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28-180RESOLUTION#28-180WHEREAS,theEstesParkLocalMarketingDistricthasfiledwiththeTownClerktheEstesParkLocalMarketingBusinessandOperatingPlanfor2019alongwithitsproposedbudgetforthe2019calendaryear;andWHEREAS,pursuanttoSection29-25-110C.R.S.andtheapplicableprovisionoftheIntergovernmentalAgreementdatedAugust26,2008,betweentheTownofEstesParkandtheBoardofCountyCommissioners,LarimerCounty,theTownBoardshallapproveordisapprovetheOperatingPlanwithinthirty(30)daysafterreceiptofsaidPlan,theproposedbudgetandalladditionaldocumentationrequestedbytheTown;andWHEREAS,theTownBoardhasreviewedtheOperatingPlanandproposedbudgetandhasdeterminedthattheOperatingPlanwillprovideefficientandcost-effectivemarketingandpromotionservicesfortheEstesParkLocalMarketingDistrictServiceArea.NOW,THEREFORE,BEITRESOLVEDBYTHEBOARDOFTRUSTEESOFTHETOWNOFESTESPARK,COLORADO:BasedupontherecitalssetforthabovewhichareincorporatedhereinbyreferencetheEstesParkLocalMarketingDistrictBusinessandOperatingPlanfor2019asfiledwiththeTownClerkisherebyapproved.DATEDthis21dayofMO’JM-CQ,2018.ATTEST:-norSPCowçTOWNOFSPARKMayor 00ExecutiveSummary:VisitEstesPark2019OperatingPlanThisisanexecutivesummarytoaccompanythePowerPointpresentationforthe2019OperatingPlanpreviouslyapprovedbyboththeVisitEstesParkboardofdirectorsandtheLarimerCountycommissioners.ThisisanOrganizationPlanforuseofpublicdollarsforastatutorydistrict,theVisitEstesParkLocalMarketingDistrict.Itisahigh-levelviewofkeyobjectives,potentialstrategiesandmetricstomeasuresuccess.Itprovidesgeneraldirectionandaccountabilityfortheupcomingfiscalyear.Thisplanisrequiredtobecompletedandapprovedaccordingtostatutorydeadlines.VisitEstesPark’smissionistodrivetourismandyear-roundeconomicgrowththrougheffectiveandefficientdestinationmarketing.Andour2019OperatingPlanladdersuptothatmissionbyconsideringthisloftymarketinggoal:ToInspireandEnableSustainableAdventureinColorado’sOriginalPlayground.Let’sdiveintothat.Colorado’sOriginalPlaygroundisanewtaglinewe’vedevelopedtobetterenforcethatthebestofColoradoexistsinitspurestforminEstesParkandthatsinceourstate’searliestdays,Esteshasbeenapremieresourceofleisure,recreation,andadventure.SustainableAdventure:Wewanttobemindfulofthelongevityofthegoodlivingthatwepromote.Thisisn’tonlyaboutelectriccarchargingstationsandgreeninitiatives,thisisaboutyear-roundbusiness,theguestexperience,andthequalityoflifeforEsteslocals.Ineverythingwedo,wewanttomakesurethatwe’reladderinguptogoalsofsustainingyear-roundprofitabilityforourstakeholders,amoreeducatedguestpursuingadventuresthatarebestforthemandforthenaturalresources,allwhilestrivingtomaintaintheuniquecharacterofwhatitmeanstolivehere.InspireandEnable:We’darguethatVisitEstesParkhasdoneagreatjobofinspiringvisitationovertheyear,andit’simperativetocontinuetostokethatfire.Butweneedtodoabetterjobofdirectingthatinspirationbyenablingsavviervisitation.Whatthismeansonthegroundlevelismassagingsummermarketingtobelessabout“gethere”andmoreabout“howto”.Howtofinduncrowded,lesser-knownhikes.HowtodiscoveranewactivityordestinationotherthanRMNP.Howtoplanatriptimedforlesscrowdsorbetterdeals,andsoon.Andinthecontextofwinter,whichwe’llgettolater,themessageismoreinspirationheavybutstillwithplentyofskillsandlocalinsightsbuiltin.Thisapproachwasbuiltthroughanalyzationofmediatrends,theOutdoorIndustryAssociation,andtheColoradoTourismOfficethatsuggestsaligningwithamoreadventure-seeking,outdoor-loving,experience-drivenaudienceiswherereallongtermgrowthpotentiallies.TheoutdoorrecreationindustryisapowerfulforceintheoverallU.S.economy,withconsumersspending$887billionannuallyonoutdoorrecreation 00andcreating7.6millionAmericanjobs,andthetopreasonsfolksvisitEstesParkareoutdoorrelated.OBJECTIVES1.StrengthenVEP:Increasecommunityengagementandpartnertrust‘WecandomorewithinEstesParkforourcommunityandourstakeholders.ThisbeginswithleadershipandastrongstrategicplandevelopedwithinputfromVEPstaffandboard,electedofficials,andkeystakeholders.ConsultantSandyHallwillconveneandinterviewkeystakeholdersinthecommunitytoclarifyandagreeto3-5-yearstrategicobjectivesfortheVEPOrganization.ThestartingpointforthisconversationwillbethefiveobjectivesidentifiedinthisOrganizationPlan.PROPOSEDTIMING:October/November2018‘TheMarketingDirectorwillestablishaMarketingAdvisoryCommittee,whichwillincludemarketingexpertisewithinourcommunityandhospitalityindustry.Thiscommitteewillmeetregularlytoweighinonthemarketingplanandvariouscampaigns.PROPOSEDTIMING:January2019‘TheMarketingDirectorwilloutlineaseasonalmarketingplanwithmoredetailedstrategiesandkeyperformancegoals.PRPOSEDTIMING:January2019‘VEPwilldeliverresultsofyear-longvisitorandeconomicimpactstudies.‘VEPwillcreateabetterKeyPerformanceIndicatordashboardonitswebsitetotransparentlydeliverthemeasurableresultsofitsefforts.‘VEPwillcompleteitspermanentCEOsearch‘InadditiontomaintainingabalancedbudgetinaccordancewithColoradostatelawwhereexpensesdonotexceedexistingrevenuesandbeginningfundbalancesandreceivingacleanauditopinionfromanindependentCPAauditfirm,VEPwill,iftheboardchooses,initiateaforensicauditfortheyears2015-2017Howwe’llmeasuresuccess:Withthiscategoryit’seasy.Theygetdoneorthetheydon’t.2.GrowEstesPark’snationalandinternationalmindshare—andvisitation 00>VEPwantsEstesParkmentionedinthesamesentenceasDisneylandorJacksonHoleortheGrandCanyonwhenfamiliessitdowntodecidewheretotaketheirannualvacations(forthoseluckyenoughtohavesuchconversations).>VEPwillinvesttimeininternationalfamiliarization(FAM)andreceptivestours.Ourfocus(determinedincoordinationwiththeColoradoTourismOffice)areUK,Germany,Australia,France,China,andJapan.>lnvigoratenationaladeffortstogobeyondone-and-doneprintefforts.Keymarkets(determinedthroughGoogleAnalyticsandArrivalistData):Denver,KansasCity,Lincoln-Hastings-Kearny,Chicago,Austin,Houston,andDallas-Ft.Worth,alongwithemergingopportunitiesinmetroareasinSouthernCaliforniaandFlorida.Howwe’llmeasuresuccess:FAMexecution,Websiteandsocialmetrics,*Arrivalistdata*ArrivaIistYou’llhearusmentioningArdvalistthroughoutthisplan.Arrivalistisanewtoolweareusingthattracksauser’sThteractionswithdigitalcontent,sayourblogoravideoonFacebook,andthen“pixels”thatuser.Atrackablepixelthenfollowsthatuseracrosstheirdevices(laptopandmobilephone,forexample)andthenwhenthatuserarrivesinEstesPark,theypopuponourmap.Wecanknowwherethatvisitorisfrom,whatpieceofcontentoradvedisThgtheyengagedwith,howlongittookforthemto‘arrive,”andhowlongtheystayed.It’sapowerfultool(ffyes,alittlespooky),andthisisjustthetipoftheiceberg.Wecanalsosetpolygonswithinthemarketingdislricttodeterminewhomayhavesloppeddownlowntoshop(ifwehaveamarketinginitiativetopushdowntownshopping).Wecanalsotrackarrivalsatourcompetition,likeBreckenridge....WeareexcitedaboutArrivalistbecauseitenablesustocomecloserthaneveratdelermThingROl.Therewillbealearningcurve,andtherewillstillbegapsinwhatwecanmeasureaswegrowflilothis,butforalldigitalcampaignswewilleventuallybeabletoassessadollaramountper“arrival”basedonthecostofthecampaignandthematurationofthearrivaldata.Cool,right?3.Rebrandwinterasahavenforadventureandsolitudeseekers.Weaimtoerasethe‘there’snothingtodothere”sentimentwithacampaignthatpositionsEstesParkastheFrontRange’sultimatedestinationforcore,people-powered,adventure,justoutsidetheperfectlittlemountaintown.We’llfocusonsnowshoeing,backcountryskNng,iceclimbing,wildlife,andavalancheeducation.Now,I’mnotgoingtotellyouthatattractingskiersandclimberswillbeaboontotheeconomy(thoughitwon’thurt—askOurayandBozeman),butfromabrandingperspective,beinganadventurecapitalwilldelivertrafficandbusiness.>We’IlpursuecampaignsthattargetFrontRangeskiersandsnowboardersandpositionEstesastheultimateantidoteto1-70andcrowdedresortfatigue.We’llembraceourperceivedweaknesses(noresorts)asstrengths(nocrowds).Andthoughwewon’tsaythisoutright,thevibeofourmessagingwillhaveastronganti-Vail,anti-Aspensentiment.Wearesmalltown.Wearewelcoming.There’snopretense.Theadventuresyoucanhaveherearethatmuchmorerewardingbecauseyouhavetoworkabitforthem.Andwhetheraproorafirst-timer,we’vegotyourback. 00>We’lIhostawinteradventureFAMtourwithnationaloutdoorjournaliststoalignwithJanuary2019’sOutdoorRetailer/SIAtradeshowinDenver.Howwe’llmeasuresuccess:Increaseinoccupancyratesandlodgingtaxinwintermonths,FAMexecution,Websiteandsocialmetrics,Arrivalistdata,impactfulPRhits4.ElevatetheVisitEstesParkbrandanditsassociatedmediaassetstobethe#1sourceofEstesinspirationandadviceVEPhasawebsite,blog,newsletters,socialmediapresence,andaprintvisitorsguide,whicheffectivelymakesitapublishingcompany.Inanerawhere“contentisking,”weneedtoactlikeone.>WewillrelaunchourwebsiteinQ2withacleanlook,freshphotos,andbetterfunctionality.“Wewillcreateamorefairandamicablesystemforpaidlistingsonoursiteandmakesurethatthesedeliverauserexperienceonparwiththenation’sbiggestbookingsites.>Wewillexpandournewsletterpractice.Thismaysoundquaint,butnewslettersarereallyhavingamoment—andhavebeenforacoupleofyears.Socialmediaisourbiggestsourceoftrafficnexttoorganicsearch,butsocialmediasuccessisoftenatthewhimofanalgorithmchangeand,frankly,somuchnoise.Butpeoplestillchecktheiremailandcan“optin”fornewstheycareabout.Informationthatmatterstothembecauseitimprovestheirlives.Wewillincreasefrequencyforourmainconsumernewsletterandexplorelaunchingnewe-newsproductsforAdventurers,Foodies,BargainHunters,WildlifeEnthusiasts,Families,etc.>WewillrelaunchourOfficialVisitorsGuidewithanemphasisinspiration,qualityeditorialandphotography,spreadingoutvisitortraffic,andcreatinginnovativewaystopartnerwithstakeholdersinmeaningfulways.Howwe’llmeasuresuccess:Arrivalistdata,siteandsocialmetrics,OVGcirculation,sales,andviews.5.Developastrike-zoneapproachtoincreaseoccupancyintraditionallyslowertimes—apring,latefall,andmidweekThesetimes(alongwithwinter)areafewofourbiggestchallenges.Wewanttohelpourstakeholdershavenotjustviableyear-roundbusiness,butlucrativeyear-roundbusiness.Toworktowardthatgoal,wewill:>Targetemptynestersand“superboomers”whohaveahungerforexploration,experiencesinnature,who(ironicallymuchlikemillennials)wanttoexperiencerealdestinationsnotamanufacturedtourismproduct—andwho(unlikemanymillennials)havebothtimeanddiscretionaryfunds.Wewilldothis100%inthedigitalspace.Super 00boomersareamongthemostactiveonFacebookwhere,conveniently,wehaveeverytoolimaginabletotargetspecificdemographics.>Exploreopportunitiestoamplifyweddings,conferences,corporateretreats,andothergroupandreuniontravel.>TargetFrontRangeforrepeatandovernightvisits.Howwe’llmeasuresuccess:Arrivalistdata,Dailyoccupancyrates,CDOTmetricsHOWWE’LLDOTHIS1.MARKETINGSTRATEGYOVERVIEW:DigitalFirstPastmarketingplanshavebeenveryprintheavy.Thiscanbeapowerfulbrandingtool,butthehardtruthisthatthiscannotbetracked.Wewilltrendintoadigital-centricplanwithahyper-analyticapproachtoROltocommunicatetheultimateconcern:didourmarketingeffortsbringpeopletoEstesPark?Astouchedon,we’lluseArrivalisttocommunicatesuccesses(and,yes,evenfailures)ofdigitalcampaigns.ContentpartnershipsWe’lltargetmeaningful,nationalmediaoutletstocreatecustomeditorialtosupportkeymessaging.These“paid”opportunitieshavealongerlifespanandgreaterreachthananytraditionalprintproduct.Wecanpartnerandcontrolastorywithaneditoriallookandfeelthatexistsonabrand’ssite(sayLonelyPlanetorOutside).Weco-promotethestory—reachingabiggerandmorespecializedaudience—andhaveaprintadasacherryontop.ElevatetheVEPbrandAsstated,approachcontentandadvertisingcreationlikeapublisherandelevatestaffandfosterin-housetalenttoachievethis.DedicatemoreresourcestoVideo,creativeFrontRangeout-of-home,anduniqueuseofsocialplatformstopromotewinterandamoreeducationalapproachtosummermessaging.Weareexploringbillboardson1-70andevencreatinganew“exit”forEstesPark.2.BUDGETOVERVIEW:Inadditiontothehigh-levelbudgetsnapshotinthe2019OpPlanpresentation,let’sdiveintohowwe’reallocatingfundstoachievethesegoals.Incorne3000DistrictTaxFund18Budget19proposed$2,233,284.22$2,400,000.00 00Whenreviewingrevenuegrowthasitrelatestothe2%lodgingtaxwelookedatthelast5yearsofgrowthasitrelatestothelodgingtax.TheCEPBoardmadetherecommendationtobeconservativeonfuturegrowthaswearecomingofftwoverystrongyearswiththeRockyCentennialandtheTownCentennialin2016and2017respectively.Forthe2018budgetadropinrevenuewaspredictedbasedonthecentennialinformationandalongtrendofsteadygrowth.Theactualswehaveseenafter8monthsoftaxrevenuein2018pointstoanincreaseoverbudgetofjustover9%.Withthosetrendsinmindwerecommendusingtheaverageof2017actualsandthe2018budgetandprojectinga4.5%increaseoverthatnumber.Thisisaconservativeincreasethatacknowledgestheincreaseinlodgingtaxwehaveconsistentlyseenoverthepast5years.3400AdvertisingFees-Stakeholder18Budget19proposed$323,000.00$484,000.00Lineitem3400isthelineitemwherewerecordrevenuefromourwebsitelistingsales.TraditionallyVisitEstesParkhasusedathirdpartycompanytomanagethesesalesona50/50revenuesplit.Aswepreparedout2019planoneoftheprimarygoalswastoreducedependencyonagenciesandimprovethestakeholderexperience.Theincreaseofrevenueinthiscategoryinvolvesbringingallwebsitelistingsalesinhousewithoursalesteam.Therevenuefor2019is50%ofthe50%splitwiththefirmasallcontractsforthelistingsarefromJuly1-June30.In2020thiscategorywillincreaseagainasthatwillbethefirstfiscalyearwherealllistingrevenuewillbe100%usedfortheVisitEstesParkbudget.AsaresultofthisincreasedrevenueVEPplanstoincreasestaffing,notonlyfacilitatetheadditionalsales,billing,graphicdesignandcopywritingthatisrequiredtohandlethisinhousebutalsoallowVEPtolauncha“FreeStakeholderServices”thatwillincludeafreeprofessionalphotoportfolioandamarketingconsultantavailabletoallbusinessintheVEPservicearearegardlessofwhetherthebusinesspurchaseVEPservices.Expenses4500Advertising18Budget19proposed$1,582,265$1,300,000Lineitem4500-AdvertisingisallactivityrelatedtonotonlythemarketingofEstesParkbuttheproductionofthatcontentandthefeesofouragencypartners.The2018budgethada$525,000budgetdeficittoreducetheVEPreservesdowntothelevelsthatwereacceptedinboardpolicy.In2019theplanistonotspendasdeeplyinreserveswhileprovidinganincreasedlevelofserviceandROIforourstakeholders. 004510Advertising-Traditional(subcategoryof4500)18Budget19proposed$530,000.00$294,000.00Traditionaladvertisingisbestdescribedinournewplanas“untrackable”advertising.AsVEPstrivesformoretransparencyandtrackablemetricsthe2019budgetshowsa45%decreaseinspendingontraditionalsources.Thesesourcesincludenewspaper,magazine,television,billboardsandpopupevents—andasmuchasispossiblewillhaveatrackabledigitalcomponent.4520Advertising-Digital(subcategoryof4500)18Budget19proposed$694,696.72$699,500.00Digitaladvertisingisthecoreofthe2019advertisingstrategythatfocusesontrackablemetricsandmeasurablereturns.The2018budgetto2019budgetdoesnothavealargeincreaseindigitaladvertising;thechangecomesfromdigitalbeingthefocusratherthanasupplementtothetraditional.AlldigitalcampaignsarebeingtrackedtodeterminetheirqualityusingtheArrivalisttool.Ratherthanpurchasinglargecampaignsexclusivelythroughagencies,VEPintendstohaveanin-housemediacoordinatortodesigncampaignsandmaintainfullcontrolandtrackingthroughout.ThiswillallowVEPtotrack,onanear-dailybasis,thesuccessofeachcampaignandeithershiftthefocusordiscontinuecampaignsthatarenotproducingtheresultsexpected.4560-4599MultiplelineitemsrelatedtoOutsideAgencies(subcategoriesof4500)18Budget19proposed$252,568.00$206,500.00InlinewiththeVEPshiftinfocustocultivatingin-housetalentandlessrelianceonoutsideagencies,thesecollectivelineitemshavebeenreducedbyroughly22%.Thisisthefirststepinthereductiononcreativeagenciesthat,whiledoingexcellentwork,maynothavetheauthenticEstesParkfeelthatcanbeobtainedbyanin-housecreativestaff.Thereductionintheselineitemshasbeenshiftedtostaffingtocompensatefortheadditionalstaffperson.Itisworthnotingthatdependingonthesuccessofthein-housemodelofcreativeandadvertisingplacementthattheselineitemswillcontinuetobereducedinsubsequentyears.4700Research-Alsoincludes2018item9200-Data&AnalyticsPlatform18Budget19proposed$184,150.00$120,000.00For2019,thislineitemisthecombinationoftwo2018lineitems:4700-Research&9200-Data&AnalyticsPlatform.Thislineitemnowrepresentsvisitorstudiesaswellas 00theArrivalisttool.Thecombinedreductionreflectsaneliminationofredundanttrackingtoolsusedinthepast.Ratherthanusingmultipletoolsthatwerenotespeciallyeffective,VEPhasmigratedtofullyembracingtheArrivalistplatformfortrackingROlandsuccessofadvertisingcampaigns.5500InternationalPromotion18Budget19proposed$66,000.00$35,000.00InternationalpromotionwasbecomingalargergoaloftheVEPorganizationinrecentyears.Whileweacknowledgethatinternationaltravelisagrowingsegmentthatwemustalwaysdedicateresourcestooitisfarmoreexpensivetoreceiveoneguestinternationallythanonedomestically.WithadigitalfocusandthenewtrackingtoolsVEPwillfinallybeabletodeterminethesuccessofinternationalpromotionandmakebetter,moreefficientdeterminationsofhowmanyresourcestodedicatetothisinfutureyears.6000Audit18Budget19proposed$5,500.00$52,000.00ThechangetotheauditlineitemreflectsthenewannualcostsofVEPhavingitsownindependentauditapartfromtheTownofEstesPark.Thisalsoincludes$40,000foraforensicauditrequestedbytheVisitEstesParkBoardofDirectors.6600Personnel18Budget19proposed$638,115.41$945,000.00ThelargeincreaseinstaffingisdirectlyrelatedtotwomajorproposedchangesinthewayVisitEstesParkoperates:1.Areductioninrelianceonoutsideagencies.Thisincludesmediabuying,creative,socialmediaandblogcontent.Thatfocusisshiftedfromagencyexpensetoafull-timestaffMediaCoordinator.2.Ashiftfromusinganagencyforwebsitelistingsales.Theadditionalrevenuefor2019isprojectedtobe$161,000and$323,000insubsequentyears(seelineitem3400foramoredetaileddescription)Theseadditionalfundsfrombringingthewebsitesalesin-housewillsupportnewstakeholderservicesandcontinueourthemeofprovidingmorelocaljobsandcultivatingin-housecreativetalent.Thenewpositionscreatedfromthisrevenueinclude:StaffPhotographer,MarketingAssistant,Webmaster/Copywriter 008100Education&Conferences18Budget19proposed$43,131.00$30000.00Education&Conferenceshasseena30%reductioninthe2019proposedbudget.Whenthisisbrokendownthereisadrasticdecreaseinconferenceattendancebyafewtoprovideanincreaseineducationalopportunitiesformany.AfterreviewingallconferencesattendedbyVEPstaffinthepastitwasdeterminedthatamajorityofthemwerenotproducingareturnrelativetotheircost.Withthatinmindconferenceattendancewassignificantlycutandafocusaddedtojobspecificeducation.8650PRFirm18Budget19proposed$95,000.00$60,000.00TurnerPRisthefirmthathasbeenwithVisitEstesParkforanumberofyears.Inthattimetheyhavecontinuallyproducedanexcellentreturn.However,nowthatthePRCoordinatorpositionwasfilledin2018itistimetoshiftsomedutiesawayfromthefirmandbringappropriateworkbackinhouse.ItisexpectedthatthiswillcontinuetobereducedinsubsequentyearsasourPRCoordinatorlearnsmoreoftheindustry. 00