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HomeMy WebLinkAboutMinutes - Marketing Committee 04/20/20046/3 PALM DESERT MARKETING COMMITTEE MINUTES TUESDAY, APRIL 20, 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 Staff/Others Present: Robert Spiegel Jean Benson Sheila Gilligan Kristy Kneiding Piper Close Mike Osgood, Desert Willow Gary Sherwin, Palm Springs Desert Resorts III. ORAL COMMUNICATIONS None. IV. CONSENT CALENDAR Motion was made by Ric Mandelbaum to approve the March 16, 2004 meeting minutes, and the March 23, 2004 Study Session Notes. Norine Bowen seconded the motion, which was carried by a unanimous vote. MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 2 V. NEW BUSINESS A. PRESENTATION BY PEGGY CRAVENS, VIRGINIA WARING PIANO COMPETITION Sheila Gilligan introduced Peggy Cravens to the Committee. Ms. Gilligan said the request before the Marketing Committee from the Virginia Waring Piano Competition is $50,000. She also said if the event is valley wide, they look to the organization to be able to tell the city what other cities in the valley have been contacted, and what other cities are contributing. These types of events are brought to the Marketing Committee for review and recommendation to the City Council with regard to return on investment. Councilmember Benson said in the past, the city did not fund any event more than three times. This timeframe would allow the organization to become self-sustaining after that point. Peggy Cravens thanked the Marketing Committee to allow her the opportunity to address them. Ms. Cravens introduced Gerald Benston, M.D., Vice President and Treasurer for the Virgina Waring Piano Competition, and Louise Pestana, Development Consultant. Ms. Pestana is well renowned in the field of music and fundraising. She was the Fund Development Officer for the Los Angeles Philharmonic for many years and also the Executive Director for the Pasadena Symphony. Dr. Benston is sitting presently on the board of the Palm Springs Friends of the Philharmonic. Ms. Cravens added that she sings professionally and contributes with her own areas of expertise. Ms. Cravens gave a history of the competition. Ms. Waring agreed to this event only if it was properly funded. Ms. Waring also wanted to elevate the status of the competition by bringing in an orchestra that would be available to play the final concerts. The competition will run for three and one-half weeks starting the 9th of January 2005 through the 5th of February 2005. A concert at the McCallum Theatre and a Black and White Ball will conclude the event. For the past three years, the Black and White Ball raised funds, which helped the development of the Competition in becoming self- sufficient. In the interim, they have had wonderful cooperation from several of the well know foundations in the valley; the H.N. and Francis C. Berger Foundation; the Annenberg Foundation; JoAnn McGrath Foundation; and the Michael W. McCarthy Foundation. They are presently funded in the amount of $618,000. They are requesting that the City of Palm Desert can fund the housing and MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 3 per diem for the 40-piece orchestra that will be coming from Rome, Italy. The Italian Government is contracted to cover completely or partially the airfare for these musicians. The competition is held every four years and will not be asking the City of Palm Desert to contribute every year. Ms. Craven introduced Dr. Benston. Dr. Benston said that former winners of this competition have gone on to Internationally Concertizing or are sitting currently as Professors of Keyboard studies at various universities throughout the country. Competition winners have come from California, New York, Korea, Bulgaria, and Gauna and have become exciting artists or professors. He said they are not asking for help for youth at risk. They are speaking about young, talented people with direction, who are dedicated and need our help. And so they respectfully hope that the Marketing Committee will honor their request. Ms. Cravens added that the McCallum Theatre has been enormously supportive of this competition. During the last week all daytime competitions will be held entirely at the McCallum. In the evening, the McCallum is giving those evening performances to a variety of different types of events pertaining to the competition. Presentations were made to the City of Rancho Mirage and the City of Indian Wells. In the City of Rancho Mirage, at the Annenberg Center, there will be an evening performance for the adult residents of Rancho Mirage. During the daytime, an event will be staged at one of the schools for the children. They are also going to attempt to bus children in so they can see children in the throws of competing. Louise Pestana said while listening to classical music your brain uses the same neuron pathways that are used to process math and science. Educationally, it is important for children to listen to this type of music. All of the events, except the final event, are free and open to the public and anyone can come in anytime and listen. Cultural inspiration has been systematically removed from the schools and this competition creates an understanding for children who are exposed to it that helps them advance with math and science leaming. She also mentioned the marketing aspect of this event. They have a website that gets 500 hits a day. The Competition has been advertised internationally to 157 different countries and all 50 states. Yes, the McCallum Theatre and the College of the Desert have been supportive in every way, but the City of Palm Desert is mentioned in all of the materials as the destination site for this MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 4 Competition. She felt that was a tremendous amount of great PR and marketing for the city. Mayor Spiegel asked how the judges are selected. Ms. Cravens said from all over the world. Councilmember Benson said this group came to us a couple of years ago and practically wanted the City of Palm Desert to fund it all. They were in desperate trouble and we told them to go into the community and get their own house in order. Show the city that you can raise the money and then come back to us. She has been, as well as Mayor Spiegel, to the Black and White Balls, which have been tremendously successful over the past two or three years, and was delighted to hear that they have raised a great deal of money. Councilmember Benson concluded by saying that they did what we told them to do and regrouped their own organization and showed us that they can raise money. Mayor Spiegel said he was involved in the Joanna Hodges Competition and enjoyed that very much. Ms. Craven said certainly the City of Palm Desert has been very supportive in the past. She was not involved in the Competition in 1997, but as an experienced fundraiser she saw the merit in helping Ms. Waring and without sounding boastful she said she would not take on the Presidency unless she had me at her side to motivate the foundation and so far has been quite successful at doing that. They are very proud of the fact that they have the money they have presently, but it is going to probably take another $250,000 to really finalize all the needs of the Competition. So they came to the Marketing Committee today to ask for $50,000. It does not necessary have to be given in one year. It could be given in 2004 and half in 2005. This Competition happens only once every four years so they will not be coming back to you repeatedly. On top of that as Chairman of the Development Committee she is very seriously looking for a sponsor down the line. As yet they do not have one line up, but they are looking. Ric Mandelbaum asked if they are a 501C3 and have they been able to arrange for a lot of publicity with the radio and television stations. Ms. Cravens said yes. Mr. Mandelbaum felt that the City of Palm Desert was getting a lot of promotion from this event and that is certainly worth the $50,000 that is being requested. He asked Kristy Kneiding if a link could be added to the City's website that could go directly to the Competition website? Ms. Kneiding said yes. Both the Committee members and representatives from MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 5 the Virginia Waring International Piano Competition received that idea very well. Ms. Cravens responded to Mr. Mandelbaum's question by saying there have been direct mail advertising materials sent throughout the world about the competition. Mr. Mandelbaum felt this event would be huge for the city. Gary Sherwin said he has worked very closely with the Van Clyborne Competition, which was and still continues to be, a premiere event in Texas. He asked if this competition was modeled after that event? Ms. Cravens said yes. Ms. Cravens said once they incorporated the orchestra into the competition it really elevated them into the level of an International Piano Competition. Dr. Benston said at the end of the Competition in 2005 they really want to see the fiscal area of this organization strong enough to maintain its continuity and perpetuity with enough in funding to pursue the next competition, which will be 2009. Ms. Kneiding asked if there was an application fee. Ms. Cravens said yes, and then further explained the process in which a contestant is chosen and the fees associated with their acceptance. Mayor Spiegel asked if the City would be listed as a sponsor. Ms. Cravens said yes, of course. Motion was made by Ric Mandelbaum to recommend approval to the City Council for sponsoring the Virgina Waring Piano Competition in the amount of $50,000. Norine Bowen seconded the motion, which was carried by a unanimous vote. B. REVIEW PROPOSED BUDGET Ms. Close asked if there were any questions regarding the proposed budget. Mr. Mandelbaum asked about the cost of Good Housekeeping and its viability. Ms. Kneiding said the city gets around 5,000 leads a month from those ads. Mayor Spiegel told the Committee that the City Council has instructed staff to go ahead with their budgets. There will not be any budget cuts for fiscal years 2004-05. MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 6 Mr. Mandelbaum made a motion to recommend approval of the proposed budget to the City Council. Ms. Byrd seconded the motion, which carried unanimously. C. BUS SHELTER PROGRAM Ms. Kneiding gave an overview of the current Bus Shelter Program. Mr. Mandelbaum suggested that the bus shelters in Palm Springs have telephone numbers on them. He added that he felt the bus shelters were a great way to advertise. Rick Darius reiterated that the increasing cost would not be on the additional 12. Ms. Kneiding said that was correct. Chairman Rodriguez asked if the six bus shelters in Palm Springs rotate location. Ms. Close said yes, every 30 days. Councilmember Benson said the CVA met with Marshall Murdock wherein he gave a synopsis on his evaluation of the CVA. He felt the valley cities should work together. Ms. Benson thought this might be the type of advertising that the cities could work together on. The bus shelter schedules are up in June. This could be looked at for next years budget. Ms. Byrd said she would like the contingency funds to be used towards the airport kiosks and a satellite visitor center at the airport. Ms. Kneiding said that out of the 23 bus shelters in Palm Desert, the city donates a few to the Chamber of Commerce for the advertising of the Golf Cart Parade. Ms. Gilligan asked Gary Sherwin if these bus shelter ads would impact advertising with other cities. Mr. Sherwin did not think so. Michael Shimer asked if the bus shelter advertising was more effective than having a satellite visitor center in the Palm Springs Airport. Chairman Rodriguez liked the satellite visitor center idea. Ms. Kneiding said that three bus shelters could be added, and still pursue valley cities opportunities. MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 7 Chairman Rodriguez asked the Committee members if they were in agreement with the direction of staff. The Committee members were in agreement with staffs recommendations. D. PRESENTATION BY BUSINESS SUPPORT MANAGER, RUTH ANN MOORE, REGARDING CITY RETAIL PROMOTION Ruth Ann Moore addressed the Committee regarding the City Retail Promotion program. She briefly explained where the $50,000 budget monies come from and what they have done with those monies to promote business in Palm Desert in the past. She gave examples of the various promotions done by the City. She said they have had between 100 to 150 merchants participating each year. However, in 2002 they started to see a significant drop off without any real explanation. After that year, City Council suggested that a valley wide project be examined. In that vein, the City entered into co-sponsorship with The Desert Sun. This brought a vehicle, which enabled them to go valley wide with the promotion and also gave them a sales staff. Unfortunately, this was not as successful as they hoped it would be. In the past there was a subcommittee that worked under the Promotions Committee on this project. She felt that since the City has a new Marketing Committee it was appropriate to come back to them to get some direction. An attempt to get the department store managers back together this spring has not been successful. Taking into consideration the yearly dollar amount and the number of staff working on this program, Ms. Moore would like direction from this group. She said their suggestions were to keep the weekend events but move them into the fall to alleviate the heat problem. Or, take a whole new approach and instead of working with hundreds of stores, with such a small staff to do it, try to focus on a new program which could be institutional. They could use the $50,000 to boost or layer over the advertising for the retail in the City, or they could skip a year. She opened this up for the Committee's recommendations and suggestions to take back to the City Council. Melinda Byrd asked if the merchants where pulled for their feedback, especially after the Labor Day Sale? Ms. Moore said yes and the following are the results of the Labor Day Sale. 47 responses. 9 successful — 15 fairly successful and 23 said it was not. 17 increase in sales — 10 decreases — 15 the same. Best time to have the promotion: 12 said Labor Day — 10 said October - 15 said November and 9 said other. 2 or 3 day sidewalk sale: 3 days 19 — 2 days 18 — 10 no opinion. Will you participate again: 65% said they would participate of those people who responded to the MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 8 survey. Forms of advertising posters and weather 68% to hot to have a Sidewalk Sale — 36% hold a sale when population and seasonal traffic is higher and 29% encourage more merchant participation. Ms. Kneiding said she, Ms. Close, Mr. Sherwin from CVA, and Milt Jones from Palm Springs Life got together to brainstorm other ideas for promotions. One of the issues was do we want to continue with the summer promotion or do we want to see a shorter season. Ms. Close said there has always been this controversy about whether they should advertise in the summer time to help the full time residents and give them great bargains, or do you advertise in the fall when the merchants are saying there are people here. This runs into part of the discussion that they had with Mr. Sherwin in a project that the CVA started a few years ago called, "Pursue Some Happiness." It was an 8 1/2 x 11 brochure dropped in the Orange County Register, Los Angeles Times, and the San Diego Union Tribune. The City of Palm Desert purchased a full -page ad and the CVA boar the major part of the production expense. Ms. Kneiding and I discussed whether that was a good vehicle to do again. They thought maybe it was something that Ms. Moore's program could fit into. The funds could be used for design promotions and hotel promotions and get people here and spending their money. This is also something being proposed to the Committee. Ms. Kneiding said in order for them to get a good rate in those newspapers the CVA has to be involved and in order for them to put their stamp on it the opportunity would have to be offered valley wide. If we could incorporate the money from the shopping promotion to kick start it Palm Desert would have a large representation in this piece we felt it would really be worth it. Mr. Sherwin said the LA Times extend tourism operations sanction towards nonprofits a special below market discount rate. In order to get their participation, that is not necessarily available to cities or private industries. That is the reason they get the special rate that's just what they tend to do. One of the things he felt would be helpful from the committee's perspective is to think about strategy. In the old days at the CVA, they used to market heavily in the summer because everybody said, 'We have the business in the season we don't need marketing any other time." Well, those days are gone. Now we are marketing in season to capitalize and build market share, and the people who are coming during season are more likely to spend more dollars, particularly on El Paseo, than the people coming during the summer who are a different type of visitor MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 9 and a little more budget conscious. What strategy do you want to employ. Do you want to maximize return that is already here and grow your market share from an existing base or do you want to try to build visitor traffic when you need visitor traffic. Lately, he said their strategy has been to build up the season because they would rather have a half -full house with people paying higher rates than a full house with people paying bargain rate. He said they could come up with products to work with them on addressing either of those strategies. But the committee will need to decide which way you want to go. Mayor Spiegel said the stores in Palm Desert were upset with the existence of the street fair. Particularly the upscale stores on El Paseo. That is the reason money was set aside to use for advertising when it was needed. The thought was to use the money when business is the slowest, which is in the summer. We have been totally unsuccessful in getting a major retailer to participate in the promotion. The biggest retailer we had was Jensens. Chairman Rodriguez said he agreed 100 percent with what Mr. Sherwin said in that when he looked at the different types of promotional events in the past, he felt they weren't going to work August. He said you are not going to get the winter visitor here in August. He would much rather see the season extended by one week. Maybe the target date is April or May, or maybe it is November or December. He didn't know how anyone felt about that, but that is when you make your money. Ms. Byrd agreed. She said it is very hard to get their merchants to do anything extra in January, February, March or April they are so busy and the certainly won't discount anything at that point, they don't have to. To be honest, December is not a huge month for them. Even though it is the Christmas holiday, most people have already shopped before they get here. Even if they did something in November or December, or like Chairman Rodriguez said in May or June, the traffic really drops off after Easter. Just extending one week around that time would be the most beneficial to either gear up or help extend it. Norine Bowen asked if there is money enough to have a specific promotion for each retail venue. Ms. Moore said her only concern with that is if the promotions are going to be "citywide" and it is public dollars, there are areas that are not strategically within a development, i.e., Highway 111. She also didn't think $50,000 would stretch even seven centers and there are 17. She would say no. MARKETING COMMITTEE MINUTES APRIL 20, 2004 PAGE 10 Mr. Mandelbaum said he thought Mr. Sherwin and he spoke a couple of years ago about the fact that the weekends were still fairly busy during the summer, but it was the other weekdays that were not. They talked about an extending your stay program wherein Thursdays or Mondays could be the two extension days if people were staying for the weekend. That extra night would be huge for the hotels. The retail stores could give a value card to the visitor to use on those extended days. Therefore, the hotels get an extra night and the stores get extra business. That would be a good way to promote it in the media that was being discussed earlier with regard to LA, Orange County, and San Diego papers. Chairman Rodriguez said a subcommittee could be appointed to determine if there is enough time to put together an advertising promotion for this year, or forego this year and plan something next year. He asked who would like to sit on the subcommittee. Emily Bird, Michael Shimer, and Norine Bowen volunteered to be on the subcommittee for the retail promotion program. VI. OLD BUSINESS None. VII. REPORT ON CITY COUNCIL ACTION (S) VIII. REPORTS AND REMARKS A. Chair B. Committee Members C. Staff Ms. Kneiding congratulated Ms. Close on her ADDY awards. Ms. Gilligan said that staff met with the smaller hotels to discuss marketing. She added that the Committee would host the hoteliers at Desert Willow on June 17th from 5:30 p.m. to 7 p.m. Staff will be asking the CVA to attend. IX. ADJOURNMENT Chairman Rodriguez acijou ned the meeting at 4:05 p.m. Lor' Wimbish, Recording Secretary