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HomeMy WebLinkAboutTDA 08-24 2011 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS AUGUST 24, 2011 PRESENT: Jonathan Barfield, Chairman – New Hanover County Commissioners David Cignotti, Mayor – Wrightsville Beach Anne Marie Hartman, Hotel – (150+) Wrightsville Beach Kim Hufham, President/CEO – NHC TDA Frank Jones, Hotel – (150-) Wilmington Mike Keeler, Hotel – 150 (+) Wilmington Dean Lambeth, Mayor – Kure Beach Bob McKoy, NH County Vacation Rentals Sabina Newman, Greater Wilmington Chamber of Commerce Chuck Pennington, County Bed and Breakfast Avril Pinder, Authority Finance Officer Bill Saffo, Mayor – City of Wilmington Dan Wilcox, Councilman – Carolina Beach EXCUSED: Anne E. Brodsky, Jimmy Pope, Carl Marshburn, John Andrews STAFF: Jeanette Foster/Administrative Services Manager, Recording Secretary Shawn Braden, Executive Vice-President of Marketing Mikie Wall, Vice-President Sales and Services Connie Nelson, PR/Communications Director Jette’ Lawrence, NHC Finance Amanda Frasca, PR/Communications Assistant GUESTS: Shannon Bowen, Wilmington Star-News Kip Damrow, Hilton Garden Inn Brandon Agency ( George Durant, Wendi Burrell) Clean Design, Scott Scaggs Patricia Matsen, Lumina News Jason Frye, Greater Wilmington Business Journal Cliff Py - WWAY 1 Chairman Bob McKoy called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:30 p.m. at the Courtyard by Marriott at Carolina Beach. ITEM #1 – EXCUSED Anne Brodsky, Jimmy Pope, Carl Marshburn, John Andrews. ITEM #2 – MINUTES APPROVAL – JULY 6, 2011 [Motion made by Frank Jones, seconded by Mike Keeler and unanimously accepted to approve the July 6, 2011 TDA Board minutes as read.] ITEM #3 – FINANCIALS AND ROT REPORT – AVRIL PINDER Avril Pinder, New Hanover County Finance Director, reported that we came under budget in expenses through June 30, 2011 and therefore anticipate using $100,000 in fund balance. Good news is we are up 9.8% in revenues. New Hanover County ROT collections compared to last fiscal year for the first 3% (July 1, 2010 – June 30, 2011) were up 8.69%; Carolina Beach up 6.28%; Kure Beach up 9.26%; Wrightsville Beach up 8.53%. Tourism is definitely heading back in the right direction. Kim advised that at the last TDA Board meeting with the Brandon Agency’s presentation, the TDA Board moved forward with the “Call of the Water” campaign. After the Board meeting, however, Kim said several of the Board members contacted her reference the third campaign (The Character campaign.) At the request of these members, Kim talked with the Brandon Agency and asked if we were to obtain rights to the “Character Campaign” and used it for future use, what would the cost be. The Agency advised to obtain this as a second campaign to the “Call of the Water” would be $10,000. Kim advised she had spoken with Avril reference fund balance funds to secure same and they are available should the Board wish to move forward to obtain the rights to this campaign for future use. Discussion: Avril indicated $17,000 is available in fund balance to pull from. --What would we secure for the $10,000 fee? George Durant (Brandon Agency) said it would be owned solely by the TDA and we would have rights to use it within the next year. We would need to advise within 60 days of expiration of that year that it would be used and include the extension of the campaign itself. Concepts would be 2 included in that. Only additional charge would be resizing of the creative for each of the applications that would be in each channel. --Maybe we should stay with one campaign at a time. Need to take one thing and run with it for now instead of spending more money at this time. --Having something in the pipeline makes sense. Tying in characters with water could add spice to the campaign. --Would have a year to transition into using this campaign with the water campaign. George did indicate they could be flexible on the year’s time frame. George indicated Historic River District and Island Beaches are who we are, but depends on what campaign we use. --Was determined would table any motion on the third campaign until after Brandon’s presentation. Kim also said that on our branding, it has been recommended that we trademark our new tag line – The Historic River District and Island Beaches. We’ve already had people wanting to use it. Trade marking is an insurance policy that this is ours. An initial filing on this would run between $3,000 and $5,000. Kim’s suggestion would be to allot $5,000 and again take this out of fund balance. Avril said funds are available. [Motion made by Dan Wilcox, seconded by Chuck Pennington and unanimously approved to allot $5,000 for filing a trademark on our new tag line.] A budget amendment in the amount of $5,000.00 for this expenditure will be prepared. ITEM #4 – FUNDING REQUESTS – Carolina/Wrightsville Beaches – KIM HUFHAM The Town of Carolina Beach respectfully requests TDA funds in the amount of $38,368.97 for expenses incurred for lifeguards for the period of February 1, 2011- May 31, 2011. Funds are available and this amount is being requested for reimbursement. [Motion made by Mayor Dean Lambeth, seconded by Mayor David Cignotti and unanimously carried to approve an expenditure request in the amount of $38, 368.97 to Carolina Beach for expenses incurred for lifeguard expenses for the period of February 1, 2011-May 31, 2011.] 3 The Town of Wrightsville Beach respectfully requests TDA funding for a total amount of $93,300. This amount accounts for part of the requirements for TDA funding support for FY 2011-2012 and includes:  Purchase of new decorations and hardware to support the continued effort to create a traditional Christmas holiday decoration display at Wrightsville Beach in the amount of $1,000.00. Funding in the amount of $5,500.00 to help fund the purchase of a new ATC to replace a similar vehicle which has been in service since 2006. $25,000.00 considered to help fund fireworks, advertising, public relations and media support associated with the planning and presentation of the 2011 N.C. Holiday Flotilla. $12,000.00 is requested to help support the necessity in maintaining a public restroom in the hub of the Wrightsville Beach business area commonly known as the Trolley Stop. In order to continue support of the Ocean Rescue Program, funding in the amount of $35,000.00 is requested to replace the 4x4 pickup truck currently operated by the Ocean Rescue Captain. This vehicle will replace a 1994 pickup which is used as a utility vehicle in support of Ocean Rescue operations.  Funding in the amount of $8,000.00 to be considered to help fund the purchase and installation of a new Special Event Announcement sign. This sign would be in addition to one on the north side of Causeway Drive in proximity to the municipal complex and adjacent to the popular Loop Walk and would be located along Salisbury Street which would provide visitor information for traffic transiting to the Johnnie Mercer’s Pier area and the north end of Wrightsville Beach.  Funding in the amount of $6,800.00 to help support costs associated with operating the newly established Beach Ambassador program. Initiated in May, 2011, designed to greet beach visitors and respond to questions about activities and beach-use rules. Would also serve to complement the Park Ranger, Beach Patrol and Ocean Rescue functions to help provide a safer beach environment. Amount requested would fund two part-time Ambassadors through Labor Day, 2011 and provide for similar operations from mid-May through June, 2012. Funds are available. [Motion made by Mayor Bill Saffo, seconded by Mayor David Cignotti and unanimously carried to approve funding in the amount of $93,300.00 for all of the above expenditure requests as outlined.] 4 ITEM #5 – MARKETING PLAN PRESENTATION 2011-2012 (CVB staff, Brandon Agency, Clean Design) President/CEO Kim Hufham said that this year’s Marketing Plan (2011-2012) has two reoccurring themes (recovery and transition.) She said that New Hanover County showed signs of recovery during Fiscal Year 2010-2011. The State of Tourism during Calendar Year 2010:  2010 tourism expenditures of $400.88 million, an increase of 6.9%  #9 ranking among North Carolina’s 100 counties.  #2 ranking among coastal counties.  New Hanover County generated $37.31 million in local/state taxes.  5040 employed in travel and tourism related jobs – $91.62 million in payroll.  Each New Hanover County resident’s taxes were offset $183.40 by tourism expenditures. Although National, State and local travel industries appear to be recovering, there is still the need for a commitment to advertise and market in both prime season and shoulder seasons. 2011 ROT collections are up 9.63% over calendar year 2010; first six months of 2011 shows positive ROT growth and some attractions attendance is up over previous fiscal year. Kim discussed Fiscal Year 2010-2011 highlights to include: Total visitor inquiries down 13%. Can relate this to  moving offices/VIC, lack of signage, transition of website tracking from AWSTATS to Google Analytics. Total advertising inquiries up 10%.  Social media up 61.5 percent increase in fan base from FY 09-10.  Hosted Association Executives of North Carolina and SGMP annual  meetings. WCC bookings to date show 23 groups, denoting 8,886 room nights.  Implemented seasonal campaigns and landing pages.  Formation of the Sports Marketing Advisory Committee.  Kim indicated our current situation and trends relate to: Economy and other external factors combine for an uncertain future, but we o continue to be optimistic. The launching of new brand platform and campaigns. o Combining marketing into a holistic approach – single destination, four o unique settings – while maintaining individual destination marketing plans and budgets. 5 Budget limitations remain despite a 5% increase in FY 11-12 marketing o budget. North Carolina Coastal communities market share is shifting with nearby o competitor Brunswick County increasing from 15.7% to 16.2%. In August, 2010 Kim said the following external audience perception and trends were identified: Limited name recognition of the Cape Fear Coast; perception of the area as one destination; instate visitors may doubt area’s accessibility and/or value. President Hufham indicated this year’s Marketing Plan will implement strategies that will address these perceptions and trends. Kim turned the platform over to George Durant with the Brandon Agency to present the Brandon Journey. Mr. Durant began his presentation by elaborating on how they arrived here in terms of building a platform for the Historic City of Wilmington, and Carolina, Kure and Wrightsville Beaches. He noted they embarked on re-branding and integrated marketing plans for the umbrella destination. George said they were charged with building a consensus among four incredibly diverse constituencies (conducted observational research, market surveying and stakeholder and branding workshops.) A consensus was built on the tourist destination’s “DNA” and marketing personality and through surveys, they learned that the “Cape Fear Coast” had little name recognition, no “locational” value and low scores in terms of a clear “holistic” vacation destination. Survey results also showed enhanced brand recognition for the single destination “Wilmington, NC” versus “Cape Fear Coast.” The tag “Historic River District & Island Beaches” elevates value by suggesting that in one place – WILMINGTON, NC – one can experience so very much. With this in mind, Wilmington is being positioned as the lead “portal” through which visitors locate, consider and eventually visit this unique collection of tourist assets, from the river to the sea. George said the three beach towns and the City have agreed on the need for an umbrella brand which was shown – Wilmingtonn.c. Historic River District & Island Beaches. George went into the Brand survey which had been taken and it was determined that 96% were positive on the statement describing the way Brandon was considering presenting the area to potential visitors. He then elaborated on some of the unsolicited comments from those who had taken the survey. Of those taking the survey, 80% believed the statement and 78% would consider us for their vacation/getaway due to the appeal of the statement. 6 Dealing with the Creative Campaign Support, this year’s campaign will be called “The Voice of the Water.” It will be implemented across every marketing channel. Feedback from visitors of being by the water indicates (from survey) that 41% were seduced by the view, 25% voted for the relaxing environment, 15% liked the location of leisure activities and 13% were interested in wildlife. Under lifestyle benefits, 75% feels it helps them to have less stress with 63% feeling it helps their health and well being. The survey also included an Awareness Perception Study of which only 33.08% were familiar with or had heard of the Cape Fear Coast. Close to 70% did know which coast the Cape Fear Coast is on. Almost 41% knew which state the Cape Fear Coast is located in. 67% felt the Wilmington, NC Historic River District & Island Beaches was more appealing for a beach vacation, while almost 68% finds this description better defines the experience for a vacation destination. The study participants = 93% were female; 63% completed high school; 38%’s income bracket was $25,000 to $49,999 with 27% being in an age bracket of 50-59 years of age. Voice of the Water Strategic Considerations: Re-branding – recognizable brand from which the four distinct entities can  sell. Create lead and traffic generation via a newly branded URL  (WilmingtonAndBeaches.com). Complement beaches focus of shoulder seasons, targeting families with  children. “New” brand to appeal to broader audiences.  Steal market share by leveraging descriptive assets against other markets.  Be memorable.  Voice of the Water Challenges and Deliverables: Combining into a single destination – sample this nourishing, energizing  array of offerings. Communicate the endless variety of experiential offerings and events in a  single ad and/or execution. Budget limitations.  In the Water, On the Water and By the Water: Highlight a geographical  expanse “From the River to the Sea”….which will always make us unique. Simply something for everyone.  Widen our appeal base.  Position against the competition as a first-choice destination.  (Handed out ads – HEED THE CALL OF THE WATER). George also talked about Marketing Executions whose objectives include generating traffic to media assets; visits to www.WilmingtonAndBeaches.com; collecting email addresses to remarketing purposes; attracting first-time visitors; building shoulder 7 season business and promoting special offers; promoting summer season and promoting awareness to ensure saturation during prime vacation season; representing destination out of the N.C. market; lead generation; complementing the three beaches in in-state media plans; being media specific to Charlotte to promote accessibility via Highway 74. George touched on “How to Support Objectives and Strategies: Seasonal campaign landing pages.  Social media network seasonal messages.  Advertising via AAA Home and Away, Oprah, Southern Living, Coastal  Living, Carolina Heritage Guide, Civil War Traveler, Better Homes and Gardens/Ladies Home Journal, Redbook/More Coop, Our State, military newspapers and others. Online medial campaigns (Facebook, Google Ad Content Network, Trip  Advisor, VisitNC.com, NC Coast Host and The Knot.com. TV – Charlotte DMA (History, Food, HGTV).  Email marketing campaigns.  eSpecials targeted to seasonal themes.  Supporting PPC campaigns targeted to ads, seasonal landing pages,  Keywords, Negative Keywords, Geotargeting. Search engine optimization of landing page and assets.  Launch new website and mobile versions.  Move website tracing to Omniture.  Promote new URL www.WilmingtonAndBeaches.com.  Support public relations.  Breakdown of Leisure Media Outreach Allocation: Traditional/print – 42%; TV – 10%; Online/Pay Per Click – 28%; Social Media – 8%; Crisis Communications – 3% and Contingency – 1%. George noted that Social Media Objectives should include: Generate intentional fan base growth in key feeder markets.  Feature offers and promotions.  Align with fan areas of interests.  Support PR goals and objectives.  Align with review/user content generated sites like Trip Advisor.  Infiltrate affinity pages/sites and video distribution to third party sites.  Manage social identity, respond to conversations and monitor online news  services. Photography and Video to include new leisure photography; new video to  address interactive/rich media, web site, and social media needs and on different platforms. 8 George turned the Marketing Plan presentation back over to President/CEO Kim Hufham. Kim thanked the staff, Brandon Agency and Clean Design for all they have done and discussed other areas of the Plan: Group Sales: Maintain memberships and active presence in NTA, ABA, NCMA,  SportsNC and NASCO. Attend NTA and ABA group tour/motorcoach shows.  Military travel shows – BRAC opportunities.  Third party representation to military and AAA offices (subcontracting for  assistance in this.) Attend TEAMS sports marketing trade show.  Work with sports marketing advisory committee.  Emphasis on small meeting i.e. weddings, reunions, special events.  Meetings/Convention Sales: Sponsor 2012 AENC luncheon  Maintain membership and active presence in trade shows and organizations.  Monthly sales calls to the Research Triangle Park area.  Host client events in Raleigh.  Direct mail campaign.  Host site inspections.  Continue to work with WCC staff to increase convention bookings.  “Bring it home” emphasis to local organizations.  Public Relations/Communications: Support marketing department initiatives and new tourism assets with new  brand position and new website. Communication messages to potential visitors in key feeder markets such as  Charlotte. Host travel journalists, FAM tours.  Attend media missions and trade shows.  Themes – seasonal events, what’s new, experiences, milestones.  Local awareness of tourism such as National Tourism Week and Be A  Tourist in Your Own Home Town. Advocacy: Monitor issues at both state and local levels.  Emphasis on CVB’s role as local tourism advocate.  Maintain a “seat at the table” for tourism issues with local economic  development groups. Communicate with local and state officials to keep tourism “top of mind.”  Maintain memberships with both local and statewide tourism advocacy  organizations and boards. 9 nd Kim then shared objectives and strategies for the 2 3% Marketing Plans (Carolina, Kure and Wrightsville Beaches): Increase shoulder season stays (defined as September-November and March-  May). Increase first-time visitors.  Create a differentiated brand position that focuses on visitor benefits.  Showcase the unique character through website, PR, social media,  advertising and events. Focus efforts on key markets to maximize spending, reaching and frequency.  Use a smaller geographic footprint to create competitive impact and to focus  on targeted channels. Better profile and connection with the visitor.  Create visitor loyalty.  Create brand evangelists to spread the word.  Kim turned the MP presentation over to Scott Scaggs, Creative Director for Clean Design who is the agency for the three beaches. Scott began his presentation with who our competitors are for the beaches and how we can build off each other (competition, audience and brand). Includes such areas as Myrtle Beach, South Carolina, the Crystal Coast, North Carolina’s Brunswick Islands, Oak Island, The Outer Banks of North Carolina. Scott then discussed how each of the competition describes themselves such as: Myrtle Beach has EVERYTHING; the Outer Banks is DIFFERENT; the Crystal Coast has IMAGINATION; Brunswick Islands has POSSIBILITIES. Scott said our top 5 visitor markets are the Triangle, Charlotte, Greensboro, Winston-Salem and Fayetteville. He also gave a synopsis on demographics, consumer spending, lifestyles and spending behavior along with what types of families live in each area. Carolina Beach, for instance, would attract families with teens, Wrightsville Beach would be multi-generational families and Kure Beach would attract families with young children. Shared goals would be to increase first-time visitors and increase shoulder season stays. Specific goals would be to steal market share, change perceptions and increase awareness. Description of Wrightsville Beach = accessible, versatile, active, laid back, casual, and comfortable which describes this beach as easy (it is a place that understands that life is not meant to be complicated. As North Carolina’s most accessible beach, it means it is easy to get to. There is a wide variety of things to do (both on the island and in the surrounding area) keeping the whole family happy. 10 Carolina Beach description = family friendly, welcoming, variety, unique, quirky, fun which describes this beach as an original experience. Whether driven by nostalgia for a simpler time, to beat to a different drum, or to redefine what is cool, these words remind us that those unique and original experiences we seek are often found when you break out of the ordinary. Life’s a lot better when it a little out of the ordinary and gives you that special experience. Kure Beach is a small town, relaxed, friendly, comfortable, getaway, beautiful which describes this town as a small wonder. Kure Beach is a special place where people can experience a beach trip that allows them to slow down, reconnect with themselves and family and experience a more rewarding pace of life. Things are a little less hectic on Kure Beach, the small wonder. Scott presented ads giving their position and brand of the ad. Meeting then turned back over to President Hufham for final remarks on the marketing plan as a whole and what it means we want to do: Shift our market share. Target direct competition. Better define our product, profiling and connecting to the visitor. Doing more with our limited budget. Enhance our tracking. Strengthen digital presence. Use of a small geographic footprint to create competitive impact. Pick limited number of competitors to focus efforts on. Launch new brand, positioning, messaging. Launch new website and mobile versions; launch Omniture tracking. Short-term WCC sales efforts without it having an adjacent hotel. Target sports groups compatible with destination amenities. Pro-active PR efforts targeting access and niche markets. Kim reminded the Board that the renaming of the organization to align with our new brand to be looked at a later date. Some discussion followed the 2011-2012 Marketing Plan presentation including how we might find other avenues for more funding. [Motion made by New Hanover County Commission Chairman Jonathan Barfield, Jr., seconded by Chuck Pennington and unanimously carried to approve the Marketing Plan as presented.] 11 ITEM #6 – PRESIDENT’S COMMENTS – Kim Hufham President/CEO Kim Hufham again thanked everyone for all of their hard work (staff, Brandon Agency, Clean Design.) She reminded everyone that the Marketing Presentation will be presented to tourism partners on September 20 at 9:00 a.m. at the Government Center. ITEM # 7 – OLD BUSINESS/NEW BUSINESS N/A ITEM #8 – CHAIRMAN’S COMMENTS – BOB MCKOY Chairman Bob McKoy asked if we wanted to revisit the $10,000.00 expenditure as discussed earlier in the meeting. George elaborated on giving additional time if needed on making a decision. Not going to sell this campaign to anyone else. Doesn’t want the Board to feel there is an urgency on a decision being made to go with the Character Campaign. ( It was determined after some discussion that this would presented for further discussion at the October 26 meeting. Adjourn at 7:25 p.m. ______________________________ __________________________ Kim Hufham, President/CEO Chuck Pennington, Secretary Minutes located in TDA Board Minutes Book X 12 13