2012          The Northern       Kentucky Convention        and Visitors Bureau             Analysis       Amanda Batta, T...
Table of ContentsSynopsis ...................................................................................................
Synopsis       The Northern Kentucky Convention and Visitors Bureau is currently in the process ofcreating an ambassador p...
social media sites. Looking at all social media platform, the NKYCVB is lacking. Twitter isoutshining Facebook which is ou...
Overview of NKYCVB        The Northern Kentucky Convention and Visitors Bureau (NKYCVB) is located in theheart of Covingto...
company’s existing efforts to maximize visitors’ expectations and experiences in the NorthernKentucky (NKY) area, NKYCVB c...
major political tax conflict that does not help keep Omnicare’s business and conferencepossibilities in NKY.       Another...
this area. Additionally, this development could generate more job opportunities andknowledgeable employees to demonstrate ...
side; however Delta, who has historically been known to have very expensive prices, has reducedairfare from 5 to 60 percen...
company. NKY presents a local culture that concentrates on thriving in the education process,which in turn makes the surro...
Technology is constantly changing and it is one of NKYCVB core competencies to stayup-to-date with any external technologi...
the NKYCVB’s own technology resources i.e. website, they can use this to attract businesses andoutside of the state busine...
unstoppable and NKYCVB will not be able to eliminate these negative forces when they occur.Instead, NKYCVB can turn a nega...
Five Forces Analysis         In order for NKYCVB to compete with the programs their competitors have available,they will n...
Each region, often serving three counties in each region, has its own Convention andVisitors Bureau that try to make their...
choice of attractions, large versus intimate, the NKYCVB can position themselves as the leaderin client satisfaction. And ...
conference opportunities to the Northern Kentucky Convention and Visitors Bureau. However,NKYCVB has as many if not more a...
not completely satisfied with the service they receive, they will refund one day’s rental in theNKU Convention Center.” Wh...
Competitive Analysis       The Northern Kentucky Convention and Visitor’s Bureau, also known as NKYCVB,have a handful of c...
competency is achieved through participation in a seminar, city tour and successful completionof an exam. Additionally, Ch...
charlottecrownguides.com, there are four opportunities a year to register for the six hour sessionthat includes a three ho...
The Lexington Convention and Visitor’s Bureau (CVB) has a bit of a different approachto their ambassador program. A third ...
enrollment fee, there is an annual fee to keep your certification valid, which is a range from $20-$50 a year. There wasn’...
Strategic Group Analysis                                            Percentage of Time Available to Communicate vs.       ...
Space Available at Local Convention                Hotel Tax vs. Space Available at Local Convention Center               ...
Distance from Airport vs. Number of Employees                          25                                                 ...
Internal AnalysisResource and Capability Analysis       The Northern Kentucky Convention and Visitors Bureau have a number...
Third, NKYCVB’s network of top-notch sales, marketing, and management team is alsoa resource to the company. These 25 full...
From a sustainability standpoint, NKYCVB commitment to technology can one day beforsaken, unless they work hard to remain ...
service is by far NKYCVB’s primary competency. Therefore, this must remain sustained inorder for NKYCVB to keep their comp...
Financial Ratio Analysis       The Northern Kentucky Convention and Visitors Bureau obtain the majority of theircommission...
bring visitors to the area and knows how to satisfy their needs; hence their 98.7% customerservice score and 97.2% score o...
Learning and Growth StrategiesGoal #1: Maximize Use of the Web/Information Technology       Measures: Number of followers ...
Competitive Strength Assessment       The competitive strength assessment is a table that is put together to help show whe...
measure is very weak with that bureau, while scoring a 10 is when a bureau has the maximumadvantage in that factor. No bur...
The order and decision of what factor was more important was a choice that our group madeand will explain in the following...
With the scoring, NKYCVB clearly deserved a 10, due to their 24 hour customer        service that they provide to all of t...
score of 9 is Northern Kentucky. The Northern Kentucky Convention Center can seat up       to 3,900 people and does a grea...
With a score of 7, Lexington has a few advantages such as their regular updates to       social media along with an app fo...
Having knowledgeable citizens and locals help guests find things that might not be       noticed with a pamphlet given whe...
Association, as a result of enabling legislation passed by the General Assembly of Kentucky attheir 1974 session. The Comm...
3. To extend the hand of welcome to all visitors, and visitor prospects, in keeping with the       highest traditions of h...
Convention and Visitors Bureau as well as various community partners to collaborate with theRegional Tourism Network to ma...
Composition of Board MembersThe Northern Kentucky Convention and Visitors Commission, like previously stated, iscomposed o...
Having this many members currently on the commission shows that this board is verydetermined and motivated to help improve...
place to help bring awareness to the ambassador program and to convince locals that it is worthparticipating. With the fol...
The company would like to produce three levels of testing for the program and currently thereare none.        Finally, we ...
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NKYCVB Strategic Analysis

  1. 1. 2012 The Northern Kentucky Convention and Visitors Bureau Analysis Amanda Batta, Tiffany Hopkins, Kelly Parker, and Nicole Stadtlander Dr. Stephanie Hughes’ Business Policy Class – Fall 2012 12/5/2012
  2. 2. Table of ContentsSynopsis .........................................................................................................................................................................3Overview of NKYCVB .................................................................................................................................................5Environmental Trends Analysis ....................................................................................................................................5Five Forces Analysis ................................................................................................................................................... 14Competitive Analysis .................................................................................................................................................. 19Strategic Group Analysis ............................................................................................................................................. 24Internal Analysis .......................................................................................................................................................... 27 Resource and Capability Analysis ........................................................................................................................... 27 Value Chain and Outsourcing Analysis .................................................................................................................. 30 Financial Ratio Analysis ......................................................................................................................................... 31 Balanced Scorecard Analysis .................................................................................................................................. 32Competitive Strength Assessment ............................................................................................................................... 34Business (and Corporate Level) Strategies Assessment .............................................................................................. 40Extent and Type of Firm’s International Strategy ....................................................................................................... 42Composition of Board Members ................................................................................................................................. 44Structure of the Firm.................................................................................................................................................... 45Issue Identification ...................................................................................................................................................... 46Proposed Strategies and Implementation Schedule ..................................................................................................... 47 Incentives ................................................................................................................................................................ 47 Social Media............................................................................................................................................................ 50 Seminar ................................................................................................................................................................... 52 Partnership .............................................................................................................................................................. 54 Background and Information .............................................................................................................................. 54 Benefits to NKYCVB ......................................................................................................................................... 58 Competition ........................................................................................................................................................ 59Program Name/Questions ............................................................................................................................................ 63 NKY’s Happenin’ ................................................................................................................................................... 63Proposed Implementation Schedule............................................................................................................................. 65Proposed Means of Evaluation of Strategies ............................................................................................................... 68 Timeline .................................................................................................................................................................. 68 Ensuring Achievements Through Controls ............................................................................................................. 69Additional Notes .......................................................................................................................................................... 71Works Cited ................................................................................................................................................................. 72NKYCVB-Batta, Hopkins, Parker, and Stadtlander 2|Page
  3. 3. Synopsis The Northern Kentucky Convention and Visitors Bureau is currently in the process ofcreating an ambassador program that will help local businesses, employees, and citizens becomemore informed about the Northern Kentucky area in addition to being aware of what events andattractions a visitor or tourist might want to attend while visiting the area. The bureau has askedfor help with a Marketing Plan, a Program Name, and the first tier (of a three tiered test) to becreated. This detailed analysis includes strategies to solve these problems along with other keyinformation that can be used to benefit and inform NKYCVB of their competitors and industryas a whole. The first section of this report focuses on the internal and external factors that affect theNKYCVB. From the environmental trends to key competitors as well as an assessment ofNKYCVB from an internal perspective, the main focus is the breakdown of the industry in everyaspect in addition to understanding how competitors work and where NKYCVB stands amongtheir competitors. This is in detail more in the first 39 pages of this analysis report. The second section is focused on the NKYCV Commission, along with InternationalBusiness and the structure of the firm. These are important topics that need to be analyzed beforecreating strategies due to getting a better understanding of how NKYCVB functions and where itstands on a global perspective. Strategies are then proposed. The first strategy that is proposed is the use of incentiveswith the ambassador program being created by the NKYCVB. These incentives range from lapelpins for completion of the program from the participants perspective along with the companies ofthese students also getting recognized for promoting the program and informing participants ofthe benefits and rewards that they can receive. A second strategy is the increase of monitoringNKYCVB-Batta, Hopkins, Parker, and Stadtlander 3|Page
  4. 4. social media sites. Looking at all social media platform, the NKYCVB is lacking. Twitter isoutshining Facebook which is outshining Pinterest which is more existent than LinkedIn. Withan increase of posts, NKYCVB can bring more awareness to themselves along with theupcoming ambassador program. A third strategy is to create a seminar that allows businessowners, managers, employees, and local citizens to become informed on the program in hopesthat these attendees will then participate and be the first to take the test once it is launched. Aforth and final strategy is to partner with a great, new mobile company, called Text and the Cityto help promote Northern Kentucky through a mobile device. Think of this as the yellow pages.It will help navigate visitors to local ‘hotspots’ and attractions if no one is around to help them. With those strategies in place, a name to be proposed for the program is discussed.Tourists want to know what is happening in the Northern Kentucky area and for that reason, thename NKY’s Happenin’ was created. This name has a modern twist that will be appealing to alltarget markets that will be attracted to taking the test in addition to tourists being aware that theprogram exists. Along with the name of the program, a list of questions was created for the firsttier of the program to help show NKYCVB the format or outline that should be used whencreated the second and third tier. This report finishes up with discussing a timeline of when these strategies need to takeplace and the next steps that need to take place in order to get the maximum opportunity forNKY’s Happenin’. Contact information is given at the end for any additional information orhelp. Our team is excited to help launch this great program to the Northern Kentucky area andare honored to of had the privilege to work with the Northern Kentucky Convention and VisitorsBureau with this topic over the past 16 weeks.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 4|Page
  5. 5. Overview of NKYCVB The Northern Kentucky Convention and Visitors Bureau (NKYCVB) is located in theheart of Covington, Kentucky. The NKYCVB serves three Northern Kentucky counties: Boone,Kenton and Campbell counties. The NKYCVB is the largest promoter of the three NorthernKentucky counties and promotes the largest events in those areas. The NKYCVB intends to create an ambassador program that will be offered toemployees who work in the hospitality industry (such as restaurants, hotels, bars, etc.)throughout Northern Kentucky. This program will educate employees so they will be able tointeract with and inform tourists and visitors of events happening throughout Northern Kentuckyon any given date along with the best restaurants and local attractions to visit while in the area.This program will include an exam testing employee’s knowledge on Northern Kentucky and itsattractions. It is a goal of the NKYCVB to make the test both entertaining and informative. Our intention with the Northern Kentucky Convention and Visitor Bureau is to help withthe creation of the ambassador program being created in addition to generating incentives and amarketing plan. A name for this program will also be produced and presented in this company’sstrategic analysis. NKYCVB will be able to launch a successful and worthy program that willattract citizens as well as inform visitors.Environmental Trends Analysis The Northern Kentucky Convention and Visitor’s Bureau’s (NKYCVB) main objective isto positively impact the Northern Kentucky economy through conventions, meetings, and visitorexpenditures and ultimately create a high percentage of visitor return. In order to maintain theNKYCVB-Batta, Hopkins, Parker, and Stadtlander 5|Page
  6. 6. company’s existing efforts to maximize visitors’ expectations and experiences in the NorthernKentucky (NKY) area, NKYCVB can utilize multiple analyses to determine the external factorsthat have a direct and/or indirect effect on their organization. One of these analyses includes thePESTEL analysis that concentrates on the environmental trends in the NKY area. The PESTELanalysis identifies the merits the company can leverage and any possible external risks they canmitigate in order to uphold their business-level strategy. These forces are within the followingsix segments: political, economic, sociocultural, technological, ecological and legal.Political From a political standpoint, there are some tax elements that alter a visitor’s decision tovisit this area. One particular advantage that has a direct effect on a visitor is the difference in“bed tax rate” between NKY and Cincinnati hotels. NKY has an advantage over Cincinnati onthis element because NKY’s rate is distinctively lower than the hotels located in Cincinnati. Thelower rates benefit the visitors and ultimately the NKY area becomes more attractive and overallcreates revenue across the area. Local and state governments like to impose these kinds of hoteltaxes because they weigh heavy on primarily out-of-town guests, which eliminate the chance oflevying the tax. Thankfully, the NKY area already offers lower bed tax rates compared to thesurrounding competitors; however there is still the possibly those rates could increaseeliminating this advantage all together for the NKYCVB. Unfortunately, there are other tax issues that can play a major part within the NKY areathat could create a loss. Companies that are successful and assist in bringing more visitors to thearea for conferences or meetings can face difficult decisions when presented with incentivepackages from other regional cities. For example, Omnicare was offered an $8 million dollarincentive package by Ohio and Cincinnati, forcing them to move downtown. (Pilcher) This is aNKYCVB-Batta, Hopkins, Parker, and Stadtlander 6|Page
  7. 7. major political tax conflict that does not help keep Omnicare’s business and conferencepossibilities in NKY. Another tax element that falls under the political aspect involves a tax credit for the filmindustry. Film production companies have the choice between a sales tax refund incentive andan income tax credit incentive up to 20% of approved expenditures. (Greater Cincinnati &Northern Kentucky Film Commission) Unlike the incentives to draw companies out of the area,these kinds of incentives help attract major revenue players. This incentive related to the filmindustry also overlaps with the sociocultural segment of this analysis.Economic Economically, the NKY area has recently seen a large increase in growth developmentand job opportunities. Business growth has shown almost a 2% increase since 2009. Although, itis on the rise, it has not surpassed the economic position pre-recession. (Pilcher) Clearly thegrowth within this area is a major benefit. This kind of rise within the economy can open moredoors to both potential visitors and the NKYCVB. This is a good indicator that the businessesacross the NKY will be profitable. This rapid growth rate could continue to rise due to some of the future (proposed)projects within the NKY area that include the following: Purple People Bridge, Brent SpenceBridge, Walking Path, and CVG Airport Hubs. Some of these projects have the potential tobring additional economic value to NKY and while others could create obstacles for visitors tothis area. These kinds of forces are good to identify so NKYCVB will have a betterunderstanding of what kind future economic status NKY has to work with.Just recently there has been discussion of creating a hotel, retail and entertainment developmenton the Purple People Bridge located in Newport. The idea of could create an economic boost forNKYCVB-Batta, Hopkins, Parker, and Stadtlander 7|Page
  8. 8. this area. Additionally, this development could generate more job opportunities andknowledgeable employees to demonstrate the best service to out-of-town guests. The bridgeconnects two riverfronts in Cincinnati and Newport and with this new development of attractionsthere would be an overall positive impact to the businesses in both cities. On the other hand, just a few miles south down the river, there has been a major bridgeproject in debate for years involving the Brent Spence Bridge. For years there has beendiscussion to rebuilding the bridge because of years of deterioration due to the massive influx ofcommuters. There have been thousands of state dollars spent on multiple studies, roadwayalternatives, and town meetings in determining the best execution plan. Even though the newbridge is desperately needed in this area, considering it is the backbone of commerce and travelin this region, it may pose a temporary halt in retail and entertainment profitability. If there arenot favorable roadway alternatives to the businesses along the Riverfront, those businesses willsuffer greatly and ultimately lose their appeal to any outside visitors. Another smaller project is the past proposal of the Covington Riverfront Commons Trail.This multi-use trail will be four miles in length and run from Covington to Bellevue. Although,this may be more attractive to local residents, it does offer visitors an alternative route oftransportation to visit all the riverfront cities. Although this maybe a smaller development, it canhave just as a positive impact as larger developments. Finally, the Northern Kentucky area is home of one of the best airports nationwide,Cincinnati/Northern Kentucky International Airport (CVG). The airport is just minutes awayfrom the riverfront cities in NKY and Cincinnati. Additionally, CVG is partnered with one ofthe biggest airlines, Delta. However, just recently CVG has reduced their size to only oneavailable concourse; this creates the problem of lowering the flight availability. On the positiveNKYCVB-Batta, Hopkins, Parker, and Stadtlander 8|Page
  9. 9. side; however Delta, who has historically been known to have very expensive prices, has reducedairfare from 5 to 60 percent. Additional economic growth factors that support the area on the rise include the level ofemployment and wage indicators. Although, the unemployment rate is only down slightly from2010 to 2011 (1.5%), it does show growth. Another important factor that can be appealing tolocal workforce is the average weekly wage. Compared to the rest of the state, in 2010, NorthernKentucky had an average weekly wage of $788, which is nearly $50 more than the rest of theworkforce in Kentucky ($745). True, this maybe a small incentive for those looking for jobopportunities but still effective at that the same time. If the workforce knows they have aboveaverage income, there is a good chance they are more willing to display the best customerservice to any kind of visitors to the area. However, just across the river, Ohio’s average weeklywages are over $800. (Bureau of Labor Statistics) This poses the problem of attracting a potentialworkforce from the Kentucky side.Sociocultural One major advantage the NKY area offers to local businesses are the large number ofcolleges and universities located in the Tri State region. Some of these educational institutionsinclude the following: Northern Kentucky University, University of Cincinnati, XavierUniversity, Cincinnati State Technical College, and Gateway Community College. Theseinstitutions feed into the NKY area’s job opportunities. The benefit to having so many graduatesfrom these schools available to work in the NKY area, is the thorough knowledge they bring tothe table. The students that are about to graduate have the ability to market themselves to localthriving businesses as a crucial element to their team because they have the knowledge of thelocal area and most importantly are aware of the effects the local economy may have on theirNKYCVB-Batta, Hopkins, Parker, and Stadtlander 9|Page
  10. 10. company. NKY presents a local culture that concentrates on thriving in the education process,which in turn makes the surrounding businesses viable. This sociocultural element of educationis indirectly attracting more businesses to the area as well as visitors. As mentioned before, the film industry incentive also assists in bringing out the artculture in this area. This industry presents an opportunity to visitors and especially students thatattend the Cincinnati School of Performing Arts. Those students have the chance to become akey player when film productions come to the area. They are an intricate part of helping createrevenue across the board to the NKY area. There have been many movies filmed in this areaover the years; to name a couple Rain Main and Ides of March. The film industry creates largerevenue and NKYCVB can use this as a positive reinforcement to NKY by making the areareadily available to production teams. Along with the film/media industry, the NKY area is also very prominent within themusic culture. Hundreds to thousands of musicians circle through the Tri State area thatgenerates revenue among the local businesses and creates a reason for visitors to come back tothe area. For the longest time, Riverbend Music Center was one of the only large music venues,which is actually located in Ohio. However, in 2008, The Bank of Kentucky Center was openedas a new venue that has the ability to hold a variety of events. Now the NKY area has a largermusic venue to take advantage of and to help create a larger percentage of visitors to return. TheRiverbend Music Center still generates a large profit for the city of Cincinnati and createscompetition for The Bank of Kentucky Center. Overall these cultural elements are what helpassist NKYCVB leverage their strong points throughout the NKY area.TechnologicalNKYCVB-Batta, Hopkins, Parker, and Stadtlander 10|Page
  11. 11. Technology is constantly changing and it is one of NKYCVB core competencies to stayup-to-date with any external technological developments. Just this past summer a recent startupcompany, Text and the City, entered into the NKY market offering businesses and communitiesan electronic connection via simple text messaging. This company is also teaming up with theNKU College of Informatics for structured feedback and revamping. The idea of thistechnological innovation is to alert businesses of any local news and to create a connectionamong one another through “hyper-local markets.” (Henderson) This is also a great idea forvisitors that want to stay connected to the local business’ availability and offerings. NKYCVB could use this technology to help market the businesses within the NKY area.It is also a great way to promote the destination education program NKYCVB is promoting to alllocal businesses/individuals that have any kind of contact with visitors. NKYCVB could alsosync up their event calendar as text messaging alerts to individuals. Text messaging and mobilealerts have been on the rise in the technology industry and it would benefit NKYCVB to partnerup with companies like Text and the City. At the same time; however, even though this can be agreat way for businesses/individuals to stay connected, there needs to be structured policies inplace that will not allow this feature to become an annoyance to people. NKYCVB does notwant negative attention from visitors and/or businesses involving an overload of information. Earlier this year the National Risk Management Research Laboratory held a workshop inCincinnati, educating small businesses on the advantages and funding resources the SmallBusiness Innovation Research and the Small Business Technology Transfer departments offer.These programs allow small businesses to develop on their technological abilities and ultimatelybecome profitable. This kind of funding is available through a three phase process; however thisis the kind of technological developing that needs a strong presence in the NKY area. ThroughNKYCVB-Batta, Hopkins, Parker, and Stadtlander 11|Page
  12. 12. the NKYCVB’s own technology resources i.e. website, they can use this to attract businesses andoutside of the state businesses to relocate to an area that is thriving in the technology industry.Ultimately these are steps into creating jobs, expanding technology, and creating revenue, allwhich can benefit visitors and businesses from outside this region.Ecological NKYCVB is an organization that is in the heart of downtown Covington, an area thatthankfully does not have major ecological factors locally. However, with that said, the NKYarea is indirectly affected by weather and climate occurrences all over the nation. HurricaneSandy is a prime example of how local businesses can have an indirect effect. Hurricane Sandyshut down major airports near the East Coast and in the New England states, which temporarilycreated a reduction of tourism to this area. Additionally, Hurricane Sandy’s greatest direct effectto the NKY area was the increase of flooding. Flooding along the Ohio River is one of the majorecological events that have the potential to bring a negative impact to businesses along the river.When flooding occurs it creates soil erosion and land shifting. The Riverfront Common Trail isa proposed project involving a multi-use trail connecting the river cities of NKY. Before thistrail can be incorporated along the river, studies must be conducted to evaluate this kind of landerosion and shifting. The Brent Spence Bridge Project is also another example of usingenvironmental studies. Thousands of dollars have gone towards land studies and evaluations inorder make sure the different land masses will withstand the alternative routes the state(s) presentto local businesses and homeowners. These kinds of studies in this area are the most challengingbecause of the high cost and the delays they create for potential businesses. Overall ecological factors have the ability to not only affect visitors to the area butbusinesses that are within the region as well. Unfortunately, weather is almost unpredictable andNKYCVB-Batta, Hopkins, Parker, and Stadtlander 12|Page
  13. 13. unstoppable and NKYCVB will not be able to eliminate these negative forces when they occur.Instead, NKYCVB can turn a negative into a positive by promoting assistance for disaster relieffor areas in the country that have been affected in a worst way, just as NKYCVB has currentlydisplayed on their website. This kind of positive attention allows outside communities andgovernments know that the NKY businesses and citizens care about the well-being of America asa whole. It also encourages other local businesses to do the same in the time of need.Legal One major difference that exists for NKY businesses lies within the smoking law(s)between Kentucky and Ohio. The smoking laws have been addressed over the past several yearsand certain exemptions have been made. In 2006, Ohio became 100% smoke-free in all publicplaces. (Americans for Nonsmokers’ Rights) Between 2010 and 2012, the NKY countiesgradually became smoke-free in public places. However, in Kentucky some businesses aregranted exemptions, primarily drinking establishments. The exemptions include split ventilationsystems and/or “split-shift.” These exemptions can be considered both advantages and disadvantages depending onthe individual’s preference. For the NKY area, having the availability to smokers is anadvantage because Ohio does not offer this option at any of hospitality businesses. Kentuckystands out from the 36 states that are completely 100% smoke free. (Americans for Nonsmokers’Rights) It can be debated however that allowing some businesses (mostly bars) to continue tohave smoking establishments can discourage potential customers/visitors. NKYCVB focuses onindividual visitors; however they have a larger section of trying to attract corporate events andbusiness groups that will bring more revenue. It is more likely that larger groups would go to anarea that is completely smoke free.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 13|Page
  14. 14. Five Forces Analysis In order for NKYCVB to compete with the programs their competitors have available,they will need to identify any and all threats. Threats may occur from any of the five forces:Threat of Entry, Power of Suppliers, Power of Buyers, Threats of Substitutes, and RivalryAmong Existing Competitors. The threats may come individually in staggered intervals or,NKYCVB could face multiple threats at the same time once their ambassador program islaunched and gets publicity. The likelihood of competitors, close ones at that, increasing theircompetition is strong and so the following will help analyze these five components to a moredetailed degree.Threat of Entry The entry barriers for convention and visitor bureaus are high for its industry.Convention and visitors bureaus serve many counties within its region and try to have acompetitive advantage over other convention and visitors bureaus to draw visitors and companiesto their region instead. It is estimated that convention and visitor bureaus are in the mature phaseof its life cycle due to web-based technological change in conference and conventionarrangement, travel information and packaging, distribution, reservations and bookings, andsales. Of the many entry barriers that each convention and visitors bureaus face in today’smarketplace, some of the more prominent ones are capital costs, organization (complexoperations are necessary for success), regulations (legal obstacles), and customer loyalty(existing businesses have strong market advantage). Although each is important, perhaps thecustomer loyalty aspect is the most substantial. It is the repeat client that sustains any business.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 14|Page
  15. 15. Each region, often serving three counties in each region, has its own Convention andVisitors Bureau that try to make their locale more appealing than the other by offering variousincentives like more local events, appealing to a wider audience (for example high schools forgraduations), and financial incentives (a buy one/get one offer), and the ability to customize thebuilding to suit their clients’ needs. Because there are often several convention centers within each region, in our case a veryclose proximity, offering more specialized programs and events can be used to create obstaclesfor the other centers. You now become “the competition” that everyone else tries to beat. Thethreat of entry is high when new entrants into the field expect that the incumbents will not orcannot retaliate; the customer switching costs are low; and capital requirements are low. It is atthis level where the incumbent must be willing to make hard financial decisions to retain theircustomer base. Customers want more ‘bang’ for their buck and will go where they can get it.Power of Suppliers Suppliers have power when they are offering a product that is unique and differentiatedfrom the competition and when a company faces high or low switching costs. Suppliers knowthey have the upper hand when competition among other suppliers is low. This gives companiesmore of an incentive to choose a particular supplier (which means more loyalty to a supplier). Suppliers to the NKYCVB include local restaurants, various stores, lodging (hotels), andattractions. Many of the lesser known businesses tend to get overlooked when there are popularbusinesses and attractions. These suppliers to NKYCVB are able to offer special promotions tothe guests, which encourages these guests to spend more time and money in their establishments.It would behoove the NKYCVB to include the lesser known businesses in their itinerary ofattractions, thereby increasing customer satisfaction. Being able to offer the customer theirNKYCVB-Batta, Hopkins, Parker, and Stadtlander 15|Page
  16. 16. choice of attractions, large versus intimate, the NKYCVB can position themselves as the leaderin client satisfaction. And satisfaction equals revenue.Power of Buyers The NKYCVB is a large, well known industry that provides strong business to suppliersand the surrounding businesses. Because they provide so much business for suppliers,NKYCVB is able to ask for a lower rate than other companies receive. This is an incentive forthe suppliers since they want the continued business. Since the NKYCVB is a large business, they have a strong bargaining power whendealing with companies such as hotels and restaurants. Often times, suppliers will give buyers adiscount for partnering with the company due to the increased business from recommendationsto other customers. The down side to this is, of course, the smaller, lesser known business tendto get pushed out. There is no way for these businesses to compete with the larger ones when itcomes to offering discounts or other incentives. Many times these small businesses operate on a shoestring budget and cannot afford tooffer financial incentives. However, what they can offer is the enticement of great customerservice and the personal touch that sometimes gets lost when you deal with a larger supplier.Again, NKYCVB must include these smaller businesses because it benefits the NKYCVB byoffering the client choice.Threat of Substitute, Products or Services The NKYCVB has several other competitors that offer similar but very distinct services.Often these competitors can offer these services at a better fee with better service. One of theNKYCVB’s competitors, Duke Convention Center, is located less than five miles away.Because the Duke Convention Center is merely a river away, it reduces the meeting andNKYCVB-Batta, Hopkins, Parker, and Stadtlander 16|Page
  17. 17. conference opportunities to the Northern Kentucky Convention and Visitors Bureau. However,NKYCVB has as many if not more attractions and that can put the Duke Convention Center at adisadvantage. NKYCVB’s location is better than most. They are easily accessible with three majorinterstate highways, the Cincinnati/Northern Kentucky airport nearby, and every major hotelbrand is represented. Logistically, it really is better to select the NKYCVB over the DukeConvention Center simply because you would have less traffic congestion trying to get to thefacility. The bridges leading into Cincinnati are known for their overcrowding, whereas one cansimply take the Covington exit off the Interstate and avoid the Cincinnati bottleneck. Anyentrance into Cincinnati poses the problem of traffic jams. Covington is just easier to navigate into and out of. Since the offerings of both convention centers are so similar, the very ONE thing that setsthe Northern Kentucky Convention and Visitors Bureau above the rest is easy access. And ifyou can remove that impediment from potential clients, they will select you for their provider.Rivalry Among Existing Competitors The NKYCVB considers their competitors to be: Columbus, Ohio; Dayton/Springfield,Ohio; Lexington and Louisville, Indianapolis, Indiana; Pittsburg, Pennsylvania; St. Louis,Missouri; Nashville and Charlotte Tennessee. Often these competitors are able to attract clientsfrom around the country with better customer service and better accommodations. With intenserivalry among the competitors, price discounting, industry profitability, increase advertising andimproved service all become a main focus. But here is what makes NKYCVB a sure winner: The NKYCVB guarantees a“commitment to service by the entire hospitality community and declares that if a customer isNKYCVB-Batta, Hopkins, Parker, and Stadtlander 17|Page
  18. 18. not completely satisfied with the service they receive, they will refund one day’s rental in theNKU Convention Center.” When a facility can offer a guarantee like that, coupled with such abeautiful city, amenities, and great customer service, why would anyone chose to go elsewhere?NKYCVB wants your business and they are willing to go the extra mile to get it. Yes, many corporations are choosing video conferencing in today’s business world. Theemphasis in some companies seems to be on completing just the task at hand. However,NKYCVB isn’t just offering a place to hold your meetings. The NKYCVB is offering anexperience that will leave the customer with a sense of appreciation, satisfaction, and relaxation.It can complement a business’ goal of appreciating their employees. And that appreciationtranslates into better production which means increased revenue.Reflection By using the Five Forces, the NKYCVB is able to determine how to surpass theircompetitors by offering a better product and better service. They can determine if an existingcompetitor will introduce the same product at a better price or which competitors are getting abigger bang for their buck. In other words, which Convention and Visitor Bureau isoutperforming the NKYCVB. Also by using the five forces, they are able to negotiate a betterprice with their suppliers. If the suppliers are unable to meet the bottom line of the NKYCVB,NKYCVB will be able to negotiate and obtain a better deal and a better product with a differentsupplier.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 18|Page
  19. 19. Competitive Analysis The Northern Kentucky Convention and Visitor’s Bureau, also known as NKYCVB,have a handful of competitors that they compete with, although among those there are two keycompetitors that are worth analyzing; the Lexington Convention and Visitor’s Bureau as well asthe Charlotte Convention and Visitor’s Bureau. Both of these competitors currently have whatNKYCVB is trying to create; a program that helps local citizens and employees in the hospitalityand food service industry gain knowledge about their designated cities in order to help touristswhen they have questions about the area and what attractions are best to visit based on theirpersonal interests. These cities ambassador programs, as they call them, seem to be a greatcomparison to what the NKYCVB would like to create. More analysis into these cities’ currentprograms will be looked into in a way that will help NKYCVB benefit and understand what keythings they can use from each cities programs in order to create a similar program that willultimately be better, or have a competitive advantage compared to their competitors. We willfirst begin looking into Charlotte’s current ambassador program that is ‘fit for royalty’. Nicknamed the Queen City, Charlotte and its resident county are named in honor ofCharlotte of Mecklenburg-Strelitz, who had become queen consort of British King George III,the year before the citys founding. Due to this nickname, the ambassador program created thename, The Crown Ambassador (CA) Program. Developed for the hospitality and tourismprofessional, this program provides information about Charlottes history, attractions, and eventsalong with map orientation and ways to navigate the city. Designed for the front line employee,NKYCVB-Batta, Hopkins, Parker, and Stadtlander 19|Page
  20. 20. competency is achieved through participation in a seminar, city tour and successful completionof an exam. Additionally, Charlotte Crown Guides has partnered with Goodwill of the SouthernPiedmont to provide Crown Ambassador Certifications to students enrolled in the GoodwillHospitality Training classes. Since launching the Crown Ambassador Program in December2009, over 200 hospitality and tourism professionals have participated from over 30 businessesand organizations (Crown Ambassador Program). Additionally, the program has added theHospitality and Tourism program at Goodwill Industries of the Southern Piedmont whosestudents now achieve the Crown Ambassador certification as a part of that program. The CrownAmbassador Program was created by two women, Genie Hufham and Mary Schultz, who haveworked both collaboratively and individually in the local tourism industry to support andpromote Charlotte as a destination. This program has partnered with multiple Charlotte tourismsites along with Charlotte’s Convention and Visitor’s Bureau. Along with Charlotte’sConvention and Visitor’s Bureau and Goodwill, the Crown Ambassador Program also partnerswith the Greater Charlotte Hospitality and Tourism Alliance as well as being a member of theCharlotte Commerce (Crown Ambassador Program). With these partners and alliances, word ofmouth seems to be the way that this ambassador program is marketed to the public. A few important notes to make about the ambassador program are the price, the time, andthe opportunity to take the program. At the top of the list is the price. The current price tobecome a Crown Ambassador is $125 per person. On top of that large amount is the fact that thisprice is non-refundable. If something comes up personally with you and you are unable to makethe session, you will be assigned to the next session that is scheduled instead of receiving yourmoney back. Second, is the timing of the event. It seems that the opportunity to take the class isvery limited to the public. From searching on the Crown Ambassador Program website,NKYCVB-Batta, Hopkins, Parker, and Stadtlander 20|Page
  21. 21. charlottecrownguides.com, there are four opportunities a year to register for the six hour sessionthat includes a three hour lecture, followed by a three hour tour of the city. The lecture covers thefollowing topics: Customer care/Professionalism, statistics and history of the city, maporientation and transportation options, attractions, venues, dining, shopping and nightlife, annualevents and Resources. Following the lecture, is the three hour city tour which includes thefollowing: Center City Charlotte’s Four Wards, a stop at the visitor info center, drivingdirections, map orientation and transportation options, as well as Neighborhood attractions.Following this six hour event, a competency test is to be taken to evaluate how well you took inall the information that was given to you during the event. This seems like a lot, and it is for acitizen to have to participate in. Although this may seem like a great procedure, a better approach can come about fromthe NKYCVB from looking at the analysis of the Crown Ambassador Program. From the hassleof registering for the event as well as having to request off work to attend the session to payingfor this certification seem to be big problems with the programs’ layout. The Crown AmbassadorProgram strives to inform citizens of the city to Make Charlotte into the “Premiere RegionalDestination”, but do they have the best strategy is the question to ask. Charlotte is not only thecompetitor that the NKYCVB has to compete with. Lexington is even more of a competitor thanCharlotte due to it being located only 80 miles from the NKYCVB.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 21|Page
  22. 22. The Lexington Convention and Visitor’s Bureau (CVB) has a bit of a different approachto their ambassador program. A third party is used for Lexington CVB instead of creating aunique one themselves, although it is termed the Bluegrass Tourism Ambassador Program.Launched in February, 2008, the Bluegrass Tourism Ambassador program creates a pool of frontline staff and volunteers who are specially trained to interact with visitors. This training helpsensure that the city conveys consistency in message, accuracy in details and a high level ofhospitality throughout the region. The primary goal of the program is to educate participantsabout the tourism product. Key components of the course are: the impact of tourism, navigatingthe Bluegrass Region, knowing the best information resources, exceeding customer expectationsand cultural competence (Lexington, KY - Horse Capital of the World). The LexingtonConvention and Visitors Bureau contracted with renowned hospitality trainer Mickey Schaefer,owner of Mickey Schaefer & Associates and founder of the Tourism Ambassador Institute to bethe accredited provider for Certified Tourism Ambassadors. Citizens, who decide to go throughthe Bluegrass Tourism Ambassador training and pass the exam at the end of the course, receive anational certification with the designation of "CTA" (Certified Tourism Ambassador) throughthe Tourism Ambassador Institute (Lexington, KY - Horse Capital of the World). This programseems to be marketed through word of mouth in the Lexington area. Along with word of mouth,there is an online overview of the program and the overview of how you proceed to sign up andreceive a certification. The Tourism Ambassador Institute site offers multiple ambassador programs in thecountry, with Lexington being among one of the cities. The procedure is as follows: Register andpay the fee of $25, read course materials, attend a half day CTA training session, and pass anopen book exam at the end of class. What is not clearly mentioned is that along with the $25NKYCVB-Batta, Hopkins, Parker, and Stadtlander 22|Page
  23. 23. enrollment fee, there is an annual fee to keep your certification valid, which is a range from $20-$50 a year. There wasn’t a clear cut amount on the website for Lexington when it was searchedfor. This option seems that it might be a little ‘easier’ for the Bureau, being that all themaintenance of the program is through the Tourism Ambassador Institute, but not convenient forthe participants of the program. The down side to this program is the fact it doesn’t seem like apersonal approach along with the reoccurring cost of maintaining the certification. In addition,the participant also may have to request off of work to attend the half a day CTA session that isrequired to receive the certification. Both Charlotte and Lexington have a good approach at an ambassador program to informand teach citizens of their cities about the area in order to help tourists along with visitors.Looking over these analyses, it is clear that the Northern Kentucky Convention and Visitor’sBureau can create a program that is based off of both cities current programs. To have thecompetitive advantage, though, NKYCVB will have a couple of great opportunities to tweaktheir program to not only be different than Charlotte and Lexington but become a city that thecurrent and even future competitors will want to align with. Based on this information, NKYCVB will be compared to both Charlotte and Lexingtonon six different measures (see below) in order to see where NKYCVB can improve at and wherethey currently excel at in the market.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 23|Page
  24. 24. Strategic Group Analysis Percentage of Time Available to Communicate vs. County Spread of Bureau County Spread for Convention and 20 Charlotte, NC 18 Visitors Bureau 16 Lexington, KY 14 12 10 8 6 4 Northern 2 Kentucky 0 0 20 40 60 80 100 120 Percentage of Time Available to Communicate to VisitorsSee Above Graph: Along the X Axis, The Northern Kentucky Convention and Visitor’s Bureaunow promotes that they are available 24 hours a day, 7 days a week. Their competitors, bothLexington and Charlotte are available for a specific amount of hours per week. Charlotte isavailable 52.5 hours per week to visitors and tourists of this North Carolina region. Likewise,Lexington is available 54.5 hours per week to their visitors and tourists of this Kentucky region.All three of these Bureaus also spread a certain amount of counties in their areas. Along the YAxis, The Northern Kentucky Convention and Visitor’s Bureau covers 3 counties, althoughCincinnati can account for this area in some cases. With Charlotte, this region spans over a 16county area, while Lexington spans over a 15 county area. All of this information leads us to theabove graph and data points.Sources: http://www.northernkentuckycvb.com/ ; http://www.charlottesgotalot.com/;http://www.visitlex.com/NKYCVB-Batta, Hopkins, Parker, and Stadtlander 24|Page
  25. 25. Space Available at Local Convention Hotel Tax vs. Space Available at Local Convention Center 140000 120000 Northern Kentucky Lexington, KY 100000 Center Charlotte, NC 80000 60000 40000 20000 0 0 5 10 15 20 Hotel TaxSee Above Graph: Along the X Axis, The Northern Kentucky Convention and Visitor’s Bureauarea currently has a hotel tax of 11. 8%. The Charlotte Convention and Visitor’s Bureau area, onthe other hand, has a hotel tax of 16.25%. Lastly, the Lexington Convention and Visitor’s Bureauarea has a hotel tax of 13.4%. Along the Y Axis is the amount of space that is available in theConvention Centers that are near the three Bureaus. For the Northern Kentucky Convention andVisitor’s Bureau, 110,000 sq. ft. of space is available at their convention center. In Charlotte,there is 90,000 sq. ft. of space that is available for use in the area. Lastly, the LexingtonConvention and Visitor’s Bureau has 106,000 sq. ft. of available space available at theirconvention center for reserving.Sources: http://www.northernkentuckycvb.com/ ; http://www.charlottesgotalot.com/ ;http://www.visitlex.com/NKYCVB-Batta, Hopkins, Parker, and Stadtlander 25|Page
  26. 26. Distance from Airport vs. Number of Employees 25 Charlotte, NC Minutes from Airport 20 Northern 15 Kentucky 10 Lexington, KY 5 0 0 5 10 15 20 Number of Employees at Convention and Visitors BureauSee Above Graph: Along the X Axis, the number of employees from each Bureau is shown. TheNorthern Kentucky Convention and Visitor’s Bureau currently has 15 employees serving for theorganization. As for Charlotte, the Convention and Visitor’s Bureau has 14 current employeesworking for the organization. And lastly, the Lexington Convention and Visitor’s Bureau has 10employees along with 7 sales and convention services staff members. Now, along the Y Axis arethe minutes from the airport to the downtown area where the convention center and/or hotels arewhere the tourists and visitors will stay. For the Northern Kentucky Convention and Visitor’sBureau, the downtown area is a short 15 minutes from the Cincinnati Airport. In Charlotte, thedistance between the airport and the downtown area is 20 minutes. And lastly, the LexingtonConvention and Visitor’s Bureau posted a 10 minute trip from the area’s closest airport to thedowntown Lexington area.Sources: http://www.northernkentuckycvb.com/ ; http://www.charlottesgotalot.com/ ;http://www.visitlex.com/NKYCVB-Batta, Hopkins, Parker, and Stadtlander 26|Page
  27. 27. Internal AnalysisResource and Capability Analysis The Northern Kentucky Convention and Visitors Bureau have a number of valuableresources available at their disposal. First, NKYCVB has a strong, in-depth website thatpotential customers can easily access. The website provides large amounts of information fortourists on deciding which possible venue suits them best. As well, it offers an entire list ofdifferent resources these clients would need when planning their event. The list features localwebsites and phone numbers of different places and services-anywhere from booking airlinereservations to finding speakers for their event. NKYCVB’s website is a vital resource for thecompany. Second, NKYCVB has access to over 65 brand name hotels including The Marriott,Comfort Inn, Hilton, The Radisson, Holiday Inn, and Drawbridge Inn. These hotels combinedcan offer more than 7,000 rooms. The brands of all these major hotel chains assist theconvention and visitors bureau in providing exceptional services to all their customers, as well asbeing a valuable resource to NKYCVB. In addition, NKYCVB has access to different types of meeting spaces. Every meeting orconvention requires a variety of needs and accommodations. The NKYCVB is able to offer theMETs Center for Corporate Learning, Northern Kentucky Convention Center, and the Bank ofKentucky Center to possible clients. For example, if a company needed access to high-techtechnology, the METs Center would be a reasonable choice. If they were planning a rather largeconference, the Northern Kentucky Convention Center would be the one of use. These diversemeeting spaces are all needed resources for NKYCVB.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 27|Page
  28. 28. Third, NKYCVB’s network of top-notch sales, marketing, and management team is alsoa resource to the company. These 25 full time employees help in e-marketing by promoting themeetings and conventions through e-mails, graphics, and digital images. Moreover, they offerpre-event promotion by providing visitors’ information on the Northern Kentucky/Cincinnatiarea to attendees. They realize how important it is to generate excitement and buzz about anevent in order to increase attendance and meet clients’ needs. They are an exceptionally eagerteam ready to help. Last, but not least, the convention center’s implementation of the ambassador program,web-based teaching module will be a particularly valuable asset for NKYCVB. This modulewill teach and emphasize the value of tourism in Northern Kentucky. Any employee (of localhotels, restaurants, attractions, etc.) that comes in contact with a tourist would take this test inorder to guide visitors in the right direction and to become more educated on the NKY area.All of these resources are necessary in order for NKYCVB to continue operating efficiently andeffectively. They just have to continue leveraging them to stay ahead of their competition.Core Competencies and Sustainability of Core Competencies One significant core competency of Northern Kentucky Convention and Visitors Bureauis their commitment to technology. They are well-known for keeping up with the evolvingtechnology of today. To remain competitive and prepared for what is up and coming withtechnology, they make sure to do their absolute best to stay ahead. This strategy assists them inimproving and adjusting efficiencies and in projecting the brand they desire. In addition, it helpsto convey and market their image and obtain what they want and need to be a successfulcompany.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 28|Page
  29. 29. From a sustainability standpoint, NKYCVB commitment to technology can one day beforsaken, unless they work hard to remain proficient. Continuously, they have to be willing tospend large amounts of money when needed to keep up with the developing technology.A second vital core competency for NKYCVB is that they frequently aim for the highest qualitystandards in everything that they do. This means that whoever they hire, the marketing theydeliver, the aggressive sales strategies they obtain, and the high quality customer serviceprojections they yield will be elite. NKYCVB has effectively been able to accomplish thisthroughout the years. Along with their commitment to their previous competency, aiming for the highestquality standards may also be difficult to sustain. NKYCVB must spend a vast amount of timein searching for the best candidates in order to create the best marketing strategies and have thebest team. In order to reach the customer service scores they desire, it’s important that they arepatient and to make sure that their employees are trained appropriately for the job.A final crucial core competency for the Northern Kentucky Convention and Visitors Bureau isthat their high-class services differentiate and distinguish them from their competitors. Thisincludes being able to maintain excellent customer service satisfaction scores and ratings andinfluencing travelers to come back to the Northern Kentucky region. For example, NKYCVBhas held a 98.7% excellent customer rating and a 97.2% rating on “intent to return.” These arethe highest customer service scores in the area. Thus, because of their success and confidence intheir customer service, they are able to offer a 100% satisfaction guarantee. Additionally,NKYCVB provides planning and meeting assistance 24 hours a day, seven days a week. Theyrealize that productive and beneficial conventions are not just planned on a 9-5 basis. CustomerNKYCVB-Batta, Hopkins, Parker, and Stadtlander 29|Page
  30. 30. service is by far NKYCVB’s primary competency. Therefore, this must remain sustained inorder for NKYCVB to keep their competitive edge.Value Chain and Outsourcing Analysis Northern Kentucky Convention and Visitors Bureau’s value chain is very successful,comprehensive, and straight-forward. Their main output is actually persuading visitors to cometo Northern Kentucky and successfully booking a conference or meeting with them. It all startswith a sales manager. It is their job to begin the activity of networking and finding possibleclients for NKYCVB. In addition, since NKYCVB is so customer-focused, every step in thevalue chain revolves around providing the best customer service imaginable. Visit Northern Creating Kentucky and Sales Manager Networking Negotiations Proposal Book Conference NKYCVB’s Support Activities: CUSTOMER SERVICE, sales, interpersonal skills, review and renegotiations of contracts, site visits, decision-making, contracting, following up with clients, tourism, research and development, information technology Since NKYCVB already has a top-notch sales team, excellent customer service sores, anda good reputation in place, outsourcing would be risky for them. The business is better offkeeping control over their activities since it is so customer service oriented. Outsourcing certainparts of the company may put them in harm’s way and may also have a negative impact on theirvalue chain.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 30|Page
  31. 31. Financial Ratio Analysis The Northern Kentucky Convention and Visitors Bureau obtain the majority of theircommission from sales: booking meetings and conventions, along with sponsorships andpartnerships they have with local hotels and restaurants. In the past two years, tourism hasincreased dramatically for the state of Kentucky. From 2010 to 2011, there was a $9 milliondollar increase just in the amount of money spent on lodging. This accounted for more than 50%of visitor spending. In addition, this also displays just how much money the tourism industry canmake and how vitally important it is to bring tourists to the Northern Kentucky region. Othereconomic impacts from tourism included restaurants, shopping, entertainment, and localtransportation. http://www.northernkentuckycvb.com/annual-report/ As the chart displays above, throughout the past few years, NKYCVB has beensuccessful with the tourism industry. If they continue to do their job efficiently and effectively,revenue will only continue to increase yearly. It is acknowledged that NKYCVB knows how toNKYCVB-Batta, Hopkins, Parker, and Stadtlander 31|Page
  32. 32. bring visitors to the area and knows how to satisfy their needs; hence their 98.7% customerservice score and 97.2% score on intent to return.Balanced Scorecard Analysis Currently the bureau does not have a balanced scorecard concerning their company. Abalanced scorecard is simply a way to measure performance more than just through financialmeasures. It shows where a company should be headed and is used to make better, moreinformed decisions. Additionally, there are four main categories or business perspectives thatneed to be taken into consideration with this particular analysis: customer strategy, learning andgrowth strategy, internal business strategy, and financial strategy. All of these measures have tobe effectively analyzed and improved frequently in order for the bureau to prosper. Below arescorecard proposals for NKYCVB:Customer StrategiesGoal #1: Attract Businesses and Participants for the Program Measures: Offer incentives and bring awareness Target: 10% of each company’s employees Initiative: Utilize current networkGoal #2: Maintain Customer Service Satisfaction Rates and Intent to Return Rates Measures: MP’s measures Target: 98.7% customer service satisfaction rate and 97.2% intent to return rate Initiative: Continue performing above and beyond industry standardsNKYCVB-Batta, Hopkins, Parker, and Stadtlander 32|Page
  33. 33. Learning and Growth StrategiesGoal #1: Maximize Use of the Web/Information Technology Measures: Number of followers and likes on social media sites Target: 10% increase in measures after 3 months Initiative: start using sites to market program and get name outGoal #2: Increase Workforce Knowledge and Skills Measures: Number of people taking the test and reaching the next level and through seminar Target: In next 6 months, have at least 10% of each business’ employees participating Initiative: Create partnership with local mobile application, seminarInternal Business StrategyGoal #1: Create Marketing Strategy for Roll Out of New Program Measures: Effectiveness of the strategy, how many people are actually taking the test Target: Immediate word of mouth Initiatives: Post to social media sites, attend promotions/festivals, hire internsFinancial Business StrategyGoal #1: Minimize Cost Measure: Monitor budget and costs Target: Minimal costs with program Initiatives: Use technology and social media to advantage, make use of free resourcesNKYCVB-Batta, Hopkins, Parker, and Stadtlander 33|Page
  34. 34. Competitive Strength Assessment The competitive strength assessment is a table that is put together to help show where abusiness or company falls when looking at multiple key factors that are used to measure successin the industry. Along with the company, a handful of rivals are also being analyzed with thesame key factors. In this case, NKYCVB is the main company at hand. Their competitors that wewill be comparing the key factors to are the Lexington Convention and Visitors Bureau alongwith the Charlotte Convention and Visitors Bureau. The competitive strength assessment can be composed of two tables: an un-weighted anda weighted. In this analysis, both tables are below to show how even though they are the same;there is a difference between the two. The first table (Un-Weighted) is shown below: Strength Rating (1 = Very Weak; 10 = Very Strong) NKYCVB Lexington CVB Charlotte CVBKey MeasuresSpace Availability 10 9 7Customer Service 10 9 7Travel Options 7 8 10People in Convention Center 7 10 6Major Attractions 9 10 7Number of Employees 10 7 9Adaption to Technology* 6/8 7 4Hotel Tax 10 8 6Marketing (of Program)* 0/7 6 3 Un-Weighted Overall Strength Score 69/78 74 59 As you can see from the graph above, there are 9 key factors that we used to measureNKYCVB along with Lexington CVB and Charlotte CVB. The three bureaus’ get rated on a 1-10 point scale on where they stand currently in each key measure. To score a 1, means that thatNKYCVB-Batta, Hopkins, Parker, and Stadtlander 34|Page
  35. 35. measure is very weak with that bureau, while scoring a 10 is when a bureau has the maximumadvantage in that factor. No bureau can get the same number for each measure. After analyzingeach bureau in each measure, the above data was determined. The second graph is very similar in the aspect of the key factors and scoring, but anothercalculation is incorporated and creates the weighted competitive strength assessment. Thisweighted data is listed below: Strength Rating (1 = Very Weak; 10 = Very Strong) NKYCVB Lexington CVB Charlotte CVB Importance Strength Strength Strength Score Score Score Weight Rating Rating RatingKey MeasuresSpace Availability 0.20 10 2 9 1.8 7 1.4Customer Service 0.15 10 1.5 8 1.2 7 1.05Travel Options 0.15 7 1.05 8 1.2 10 1.5Seats in Convention Center 0.15 9 1.35 10 1.5 8 1.2Major Attractions 0.10 9 0.9 10 1 7 0.7Adaption to Technology* 0.10 6/8 0.6/0.8 7 0.7 4 0.4Hotel Tax 0.05 10 0.5 8 0.4 6 0.3Number of Employees 0.05 10 0.5 7 0.35 9 0.45Marketing (of Program)* 0.05 0/7 0/0.35 6 0.3 3 0.15 Weighted Overall Strength Score 1 69/78 8.40/8.95 73 8.45 61 7.15 Where this graph differs from the previous is that importance weights are established andplaced with the previous score to create a ‘weighted’ competitive strength assessment. The moreimportant key measures have higher weights along with the lesser factors have a lowerimportance weight. Once the weight was determined, it was then multiplied by the score fromthe first graph and the total is displayed in yellow out of a total score of 9 (since there are 9factors and the total importance weights have to equal 1 or 100%).NKYCVB-Batta, Hopkins, Parker, and Stadtlander 35|Page
  36. 36. The order and decision of what factor was more important was a choice that our group madeand will explain in the following: 1. Space Availability – When a group of people are joining together for a gathering, whether it be a meeting or a party of some sort, the first thing they look at when visiting venues is space. Will it fit the amount of people attending? Will there be enough room? Will participants be crowded? These are all questions that the host will want immediate answers to. As a group, we felt that this was the most important key measure to both the bureaus and the host trying to find a venue. Due to this importance we weighted this measure with a 0.20 weight. With the scoring, we had NKYCVB with the highest, a 10, due to them having the largest amount of space with the NKY Convention Center, at 110,000 square feet. Lexington is very close with 109,000 square feet. which is why they received a close 9 on the assessment table. Charlotte was scored a 7 due to their much smaller amount of space in their facilities, with 90,000 square feet. Although that space is large, Lexington and Northern Kentucky are just a few steps ahead with square footage, which set them both apart from Charlotte. 2. Customer Service – Once the visiting company or group picks a venue, customer service is very important, especially when the visiting group isn’t familiar with the area. The amount of access the company can have with the bureau to help keep track of how plans are coming or additional needs that need to be met is crucial. This was the reason for ranking this measure second among the nine. With this being second, an importance weight of 0.15 was given.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 36|Page
  37. 37. With the scoring, NKYCVB clearly deserved a 10, due to their 24 hour customer service that they provide to all of their guests and clients. Lexington was scored an 8, due to ‘normal’ hours available to be contact, along with a few hours over the weekend to be open to clients. Charlotte was very similar to Lexington, but had fewer hours available to the public on the weekends, so a score of 7 was given to their bureau. 3. Travel Options – When having a gathering in a big city, transportation is key when time is available for the parties to see around the area. With that reason, we ranked this measure as third and gave an importance weight of 0.15. With the scoring, Charlotte was given a 10 due to their broad range of transportation. From their light rail system that is run daily to their bus transportation, Charlotte offers a lot to its visitors in terms of transportation. With Northern Kentucky and Lexington, both offer a great bus transportation. With this in mind Lexington received a score of 8, while Northern Kentucky received a score of 7. This small difference was due to the price of fares. With a 50 cent difference, Lexington pushed through to receive the 8. 4. Seats in Convention Center – This measure coincides with space available. This is from the aspect of how many people each convention center is able to hold comfortably. Because this is a more important measure, we ranked it forth and gave an importance weight of 0.15 With the scoring, Lexington was given a 10. Knowing that both Lexington and Northern Kentucky are very close in size, Lexington states that they are able to seat 4,500 people. The down side is that there is more ‘hype’ about Rupp Arena than the convention center, so the 23,000 seat arena is more talked about. Right behind Lexington, with aNKYCVB-Batta, Hopkins, Parker, and Stadtlander 37|Page
  38. 38. score of 9 is Northern Kentucky. The Northern Kentucky Convention Center can seat up to 3,900 people and does a great job stating exactly what the area can hold with other topics such as exhibitors and conferences. With a score of 8, Charlotte states that their convention center holds 3,500 at once. Although there is a large amount, both Lexington and Northern Kentucky is larger. 5. Major Attractions – When a client comes into town, or uses a venue for meeting or gathering purposes, major attractions in the area is an important factor. When down time is available, these attractions are what visitors like to attend or see. For this reason, this measure was ranked fifth and given an importance weight of 0.10. With the scoring, Lexington was given a 10, due to their recent success in NCAA basketball, along with attractions such as the University of Kentucky, Rupp Arena, Horse Farms and Parks and others that attract a variety of guests. With a score of 9, Northern Kentucky has similar attractions that help promote themselves. Being close to Cincinnati, NKYCVB is able to market that side of the river along with places such as Newport on the Levee and the Purple People Bridge. Finally, Charlotte was given a score of 8. Their attractions seem to revolve around a niche group of individuals, such as the NASCAR Hall of Fame and the large number of art centers. 6. Adaption to Technology – Technology is the fastest and most up to date form of communication. It is something that bureaus need to adapt, because it will only be getting more advanced with time. The faster bureaus are able to adopt to better inform clients and visitors, the better they will be as a bureau and the more visitors will appreciate them for their adaption ability. This is why this measure was ranked sixth and given an importance weight of 0.10.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 38|Page
  39. 39. With a score of 7, Lexington has a few advantages such as their regular updates to social media along with an app for visitors when visiting the area. With a score of 6, NKCVB is lacking in the social media world and has no app for visitors at the moment. We believe with our ideas, that this number could surpass Lexington if they are implemented. Finally, with a score of 4, Charlotte lacks in both social media and app availability. 7. Hotel Tax – Hotel tax is important because the less money that the visitor or client has to pay, the happier they are and in turn, the happier the bureau is. For this reason, this measure was ranked seventh and given an importance weight of 0.05. With scoring, NKYCVB received a score of 10 with their hotel tax at 11.8%. Lexington CVB received a score of 8 due to the 1.6% jump to 13.4% hotel tax. Finally, with a staggering 16.25% hotel tax, Charlotte received a score of 6, putting them in third. 8. Number of Employees – This measure is a factor that is important more to the bureau itself than the visitor, although it does benefit them when wanting to get contacted with a representative. Employees help run a business, or bureau in this case. For that reason, this measure was ranked eighth and given an importance weight of 0.05. With scoring, again, NKYCVB received a 10 due to its current 15 employee staff. Right behind them, with a score of 9, Charlotte currently has 14 employees on at their bureau. Finally, with a score of 7, Lexington currently has a staff of 10 employees, although, in addition, they have a 7 employee staff outside of the bureau that helps with sales of the convention center. 9. Marketing (of the Program) – This measure seemed to be a measure in the sense that when the ambassador program is live, that this will be a great key factor with clients.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 39|Page
  40. 40. Having knowledgeable citizens and locals help guests find things that might not be noticed with a pamphlet given when arrived. For that reason this measure was ranked ninth and given an importance weight of 0.05. With scoring, Lexington received a score of 6. Their current marketing of the program is well known to the visitor, but is stated in information given, but not standing out to the eye. There could be more if the bureau put a bit more effort into marketing. With a score of 3, Charlotte has very low marketing of their program. After receiving an email that they only marketing was through friends, it is clear that the Charlotte bureau could do much more to promote and market the program. With NKYCVB implementing this program, we feel that this is the bureaus time to shine, in this measure. With the help of our strategies explained later, there is very much potential for a great marketing plan to arise. This overview hopefully helps you understand the competitive assessment table more andgives a better comprehension of the strengths and weaknesses of the Northern KentuckyConvention and Visitors Bureau stands among its competitors Lexington Convention andVisitors Bureau and Charlotte Convention and Visitors Bureau.Business (and Corporate Level) Strategies Assessment The Northern Kentucky Convention and Visitors Bureau currently have a board ofdirectors, also known as the Commission. The Northern Kentucky Convention and VisitorsCommission was formed by an interaction of the Northern Kentucky Chamber of Commerce,Northern Kentucky Hotel/Motel Association, and the Northern Kentucky RestaurantNKYCVB-Batta, Hopkins, Parker, and Stadtlander 40|Page
  41. 41. Association, as a result of enabling legislation passed by the General Assembly of Kentucky attheir 1974 session. The Commission was authorized by official actions of the Fiscal Courts ofBoone, Campbell and Kenton Counties, Kentucky. The Commission current has 18 members,who vary in the hospitality industry. Membership is composed of 6 members from each Countycomprising the Commission appointed by the County Judge/Executive (Objectives, Policies andProcedures of the NKYCV Commission 1). The Northern Kentucky Convention and Visitors Commissions mission statement is asfollows:“To promote the economic growth of Northern Kentucky through the expenditure of theTransient Room Tax to attract conventions, meetings and visitors to the area by acting as anaggressive sales, marketing and service organization..” (Objectives, Policies and Procedures ofthe NKYCV Commission 1) Along with their mission statement, the NKYCV Commission objectives are as follows: 1. To increase business to every establishment that directly or indirectly serves the conventioneer and/or the traveling public through active sales, marketing and service programs. 2. To encourage those serving the traveling public to always render a high standard of performance; and to levy charges proportionate to the quality and quantity of service and/or products supplied.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 41|Page
  42. 42. 3. To extend the hand of welcome to all visitors, and visitor prospects, in keeping with the highest traditions of hospitality expected of our area; and in keeping with fair and honest business practice. 4. To lend consultation, advice and encouragement to the development of programs and projects that will enhance the general appeal of the area to tourists. 5. To maintain the Transient Room Tax for the sole purpose of promoting convention and tourist activity to the area and not for the support, administration or operation of special interest group projects, programs or facilities. The Northern Kentucky Convention and Visitors Commission is currently filled, buy whenvacancies occur, they are filled based on appointment. The positions stated in the previous tableconsist of various people in the hospitality industry around the 3 county (Boone, Campbell, andKenton) span. There are four committees that the commission offers members to participate: ExecutiveCommittee, Marketing Committee, Budget Review Committee and Compensation Committee.Many of the members are a part of at least of the committees listed and help with futurecommunity decisions along with the NKYCVB.Extent and Type of Firm’s International Strategy The Northern Kentucky Convention and Visitors Bureau currently has a third party, theRegional Tourism Network, promote their international travel. Although leisure travel is the termused synonymously with international travel, the bureau is linked with the Greater CincinnatiNKYCVB-Batta, Hopkins, Parker, and Stadtlander 42|Page
  43. 43. Convention and Visitors Bureau as well as various community partners to collaborate with theRegional Tourism Network to market the region. According to the Regional Tourism Network’s website, www.cincinnatiusa.com, they area destination marketing company that promotes leisure travel to drive overnight visitation toregional hotels, attractions and entertainment experiences in Cincinnati and Northern Kentucky.Founded in 2005, the RTN attracts new leisure visitors and dollars to the region whileconsistently building a loyal base of repeat visitors. The Regional Tourism Network helps showcase attractions, hotels, and dining optionsamong other unique places to visit while staying in the region. With the website comeadvantages and disadvantages with consideration to the Northern Kentucky Convention andVisitors Bureau. An advantage is that this option exists. The fact that the bureau can be promotedinternational is a huge benefit to the both the city and the bureau and can help increase visitorsby reaching the maximum areas around the world. The risk or disadvantage of this network isthat both Cincinnati and Northern Kentucky’s Convention and Visitors Bureau is merged andpromoted on the same platform. Although these cities don’t consider themselves competition,Cincinnati will outshine Northern Kentucky as of right now in time. People outside the countrywill be more aware of Cincinnati rather than Northern Kentucky and decide to work withCincinnati due to being more aware of the city more than Northern Kentucky. An advantage tothis merge though, is the fact that this puts Northern Kentucky ‘on the map’ and makesforeigners aware that the area exists and is a place that could be visited along with Cincinnati.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 43|Page
  44. 44. Composition of Board MembersThe Northern Kentucky Convention and Visitors Commission, like previously stated, iscomposed of 18 people from within the hospitality industry in the Northern Kentucky area. Thecurrent members, with titles, organizations associated with, county from and company related tois listed below: Northern Kentucky Convention & Visitors Bureau Board of CommissionersPrefix First Name Last Name Title Organization County Company Restaurant HofbrauhausMr. John Ellison Chair Campbell Association Newport Hotel-Motel Winegardner &Mr. Michael Conway Vice-Chair Kenton Association Hammons, Inc. Hotel-MotelMr. Alan Bernstein Treasurer Campbell BB Riverboats Association Restaurant CommonwealthMr. Gordon L. Snyder Past Chair Kenton Association Hotels, Inc. Hotel-Motel HofbrauhausMr. Nicholas Ellison Campbell Association Newport Hotel-Motel CommonwealthMr. Daniel T. Fay Boone Association Hotels, Inc. Fiscal Court KentuckyMr. Tim Bray Kenton Appointment Speedway Fiscal CourtMr. William I. Donnermeyer Campbell Appointment LegislativeRep. Joseph Fischer Campbell Appointment Chamber ofMr. Jack Gordon Boone Turfway Park Commerce LegislativeRep. Adam Koenig Kenton Appointment Hotel-Motel AmbridgeMr. Lee Palaschak Kenton Association Hospitality Chamber ofMr. Charlie Pangburn Kenton UC Health Commerce Hotel-Motel Keystone HotelMr. Subhas Patel Boone Association Group Chamber ofMr. Eric Rose Campbell Newport Aquarium Commerce Fiscal Court House ofMr. Sal Santoro Boone Appointment Representatives Restaurant Cincinnati AirportMr. David Smith Boone Association Marriott LegislativeRep. Addia Wuchner Boone AppointmentNKYCVB-Batta, Hopkins, Parker, and Stadtlander 44|Page
  45. 45. Having this many members currently on the commission shows that this board is verydetermined and motivated to help improve the Northern Kentucky area as much as they can inthe hospitality industry in order to help attract the area to current and future visitors. The varietyof the members is very useful when making decisions for the area and every aspect of each area.In addition, there are members from all three counties represented by the NKYCVB, so everyoneis incorporated and knowledgeable about what is going on with the bureau and in the area. The Northern Kentucky Convention and Visitors Commission is comprised of a greatnumber of members who range with knowledge that will only benefit the Northern Kentuckyarea along with the bureau.Structure of the Firm The Northern Kentucky Convention and Visitors Bureau is structured as a quasi-governmental business. This means that it is treated by national laws and regulations to be underthe guidance of the government, but also separate and autonomous from the government. Theseorganizations are often partially or majority funded by the government. They are usuallyconsidered highly important to smooth running of society, and are sometimes propped up withcash infusions in times of crisis to help surmount situations that would bankrupt a normalprivately owned business (merriam-webster.com). With this structure and the help of the Northern Kentucky Convention and VisitorsCommission, all appropriate strategic and financial controls are in place. With our proposedstrategies to follow, controls are in place to keep costs down, due to the low money available tothe bureau to help promote and award participants in the program. Creative strategies are also inNKYCVB-Batta, Hopkins, Parker, and Stadtlander 45|Page
  46. 46. place to help bring awareness to the ambassador program and to convince locals that it is worthparticipating. With the following issues being addressed, this quasi-governmental business willhave plenty of reachable recommendations to get maintain appropriate strategic and financialcontrols in the bureau.Issue Identification There are four issues that have been identified by the NKYCVB that we creat strategiesto help with solutions. There are as follows: The first issue facing the bureau is the lack of marketing for the ambassador program.They currently have no marketing plan for the roll out of their ambassador program to thecommunity. One of the main reasons for this is their lack of social media expertise and usage.They are currently struggling immensely with their online capabilities. Consequently, sinceNKYCVB has no marketing strategy in place at this time, this puts their whole program at riskand the successfulness of it. Second, the bureau has no incentives for the new ambassador program. They currentlydo not recognize a way to get employees and employers involved in the program and keepingthem engaged. As a result, this also puts the effectiveness and successfulness of the program indanger. The individuals taking the test need motivation to complete the increasing tiers of theprograms. For these reasons, the bureau needs to have enticing incentives. Another huge issue that they have at hand is that NKYCVB needs assistance in designingand implementing the test questions and answers. They currently have no test questions created.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 46|Page
  47. 47. The company would like to produce three levels of testing for the program and currently thereare none. Finally, we believe the idea of partnering with a local company can be raised. This isseen as not necessarily an issue, but as an excellent opportunity for the bureau as well as theother organization. Our group has created four strategies to help solve these problems and they will bediscussed as our next topic.Proposed Strategies and Implementation ScheduleIncentives One of NKYCVB’s challenges for the destination education program is keeping the“students” engaged and interested in becoming an ambassador of NKY. We are proposing thatNKYCVB utilize incentive marketing and offer incentives to both the participants and localbusinesses. NKYCVB’s target market is anyone that comes in contact with visitors and a largepercentage of these individuals come from hotels, attractions, restaurants, etc. We believeNKYCVB would benefit by contacting owners/managers of these local businesses and informingthem of the advantages not only their business would be receiving but their direct employees aswell. One way to attract both the employees and employers to participate with this program isto give them incentives. NKYCVB will offer the students or employees discounts/coupons fromthe local participating businesses. We propose after completion of the first and second levels oftesting, the student will be directed to the area on the website to print off their sheet of coupons.NKYCVB-Batta, Hopkins, Parker, and Stadtlander 47|Page

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