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Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
Branding the Peace Business Plan and Marketing Strategy
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Branding the Peace Business Plan and Marketing Strategy

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  • 1. Branding the Peace Business Plan and Marketing Strategy Prepared for by Leslie Lax Strategic Management Consulting August 2002 Leslie Lax Strategic Management Consulting
  • 2. Branding the Peace: Business Plan and Marketing Strategy Acknowledgement: This report builds on work already developed on behalf of the Kiwanis Enterprise Centre. I would like to acknowledge the contribution of Mac Taylor, Doris Brocke, Jerry Goodis and many others who, over the past three years, have contributed to the development of the Peace Country brand concept. Leslie Lax Strategic Management Consulting
  • 3. Branding the Peace: Business Plan and Marketing Strategy Table of Contents: EXECUTIVE SUMMARY ...............................................................................................I INTRODUCTION............................................................................................................. 1 THE PROJECT .................................................................................................................... 1 PRODUCT BRANDING ....................................................................................................... 1 REGIONAL BRANDING ...................................................................................................... 2 EXAMPLES OF REGIONAL BRANDING ............................................................................... 2 Select! Sonoma County ............................................................................................... 2 Brand WA.................................................................................................................... 3 Fresh from the Island.................................................................................................. 4 PEACE COUNTRY OVERVIEW .................................................................................. 5 MAP OF THE PEACE COUNTRY ......................................................................................... 6 KEY INDUSTRY OVERVIEW ...................................................................................... 8 AGRICULTURE: ................................................................................................................ 8 TOURISM ........................................................................................................................ 10 OBJECTIVES OF “BRANDING THE PEACE”........................................................ 11 SUPPORT SUSTAINABLE ECONOMIC DEVELOPMENT IN THE PEACE COUNTRY................. 11 DIFFERENTIATE PEACE COUNTRY PRODUCTS AND SERVICES. ........................................ 12 BRAND MANAGEMENT ............................................................................................. 13 PEACE BRAND ASSOCIATION ORGANIZATIONAL STRUCTURE ........................................ 14 Membership............................................................................................................... 14 Board of Directors .................................................................................................... 14 Advisory Committee .................................................................................................. 15 Industry Working Groups ......................................................................................... 15 Administrative Assistance ......................................................................................... 15 Brand Manager......................................................................................................... 16 Marketing Specialist ................................................................................................. 16 Trade Specialist ........................................................................................................ 17 Contracted Specialist Services.................................................................................. 17 PRELIMINARY MARKETING STRATEGY............................................................ 17 IMPLEMENTATION PLAN. ....................................................................................... 18 FINANCIALS.................................................................................................................. 20 FIVE YEAR EXPENDITURE FORECAST ............................................................................ 20 MONTHLY EXPENDITURES FORECAST FOR YEAR 1........................................................ 21 INCOME PROJECTIONS: ................................................................................................... 22 Leslie Lax Strategic Management Consulting Table of Contents
  • 4. Branding the Peace: Business Plan and Marketing Strategy Executive Summary Branding the Peace is an innovative project dedicated to developing and promoting a strategy that encourages a marketing advantage for the Alberta and British Columbia Peace Country of Canada. Under the leadership of the Kiwanis Enterprise Centre and other individual champions, the concept has gained significant community support. Three and a half years of concerted effort have set the stage for project implementation. This business plan and marketing strategy provides the framework for developing the organization, designing the brand, and marketing the brand to producers, retailers and consumers. Branding is a business strategy that has the ultimate objective of building goodwill for, and supports the marketing of, products and services. A brand can be thought of as a collection of intangible, consumer-perceived product and organizational attributes and characteristics – it is a product’s personality. The image associated with a brand is a product’s primary source of competitive market advantage. Regional Branding is essentially product branding applied to a region, rather than to a specific product. The branding of a region is a holistic concept that could include many aspects of commerce and culture. Many regions throughout the world have successfully developed and marketed regional brands. The branding agency typically administers the licensing of the brand, sets quality and other standards necessary for brand use and charges a fee for the use of the brand. The Peace Country is a vast region of mountains, plains and rivers straddling the British Columbia – Alberta border. There is no clear geographic definition of the Peace Country. The Peace region means different things to different people, depending on where they are located within the larger area. The definition used in this document is based on Statistics Canada census divisions (CD) and includes CD55, in British Columbia and CDs 17, 18 and 19 in Alberta. A map of this area is presented on page 6. The Peace Country encompasses almost 365,000 km2 and is home to more than 213,000 people. The Peace Country is reasonably well diversified from an economic standpoint. Major industries in the region include Agriculture, Tourism, Oil and Gas, Forestry, Manufacturing, Retail and Wholesale, Business Services and Construction. Unemployment rates are generally lower than in the rest of both Alberta and British Columbia and labour force participation tends to be high (between 70 and 80%). Regional branding strategies usually target a wide range of products and services produced and supplied by and in the region. This plan focuses on two industries that have been identified as having the highest potential for quick positive results: the agri- food and tourism industries. Agriculture is one industry in the region that not only generates a significant contribution to the region’s income, but also provides a measure of economic stability. There are approximately 8,800 farms in the Peace Country, generating farm incomes of more than $745 million per year through the production and sale of crops (alfalfa and tame hay, Leslie Lax Strategic Management Consulting Executive Summary: I
  • 5. Branding the Peace: Business Plan and Marketing Strategy wheat, canola, barley, oats, forage crops and more), and livestock (cattle, pigs, sheep, horses, bison and other more exotic animals). There is also a value added sector producing food products such as jams, jellies, specialty meats and herbs and spices. Tourism is another industry which is found throughout the region and which contributes to the region’s economy. There are hundreds of tourism operators including hotels, motels, RV parks, adventure tour operators, guide outfitters, lodges, etc. In 1999, tourism in the region generated more than $66 million in room revenues alone. The tourism sector is particularly suited to a regional branding initiative. Branding the Peace will build a strong, consistent domestic and international profile for the British Columbia and Alberta Peace region in order to leverage the Peace Country’s values and assets to create a competitive edge in the market place. The Peace Country brand will create and support sustainable economic development in the British Columbia and Alberta Peace Country as well as contribute to the strength of the Canadian economy through promotion of the Peace Region's unique points of difference. Ownership and control of the brand will be retained by a not-for-profit organization, the Peace Country Brand Association. The organization will develop over time to meet the needs of members. The Peace Country Brand Association will manage the brand and will be responsible for generating and maintaining the brand culture and business attitude. Membership is, of course, the key to a successful organization. Members will be drawn from individuals, businesses, industry associations, government and First Nations communities. The Peace Country Brand Association will be governed by a Board of Directors and run by a staff of three. The Board will be assisted by an Advisory Committee comprised of association members. The Brand Manager will be the association’s CEO and will oversee the work of the Marketing Specialist and the Trade Specialist. Other specialised services will be contracted-out as needed, including information technology, advertising and production extension services. Administrative services will be provided through the Kiwanis Enterprise Centre. Industry Working Groups will assist the Brand Manager to define standards and identify marketing issues for specific industry groups. The organization chart for the Peace Country Brand Association is presented on page 14. A comprehensive marketing strategy will be developed once a Marketing Specialist has been recruited. This document presents a strategy that would guide the development and implementation of the marketing plan and includes: Defining the scope of the Peace Country brand (including producers and markets) Designing the logotype Marketing the brand to producers, service providers and local governments Marketing the brand to retailers – initially locally and then more broadly Effectively using information technology Collaborating with other Peace Country initiatives to leverage marketing effectiveness. Leslie Lax Strategic Management Consulting Executive Summary: II
  • 6. Branding the Peace: Business Plan and Marketing Strategy The plan will be implemented over a two period during which the organization will be established, staff recruited and marketing activities undertaken. The first four months will see the establishment of the Association and hiring of the Brand Manager. The plan calls for a Marketing Specialist to be hired after six months of start-up, and the Trade Specialist to be hired twelve months after start-up. Income generation, aside from membership fees, is expected to begin within a year after start-up. Responsibility for the development and implementation of fee for service services will rest with Association staff. A Gantt chart outlining key activities and timelines is presented on page 19. The Peace Country Brand Association will require external funding for initial start-up and project development. It is expected that the Association will become fully financially self-supporting after five years of operation. Financial details are presented in the main body of the plan. Leslie Lax Strategic Management Consulting Executive Summary: III
  • 7. Branding the Peace: Business Plan and Marketing Strategy Introduction The project Branding the Peace is an innovative project dedicated to developing and promoting a strategy that encourages a marketing advantage for the Alberta and British Columbia Peace Country of Canada. The Kiwanis Enterprise Centre (Dawson Creek) has formed a strong alliance comprised of producers, service providers, funding agencies, consultants and other persons in the Peace Region who are working together to create a Peace Country brand. A great deal of work has been done so far in developing project awareness, building partnerships and preparing the way for a Peace Country brand. Starting in January 1999, the Enterprise Centre led a process that included numerous stakeholder and focus group meetings, building partnerships, conducting research and hosting two regional conferences. There is significant community backing for the project throughout the Peace region and supporters include: Alberta Agriculture, Food and Rural Development Alberta Economic Development BC Ministry of Agriculture Food and Fisheries City of Dawson Creek; Community Futures Corporation of Peace Liard Dawson Creek and District Chamber of Commerce North Peace Economic Development Society Northern Alberta Development Council Northern Lights College Peace Region Economic Development Alliance Peace River Agriculture Development Fund Peace River Agriculture Strategic Planning Society Prairie Farm Rehabilitation Administration Western Economic Diversification Canada Three and a half years of concerted effort have set the stage for project implementation. This business plan and marketing strategy provides the framework for developing the organization, designing the brand, and marketing the brand to producers, retailers and consumers. Product Branding Branding is a business strategy that has the ultimate objective of building goodwill for, and supports the marketing of, products and services. A brand can be thought of as a collection of intangible, consumer-perceived product and organizational attributes and characteristics – it is a product’s personality. The image associated with a brand is a product’s primary source of competitive market advantage. Branding is one of the most important factors influencing a product’s success or failure in today’s market. A brand offers product differentiation, conveys value, builds pride and Leslie Lax Strategic Management Consulting Page 1 of 22
  • 8. Branding the Peace: Business Plan and Marketing Strategy establishes brand loyalty. Product differentiation adds value, identifying the product as different from other products in the market. Branded products tend to be viewed by consumers as more reliable and a better value than non-branded products. Branding often carries a price premium, since consumers are confident in the quality of the products and do not risk disappointment in getting stuck with faulty or lower quality products. Regional Branding Regional Branding is essentially product branding applied to a region, rather than to a specific product. The branding of a region is a holistic concept that could include many aspects of commerce and culture. Regional branding is an agreed set of measures, such as logos or design styles, used to promote a consistent image of the region. When applied to tourism, for example, regional branding encourages rural communities that used to compete with one another to work together to create a unified theme to attract even more visitors. This increased number of visitors stays longer, contributing more to the economic vitality of the community. Regional branding offers a marketing approach that is able to benefit from economies of scale and that provides a better return to small-scale producers than individual marketing activities. Brand marketing activities should be complimentary to individual product and service marketing approaches and used to support the strength of the product or service. Regional branding is increasingly important in assisting regions to market their products, capture value added and build supply chains to access regional, national and international markets. Examples of Regional Branding Select! Sonoma County The purpose of Select Sonoma County is to “enhance opportunities for Sonoma County's agricultural sector, to improve its economic well- being and to motivate consumers to purchase Sonoma County agricultural products.” Select Sonoma County is a non-profit agricultural marketing organization that develops promotions, education programs and marketing opportunities for Sonoma County's agricultural producers. It holds the license for the trademarked "Sonoma Grown™" and "Sonoma Made™" logos. Use of the logos identifies the products as originating in a region that is rich in quality, diversity and numbers of wineries, farms, food purveyors and specialty nurseries. The context for the initiative is based on the premise that farmers are caught in the double bind of needing to supply cheap food in order to remain competitive while at the same time needing to protect and enhance resources such as soil, water, and ecological Leslie Lax Strategic Management Consulting Page 2 of 22
  • 9. Branding the Peace: Business Plan and Marketing Strategy diversity in order to keep the land forever productive. This challenge requires significant knowledge, time and investment. Select Sonoma County provides farmers, ranchers, and artisan producers with the assistance they need to increase the value and marketability of their products. Certification is based on reasonably simple regional qualifiers. Products are eligible to be Certified Sonoma Grown™ if “at least 70% of the ingredients by both weight and volume (other than added water or sweetener) in the product were grown in Sonoma County, California. In the case of wine or olive oil, at least 75% of the fruit must be grown in Sonoma County. In the case of meat, 70% of the animal's life is in Sonoma County.” To be Certified Sonoma Made™, “the majority of the manufacturing and /or processing of the product (exclusive of bottling, packaging, or labelling, or in the case of wine and olive oil, blending) must take place in Sonoma, California.” Membership (with certification) offers inclusion in an annual products guide, point of sale cards, referrals to restaurants, retailers and consumers and many other marketing services. There is an annual fee for membership based on industry sector and firm size. Brand WA In 1996 the Government of Western Australia identified the need to develop a strong and consistent brand identity for the State that would encapsulate the State's unique attributes and personality. These were to be desirable and based on truth and reality. The vision for the brand, now known as Brand WA, is to produce a clear identity encompassing identified values. The brand may be used for all Western Australian marketing and communication strategies, including all Western Australian industry sectors and the community at large. Brand WA is a cooperative marketing strategy designed to differentiate Western Australia in the global market place. Brand WA has been designed to present a consistent image, yet it is flexible enough to adapt to the diverse needs of a large State. Throughout Western Australia, 10 primary regions (tourism and development) are marketing their own destinations, exports, products and services using the primary elements of Brand WA. Brand users are able to develop their own logos within a well-defined set of guidelines established by Brand WA. Examples of the adaptation of the brand logo follow: Leslie Lax Strategic Management Consulting Page 3 of 22
  • 10. Branding the Peace: Business Plan and Marketing Strategy Brand WA is a large organization, sponsored by the government of Western Australia with significant investment over the past five years, and with further development through partnerships continuing to maximise this investment. There is an annual fee for a Brand WA Licence Agreement, which allows unlimited use of the Brand WA trademark and icons on any form of promotional or advertising material, for the period of the licence. Fresh from the Island The Island Farmers Alliance (IFA) is an association of farmers on Vancouver Island and surrounding islands. Their mission is to ensure the sustainability and growth of Island agriculture by promoting local foods and farmers. The IFA's rooster logo guarantees Island consumers of high-quality, nutritious foods, grown and produced on the Island. The "Fresh from the Island" mark assures consumers that their grocery dollars are helping to create sustainable agriculture in their local community. It also gives consumers the confidence of knowing where their food comes from. Consumers know that the dollars spent on transportation, advertising and packaging are being spent in their own communities, where they will help to create sustainable agriculture. The IFA logo assures consumers that products are grown and produced according to a code of ethics, agreed to by all members of the IFA. This code commits farmers to: Observe the highest standards of excellence, and produce and maintain a product of superior quality and freshness; Rigorously manage production to assure consumer health and safety; Conduct their business with honesty and integrity; Accept responsibility for stewardship of the land and water; Provide for high standards of animal welfare; Help create an awareness of the importance of agriculture and "Fresh from the Island" products; and Contribute to the advancement of Island agriculture. For eligibility, products must be “Agricultural products, food, fish, or beverages made with raw materials that are 100% grown, caught or raised on Vancouver Island or the Gulf Islands” or “Products whose raw materials are sourced in part from outside Vancouver Island or the Gulf Islands and are not available from Vancouver Island or Gulf Islands but are value- added on Vancouver Island and the Gulf Islands with 60% or more of the product content being raised or grown on Vancouver Island or the Gulf Islands; and whose last substantial production operation is performed on Vancouver Island or the Gulf Islands resulting in a final product.” There is an annual membership fee that conveys full voting privileges to farmers as well as opportunity to use the IFA logo, free issues of the “FarmSpeak” newsletter and the Leslie Lax Strategic Management Consulting Page 4 of 22
  • 11. Branding the Peace: Business Plan and Marketing Strategy “Rooster Booster” consumer newsletter, and exposure through the IFA marketing campaign. The IFA also offers opportunity for associate membership at a lower rate, for non- farming individuals or organizations that want to support the initiative. There is also an opportunity for consumers to support the initiative through a “Rooster Booster” membership. Peace Country Overview The Peace Country is a vast region of mountains, plains and rivers straddling the British Columbia – Alberta border. There is no clear geographic definition of the Peace Country. The Peace region means different things to different people, depending on where they are located within the larger area. The Peace Country could be defined using the Peace River catchment area. “The Peace bioregion is most clearly defined by the watershed of the Peace River, which spans the northern reaches of two Canadian provinces, British Columbia and Alberta. Extending from the Omineca Mountains in the west to Lake Athabaska in the east, from Wood Buffalo National Park in the north to Mt. Robson in the south, the Peace River watershed drains 30 million hectares, an area almost the size of California. Spawned by melting glaciers high in the Rocky Mountains, then formed by the convergence of the Finlay and Parsnip Rivers, the waters of the Peace first linger in Williston Lake, the reservoir of the WAC Bennett dam. Running swiftly to eastern lowlands, the Peace descends through foothills, and then winds its way across the prairies of northeast British Columbia and northern Alberta. Over 1,900 kilometres from its western source, the mighty Peace River joins the Slave River at Lake Athabaska, forming the Peace-Athabasca Delta, one of the largest inland freshwater deltas in the world. From trickling glaciers’ melt to broad lowland, the waters of the Peace have descended 3,600 meters by long journey’s end. Merged with the Slave River, the Peace waters travel north to Great Slave Lake and the Mackenzie River, flowing at last into the Arctic Ocean.” (Don Petitt, The Peace). A more pragmatic definition is to use Statistics Canada census boundaries that help provide statistical information about the region. A definition of this nature will include Census Division #55 in British Columbia and #s 17, 18 and 19 in Alberta as shown in the following map. While this too, may not represent the Peace Country as understood by everyone in the region, it does provide a starting point for developing regional benchmarks and creating a regional identity. Leslie Lax Strategic Management Consulting Page 5 of 22
  • 12. Branding the Peace: Business Plan and Marketing Strategy Map of the Peace Country Source: Maps adapted from Statistics Canada As defined by the four census divisions, the Peace Country encompasses almost 365,000 square kilometres (≈141,000 square miles) and is home to more than 213,000 people. The following table presents a list of communities in the Peace Country by type of local government with population estimates from the 2001 Census. Leslie Lax Strategic Management Consulting Page 6 of 22
  • 13. Branding the Peace: Business Plan and Marketing Strategy Community Population Estimates (2001 Census) Cities Kinuso 231 Grande Prairie 36,983 Nampa 372 Fort St. John 16,034 Pouce Coupe 833 Dawson Creek 10,754 Rycroft 609 Districts, Counties & Municipal Districts1 Other Settlements District of Chetwynd 2,591 Desmarais 112 District of Hudson’s Hope 1,039 2 Indian Reserves District of Taylor 1,143 Beaver Ranch 18 District of Tumbler Ridge 1,851 Blueberry River 136 Birch Hills County 1,644 Boyer 172 Grande Prairie County 15,638 Bushe River 318 Saddle Hills County 2,566 Child Lake 156 M.D. of Big Lakes 5,845 Clear Hills 15 M.D. of Clear Hills 2,772 Doig River 139 M.D. of East Peace 2,123 Drift Pile River 655 M.D. of Fairview 1,806 Duncan's 121 M.D. of Greenview 5,439 East Moberly Lake 330 M.D. of Lesser Slave River 2,825 Fort Ware 215 M.D. of Mackenzie 8,829 Fox Lake 1,254 M.D. of Northern Lights 4,217 M.D. of Opportunity 3,436 Halfway River 137 M.D. of Peace 1,496 Hay Lake 915 M.D. of Smoky River 2,379 Horse Lakes 324 M.D. of Spirit River 824 Jean Baptiste Gambler 169 John d'Or Prairie 851 Towns Kapawe'no First Nation Lands 67 Beaverlodge 2,110 Sawridge 69 Fairview 3,150 Sturgeon Lake 886 Falher 1,109 Sucker Creek 549 Fox Creek 2,337 Swan River 307 Grande Cache 3,828 Tall Cree 356 Grimshaw 2,435 Upper Hay River 347 High Level 3,444 Utikoomak Lake 933 High Prairie 2,737 Wabasca 1,787 Manning 1,293 West Moberly Lake 52 McLennan 804 Woodland Cree 514 Peace River 6,240 Rainbow Lake 976 Regional Districts Sexsmith 1,653 Peace River Slave Lake 6,600 Regional District3 19,826 Spirit River 1,100 Swan Hills 1,807 Valleyview 1,856 Wembley 1,497 Villages 2 Berwyn 546 For some of the names listed, there are more Donnelly 377 than one First Nations’ community with the Girouxville 306 same name. In these instances, the name is listed Hines Creek 437 only once with an aggregated population Hythe 582 estimate. 3 The population estimate for the Peace River Regional District includes Areas B, C, D and E 1 Numbers for Municipal Districts and Counties and excludes any municipalities with the include Metis Settlements and unincorporated regional district. These municipalities are listed communities. elsewhere in the table. Leslie Lax Strategic Management Consulting Page 7 of 22
  • 14. Branding the Peace: Business Plan and Marketing Strategy The Peace Country is reasonably well diversified from an economic standpoint. Major industries in the region include Agriculture, Tourism, Oil and Gas, Forestry, Manufacturing, Retail and Wholesale, Business Services and Construction. Unemployment rates are generally lower than in the rest of both Alberta and British Columbia and labour force participation tends to be high (between 70 and 80%). Key Industry Overview Two key industries that will be initially targeted by the Peace Country brand are tourism and the agri-food industry. Experience in other jurisdictions indicates that regional branding is most effective in these two markets. The following sections provide an outline of the agriculture and tourism sectors in the Peace Country. Agriculture: Peace Country Agriculture Profile (2001) Number of Farms 8,884 Gross Farm receipts (year 2000) $746,314,106 Total Area of Farms (acres) 9,258,461 Average Farm Size (acres) 1,042 Median Farm Size (acres) 400 – 559 Farms 1,120 acres & over 2,449 Farms producing Certified Organic 64 products Crops (acres) Alfalfa & Tame Hay 1,556,835 Wheat 1,039,886 Canola 737,887 Barley 437,904 Forage Seed for Seed 430,215 Oats 282,954 Field Peas 103,404 Livestock (number of head) Cattle & Calves 532,892 Beef Cows 229,350 Dairy Cows 2,055 Pigs 51,130 Sheep & Lambs 40,108 Bison 29,836 Horses & Ponies 26,609 Bees (colonies) 56,251 Leslie Lax Strategic Management Consulting Page 8 of 22
  • 15. Branding the Peace: Business Plan and Marketing Strategy The Peace Country region occupies a huge area in northern Alberta and British Columbia. The entire Peace Country region lies farther north than any agricultural land in Saskatchewan or Manitoba. Over 9.2 million acres of the Peace Country is farmland. Wheat, canola, barley, and alfalfa and tame hay are the main crops produced in this region. Livestock, particularly cattle, comprise an important part of the agricultural industry. The average farm size is just over 1,000 acres and the median farm size is about half of that. There are approximately 8,800 farms in the Peace Country, with receipts of more than $746 million. Peace farms enjoy the dual advantages of low land prices and low cost of production. The area’s proximity to West Coast grain terminals is also a significant cost advantage. The Peace is located at approximately 55º latitude. This geographic location gives rise to the phenomenon known as Northern Vigour – a condition whereby crops are more productive, have more vigour and potency than crops grown in the more southern climates such as the United States. Seed potatoes are a major export to the United States due to this condition. Many crops have yet to be promoted and marketed for this factor and herbs and medicinal plants present a budding opportunity. The Peace Country offers a pristine environment surrounded by a protective barrier of mountains and trees. This provides the opportunity for the development of a regulated area allowing the market of appellation products similar to the Bordeaux wines and the VQA designation for wines from the Niagara Peninsula and the Okanagan valley. Crops and forages The Peace is a prime area for producing exceptional quality grains, grass seeds and forage. As one of Canada’s most northern farming regions, the Peace Country benefits from long daylight hours during the summer, allowing for the production of crops which require a high number of growing degree days. The long days are also a boon to the region’s 200 beekeepers, producing as much as three times more honey per hive than in southern regions. Generally favourable rainfall conditions make this region less prone to prolonged droughts often seen elsewhere on the prairies, while the snappy winters greatly reduce insect populations, thus limiting the need for pesticides. The Peace River region is a dominant world producer of forage seeds. Approximately 50,000 ha of creeping red fescue are harvested annually. Other forage seed crops that are grown include tall fescue, smooth and meadow brome, timothy, and red clover. There is a well-developed infrastructure for the forage seed industry in the Peace River region, with about a dozen forage seed companies operating in the area. Livestock Of all the agricultural production in the Peace, livestock operations show the greatest potential. The abundance of space and quality feed has recently boosted both the hog and the traditional beef cattle industries. Livestock production also includes dairy cattle, sheep, goats, and horses, with a growing diversification into game farming of bison, elk and reindeer, and exotic livestock including llama, alpaca, fox, ostrich, emu, and wild Leslie Lax Strategic Management Consulting Page 9 of 22
  • 16. Branding the Peace: Business Plan and Marketing Strategy boar. Areas of growth and diversification include livestock finishing, dairy and eggs, and expanded game farming. Rising land values in southern and central Alberta have shifted some livestock expansion focus northward, and there has been expansion in the beef cattle sector in the Peace River region, although numbers still remain comparatively small. There has also been expansion in the hog sector, with farrow, feeder and finishing operations being expanded or established throughout the region. Organic Production The pristine environment in the Peace makes it very suitable for taking advantage of North America’s growing interest in organic crops. The 2001 Census of Agriculture reports that 64 farms in the Peace Country were producing certified organic produce. The region’s certifying body, the Peace Region Organic Producers Association (PROPA), notes that a growing number of farms across the Peace bioregion are now producing certified organic beef, bison, poultry, hogs, eggs, wheat, barley, herbs, hay, oilseeds, peas, as well as table and seed potatoes. Tourism Tourism is a significant economic contributor to the Peace Country and the contribution of tourism could increase with skilful marketing of a Peace Country brand that accommodates a regional destination. The Peace region offers the lure of remote regions, pristine wilderness and spectacular scenery. The rolling landscape of the Peace River Valley and the breadth of the Alberta plains provide a striking contrast to the Rocky Mountains. Activities such as white-water rafting, hiking and fishing make the region an attractive destination for tourists. In addition to existing operators, there are development opportunities in agri-tourism, aboriginal tourism, backcountry tourism, and culture and heritage tourism. Regional information on tourism for the Peace Country is not readily available as the region includes areas of both Alberta and British Columbia. The provinces publish regional tourism data and the different indicators do not allow for simple benchmarking and comparison. Nevertheless, data for each provincial region of the Peace Country is presented to provide an indicative picture of tourism in the region. In 1999, 1.5 million person visits (including day trips) in Northern Alberta4, generating $242.4 million in consumer spending. Same day trips (729,000 person visits) accounted for $79.7 million, while overnight trips (801,000 person visits) accounted for $162.7 million. The average length of stay for overnight visits was 3 nights and the average amount spent per party per night was $107.63. 4 The Northern Alberta Tourism region includes the Wood Buffalo Regional Municipality and is larger than the region encompassed by the Peace Country. However, the data are indicative of tourism activity in the area. Leslie Lax Strategic Management Consulting Page 10 of 22
  • 17. Branding the Peace: Business Plan and Marketing Strategy Room revenues in the Northeast region of BC (including the Peace River Regional District and the Northern Rockies Regional District) amounted to $24.2 million in 1999. Dawson Creek and Fort St. John account for over 50% of room revenues in the region. Hotels account for approximately half of the room revenues in the BC northeast. The Peace Country Brand will offer alternatives to southern tourist destinations through, for example, the Hello North Initiative. Branding will capitalize on the northern experience including: Peace & Quiet; Pristine Wilderness; Northern Hardiness; Northern Hospitality; and the region’s Pioneering Spirit. The Brand will also promote regional arts and culture including Aboriginal arts and culture. Objectives of “Branding the Peace” The Peace Country brand will build a strong, consistent domestic and international profile for the British Columbia and Alberta Peace region in order to leverage the Peace Country’s values and assets to create a competitive edge in the market place. The brand will be used to develop a more direct producer to consumer chain in order to gain efficiencies and increase revenues. The brand will create and support sustainable economic development in the British Columbia and Alberta Peace Country as well as contribute to the strength of the Canadian economy through promotion of the Peace Region's unique points of difference. Support sustainable economic development in the Peace Country. The brand will help to foster sustainable economic development through: Encouraging local producers to practice environmentally sound production practices; Enhancing marketing opportunities and increase regional employment and revenue; and Attracting and retaining investment in the region. Producers will be encouraged to practice environmentally sound production practices and certify with ISO14000 processes if feasible. However, certification will not be a condition of Peace Country brand licensing. Similarly, organic producers will be encouraged to certify through the Peace Region Organic Producers Association, but this will not be a requirement for brand use. The Peace Country brand will assist producers in broadening and deepening their market base. Improved markets and prices will increase income and may lead to increased employment. As the region strengthens economically, additional investment will be attracted to the Peace Country. Leslie Lax Strategic Management Consulting Page 11 of 22
  • 18. Branding the Peace: Business Plan and Marketing Strategy Differentiate Peace Country products and services. The brand will highlight the Peace Country’s points of difference including the unique geographic location, product quality and regional attributes. Product quality and safety. Food handlers will be encouraged to certify through the FoodSafe programs (Level 1 and Level 2) and Hazard Analysis Critical Control Point (HACCP) system to confirm quality standards. All brand users will be encouraged to highlight quality control systems and certification in their marketing materials. In addition, all brand users must meet certain certification requirements prior to securing a licence to use the brand. The Peace Country Brand The long-term goal of this project is to include as many products / services as possible under the brand umbrella, while ensuring that they meet eligibility criteria as defined by the Peace Country Brand Association. However, in the short term, it would be wise to focus on a few key industries that offer the most likelihood of success. The agri-food and tourism industries have been identified as the most likely candidates for initial focus and brand identification. The Peace Country image will be a distinct image that promotes and benefits trade and tourism in the region. The Peace Country brand will generate a familiar and widespread definition and understanding of what the Peace Country stands for. The Peace Country image will be designed deliberately, visually and with clarity and consistency. It will be instantly and universally recognizable as the Peace Country brand. This will enable the region to strengthen its position in the marketplace by raising the profile of the Peace Country as a trading partner, preferred business location and favoured tourism destination. The Peace Country brand will create a perception in the minds of consumers that the products or services they are purchasing are of a superior quality because it has the Peace Country Brand on it. Branding the Peace will require a concerted effort to ensure that producers, suppliers, and consumers are all aware of which products and services have earned the Peace Country certification, and which retailers use or carry those products. The following tools will be developed and used to facilitate this process: • Peace Country Marketing News (email newsletter) • Annual Peace Country People, Products & Events Guide • Peace Country Special Events • “We Feature” or “Proud Supporter of” sign for businesses • Hold seminars and workshops to promote Peace Country Brand Education & Awareness. The first step in the differentiating of our products will be the creation of a brand of the Peace Country. This brand will be defined by the natural beauty of trees, mountains, and clean air, abundant water and will only be attached to quality products produced in the Leslie Lax Strategic Management Consulting Page 12 of 22
  • 19. Branding the Peace: Business Plan and Marketing Strategy region. The branding of a geographic region is a holistic concept and will eventually grow to include a broad range of sectors in the Peace Country. Brand Management The Peace Country Brand Association, a not-for-profit non-governmental organization, will retain ownership and control of the brand. The Peace Country Brand Association will develop over time to meet the needs of members. The Peace Country Brand Association will manage the brand and will be responsible for generating and maintaining the brand culture and business attitude. The driving force behind the Peace Country Brand Association will be a constantly improved understanding of what consumers in the domestic and international marketplace require. This key competence will permit the protection and enhancement of Peace Country brand equity. The following organization chart presents the proposed structure of the Organization once the Brand Manager and specialist staff have been recruited. It is expected that recruitment will occur in phases, and that initially the Brand Manager will assume much of the responsibility for implementing organizational goals. The Board will be assisted in its work by an advisory committee that will be comprised of Association members. The structure is designed to have clear lines of responsibility and delegated authority that will enhance the effectiveness of the Association. It is expected that there will be three staff members, (the Brand Manager and two Specialists), and that any additional specialist assistance will be contracted on an as needed basis. Leslie Lax Strategic Management Consulting Page 13 of 22
  • 20. Branding the Peace: Business Plan and Marketing Strategy Peace Brand Association Organizational Structure Board of Directors Advisory Committee Industry Working Brand Manager Groups Administrative Assistance from Kiwanis Enterprise Centre Marketing Specialist Trade Specialist Information Technology Advertising Consultants Production Consultants Consultants Membership Membership is open to all businesses producing a product or service, industry associations, governments and First Nations, who support the initiative and intend to use the brand for market development. Payment of an annual membership fee of $150 will be required to maintain membership in the Peace Country Brand Association. This fee applies to both individuals and organizations. Paid-up members will each have one vote at special and annual general meetings and will be responsible for electing the Board of Directors as well as supporting the development and implementation of the Peace Country brand. Board of Directors A board of directors allows an organization the opportunity to receive the insight and the service of a group of highly qualified and talented individuals who are not directly employed by the organization. Board members provide additional creative energy and public relations for the organization and volunteer their time to the organization because of a special interest in its services. Leslie Lax Strategic Management Consulting Page 14 of 22
  • 21. Branding the Peace: Business Plan and Marketing Strategy The Peace Country Brand Association (PCBA) Board of Directors will provide leadership for the Association. All members of the Board are responsible for: Vision and planning Setting expectations, goals and objectives Developing organizational policy Establishing financial structure and governance model Recruiting, supervising and support to the Brand Manager Promoting the brand vision Spearheading fundraising and membership drives Support businesses and organizations who legally use the brand Planning and implementing public relations The Board of Directors should be representative of the Peace Country and of key industries supporting and benefiting from the branding initiative. The Board of Directors will ensure that they meet the requirements of the Societies Act. Advisory Committee The PCBA Advisory Committee includes the people in the Peace Country who are most likely to be considered “Community Champions” and are willing to devote time and energy to making the Peace Country brand a reality. The Advisory Committee will provide advice and support to the Board of Directors. Advisory Committee Members are expected to be paid-up members of the PCBA who choose not to serve on the Board of Directors and who wish to contribute to the Association’s success. The advisory committee will be established by the Board of Directors and will take direction from and report directly to the Board. Industry Working Groups The Peace Country Brand Association Industry Working Groups (IWG) are industry specific focus groups that will be consulted for the development of industry specific standards relating to the Peace Country Brand. IWGs will have the capacity to endorse standards for their industry only. For example, a pulse IWG could recommend regional standards for endorsement of the Peace Country Brand on pulse commodities only. The IWGs will be canvassed by the Brand Manager for input on standards, marketing needs and advice on improving access to the brand and brand effectiveness. The members of the working group will be paid-up PCBA members. Administrative Assistance A non-profit society, the South Peace Enterprise Centre Society operating as Kiwanis Enterprise Centre (KEC), will provide administrative assistance to the Peace Country Brand Association on a fee for service basis. The range of services will be determined in negotiation with the Board of Directors, or if delegated, with the Brand Manager. Leslie Lax Strategic Management Consulting Page 15 of 22
  • 22. Branding the Peace: Business Plan and Marketing Strategy The KEC has an extensive background in the offering of incubation services to groups of producers, service providers and other stakeholders in the region. It is anticipated that the PCBA will initially rent office space from the KEC. Brand Manager The Brand Manager is the Chief Executive Officer for the Peace Country Brand Association. The Brand Manager will be recruited by the Board of Directors and will have delegated authority to manage the Association within the guidelines provided by the Board. Direction from the Board will be in the form of duly passed Board resolutions. This minimises individual board members attempting to influence the Brand Manager directly and maintains clear roles and responsibilities. It is critical that the Brand Manager is fully supported by the Board of Directors of the Association. The Brand Manager should not be viewed as providing a support role for the Board. Rather, the Brand Manager reports to the Board on operational issues. The Brand Manager will be responsible for: Providing leadership in managing the brand and brand identity Registering the brand, brand logo, and trademark protection Organization and distribution of information Developing guidelines and licensing for use of the brand Developing processes for brand quality control Providing support to producer / service groups as appropriate Documenting Peace Country destinations, products and events in a catalogue Developing and maintaining network databases Contracting with specialist services consultants Supervising staff specialists Marketing Specialist The marketing specialist will report to the Brand Manager. The marketing specialist will assist the PCBA to achieve its goals and objectives through the development and implementation of a marketing plan. This plan will build on the successes achieved by the Board of Directors and the Brand Manager. The marketing specialist will be responsible for: Developing and implementing an integrated marketing strategy Build an image program to strengthen the region’s marketing efforts Pursuing relationships and joint marketing initiatives with other key stakeholders in the Peace Country Coordinating sales & marketing efforts on behalf of businesses in the Peace Country Collecting and analysing market intelligence Identifying, pursuing and developing new markets Assisting in moving products to higher value markets Selling the brand to stakeholders, producers, service providers, etc. Working with other team members, including consultants, as appropriate Leslie Lax Strategic Management Consulting Page 16 of 22
  • 23. Branding the Peace: Business Plan and Marketing Strategy Trade Specialist The Trade Specialist will be primarily responsible for developing trade outside of the local region. While the Marketing Specialist is responsible for marketing the brand, the Trade Specialist will provide expertise and experience in developing national and international trade opportunities. It is expected that the Trade Specialist will focus on commodity and other agri-food exports. The Trade Specialist has responsibility for: Researching and developing of trade opportunities Identifying export market opportunities Identifying key contacts in key industries Providing specially tailored services and programs to enhance extra-regional trade Providing transportation and logistics support as appropriate Representing members in export markets and negotiating on behalf of members Providing guidance, support and advice on export financing Providing current national and international trade regulation information Assisting in arranging trade missions on behalf of producers Providing experience, knowledge and international contacts Contracted Specialist Services It is anticipated that there will be need for specialist services that are not available in house, given the size of, and resources available to, the Peace Country Brand Association. The areas of information technology, advertising, and production present the most obvious candidates for outsourcing. Such services will be contracted out as necessary through a fair and transparent procurement process. Preliminary Marketing Strategy The development and implementation of a Marketing Plan is the responsibility of the Marketing Specialist with direction from the Brand Manager and the Board of Directors. This section provides a proposed strategy that could help inform the development of that Marketing Plan. The single most important objective of the marketing strategy is the branding process. Marketing is building a brand in the minds of stakeholders: producers, processors, consumers, grocery chain buyers, government executives at all levels, and academics in all targeted markets. The following marketing strategy could guide development and implementation of the Peace Country Brand: Define the scope of the Peace Country brand, that is, who will be using the brand Define the target market for the Peace Country brand: locally, nationally and internationally Leslie Lax Strategic Management Consulting Page 17 of 22
  • 24. Branding the Peace: Business Plan and Marketing Strategy Hire a design firm to create and test a Peace Country brand logotype. A logotype is a combination of a trademark, which is a visual symbol of the brand, and the name of the brand set in distinctive type. The Peace Country will be distinctive with colour and style reflecting the desirable attributes of the Peace Country Limit the brand to simple symbols and logos to ensure top of mind association Implement a publicity campaign to increase awareness of the Peace Country brand initially locally and slowly expand to international exposure Market the brand to producers, service providers and local governments Market the brand to retailers – initially locally and then more broadly Consistently market the Peace Country brand and the words that will be associated with the brand Focus on developing the Peace Country brand into a global brand. There are unique perceptions of Canada, the same as there are unique perceptions about every country in the world. The Peace Country brand could compliment the Canada mark Effectively use technology to market the Peace Country brand as appropriate Collaborate with other Peace Country initiatives to leverage marketing effectiveness. These initiatives include the Peace Country Portal, Hello North, PREDA initiatives, etc. Implementation plan. To date, various champions have spent considerable time and energy developing and refining concepts related to the Peace Country Brand. This important groundwork was vital to ensure that the plan has community support. In the next stage of development of this initiative, the KEC will take the lead in creating the Peace Country Brand Association, recruiting membership, facilitating the first Annual General Meeting and the election of the Board of Directors. The Annual general meeting will also confirm choices for the association’s name for registration. Once elected, the Board of Directors will register the Association and continue fundraising activities. The Board will develop guiding policies and will also need to develop a recruitment strategy for selecting and hiring the Brand Manager once a base level of funding has been secured. Once the Brand Manager has been recruited the design and development of the Peace Country Brand Association office can take place. The Brand Manager will contract with an advertising and design agency to develop the Peace Country logotype with input from the Board of Directors. Once designed and tested, the brand will be registered and trademarked to secure licensing rights and other legal protection. With the Peace Country brand logotype in place, the Brand Manager can now undertake the important work of communicating the brand to local producers and service providers. This initial marketing work is necessary to enhance membership and to ensure that a secure base of client stakeholders has been established. At this point the Brand Manager Leslie Lax Strategic Management Consulting Page 18 of 22
  • 25. Branding the Peace: Business Plan and Marketing Strategy will begin the process of recruiting a marketing specialist to develop a comprehensive marketing plan, working with existing members and the registered brand. The Marketing Specialist will canvass retailers, restaurants and others to expand Peace Country brand exposure and to help generate new local / regional markets for producers. The Marketing Specialist will also develop and implement a tourism marketing strategy in collaboration with other regional and provincial tourism agencies. It will be the responsibility of the Marketing Specialist with guidance from the Brand Manager to begin the development of income generating marketing services. This income is crucial to the Association becoming self-supporting financially. Within a year of operation, the Brand Manager will recruit a Trade Specialist to develop export market assistance. As with fee for service marketing operations, the trade services will be fee for service and are critical to the development and sustainability of the Association. The following Gantt chart presents the key activities and timelines associated with the implementation plan. Implementation: Key activities and time lines 02 2003 2004 ID Task Name Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 1 Confirm initial membership 16/09 21d 2 Elect Board of Directors 15/10 5d 3 Register the Association 22/10 14d 4 Fundraising 23/09 5 Recruiting a Brand Manager 28/10 30d 6 Establish PCBA office 02/01 28d 7 Develop brand logotype 17/02 90d 8 Registering the brand. 23/06 14d 9 Market the brand to producers and service providers 11/07 10 Recruit Marketing Specialist 14/07 30d 11 Developing Marketing Plan 25/08 55d 12 Market the brand to retailers / restaurants / etc. 10/11 13 Develop Income Generating Services 29/12 14 Broaden functions + direct marketing assistance 29/12 15 Recruit a trade specialist 17/05 30d 16 Develop export assistance, etc. 28/06 Notes to implementation Gantt chart: The dates on the left of the bars indicate task start dates. The notation on the right of the bars indicates the number of days for tasks with a finite duration. Bars with no duration and a “►” at the end of the bar indicate ongoing activities. To ensure effective representation, it is suggested that election of a board of directors precede registration so that the first Board Members have additional legitimacy. Leslie Lax Strategic Management Consulting Page 19 of 22
  • 26. Branding the Peace: Business Plan and Marketing Strategy Financials This section provides an estimate of the cash flow required to implement the plan for the first five years. A monthly cash flow for the first year is also presented as in an income statement for the first five years of the project. Five Year Expenditure Forecast Peace Country Brand Association: Projected Expenditures Year 1 Year 2 Year 3 Year 4 Year 5 TO TAL Staff Brand Manager $65,000 $66,300 $67,626 $68,979 $70,358 $338,263 Marketing Specialist $27,500 $55,000 $56,100 $57,222 $58,366 $254,188 Trade Specialist $27,500 $55,000 $56,100 $57,222 $195,822 Sub Total $92,500 $148,800 $178,726 $182,301 $185,947 $788,273 O ffice Rent $6,000 $6,000 $6,600 $6,600 $7,200 $32,400 Legal and Accounting $5,000 $5,000 $5,500 $5,500 $6,000 $27,000 Telephone / Untilities $3,600 $4,800 $6,000 $6,000 $7,000 $27,400 Insurance $1,500 $1,600 $1,700 $1,800 $1,900 $8,500 O ffice Supplies $3,000 $3,000 $4,000 $4,000 $4,500 $18,500 O ffice Equipm ent $10,000 $5,000 $5,000 $5,000 $5,000 $30,000 Adm in. Services $20,000 $18,000 $19,000 $19,000 $20,000 $96,000 Sub Total $49,100 $43,400 $47,800 $47,900 $51,600 $239,800 Contracted Specialist Services Design and Advertising $30,000 $20,000 $10,000 $10,000 $10,000 $80,000 IT (Includes W eb design) $28,000 $15,000 $10,000 $10,000 $10,000 $73,000 Production Consultants $30,000 $30,000 $30,000 $30,000 $120,000 Sub Total $58,000 $65,000 $50,000 $50,000 $50,000 $273,000 Brand Prom otion / Travel $50,000 $20,000 $25,000 $25,000 $30,000 $393,000 TO TAL $249,600 $277,200 $301,526 $305,201 $317,547 $1,694,073 Notes: It is expected that the Marketing Specialist will be recruited six months after the Brand Manager. The trade specialist will be recruited at about 18 months after project implementation begins. This delay in recruitment will help ensure that the organization does not grow too quickly and that all necessary groundwork has been done. Salaries are inflated at approximately 5% per year from starting values. Office equipment includes purchase of computers and peripherals. Photocopying and fax facilities will be either be purchased, leased or rented from the Kiwanis Enterprise Centre. Administration services, including bookkeeping and financial reporting, will be contracted through the Kiwanis Enterprise Centre. Design and advertising reflects the costs of developing and testing the brand logotype and ongoing design of promotional materials. IT expenditures include web design and hosting as well as continuing updating services. Production consultants will be used to develop extension materials and services for Peace County producers. Brand promotion and travel reflect promotional material production costs as well as staff travel expenditures. Leslie Lax Strategic Management Consulting Page 20 of 22
  • 27. Branding the Peace: Business Plan and Marketing Strategy Monthly Expenditures Forecast for Year 1 Peace Country Brand Association: Projected Expenditures Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Annual Staff Brand Manager $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $65,000 Marketing Specialist $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $27,500 Trade Specialist Sub Total $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $92,500 Office Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000 Legal and Accounting $2,900 $700 $700 $700 $5,000 Telephone / Untilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3,600 Insurance $1,500 $1,500 Office Supplies $800 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $3,000 Office Equipm ent $6,000 $4,000.00 $10,000 Adm in. Services $3,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $20,000 Sub Total $15,500 $2,500 $2,500 $3,200 $2,500 $6,500 $3,200 $2,500 $2,500 $3,200 $2,500 $2,500 $49,100 Contracted Specialist Services Design and Advertising $5,000 $9,000 $9,000 $5,000 $2,000 $30,000 IT (Includes W eb design) $8,000 $8,000 $8,000 $1,000 $1,000 $1,000 $1,000 $28,000 Production consultants Sub Total $0 $5,000 $9,000 $9,000 $5,000 $8,000 $8,000 $8,000 $3,000 $1,000 $1,000 $1,000 $58,000 Brand Prom otion / Travel $1,000 $1,000 $2,000 $15,000 $6,000 $5,000 $4,000 $4,000 $4,000 $4,000 $4,000 $50,000 TOTAL $20,917 $13,917 $17,917 $19,617 $27,917 $25,917 $26,200 $24,500 $19,500 $18,200 $17,500 $17,500 $249,600 Notes: The January figure for Legal and Accounting includes pre-startup costs associated with establishing and registering the association. Although some of these expenditures may be expected to occur in “Year 0” they are aggregated with Year 1 estimates. The January figure for Administrative Services includes pre-startup costs associated with holding the inaugural annual general meeting, recruitment of the Brand Manager, etc. Although some of these expenditures may be expected to occur in “Year 0” they are aggregated with Year 1 estimates. Leslie Lax Strategic Management Consulting Page 21 of 22
  • 28. Branding the Peace: Business Plan and Marketing Strategy Income projections: It is clear that the Peace Country Branding Association will initially be dependent on external funding for organizational development and growth. Membership fees can only be expected to cover a portion of the Association’s expenses, with fees for service eventually growing to meet revenue needs. The following table presents projected income and sources for the first five years of operation. It is expected that the PCBA will be fully self-supporting from year 6 onwards. Peace Country Brand Association: Projected Income Year 1 Year 2 Year 3 Year 4 Year 5 Total Membership fees $15,000 $30,000 $62,500 $75,000 $87,500 $270,000 Fee for Service $20,000 $50,000 $100,000 $200,000 $370,000 Total Fees $15,000 $50,000 $112,500 $175,000 $287,500 $640,000 Expenditure $249,600 $277,200 $301,256 $305,201 $317,547 $1,450,804 Required External funding $234,600 $227,200 $188,756 $130,201 $30,047 $810,804 Notes: The following is a schedule of projected memberships and fees. Year 1 Year 2 Year 3 Year 4 Year 5 Fees 150 150 250 250 250 Membership 100 200 250 300 350 The increase in fees reflects the value added of membership as brand recognition grows. Fees for Service stem from services provided primarily through the trade specialist. Trade specialist fees will be based on a percentage of sales facilitated through the Association. With total receipts in the order of $745 million in 2001, the Association would need to facilitate one half of one percent of sales to receive $200,000 per year (at fees equal to 5% of sales value). Larger volumes would likely result in a lower fee structure. An effective trade development program obviously has enormous potential for revenue generation. There is also potential for fees to be garnered from some marketing services. Leslie Lax Strategic Management Consulting Page 22 of 22

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