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HomeMy WebLinkAboutC27130 Dine Out Palm DesertContract No. C27130 CITY OF PALM DESERT COMMUNITY SERVICES STAFF REPORT REQUEST: Approval to enter into an agreement with Desert Publications for the Dine Out Palm Desert dining guide and promotional campaign. SUBMITTED BY: Kristy Kneiding, Marketing Manager DATE: November 8, 2007 CONTENT: Dine Out Proposal Draft Marketing Committee Minutes October 16, 2007 Recommendation: By Minute Motion, concur with the Marketing Committee's recommendation to approve the agreement with Desert Publications for the Dine Out dining guide and promotional campaign in an amount not to exceed $46,000. Executive Summary: Desert Publications has submitted a proposal to produce Palm Desert's annual dining guide, while providing expanded distribution methods and added value to the contract it had to publish last year's guide The Dine Out initiative features an updated Palm Desert dining guide being designed and placed on a full -page ad in Palm Desert Magazine so that the viewer can pull out the dining guide and keep it for reference. Each and every Palm Desert restaurant receives a free listing. The piece will be produced and placed in the January issue of Palm Desert Magazine. Palm Desert has participated in this promotion the last two years and has been extremely satisfied with the quality, look, and feel of the dining guide. The additional distribution through Palm Desert Magazine was an added bonus for Palm Desert restaurants and especially beneficial to those that advertised. This expenditure was previously approved by the Marketing Committee and City Council as part of the 2007/08 Fiscal Year budget process. Desert Publications Dine Out Staff Report Page 2 Discussion: Attached please find a proposal submitted by Desert Publication Life to produce the City's annual dining guide. The Dine Out Palm Desert campaign is designed to increase awareness of Palm Desert's wide variety of restaurants and all the dining scene has to offer. The guide includes four-color photography in the restaurant directory and guide. Additional copies will be made available to residents, visitors, and potential visitors. With the insertion, the dining guide will be distributed in 15,000 copies of Palm Desert Magazine, including in copies available in local hotel rooms, at select newsstands across southern California and nationwide, first-rate country clubs, and high traffic locations throughout Palm Desert, including the Visitor Center. In addition to the 15,000 copies distributed via Palm Desert Magazine, an additional 10,000 copies are over -run for distribution at the Visitor Center and through rack displays. New to the campaign this year, Desert Publications is including 100 mint boxes to each advertising restaurant and 500 for the City of Palm Desert. Due to the popularity of the menu lights, they will once again include 1,500 customized for participating restaurants and 1,000 for the City's distribution. Producing this dining guide takes the place of the one created in-house. By outsourcing this collateral piece, it not only saves a significant amount of staff time in not having to research and update the information on each restaurant, but it also provides a large distribution of the guide otherwise not possible. The total request is $50,000; however, for every advertisement they sell, the City's cost will be reduced by $500. Desert Publications guarantees eight restaurants, resulting in a $4,000 discount. Therefore, the maximum cost for Palm Desert's participation would be $46,000. Last year, with the discount for advertising sales, the final cost of tl-e promotion was approximately $44,000. As stated above, this expenditure was previously approved by the Marketing Comm and City Council as part of the budget process, Accodnt Numbe..110-4417-4' 4-322 Submitted By: Kristy Kneiaing Marketing Manager Approval. Carlos L. Orte City Manager rt nent Hea Sheila R. Gilliga Assistant City Manager Paul Gibson Director of Finance tt (14 U -rl 4-i 44 0 co 2008 Agreement Dine Out Palm Desert Directory and Dining Guide Dine Out Palm Desert Directory and Dining Guide is designed to enhance Palm Desert's restaurant directory using: Enhancements • 4 color food and dining photography • Dine Out Palm Desert Directory and Dining Guide will be tipped -on a custom designed full page in the 2008 Palm Desert Magazine's January issue. • Printing 25,000 total copies of Dine Out Palm Desert Directory. 15,000 copies will be bound into Palm Desert Magazine's 2008 January issue and 10,000 free- standing copies that will reach the community and beyond! • Continue to embrace Palm Desert brand as the Desert Resorts dining center and a world -class dining destination • Continue to celebrate Palm Desert restaurants through the city's marketing initiatives Advertising and Circulation Ad campaign beginning in the January 2008 issue of Palm Desert Magazine. This message will capture and reach the following full and part-time residents, and visitors via 1,050 copies direct -mailed to residents of Bighorn Golf Club, The Reserve, and The Vintage Club communities. 7,950 street -rack copies distributed at various high -traffic locations throughout Palm Desert. 1,000 copies distributed to select newsstands across Southern California and Barnes & Noble stores nationwide. 5,000 copies throughout 3,000 Palm Desert and Indian Wells hotel rooms. Total Palm Desert Magazine Copies Distributed: 15,000 (Included) Distribution and Design • Palm Desert Dine Out Directory and Guide • 4 color photography • Complete alpha and category listings of all restaurants • 25,000 Total Copies Printed • 15,000 copies bound into the January 2008 issue of Palm Desert Magazine • 10,000 copies free-standing for rack and city distribution Value $35.000 (Included) Portable and Branded Romantic Menu Read Lamp and new Mint Boxes 2,500 portable menu lamps — 1,500 will be customized for restaurants and 1,000 for City of Palm Desert usage Value $5,725 (Included) 100 new Mint Boxes to each participating restaurant and 500 for the City of Palm Desert usage Value $5,000 (Included) Maximum commitment by City of Palm Desert $50,000 Palm Desert Magazine sales staff will ask Palm Desert Restaurants to spend $500 for 4 color full page food or restaurant shot imagery. This will include photography and food styling. For each restaurant sold, Palm Desert Magazine will deduct $500 from the cost to City of Palm Desert. Thus, if Palm Desert Magazine staff gets 10 restaurants to participate: $5,000 will be deducted from cost. If 20 restaurants participate $10,000 will be deducted from cost, etc. Palm Desert Magazine will guarantee a minimum of 8 restaurants, resulting in a $4,000 discount. Net maximum cost to City of Palm Desert $46,000 Agreed to by: Desert Publications, Inc. City of Palm Desert Date: Date: PALM DESERT PALM DESERT MARKETING COMMITTEE PRELIMINARY MINTUES Tuesday, October 16, 2007 — 2:00 p.m. Administrative Conference Room I. CALL TO ORDER Chairwoman Sara O'Flynn called the meeting to order at 2:00 p.m. II. ROLL CALL Members Present: Emily Bird-Hrivnak Rick Darius, Vice Chair Sara O'Flynn, Chair Michael Shimer Staff/Others Present: Dick Kelly, Mayor Robert Spiegel, Councilmember Kristy Kneiding, Marketing Manager Piper Close, Full Gallop Marketing Mike Osgood, Desert Willow Lori Wimbish, Recording Secretary Members Absent: Theresa Maggio Lee Morcus III. ORAL COMMUNICATIONS DRAFT None IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF SEPTEMBER 18, 2007 Michael Shimer moved, by Minute Motion, to approve the minutes of the September 18, 2007, meeting. Motion was seconded by Emily Bird-Hrivnak and carried 4-0. V. NEW BUSINESS A. DINE OUT DINING GUIDE PROPOSAL MICHAEL EVANS the Associate Publisher with Desert Publications presented the Dining Guide proposal to the Committee. He distributed handouts, which highlighted the magazines distribution areas. Kristy Kneiding stated that additional Dining Guides were printed and made available at the Visitor Information Center. All Palm Desert restaurants receive a PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE OCTOBER 16, 2007 free listing in the Dining Guide; however, each restaurant also has the opportunity to purchase an ad at the rate of $500. That ad purchase includes the promotional items available from Desert Publications, which has the restaurant's ad on the Branded Menu Lamp Cards and Branded Mint Boxes. Upon question by Ms. O'Flynn, Ms. Kneiding responded that the City's financial commitment last year was the same as this year's request of $46,000. Upon question by Mike Osgood, Ms. Kneiding responded that her staff keeps track of the restaurants opening and closing throughout the year. Ms. Kneiding added that the $46,000 was in the 2007/08 Marketing budget. Ms. Bird-Hrivnak moved, by Minute Motion, to approve the contract with Desert Publications to produce the dining guide in an amount not to exceed $46,000. Motion was seconded by Ms. O'Flynn and carried 4-0. B. PSDRCVA SPOT MARKETING CO-OP REQUEST WOODY PEEK, Vice President Travel Industry Sales & Membership with the CVA, presented the Spot Marketing Co-op request. Mr. Peek elaborated on the CVA's partnership with Alaska Airlines and American Airlines. Those partnerships have proven to be beneficial for both the CVA and the City of Palm Desert. The industry overall felt that they needed to do something to address strengthening its relationship with airlines and to help grow service into the desert. We partnered with Alaska and American Airlines. We implemented a program through our partner programs, the funding together was around a $400,000 campaign with an additional traded added value, i.e., golf courses and hotels that participated and gave product, and they implemented a $1.66 million ad campaign in four cities. Again, we realize that our objective here was to build an ongoing relationship with the air carriers and our objective of filling airplanes as a result is our ultimate goal. All of the air carriers were telling us what we knew when we went in that you were talking about an ongoing investment, at least an 18 to 24 month period. He said that out of the three cities they partnered with through Alaska Airlines were up over 30,000 passengers year-to-date. Alaska was very pleased. In fact, beginning July 1, 2007, they gained non-stop service from Seattle to Palm Springs running through the summer, which they have never had before. They also gained San Jose as a service area. The CVA sat down with Alaska and looked at the bigger picture of the program and Alaska wanted to continue the partnership into the future. Alaska wanted the CVA to add Vancouver as one of its cities because Vancouver had increased booking levels as one of the top three cities that business was coming from during the promotional period. While they didn't necessarily do this to generate hotel room nights because passengers were either staying in a second home or in an extended stay condominium, especially the areas out of San Francisco and Portland. But they went into the program with 299 room nights on the books and to date they have 2