we are delivering on our promise to you. Tim Sullivan has always had a very big roll in what we're involved in, and he knows what's going on. We meet with Tim fairly regularly; we meet with the sales people fairly regularly. They know what we are doing in our marketing plan, and they know whether or not we are delivering anything meaningful. Ms. Gilligan added that the concern about next year's budget was discussed during the Committee members interview process. As part of the focus of this Committee, we want to take a look at the CVA and the city's contribution to that organization. The Branding Program is the beginning of this agenda. Ms. Gilligan said she met with Tim Sullivan, and he is very excited about the prospect of meeting with the Committee to talk about what the CVA does for Marriott. This would give every member sitting here a chance to have a discussion about how CVA helps The Gardens, Westfield Shoppingtown, and restaurants. This meeting is the first in many wherein we will discuss the Branding Program. Staff wanted to put the Branding Program on the table before the Committee to say, here's what it is. It is well in progress, obviously, and we would like your feedback for our City Council. Is it good, do you like it, and can we build on it? While considering the marketing for next year's budget, do we gear that budget toward Branding, or do we continue with our current marketing strategy? Chairman Rodriquez asked Mr. Sherwin since Palm Desert is the second largest contributor to the CVA, perhaps it would be appropriate to give us a pie type of breakdown as to who the contributors are and to what extent they give. Mr. Sherwin said Palm Springs has historically been first, then Palm Desert and I Marketing Committee February 10, 2004 Page 8 think after that it would probably be Indian Wells, than Rancho Mirage, La Quinta, Indio, and than the County. Chairman Rodriguez said then Palm Springs and Palm Desert make up 70°A, of the contribution. Mr. Sherwin said no, probably a little over $2 million of the $5 million. Chairman Rodriquez answered okay less than 50%. Councilwoman Benson added that the formula is in the by-laws according to the hotels. It is not arbitrary; it was officially set. Mayor Spiegel said he would like to mention that the Marriott Desert Springs is Palm Desert's number one revenue resource for the city in various ways, i.e., sales tax, hotel occupancy tax, and redevelopment agency rebates. Ms. Gilligan said that is why having Tim Sullivan come and make a presentation to this Committee would be very helpful. She said she understood that Mr. Sullivan was very instrumental in getting the Branding Program going. Mr. Sherwin said he was at the first meeting and than they subsequently had a Brand Steering Committee wherein the Marriott was very involved. Ms. Gilligan said it would be helpful for us to have a breakdown of how many hotels Palm Springs has versus what they give versus us and what we give. The Marriott is the largest hotel we have but we do have others. Mr. Sherwin said in the Marketing Report there is some of that under Situational Analysis, but not all of it. Ms. Gilligan felt it would be helpful information to have. Chairman Rodriguez said he was thinking along the same lines. If the Committee is being asked to consider a recommendation for the future, and he felt that what he was hearing, Gary you are saying there is already a vehicle set up with the CVA, but it is not necessarily being used well. Some of this may be an educational process for the community of Palm Desert, and some of this may be better reaching out into our communities. We will not be able to determine this until we see an overall picture and what part of it is going to be educational or what part is going to be a sense that there is not enough focus on certain areas. If we could see both sides of that it would be very helpful. Mr. Sherwin said that there would be seminars for individual business segments. Donna Gomez inquired as to how the Palm Desert Visitors Center could become more involved and take advantage of some of the things the CVA is offering. She said Mr. Sherwin spoke of CVA's member businesses, but what about their member cities? Ms. Gomez was very interested in taking advantage of the front line training and other training programs. Ms. Gomez said she called to get a copy of the list of conventions and was told she couldn't receive one because she wasn't a member. Ms. Gomez said she thought the city was a member, at some point. Ms. Gomez concluded by saying she would be very interested in receiving Marketing Committee February 10, 2004 Page 9 information about all that CVA has to offer. Mr. Sherwin said they are going to be getting more specific information, but in the meantime, it would be a good idea if she could go to the meetings that are held the last Thursday of each month. Ms. Gilligan asked how does the city become a participant? Ms. Gilligan added, we have Councilwoman Benson sitting on the board, Piper Close is doing our advertising, Kristy Kneiding is our Marketing Manger, and it would be helpful to us, at this level, to receive some information. Mr. Sherwin suggested that the Marketing Committee might need to have a broad base understanding of what the CVA does. Then find out where those holes are that are important for Palm Desert to fill. It doesn't make any sense for this Committee to do the same things that they're doing. The biggest mission for this group is to create a really effective and strong Palm Desert sub -brand within this regional brand. Your job is to get as much market share of the visitor that is coming into this region. That is where I see this group really playing a big roll. We bring them into the valley, and your job is to get them to Palm Desert. That means finding out what we're doing and then overlaying that. The program that Ms. Close did at the airport was great. He said it gave Palm Desert presence among people driving around looking for places to go and to see. He felt that was money very well spent. He said right now Palm Desert has an ad that is running on their Palm Springs Desert Resorts channel. It's running at a lot of the hotels in the valley, and it is a 60-second spot in promoting Palm Desert and why you need to spend time in Palm Desert. It is that type of effort that would really help benefit Palm Desert. Ultimately, what you are trying to do is to get people to stay in Palm Desert and if not, at least spend a lot of money here. CVA is doing the heavy lifting in getting them here and you need to suck them in while they're here. Chairman Rodriguez asked who the focuses of CVA's marketing efforts are? Mr. Sherwin said they focus their marketing with the client. Find out what the customer needs and try to fill that need. There are a lot of things in Palm Desert that we try to convey to the customer very specifically. The experience on El Paseo is unique. Even if you choose to go to Beverly Hills, it is a totally different environment, more friendly yet upscale. Ms. Gilligan asked if the Committee members would like to make comments regarding this item? Councilwoman Benson and Mayor Spiegel will be taking these comments back to City Council. Your comments are welcome, and if you don't want to, that's fine too. Melinda Byrd said she could speak for The Gardens. She and Michael Shimer both went to Europe with CVA this year, and the CVA is working really hard to bring people into the valley, but it is a Marketing Committee February 10, 2004 Page 10 partnership. She said the CVA pushes business to who partners with them. They have tons and tons of members but it seems like it is the same people over and over again. She gets e-mails weekly. She receives notifications on all of the things going on with the CVA. They are very active, yet they choose to be active. She believes they benefit from the CVA. She thinks there are a lot of members who have not chosen to be really active, and she believes it goes both ways. CVA will only work as hard for your business as you do. When she attends their events, it is always the same 10 to 12 hotels and restaurants. The Gardens is usually the only retail there, but when they went to Europe they not only sold El Paseo and The Gardens, they sold Cabazon and Westfield and told them that this destination was a great shopping destination. She believes it is a joint effort, and you have to be actively pursuing it. She said she would like to receive all the retail information that the CVA has to offer. Ms. Byrd concluded that The Gardens involvement has been very positive. Mr. Mandelbaum complimented Mr. Sherwin on the foundation laid with regard to the Branding campaign. He felt it would behoove those who can get involved to do so. Chairman Rodriguez said when he reviewed the material the only one thing he underlined was how to better participate in the process. It seemed to him, hearing what he was hearing, that there is a course merit for this organization. There is a huge need for the CVA. The question is now, in different times, are we going to maybe put a little more mandate of responsibility on the CVA in developing participation with Palm Desert or are we, Palm Desert, going to do a better job participating with the CVA? He was not sure if that was the feeling in the room, but that is what he was hearing. This is a great vehicle, but both sides may need to work it a little better. Ms. Gilligan told Mr. Sherwin that the Committee was not bashing him. Ms. Close and I met with Mr. Sherwin, and we gave him some pretty tough questions because the city has a huge investment with the CVA and the city doesn't know what the CVA is doing, so the communication lines I think will be open and she apologized if the Committee and staff were too strong with him, but he had handled the pressure and did a great job, if they were. Mr. Sherwin said the city should always consider the CVA as a resource and that they try to provide information and opportunities for people; they just don't always know where the information gaps are. There are some people who say they get too much information, and there are others who don't receive any. That's why we went to weekly e-mails because they seem to be more timely and tailored. We are always Marketing Committee February 10, 2004 Page 11 trying to refine it and we always need more ideas. Ms. Gilligan responded with appreciation and thanked Mr. Sherwin for speaking. Chairman Rodriguez said he felt that was the spirit in which hopefully everyone will bring to these sessions and he thanked Mr. Sherwin for his patience and complimented him on his articles in the newspaper. Councilwoman Benson said there is an internal review of the CVA currently being done. She requested that Marshall return when the report is completed in April, to give a presentation on his findings. This will give elected officials in the valley, and any city that has a marketing committee, an opportunity to hear his review. Mr. Sherwin wanted to clarify Councilwoman Benson's remarks by adding that the CVA undertook a process wherein they brought in a gentleman named Marshall Murdock, the former President of the New York and Atlantic City Convention Visitors Bureau, and asked him to take a look at the CVA. Are we doing the right thing? How do they compare to other Convention and Visitors Authorities around the country? Do they have people deployed in the right places? Are they doing the right programs? Do they need to fine tune things, and are there services they need to provide that they are not providing? Mr. Murdock has spent a lot of time with the elected officials and community leaders. He has completed that process and is now putting together a report. The report will reflect his recommendations on how the CVA is currently performing and where it needs to go in the future. Chairman Rodriguez thanked Mr. Sherwin for attending the meeting on behalf of himself and the Marketing Committee. Mr. Sherwin had an issue with the meeting time due to a conflict with his HIVC meeting, which meets the same Tuesdays at 3:00 p.m. Ms. Gilligan said they would consider his concern. B. REVIEW OF CITY'S MISSION STATEMENT FOR ITS MARKETING COMMITTEE Chairman Rodriguez read the Mission Statement. He asked who in the room would be most familiar with the Mission Statement and how it evolved. Ms. Close said she, Ms. Kneiding and the previous Promotions Committee were involved in creating the Mission Statement. Ms. Kneiding said the Mission Statement reflected their focus with regard to how they were going to be steering their advertising and marketing plan. They felt that since they had a new Committee with new members it would be a great idea to get new input. Ms. Close said that the Mission Statement document was Marketing Committee February 10, 2004 Page 12 the foundation for what they used to create the advertising campaign. This then lead into the next item on the agenda. There was a four -pronged campaign that addressed all of these activities. As Ms. Kneiding and I talked over the past several weeks and months about what we needed to be looking at for the upcoming season, which generally starts with the Palm Springs Life September issue, we looked at how fragmented the four part campaign felt to us and that perhaps we needed to look at it as a more concise campaign and message. This is also the time of year where we start creating that campaign for the fall simply because this is the time that is best to be photographing the images for that campaign. In the next 60 days we will probably have that photo shoot. We are working on the copy for that campaign so it is timely that we look at the Mission Statement and say is this really what we want to do or do we need to tweak it in someway to make it more concise to what we feel Palm Desert needs to be doing in the next season. Chairman Rodriguez asked if everyone had a chance to review the Mission Statement and was it necessary to go down the document point by point. Ms. Gilligan asked in light of what we just heard about the Branding Program, and using it to promote the City of Palm Desert, how does that change what we are doing for next year? Ms. Kneiding said she wanted to hear something a little more concrete with regard to our advertising supporting their advertising, but maybe we just have two different views of marketing. As far as supporting their marketing campaign with ads I don't know that we should really adjust all that much. We still have opportunities where we can add something or take something out but I think overall the way we advertise we get response cards returned so we know how many people are interested in Palm Desert from our ads. Ms. Gilligan asked if we could come up with an ad campaign under the umbrella of the Palm Springs Desert Resorts? Ms. Kneiding said she believes that we are everything that Mr. Sherwin said we should say we are. We have large hotels and small hotels and she felt that her ad in the past complimented the ad CVA was running. They ran next to each other in the same magazine. You knew what you were getting when you came here because the ads had the same look and feel. She believes that we already recognize that we are what he said; a fun place with a lot of activity or you can do nothing at all. She felt that the marketing campaign was already there, with regard to materials and direction. Marketing Committee February 10, 2004 Page 13 Ms. Close said also to tag onto what Ms. Kneiding said, the last Promotion Committee wanted to educate people. We are a destination resort, we are not Palm Springs, we are Palm Desert and Palm Desert is something other than that. Yes, we are all one big desert and we share the same sunshine and the same streets, but we are a different place. We are as different as going to Newport Beach vs. Costa Mesa, they are neighbors but they still have a different personality, they still have a different characteristic that is unique. She believed the then Promotional Committee really wanted to emphasize that this was the place where you find the difference. The vacation planners and our ad campaign were built on that direction. This was an educational process we wanted people to know the Palm Desert brand and Ms. Kneiding and I said from day one that we're branding Palm Desert. This isn't something we just picked up we have been trying to brand Palm Desert since we came onboard with this city. Yes we spend money and we try to get people visiting Palm Springs over here to know where the shopping and the dining is, we do want to capture the person who comes in and doesn't know. We do that with In Flight magazine as well as trying to differentiate Palm Desert. Is that what we want to continue to do or do we want to hitch our wagon onto the Palm Springs Desert Resorts? Ms. Gilligan said she thinks that is the question to this Committee. Ms. Close said we have to talk about what we want to do with our Mission Statement. Everything that we do, from a media buy or a promotion, we need to look at that statement and say, how does that fit the marketing plan? If it doesn't we don't do it, if it does than we figure out a way to pay for it. Councilwoman Benson said that one of the things under the Branding umbrella was the retail center of the valley. She felt that is what Palm Desert is known for more than anything. If you ask any visitor the restaurants are in Rancho Mirage and the shopping is in Palm Desert. She also added that Palm Desert has the implication of being upscale. Whenever she has the opportunity to speak she stresses that Palm Desert has something for everybody. Palm Desert is not only upscale. She has had more people say to her that they cannot afford Palm Desert but she tells them yes you can, we have every level of shopping and dining. Mr. Mandelbaum agreed with Councilwoman Benson. He said of all the cities in the valley Palm Desert has the best blend of all the different opportunities from the more reasonable to the more expensive. He believed that was something that they could take advantage of with regard to an ad campaign. He asked should an Marketing Committee February 10, 2004 Page 14 advertising opportunity arise, is there a discretionary budget that they would be able to take advantage of it? Ms. Close said yes, there is a contingency line in the budget. Mr. Mandelbaum said the line item of creating a coop advertising opportunity is a great idea. There are a lot of people, like the Mojave Hotel, who, I am sure, would love to piggyback on to some of the things we are doing. They cannot afford to do those things on their own. Ms. Close said there are two main places that they do that and it is really up to the media who sell the ads to our merchants. We work with Alaska Airlines and Sunset Magazine. The Sunset Magazine ad did not do well. The way we worked that into the budget was that we tried to be as flexible as possible. For years the Alaska Airline ads, for instance, had six businesses that wanted to advertise in it and all that was left was a banner ad for Palm Desert. Great. We were happy to have just the banner and give everyone an opportunity to advertise in the magazine. If someone dropped out we repositioned the ad and took up their space. Mr. Mandelbaum said those ads are very important, but what Mr. Sherwin was saying, and he felt it was correct, was that it used to be we would always say we are going to have a great season, but we don't always know if we are going to have a great season. The problem with publications is your lead-time is greater than it would be in other media. So, if we had an opportunity to have a column and local businesses could possibly participate in the newspaper or direct mail, or even travel agents where they could respond faster. That may be something to look at with the advertisers in the area. Chairman Rodriguez is interested in reviewing the Mission Statement here a bit because he thought Councilwoman Benson brought up a good point that Palm Desert has everything and Ric mentioned that same thing. That's one of the reasons we live here and it makes for wonderful living. There is a perception and there is a reality. There is a perception that this is the place to shop, we have Westfield's, we have The Gardens, we have all the big players here. That's the perception. The reality of how much of the revenue that Palm Desert gets versus the rest of the valley is where perception meets the reality. Clearly we want to continue to promote Palm Desert as a place to shop and I guess my question is are there other things we want to promote about Palm Desert that we want to incorporate into the Mission Statement? He was hearing that Palm Desert is a really well rounded community and there are a lot of things to do, and there are different economic levels. Norine Bowen said she loved the Hopalong Cassidy Trail, Marketing Committee February 10, 2004 Page 15 Palm Desert Rocks campaign and all of the outdoorsy things that are available here. She didn't think the advertising said that enough. There is the tram and there are a lot of things in the outlining areas, but I think the City of Palm Desert has a lot to offer from an outdoors standpoint. Our beautiful park, the skate parks, and the Living Desert, I don't think we taut that enough. Ms. Kneiding said they talked about looking into other opportunities for more outdoor media. Ms. Close said that is the campaign that is at the airport, Palm Desert Rocks, Palm Desert Dazzles, Palm Desert Swings, Palm Desert Cooks; it does all of those things. But now that we have a hiking trail it's a natural to go into the outdoor magazines to promote our hiking trails and get those outdoor people involved. The hiking organization in the valley has grown incredibly in the last couple of years and its not just Coachella Valley membership it is people from outside the area that are members also. It is a very important component as are the arts. The Art in Public Places Program is something that has just skyrocketed and Richard Twedt has really brought it out into the public with the ads that we have done in Sculpture Magazine and Art in America and he is really promoting the type of art that we have here and that is a very important component as well. Chairman Rodriguez said he would be interested in hearing from Emily Bird as a representative of the luxury resort in the valley and also from the representatives of The Gardens. I am interested in the high profile experience. How does that work for you mixing the high -end experience with a kid grinding on a skating rail? Because his parents might be dining at Tommy Bahama's or Sullivan's or shopping at Tiffany's and staying at the Marriott, but they might be looking for something for their kid to do. What does that do to you? Does that work at all for you? Ms. Bird said that when people come to the resort it's the greeting they receive when they arrive. One of the things she always hears from the guests say after they have been at their property is "people are so friendly, what kind of training do your people go through?" I think the Marriott Desert Springs pushes that family environment but we are an elevated level of service. You are going to get that extra touch. Let's give your son or daughter a free pop or something like that. I don't think it is necessarily the campaign but the service that is a key element for our resort. Ms. Byrd said The Gardens is embracing, in their marketing plan, for the first time in probably five years that they are not the Rodeo Drive of Palm Desert because they don't want to turn people off. Marketing Committee February 10, 2004 Page 16 Yes, we have Tiffany's but we also opened a Crazy Shirts. We want people to think El Paseo is approachable. Yes, if you want to come for Escada and St. John their there, but we also have a Pottery Barn, which is reasonable and other shops that are reasonable. So that Palm Desert Rocks does speak to the other side. We have Sammy's Wood Fired Pizza and we have Sullivan's Steak House. Although the perception is that we are upscale we are trying to get away from that perception. Yes, it's a lovely place to walk and shop but you do not have to dress up to come to El Paseo. The only thing that we still have a hard time with is whenever I go out of the area and ask people if they have been to El Paseo they say, oh yeah, I've been to Palm Springs. No, El Paseo is in Palm Desert. Well, I've been to Tommy Bahama's and I've been to Saks, well you've been to Palm Desert. They don't even realize that they came to Palm Desert and I just tell people I live in Palm Springs when I travel. I wonder if there is a way that we can brand ourselves in our advertising as Palm Desert and not Palm Springs? I think we are the best out of all the surrounding areas. We have the best golf, the best shopping and the best dining but we need to not alienate the fact that people think that we are Palm Springs. I think that even if it's a little tag line or a relationship with the CVA, or something, the reality is a lot of people think we're Palm Springs or part of Palm Springs. I think we need to embrace that and ad that to some of our stuff. Ms. Kneiding said many people know the Palm Springs area but Coachella Valley means nothing to anyone. She whole-heartedly agrees with Ms. Byrd on that. Chairman Rodriguez asked Michael Shimer if he would be comfortable with a more comprehensive approach like that? Mr. Shimer said that is pretty much how he approached all of his marketing efforts since Tommy opened. It was never about Tommy Bahama's at The Gardens on El Paseo. Absolutely the bottom line is that it does affect him, but I have always looked out for the corporation of Tommy, but more so in promoting the valley. Like Ms. Byrd said, when we went to Europe we were the only two attractions. The rest were hotel people who were trying to sell rooms to these groups. I have to tell you they were more interested in what we had to say. We couldn't travel 5,000 miles and just talk about El Paseo. We were able to get that in, but we had to talk about Palm Springs, all encompassing. And he believes in what Mr. Sherwin was saying. The CVA is Branding the whole valley, so now its time for us to continue to do what we do and come up with the nitch that Palm Desert is to fall under. He felt we were wasting time and dollars in trying and educate people that when you come Marketing Committee February 10, 2004 Page 17 to the Coachella Valley the place is Palm Desert. Come to the Palm Springs Desert Resorts and we will get you to Palm Desert, we will get you to La Quinta. Ms. Gomez added that the first time people come to Palm Desert they walk into the Visitor Center and say what is there to do in Palm Springs? We explain to them that they are not in Palm Springs they are in Palm Desert and here are all the wonderful things you can do here and if they want to go to Palm Springs we help them get there, but we educate them on Palm Desert. The next year they come back to Palm Desert because that's where they want to be. So it is an educational process. Once they are a constant visitor or a repeat visitor they learn about the individual communities. Ms. Close said the market has changed an awful lot over the past several years because Spring Break is not happening like it used to and people would come here as teenagers or kids and they knew Palm Springs and they knew what was down valley and those people aren't coming anymore. They are older now and their kids aren't coming here. Mr. Shimer said Tommy Bahama's is not an inexpensive place to shop, but if you venture up to the cafe on Saturday night you will find that it is full of kids. The kids will be eating $6 hot dogs and the parents will be drinking a $200 bottle of wine and they are not dressed up they are in jeans. Chairman Rodriguez said that they could go to Sullivan's to dinner if they want; we have those options that a lot of places don't. Mr. Mendelbaum said we have more of them in Palm Desert than any other city, and in the same shopping center. Ms. Bowen said the other big thing is that everything is very, very convenient here. We are 10 minutes away from anything. We have to somehow weave that into our advertisement. Chairman Rodriguez said there are a couple of things here that we have discussed that he would like to comment on. He agreed tremendously with what he heard. As part of an organization that has restaurants in four of the valley's cities here, in his opinion, we are wasting our dollars trying to educate people outside the community until they get here. People understand Palm Springs they get that already. There are people who live here, who have lived here a long time and they think our restaurant in Rancho Mirage is in Palm Desert. They think the one in La Quinta is in Marketing Committee February 10, 2004 Page 18 Palm Desert. He's hearing from people who have had this experience both outside and locally it probably does not make to much sense to spend dollars trying to over take the Palm Springs Brand outside of the valley, but coattail on that. But, he is also hearing that we need to develop that sub brand that was referred to and one of the things he heard Councilwoman Benson mention is it maybe "The World at Your Finger Tips" in Palm Desert. He could see a woman getting a manicure and all these different scenarios, convenience, and we have everything you need here. Is that what were looking at here? There were verbal agreements in the room. Ms. Gilligan added that the City of Palm Desert gets a large percentage of its revenue from sales tax and hotel tax. The sales tax may change because of the state. What they haven't touched yet is our TOT, which is the hotel occupancy tax. The city is looking to build hotels out at Desert Willow, which would increase our hotel occupancy tax and revenue base. Another part to think of is our meeting with Tim Sullivan. We need to fill the Marriott. We need to fill our hotels. That is the City of Palm Desert's revenue base. Whatever marketing program we come up with, tying onto the CVA or our own, promoting Palm Desert has to be predominant. The money we get for this Marketing Committee comes from sales tax and TOT and we need to keep in mind that that needs to be a focus of the marketing as well. Ms. Close said the advertising campaign always ties back to the Visitor Information Center. The 800 number, the websites, whatever it is, Ms. Gomez is our sales force and she has products that she sends out to everybody that tells them everything about Palm Desert. Next year we are going to be redoing the city's vacation planner and relocation guide. These are the sales tools used by the Visitor's Center to educate people about Palm Desert. We have a picture and the rate of every hotel in the city. We have a dining guide of every restaurant and maps. Ms. Gomez is well equipped so that when the customer telephones her to find out more about Palm Desert, she has the tools to keep them here. Chairman Rodriguez said you are hearing from a lot of people here that maybe there is an opportunity to work with what is already working. He believes everybody wants to promote the Palm Desert brand, everyone in this room has a strong interest in doing that, but I think we are saying, "let's not throw the baby out with the bath water." Marketing Committee February 10, 2004 Page 19 Ms. Close said she agreed. She didn't feel that she or Ms. Kneiding is of that mind set either. She didn't want anyone going away thinking that that is the mindset. She still contends though, that the educational process of what Palm Desert is as its own community is an important thing to do. She didn't think Scottsdale sat back and said well everybody knows where Phoenix is. She continued commenting on the materials that Mr. Sherwin presented and said they were terrific and right on target. Do they have all the foresight that she thinks they should have when they talk about the Palm Springs area? She didn't feel that the Palm Springs airport was a very important factor in the way that the city currently markets and it is no longer inconceivable that the airport is no longer the area that people will be flying into. Ms. Kneiding said their ad campaign is based typically in the Southern California area. People in Los Angeles do know Palm Desert. However, if you are in Europe or Chicago, people are more familiar with Palm Springs. Considering the areas that we target those people do recognize Palm Desert, which is why she believes it is important for them to keep up with that educational tool, as opposed to telling Southern California people to come to Palm Springs. I think they are educated enough to know that the Bob Hope Classic is played in PGA West they know that isn't really Palm Springs or the Skins Game and The Battle at Bighorn. These events have really educated people on the different cities in the valley. Chairman Rodriguez said he thought we all said the same thing. Locally or regionally it makes sense to build that Palm Desert brand, but out there, Palm Springs is all people understand. Ms. Gilligan said we agree. C. RECAP OF THE EXISTING MARKETING BUDGET (Piper Close) Information item only D. REQUEST FOR DIRECTION ON 2004/05 ADVERTISING CAMPAIGN (Piper Close) A lot of input — Coming back with a proposed budget and part of that will be a proposed ad campaign. V. OLD BUSINESS A. Presentation by Palm Springs Life relative to Palm Desert Magazine Marketing Committee February 10, 2004 Page 20 This item continued to the March 16, 2004. VI. REPORT ON CITY COUNCIL ACTION (S) VII. REPORTS AND REMARKS A. Chair Chairman Rodriguez was relieved to learn that City Council had in deed agreed with their recommendation on the Desert Sun Palm Desert Magazine issue and thanked Ms. Gilligan and Councilwoman Benson on the clarification. B. Committee Members - C. Staff - Ms. Gilligan remarked at the last Marketing meeting there was a difficult item, which was the Desert Sun Palm Desert Magazine. It had political overtones and it had already been to the City Council. We sat in here and you wrestled with that and we walked out of here just incredibly jazzed that this committee was exactly what we wanted it to be. Everybody's input was right on, very direct, nobody was afraid to speak up and have their say and we needed as much input from you, our Marketing Committee, as we could get so I want to say thank you. It allowed me to take it back and I was sick the week it went to City Council and the motion came out a little convoluted. The City Council agreed that if we are going to do it at all we will buy three pages of advertising - one a month, full page, colored, and then we will buy copies to put in the Marriott on a trial basis. Palm Springs Life — Ms. Close and I met with Milt Jones, what he wants to propose is a quarterly magazine, upscale in nature at no cost to the City of Palm Desert. Placed in hotel rooms and distributed strictly on the basis of Palm Springs Life. That's what this Committee is for to take a look at it, make a recommendation to City Council. Is it good; is it bad, do we want to be involved at all? On behalf of staff we were excited that everybody added something to the meeting last time and from the staff thank you very much you did a great job. Ms. Close passed out a vacation planner and a location guide. These are the two pieces that will be reprinted next year. It is time to give it a new look. We won't be looking at this next month, but maybe the month after. There will be new photography so don't worry about that. We would like your feedback about the content. Marketing Committee February 10, 2004 Page 21 Ms. Gilligan mentioned the Table Top Book that is being published by the City of Palm Desert. It will be ready for sale this summer. VIII. ADJOURNMENT Chairman Rodriguez apologized for the length of the meeting and said he tries to be efficient with everybody's time and in the beginning this is a learning curve for us and we are absorbing a lot of important information so bear with us for the first couple three meetings. Adjoumment was at 4:30 p.m. Lori Wimbish, Recording Secretary