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HomeMy WebLinkAboutPalm Desert Marketing Plan for Fiscal Year 2011 / 2012CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE PALM DESERT MARKETING PLAN FOR FISCAL YEAR 2011/12 SUBMITTED BY: Donna Gomez, Visitor Center Manager DATE: July 14, 2011 CONTENT: Proposed FY 2011/12 Marketing Plan Marketing Committee Minutes of June 21, 2011 Recommendation By Minute Motion: 1. Approve the fiscal year 2011/12 Marketing Plan as endorsed by the Marketing Committee Background The City of Palm Desert has provided a successful marketing effort supporting its multi- million dollar tourism industry over the last decade. Efforts have included branding as well as action -oriented advertising of Palm Desert as a destination resort. With recent changes within the marketing department, current staff is looking to take steps to formalize its marketing program and provide measureable goals and objectives to assist with implementation of a diversified and strategically targeted marketing effort. This document is meant to serve as a tool to guide and focus our marketing efforts for the next fiscal year while retaining some flexibility to allow for adjustments based on market trends and evaluated results. The Plan as proposed addresses Palm Desert's identified target markets through focused advertising to attract visitors to our community and ultimately put "heads in beds." This philosophy creates an environment for Palm Desert to then develop a local marketing program which includes local advertising, local promotions, and use of the Palm Desert Visitor Center as a resource to promote all Palm Desert industry Staff Report Approval of FY 2011/12 Marketing Plan July 14, 2011 Page 2 of 2 businesses. Ancillary benefits of a strong marketing program can be seen through home sales, relocations, new business, and an overall successful hospitality industry. Staff received input on the Marketing Plan from various sources including Marketing Committee members. The Marketing Committee formally reviewed and approved the document at its June 21, 2011 meeting with some minor additions, which have been incorporated into the final document as presented to City Council. Fiscal Analysis The proposed Marketing Plan closely follows the approved FY 2011/12 marketing budget. No additional funds are being requested at this time in order to implement the strategies, goals and objectives of this plan. Submitted By: Donna Gomez.A/Fsitor4enter Wr r( `7 Paul S. Gi n, "tor of Finance royal: j1W'CJ&'-E) hn M. Wohlmuth, City Manager Department Head: Z McCarthy, ACM lopment CITY COUNCMA ON APPROVED DENIED RECEIVED OTHER AYES: / r,, Kjocn� NOES: .._.,_.._.....,_., _. ABSENT: ABSTAIN: VERIFIED BYs Original on File with City Cgrk's Office r] PALM DESERT CALIFORNIA MARKETING PLAN FY 2011-12 PURPOSE The purpose of this document is to provide direction for the City of Palm Desert's marketing activities for fiscal year 2011-2012. It will serve to identify target markets, marketing objectives, strategies, and tactics which will continue to strengthen the Palm Desert brand and its tourism industry. It is estimated that the tourism industry generates over $22 million per year in revenue for the City of Palm Desert. The City's foremost marketing goal is to put "heads in beds" which serves to support the overall economic vitality of hospitality related businesses within Palm Desert. INTRODUCTION Palm Desert and the Coachella Valley rely on tourism as their major source of revenue. Of Palm Desert's general fund revenues, approximately 16% is generated by transient occupancy tax (TOT), and 34% by sales tax, comprising 50% of the total revenues used to fund programs, projects, and the daily operations of the City of Palm Desert. The City of Palm Desert first brought its marketing function in-house in 2000. The main objective at that time was community outreach with minimal out -of -market advertising. The budget primarily covered advertising and promotion of local events and production of the monthly newsletter. During the next several years, Palm Desert developed and fostered a unique brand and expanded its marketing efforts to target visitors and increase awareness of Palm Desert as a destination resort. Over the last few years, strategic marketing trends have shifted from image marketing to action -oriented marketing, attempting to quantify results through sound data. By investing in an upgraded website and hiring an online agency, the ability to research and track the effectiveness of the City's marketing initiatives has increased significantly, resulting in higher accountability for advertising placements and greater return on investment. PALM DESERT CAI IfORAIA Future efforts will continue to focus on measurable, action -oriented marketing as well as solidification of Palm Desert as a brand. This will be accomplished through growth of our online presence, active promotional efforts, increased communication and participation with the local hospitality industry, continued participation in co-op programs, and targeted print and radio advertising campaigns. Successful marketing efforts require a diversified marketing program. Palm Desert's program will provide that diversification through local, regional, national and international advertising campaigns as well as the utilization of a variety of advertising mediums. Funds are allocated within geographical markets based on the importance of first attracting visitors to our area (regional, national and international advertising), and subsequently directing them to the Visitor Center (local advertising) to obtain a wealth of Palm Desert information. PALM DESERT BRAND/POSITIONING STATEMENT Palm Desert is a uniquely situated resort community offering a small town feel with big city amenities. Its character is decidedly upscale, yet comfortable and family friendly. A place of relaxation and escape, Palm Desert also offers countless pursuits for active lifestyles including exciting outdoor activities in a beautiful, natural environment. Convenient access to world class shopping, recreation, culture and the arts combined with 350 days of predictable sunshine each year make Palm Desert one of the world's premiere vacation destinations. MARKETING OBJECTIVES The ultimate goal of Palm Desert's marketing program is to create enhanced public awareness through a comprehensive marketing campaign that will result in increased visits, extended stays, and increased spending to support a strong business environment. Palm Desert's marketing program includes the following fundamental goals: • To increase the number of visitors to Palm Desert • To increase Transient Occupancy Tax revenues • To increase sales tax revenues MARKET RESEARCH Several resources were utilized and factors taken into consideration in determining Palm Desert's target markets. The following sources and information have assisted in identifying the most appropriate areas to focus our marketing efforts and invest our marketing dollars. • Palm Springs International Airport passenger load data and airline feeder market statistics T3_ PALM DESERT CAI RORNIT • Palm Springs Desert Resort Communities Convention and Visitors Authority 2007/08 Visitor Profile Study • California Travel and Tourism statistics including the fact that 80% of travelers in California originate from within the state • The U.S. Census Bureau - nearly 22 million people reside in Southern California (Los Angeles, Orange, San Bernardino, San Diego, Riverside, and Ventura Counties). • The Palm Desert (online) Audience Segmentation Survey conducted in August 2008 by Off Madison Ave. TARGET MARKETS Geographical Markets: • Pacific Northwest (San Francisco, Seattle, Portland) • Canada (Toronto, Vancouver, Edmonton, Calgary) • Mid -West (Chicago and Minneapolis/St. Paul) • Southern California drive market (San Diego, Los Angeles, Orange County) Demographic Markets: • Middle to upper income; affluent • Ages 40 — 70+ • Married couples • Singles Activity Markets: • Family/Friend visits • Family vacations • Special events • Weekend escapes • Golf get-aways/Girlfriend get-aways • Bachelor/Bachelorette parties • Reunions • Weddings Target Segments: • Party segment: nightlife, events, attractions, arts & culture • Budget segment: value, attractions, accommodations, ease of access • Getaway segment: shopping, dining, resort amenities, rest and relaxation • Outdoor segment: family activities, tennis, hiking, biking, golf • Second homeowners/potential home buyers 3 PALM DESERT CAI RORNIA STRATEGIES Advertising 1) Provide a comprehensive online marketing/advertising program that increases Palm Desert's awareness, strengthens its brand message and encourages visitor trips to the area. a. Develop an online media plan that includes the use of proven platforms such as Google, Yahoo, Fetchback, MSN, Facebook, and Palm Springs Life. b. Experiment with measurable advertising in new online markets that are showing signs of success. c. Experiment with new forms of advertising targeting new and returning visitors based on behavioral and topical targeting. d. Continue to invest in banner ad targeted advertising (retargeting) which delivers the Palm Desert message to consumers based on previous related internet actions. e. Develop and test online banner creative that speaks to the target segments and capitalizes on seasonality/target markets. f. Invest in organic search engine optimization and pay -per -click to improve the visibility of Palm Desert's website and brand the destination. g. Optimize and expand existing pay -per -click programs to target additional markets and potentially incorporate event -based campaigns. 2) Develop a comprehensive print and radio media plan that targets high potential and proven markets and demographic segments. a. Work with JNS Advertising to produce a detailed media plan that includes local, regional, and national publications within identified target markets. b. Media plan to include media buys in proven publications that serve the Palm Springs International Airport feeder markets. c. Media plan to include valuable co-op opportunities such as those previously undertaken with the CVA and CTTC. d. Continue to experiment with radio advertising including spots sponsoring weather and traffic reports. e. Target advertising in Pacific Northwest, Canada, mid -west and drive markets 3) Develop high -season marketing campaign targeting proven geographical and demographic markets. a. Run targeted advertising within the Southern California drive market October through April. :d PALM DESERT CAI 6ORNIA b. Place weather related ads within the Pacific Northwest markets during their cold, rainy season; October through March. c. Advertise in the mid -west and Canadian markets focusing efforts from November through March. d. Run radio spots promoting Palm Desert's weather in targeted cold weather regions. 4) Promote the community as a viable and worthy destination of choice in the summer and fall seasons, especially capitalizing on the drive market and weekday travel. a. Participate in the CVAs Summer Retreat promotion b. Target coastal markets with May Gray and June Gloom c. Advertise in key geographical markets such as Southern California drive market. d. Adopt an ad campaign that imparts the desired message and brand of Palm Desert. e. Explore opportunities for partnering with Palm Desert hotels to encourage extended stays and additional weekday travel. 5) Participate in local advertising opportunities to capture valley visitors and direct them to Palm Desert and its businesses and attractions. a. Advertise the Palm Desert Visitor Center and its services in local tourism publications such as the monthly editions of Travelhost and Desert Guide. b. Produce a Visitor Center rackcard that highlights its services. Distribute through Certified Folder Display to targeted valley and Southern California locations. c. Consider continuing participation in the DCTV program providing video footage of Palm Desert in 1400 hotel rooms valley wide. d. Advertise in the Palm Desert Chamber of Commerce annual directory and map. e. Publicize and advertise the City's Art in Public Places program. Public Relations/Communications 1) Develop a public relations component which seeks editorial coverage in Palm Desert's target markets. a. Work with the CVA to participate in and support familiarization trips (FAMs) for travel writers, tour operators and travel planners. b. Coordinate hosting of travel writers and meeting planners at Palm Desert locations. c. Prepare a press kit for distribution. d. Distribute press releases on pertinent Palm Desert information and activities. e. Provide story ideas and content to a variety of publications. 5 0 iN PALM DESERT CAI IMRNIA f. Develop a comprehensive media database. g. Provide public relations support to Palm Desert energy, conservation and sustainability efforts. 2) Leverage marketing dollars by taking advantage of successful cooperative marketing opportunities. a. Participate in CVA familiarization trips and tourism POWWOW events to increase Palm Desert's exposure to travel writers, tour operators and the decision makers within the travel industry. b. Support international marketing efforts through the CVA and California Travel and Tourism. c. Participate in opportunities offered by California Travel and Tourism Commission including website content, literature distribution, etc. d. Explore opportunities for partnering with businesses such as Desert Willow Golf Resort, JW Marriott, The Living Desert, Westfield, The Gardens on El Paseo, and McCallum Theatre. e. Co-op with CVA on a variety of promotions including airline service campaigns, summer promotion, California Travel and Tourism Commission Sunset Magazine insert, etc. 3) Solicit, engage and retain Palm Desert's target audiences through increased online efforts including social media, e-newsletters, and development of promotional activities. a. Test an online promotional program to encourage interaction and support of the Palm Desert brand. b. Develop incentive program to increase subscriptions to the e-newsletter database by 10% this fiscal year. c. Create a program to expand the e-newsletter to include programs to promote local hotels, restaurants, events, and attractions offerings. d. Increase social media interaction and cross promotion of city sponsored or supported events and activities. e. Visitor Center to serve as a collection point for email addresses to be added to the database. f. Create and place banner ads promoting a call to action to subscribe to the Palm Desert e-newsletter and utilize testing to select the best -performing creative. g. Manage, monitor, encourage and engage "chat" about Palm Desert on websites such as TripAdvisor, Flickr, Yelp, etc. A PALM DESERT CAI IIORNIA h. Engage with Facebook fan base in order to develop relationships with new and potential visitors. i. Utilize online resources to promote events and activities occurring at various venues throughout the valley including Desert Willow, The Living Desert, McCallum, El Paseo, etc. 4) Provide quality tourism information and services to the leisure traveler through efforts at the Palm Desert Visitor Center. Utilize the Center as a source for data collection and distribution while increasing sales and activity. a. Sell tickets to local attractions and special events. b. Update existing collateral materials such as hiking, biking and dining guides, and provide for distribution to visitors. c. Develop a subscription card for use at the Visitor Center to solicit database sign- ups. d. Implement an online promotion that encourages consumer interaction with the Visitor Center. e. Optimize the City's sale of Palm Desert brand merchandise through better display and merchandising, improved product offerings, and enhanced marketing. f. Support the real estate market through distribution of relocation guides, realtor, education, and community information. 5) Develop a strong online (website) program that enhances the City's online presence in order to drive further success in existing online programs and effectively support the activities, events and business community of Palm Desert with engaging content, graphics, and interactive and useful information for visitors. a. Provide additional interactive and visual features such as videos and slideshows. b. Develop a page that provides for local business announcements of events and specials that would be of interest to visitors. c. Improve the visibility of Desert Willow Golf Resort on the City's tourism website. d. Better integrate social media into the website. e. Provide additional opportunities for opt -ins to the email club. f. Develop content that is engaging for both new and returning visitors. g. Explore testing for different types of website creative. 6) Provide a high level of communication with the residents and businesses of Palm Desert in order to keep them informed and interested in community activities and happenings. a. Produce annual calendar and make available to general public through distribution points such as the Visitor Center, City Hall, and the Library. 7 �i PALM DESERT CA11FORNIA b. Produce Brightside newsletters for delivery to residents and businesses six times per year. c. Promote activities and events hosted by the Palm Desert Aquatic Center, The Living Desert, McCallum Theatre, Desert Willow, El Paseo, etc. d. Support the City's e-government website which contains useful information for residents and businesses. e. Participate in community meetings and events such as El Paseo Business Improvement District, Chamber activities, etc. 7) Explore new opportunities to enhance Palm Desert's reputation and provide additional avenues for discovering information about the community. a. Establish a Palm Desert page on Yelp. Manage content, post photos, and special offers and respond to postings. Encourage visitors to comment on their experiences and rate local businesses and attractions. b. Evaluate the effectiveness, affordability and applicability of developing a Palm Desert application for smart phones, iphones and ipads. c. Utilize You Tube through the posting of existing or created videos of Palm Desert. d. Utilize Flickr through the posting of existing or created photos of Palm Desert. 8) Track, research, and evaluate marketing programs to ensure positive results. a. Staff and Marketing Committee to receive monthly reports from the online agency summarizing analytics of all online programs. b. JNS Advertising to provide quarterly reports summarizing results of print and radio advertising. c. When applicable, incorporate tracking mechanisms into marketing efforts. d. Consider possible opportunities for additional research through consumer interviews, surveys, and focus groups. 9) Encourage, support and participate in convention and business travel marketing efforts undertaken by the Palm Springs Desert Resort Communities Convention and Visitors Authority. a. Participate in regular CVA sales and marketing meetings. b. Participate in opportunities such as POW WOW, familiarization efforts, and the hosting of travel writers and meeting planners as time and budget allows. c. Monitor CVA referrals and how they translate into bookings for Palm Desert hotels. 37 PALM DESERT CAI ItORMA Promotions 1) Develop marketing and promotional opportunities to support Palm Desert's hospitality industry businesses. a. Implement a program to highlight/feature Palm Desert hotel properties on the city's tourism website, e-newsletter and social media resources. b. Create a page on the tourism website to feature local restaurants and/or retailers and any specials that they are offering. c. Continue to implement the Dine Out restaurant promotion that offers free advertising and promotion for Palm Desert restaurants wishing to offer a one month discount. d. Develop a program to feature "business of the week" to be featured and promoted at the Palm Desert Visitor Center. e. Organize and implement the annual Dine Out restaurant promotion program which includes local advertising and promotion for participating restaurants. f. Support annual valley -wide Restaurant Week program in June each year. g. Utilize existing local media resources to optimize Palm Desert's exposure (news morning shows, radio interviews, etc). h. Distribute current information on Palm Desert hotels, restaurants and attractions. 2) Support and utilize local special events as a tool to capture and educate visitors on what there is to see and do in Palm Desert. a. Support signature Palm Desert events such as Fashion Week El Paseo through social media, e-newsletter, ticket sales from the Visitor Center, etc. b. Explore the value of having a presence at large-scale valley events such as PNB Paribas Open, Coachella, Rock N Roll % Marathon, Bob Hope Classic, Film Festivals, Stagecoach, etc. 9 -i PALM DESERT CAMORNIA BUDGET Although Palm Desert's marketing budget has experienced some reductions in recent years, it is expected to remain consistent for Fiscal Year 2011-2012 with a total budget of $866,450. Nearly $168,000 of this is invested in community relations such as development of the annual community calendar, Brightside newsletters, and special event promotion. All media plan and ad placements correlate with the stated objectives within this document. Additional concepts outside of the budget have been included within this document and may require additional City Council consideration. CONCLUSION The City of Palm Desert's Marketing Plan is an evolving document that may require alterations throughout this first fiscal year. The Marketing Committee will be asked to review the document and staffs related progress at six and eleven month intervals. I r- PALM DESERT CALIFORNIA 10 PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 21, 2011 Rolf Hoehn moved, by Minute Motion, to approve the minutes of the May 17, 2011, meeting. Motion was seconded by Emily Bird-Hrivnak and carried 3-0-2. Jennie Rayner and Michael Shimer abstained. Jenna LeMaster, Theresa Maggio, Stephanie Loog and Marlane Wolf were absent. V. CONSENT ITEMS HELD OVER None VI. NEW BUSINESS A. RECOMMENDATION FOR MARKETING COMMITTEE SUMMER SCHEDULE Donna Gomez stated that the Committee meeting has previously gone dark in the month of August. Michael Shimer moved, by Minute Motion, that the Committee go dark for the month of August. Motion was seconded by Emily Bird-Hrivnak and carried 5-0. Jenna LeMaster, Theresa Maggio, Stephanie Loog and Marlane Wolf were absent. At this point, Theresa Maggio, Stephanie Loog and Marlane Wolf arrived at the meeting. B. CONSIDERATION OF MARKETING PLAN FOR FISCAL YEAR 2011- 2012 Ms. Gomez distributed the revised Marketing Plan, which incorporated the comments and input from the Committee, City staff, and the City's online marketing agency. The document is an internal working document to guide and direct the marketing efforts over the next fiscal year. Ms. Gomez requested support of the document so it can be taken to City Council for their consideration in July. Sara O'Flynn remarked that the plan is very thorough and detailed and she wanted to be sure that The Gardens is included in the portion where Westfield is mentioned. Stephanie Loog observed that all the efforts are directed at vacation tourism with nothing regarding people that live here. Theresa Maggio mentioned that she had noticed this also. Ms. Gomez stated that a lot of this kind of effort falls under the Economic Development Department, but a goal, strategy, or tactic could be added to address this market. 2 PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 21. 2011 Mr. Spiegel said that Rancho Mirage and La Quinta spend a lot of their marketing dollars locally. Responding to question, Ms. Gomez stated that she had seen Rancho Mirage's marketing plan, which is very limited due to budget cuts. They participate in co-ops to increase their marketing efforts. She also stated that there is a strategy in the Palm Desert plan to leverage some valley - wide events such as the Coachella Festival. The Committee agreed with Marlane Wolf that Ms. Gomez had done a great job and the Marketing Plan is very helpful. David Hermann reported that staff had shared the Committee's thoughts regarding PD Style magazine at the last City Council meeting. The $60,000 budgeted for this item has been decreased from $110,000 last year. After discussion with the Desert Sun, solutions they suggested were: (a) lower quality paper stock, (b) decrease the number of issues, or (c) change the way the magazine is distributed. Staff does not find these options favorable. Council has directed staff to ask the Marketing Committee to reevaluate PD Style within the context of the Marketing Plan and return with a recommendation. Ms. Gomez stated that previously the Committee had unanimously decided to recommend not moving forward with PD Style. Council wanted to be sure the Committee did not want PD Style, or something like it, to be included in the Marketing Plan. Rolf Hoehn moved to reconfirm the previous Marketing Committee recommendation to not allocate funding for PD Style magazine. Michael Shimer seconded the motion. Mr. Hoehn expressed that a change in the quality of the piece changes the perception of what the magazine represents. The funds could be better invested in other ways to draw people to Palm Desert. Theresa Maggio added that some Bighorn members take pride in the fact that Palm Desert has its own magazine and is stepping out from all the other communities. She wanted to abstain from a vote because she was not present at the meeting in which the recommendation was made to discontinue funding for PD Style. Ms. Loog mentioned that there was an ad for another city in one issue. If Palm Desert were to have its own magazine, it should only be promoting Palm Desert. Ms. Harnik was impressed with the quality of the magazine, and did not like the idea of lowering the quality. 3 PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 21. 2011 Upon question Mr. Hermann noted that the magazine is distributed only to Palm Desert residents through the newspaper and mail. It is also made available at local attractions and hotels. Jennie Rayner questioned if the desired market would be reached without having PD Style. Ms. Gomez responded that there is a component within the plan that covers local advertising. She added that the rack rate for the eight pages of content is valued at $60,000, which is how the budget amount was figured. It was hoped that the Desert Sun would raise the additional $50,000 from advertising to cover the remainder of the cost. If the Committee recommends moving forward with PD Style, Council would have to appropriate $50,000 from the General Fund. Mr. Shimer believed that El Paseo magazine, which is published through Palm Springs Life, seems to be a better image piece of Palm Desert, and perhaps there could be a collaboration, or perhaps the BrightSide could be augmented. Ms. O'Flynn reiterated that quality was the initial purpose of the magazine. The motion to reconfirm the previous Committee recommendation was put to vote and it carried 7-0-1 with Jenna LeMaster absent and Theresa Maggio abstaining. Marlane Wolf moved, by Minute Motion, to approve the Marketing Plan with the addition of the comments made today. Motion was seconded by Sara O'Flynn and carried 8-0. Jenna LeMaster was absent. VII. CONTINUED BUSINESS A. CONSIDERATION OF THEME FOR 2012 COMMUNITY CALENDAR Mr. Hermann reminded the Committee that Mr. Spiegel had asked for the Marketing Committee's support for the 2012 community calendar. The request today is to get some ideas for a theme that would make the calendar a marketing piece that works for residents as well as for visitors. Mr. Spiegel started the discussion by stating that he envisioned photos highlighting the main Palm Desert attractions rather that emphasizing a theme. Ideas that were discussed included: (a) "The Sun Shines a Little Brighter in Palm Desert," (b) "It's Always the Season in Palm Desert," (c) "The Cultural Center of the Valley," (d) What's there to do in Palm Desert?, (e) "Hidden Treasures" (focusing on little-known interesting places showing the diversity of Palm Desert), (f) "Treasures Every Step of the Way" (EI M