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BrandNC-DSPUNC

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BrandNC-DSPUNC

  1. 1. BRAND NC LISA MYERS, NICK BRENNER, LAUREN GIL, JOHN DEBLOCK, KENNY HAMILTON
  2. 2. A flexible slogan will reinforce NC’s brand and appeal to those within & outside of NC Fresh Air, Open Arms Effective implementation can increase state tourism revenue $6.15B over 5 years North Carolina PromiseNorth Carolina AssetsNorth Carolina Personality 2
  3. 3. 3 Fresh Air, Open Arms North Carolina PromiseNorth Carolina AssetsNorth Carolina Personality Personality· Assets· Promise
  4. 4. To capture North Carolina’s personality, the brand must reflect North Carolinian values Personality· Assets· Promise 4 2 2.5 3 3.5 4 4.5 5 Friendlin… Hospitality Community Courtesy Kindness Loyalty Respect Responsi… Compass… Honesty Independ… Courage Creativity Collabora… Innovation Empathy Fairness Diversity Equality Inclusive… North Carolina Core Values “Fresh Air, Open Arms” reflects the values held by North Carolinians Agreeableness • Warm • Compassionate • Co-operative • Friendly Conscientiousnes s • Dutiful • Responsible • Self-disciplined NC’s Highest Scoring Traits Sources: Brand NC Fact Pack, Cambridge University Personality Map
  5. 5. North Carolina’s brand must appeal to changing demographics within the state 5 2 2.5 3 3.5 4 4.5 5 Friendlin… Hospitality Community Courtesy Kindness Loyalty Respect Responsi… Compass… Honesty Independ… Courage Creativity Collabora… Innovation Empathy Fairness Diversity Equality Inclusive… North Carolina Core Values “Fresh Air, Open Arms” also captures an aspiration to improve inclusiveness and equality Personality· Assets· Promise Sources: Brand NC Fact Pack, United States Census Bureau, The Daily Tar Heel 92% of net growth in population is non-white NC population growth rate is 3.28% (12th in US)
  6. 6. North Carolina is home to people with different views all along the political spectrum 6 Personality· Assets· Promise Sources: USelectionatlas.org 2012 “Fresh Air, Open Arms” celebrates all kinds of diversity Republican: 50.39% Democrat: 48.35%
  7. 7. North Carolina has a wide variety of cultures spread throughout the state 7 Sources: NCpedia.org Coastal Plain  Outer Banks Piedmont  “the foot of the Appalachian Mountains” Mountains  Appalachian Mountains Regions of North Carolina Piedmont: farming and blues music Coastal Plain: beaches and historical sites Mountains: Blue Ridge Mts & hiking
  8. 8. 8 Fresh Air, Open Arms North Carolina PromiseNorth Carolina AssetsNorth Carolina Personality Personality· Assets· Promise
  9. 9. North Carolina has beautiful and diverse natural assets that are unique to the state 9 Personality· Assets· Promise Grandfather Mountain State Park The Mile High Swinging Bridge Blue Ridge Parkway The Outer Banks
  10. 10. The brand must build on North Carolina’s strong image as natural haven Personality· Assets· Promise 10 Many people associate North Carolina with nature6 6 7 7 7 8 8 9 9 9 10 10 11 13 18 27 0 5 10 15 20 25 30 Great for professional/college sports Natural, unspoiled scenic beauty Interesting inns/bed & breakfasts Truly beautiful scenery Warm, friendly people Good weather in the summer Good trail system Noted for its cleanliness Great for winery/vineyard touring Not too crowded Good contrast of seasons Great for outdoor adventure sports Great for beaches/watersports Beautiful fall colors/foliage Good for motorsports/NASCAR… Diverse landscape NC Image Strengths vs. Competition Source: Longwoods International, Trone Consumer Panel
  11. 11. Focusing on these areas will leverage North Carolina’s current tourism strengths Personality· Assets· Promise Sources: North Carolina Department of Commerce Overnight Visitor Activities in North Carolina 2012 Visiting Relatives/Family Reunion 31.6% Nightclubs/Dancing 4.3% Shopping 20.5% Old homes/Mansions 3.9% Beach 17.7% Fishing (salt or freshwater) 3.9% Visiting Friends 17.2% Gardens 3.8% Rural Sightseeing 13.8% Art Galleries 3.4% Fine Dining 13.2% Casino/Gaming 3.3% Historic Sites/Churches 8.7% Special Events 3.3% State/National Park 8.3% Nature Travel/Eco Touring 3.3% Urban Sightseeing 7.5% Wine Tasting/Winery Tour 2.8% Wildlife Viewing 6.1% Golf 2.7% Museums 6.0% Zoos 2.6% Hiking/Backpacking 4.4% Biking 2.3% 0 5 10 15 20 25 1995 1999 2003 2007 2011 BillionsofDollars Annual NC Visitor Expenditures Average annual growth: 4.7% 11 “After our beaches take your breath away, you’ll breath a little easier”
  12. 12. 12 Fresh Air, Open Arms North Carolina PromiseNorth Carolina AssetsNorth Carolina Personality Personality· Assets· Promise
  13. 13. The North Carolina brand should promise to foster a high-quality residential environment Personality· Assets· Promise NC cost of living is well below national average NC has the14th lowest health care & hospital expenditures Personal health care expenditure* Hospital care expenditure* North Carolina $6,444 $2,280 U.S. $6,815 $2,475 *per capita; annual figure 13 Source: Thrivenc.com – North Carolina Dept. of Commerce
  14. 14. The North Carolina brand should promise to encourage educational opportunities Personality· Assets· Promise Funding for public research universities per enrolled student (2010) $16,74 6 NC is the #3 state in funding per student 14 Source: National Science Foundation
  15. 15. The North Carolina brand should promise to foster a thriving business climate Personality· Assets· Promise Source: Forbes, Ernst & Young, CNBC 15 North Carolina is ranked the 4th best state for business #1 lowest local & state tax burden on business #3 workforce (education, availability, etc.)
  16. 16. The North Carolina brand should promise to promote progress and innovation Personality· Assets· Promise Source: Researchtriangle.org 16 HQs and offices of leading businesses • Bank of America, Lowe’s, BB&T, etc. Top-tier research universities University of North Carolina – Chapel Hill North Carolina State University Wake Forest University Duke University
  17. 17. The North Carolina brand could increase state tourism revenues by $6.15 billion over the next 5 years 17 0 5000 10000 15000 20000 25000 30000 2013 2014 2015 2016 2017 2018 MillionsofDollars Incremental Tourism Revenues Incremental Revenue Base Revenue Discounted incremental revenues over 5 years of $6.15 billion
  18. 18. This slogan reinforces all three components that comprise North Carolina’s authentic brand Fresh Air, Open Arms Effective implementation can increase state tourism revenue $6.15B over 5 years North Carolina PromiseNorth Carolina AssetsNorth Carolina Personality 18
  19. 19. Appendix 19 Financial Analysis • Assumptions • Revenue Analysis – Pt. 1 • Revenue Analysis – Pt. 2 • Revenue Analysis – Pt. 3 • Cost Analysis – Pt. 1 • Cost Analysis – Pt. 2 • Profitability Analysis Demographic & Tourism Information • NC Population Statistics • NC Visitor Spending • NC Hotel/Motel Demand Benchmarking • Key Features of MI & CO Campaigns • Pure Michigan Campaign Stats • Pure Michigan Spending Breakdown • Pure Michigan Spending Breakdown cont. • Colorado Campaign Results • Colorado: Effects of Cutting Ad Spending Education Information • Top NC University Rankings • Additional Educational Rankings • US Research University Funding • K-12 Educational Statistics
  20. 20. North Carolina Population Statistics 20 • NC added almost 100,000 people from 2012 to 2013 (4th in US) • NC population growth rate is 3.3% (14th in US) • NC has 10th largest population; only 50,000 behind Michigan • NC is the only “high in-bound” state (>55% of moves coming into the state) for every year since 2004. • 70% of the population growth is concentrated in urban areas • 92% of net growth in population is non- white Return to Appendix Reasons People Move to NC Source: Daily Tar Heel, Winston Salem Journal, UNC Carolina Population Center
  21. 21. NC Visitor Spending 21 Average Growth Rate of 4.7% annually Source: North Carolina Dept. of Commerce Return to Appendix
  22. 22. NC Increasing Visitor Numbers 22 NC Hotel/Motel Room Demand 2008-2013 Source: North Carolina Dept. of Commerce Return to Appendix
  23. 23. NC should crowd-source ideas, then emulate the campaign in Michigan, not Colorado 23 It’s Our Nature NC must crowd- source to create authentic slogan, but must pre-test campaign to ensure success • Did not pre-test! • Abandoned successful “Come to Life” campaign • Contracted private ad agency • Returns $5.76 for each dollar spentSource: SME Interview Collection, Denver Post, Longwoods Int’l Pure Michigan Report 2012 Return to Appendix
  24. 24. Pure Michigan Campaign Statistics 24 • Pure Michigan was responsible for 3.8 million visitors in 2012 • Those visitors spent $1.1B, generating $79M in tax revenues for the state • State received $5.76 per dollar spent on the campaign • Cumulative ROI is $4.10 per dollar spent since 2006 • 62% of Lodging & Tourism Association members said out- of-state visitors increased Source: Michigan Economic Development Corporation, Longwoods International Return to Appendix
  25. 25. Pure Michigan Spending Breakdown 25 Pure Michigan Out-of-State Media Plan Source: Michigan Economic Development Corporation Return to Appendix
  26. 26. Pure Michigan Spending Breakdown cont. 26 Business Marketing Component Media Partners: Wall Street Journal, Bloomberg Businessweek, LinkedIn, Site Selection, IBTimes etc. Grand Total Media Expense: $1,848,464 Source: Michigan Economic Development Corporation Return to Appendix
  27. 27. Results of Colorado Branding Effort 27 It’s Our Nature “That’s what we came up with?” – Mark Ferrandino, Colorado House Speaker According to multiple SME interviews, major cause of Colorado branding struggles was lack of pre-testing Many tourism experts are puzzled & worried that Colorado has not pursued “Come to Life” campaign that has shown promise – returned $17 per dollar spent on campaign Source: The Denver Post, SME Interviews Return to Appendix
  28. 28. Effects of Cutting Advertising Spending 28 In 1993, Colorado became the first state to eliminate its tourism marketing function. It cut the budget from $12M annually to $0. Summer Resort Destination Rank 1993 - #1 1994 - #17 Source: Longwoods International whitepaper Return to Appendix
  29. 29. Support has cultivated quality public universities in addition to private 2014 National University Rankings University of North Carolina – Chapel Hill #30 North Carolina State University #101 Wake Forest University #23 Duke University #7 These universities (and many more) provide NC residents with a variety of nearby, high-quality options for higher education Source: US News & World Report 29 Return to Appendix
  30. 30. Additional Educational Rankings • On a ranking of the “National Best Universities” – Duke (7), Wake Forest University (23), UNC Chapel Hill (30), North Carolina State University (101) • On a ranking of the best “Public Universities” – UNC Chapel Hill (5) • On a ranking of the best “National Liberal Arts Colleges” – Davidson (9) • On a ranking of the best universities “In the South” – Elon University (1), Appalachian State University (9), UNC Wilmington (15), Queens University (18), Campbell University (27) • On a ranking of the best universities in the “Regional Market” – High Point University (1), Meredith College (2) • On a ranking of the best “Historically Black Colleges” – seven schools ranked in North Carolina, including North Carolina A&T (8), North Carolina Central (12) • North Carolina ranks 48/51 on per-student support for public schools Source: Brand NC Fact Pack 30 Return to Appendix
  31. 31. NC is in the top quartile of all states in public research university funding Source: National Science Foundation 31 Return to Appendix
  32. 32. In addition to its higher education system, the K-12 system in North Carolina is very strong • North Carolina leads the country in the number of National Board Certified teachers with 19,799; that is 20% of all the National Board Certified Teachers in US • CBS News listed NC #14 on its ranking of Best Performing Public School Students by State (based on scores from the National Assessment of Educational Progress • Education Week gave NC the 17th best overall score when evaluating each state in six areas of educational policy and performance 32 Source: Thrivenc.com – North Carolina Dept. of Commerce, CBS News, Education Week Return to Appendix
  33. 33. Financial Assumptions 33 1. The growth rate of NC’s tourism industry (3.27% from 2000 – 2009; 7.52% from 2010 – 2013). 2. The proportion of in-state to out-of-state tourists (60% and 40% respectively) will remain the same over the 5-year forecast 3. The incremental increase in out-of-state tourism was based on a benchmark from Michigan’s “Pure Michigan” campaign. In 2012, the campaign was responsible for about 5.5% of state tourism revenue. Last year, tourism resulting from the campaign increased 18%. As the success of the “Pure Michigan” campaign will be difficult to emulate. The percentages used in this model are much more conservative than those statistics. 4. The incremental increase of in-state tourism are reasonable estimates based on the amount of advertising money budgeted for the campaign as well as the projected effectiveness of the campaign 5. The total cost estimates were based on information provided by Professor Nick Didow. He gave an estimated budget of $10M-40M annually depending on the success of the campaign
  34. 34. Revenue Analysis – Pt. 1 34 2013 2014 2015 2016 2017 2018 Current Revenue Projection (Millions) 19798 20194 20598 21010 21430 21859 In-State (60%) 11879 12116 12359 12606 12858 13115 Out-of-State (40%) 7919 8078 8239 8404 8572 8744 Projected % increase due to advertising In-State Increase - 1% 4% 2% 1% 1% Out-of-State Increase - 0.5% 2% 4% 5% 6% Incremental Tourism Revenue Pessimistic In-State incremental revenue - 130 526 291 180 176 Out-of-State incremental revenue - 40 186 361 455 490 Total incremental tourism revenue - 170 713 653 635 665 2836 = Total incremental revenue over 5 years (non-discounted) Pessimistic Case
  35. 35. Revenue Analysis – Pt. 2 35 = Total incremental revenue over 5 years (non-discounted) 2013 2014 2015 2016 2017 2018 Current Revenue Projection (Millions) 20322 21277 22277 23324 24421 25569 In-State (60%) 12193 12766 13366 13995 14652 15341 Out-of-State (40%) 8129 8511 8911 9330 9768 10227 Projected % increase due to advertising In-State Increase - 2% 5% 3% 2% 2% Out-of-State Increase - 1% 3% 6% 8% 8% Incremental Tourism Revenue Moderate In-State incremental revenue - 255 668 420 293 307 Out-of-State incremental revenue - 85 267 560 781 818 Total incremental tourism revenue - 340 936 980 1075 1125 4455 Moderate Case
  36. 36. Revenue Analysis – Pt. 3 36 Optimistic Case 2013 2014 2015 2016 2017 2018 Current Revenue Projection 20769 22223 23778 25443 27224 29129 In-State (60%) 12461 13334 14267 15266 16334 17478 Out-of-State (40%) 8307 8889 9511 10177 10889 11652 Projected % increase due to advertising In-State Increase - 3% 6% 4% 3% 3% Out-of-State Increase - 2% 4% 7% 10% 10% Incremental Tourism Revenue Optimistic In-State incremental revenue - 385 813 598 479 505 Out-of-State incremental revenue - 168 344 707 1132 1183 Total incremental tourism revenue - 553 1158 1306 1612 1688 6316 = Total incremental revenue over 5 years (non-discounted)
  37. 37. Cost Analysis – Pt. 2 37 Campaign Cost Pessimistic 2014 2015 2016 2017 2018 Michigan Benchmark Ad Agency Expense 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 50% 20% In-State Tourism Spending 3,000,000 2,000,000 1,000,000 1,000,000 1,000,000 10% 3% Regional Tourism Spending 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 20% 13% National Tourism Spending - - - - - 0% 44% Digital & Other Ad Spending 1,000,000 1,000,000 1,000,000 10% 8% International Tourism Spending - - - - - 0% 3% National Business Marketing - 1,000,000 1,000,000 1,000,000 1,000,000 10% 8% Total 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 100% 100% Campaign Cost Moderate 2014 2015 2016 2017 2018 Michigan Benchmark Ad Agency Expense 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 17% 20% In-State Tourism Spending 3,000,000 2,000,000 1,500,000 1,000,000 500,000 2% 3% Regional Tourism Spending 2,000,000 6,000,000 6,000,000 5,000,000 3,000,000 10% 13% National Tourism Spending - - 5,000,000 10,000,000 15,000,000 50% 44% Digital & Other Ad Spending 1,000,000 1,000,000 2,000,000 2,000,000 7% 8% International Tourism Spending - - - - 2,000,000 7% 3% National Business Marketing - 1,000,000 1,500,000 2,000,000 2,500,000 8% 8% Total 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 100% 100%
  38. 38. Cost Analysis – Pt. 2 38 Campaign Cost Optimistic 2014 2015 2016 2017 2018 Michigan Benchmark Ad Agency Expense 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 13% 20% In-State Tourism Spending 3,000,000 2,000,000 2,000,000 2,000,000 2,000,000 5% 3% Regional Tourism Spending 2,000,000 6,000,000 6,000,000 6,000,000 6,000,000 15% 13% National Tourism Spending - 5,000,000 12,000,000 20,000,000 20,000,000 50% 44% Digital & Other Ad Spending 1,000,000 2,000,000 2,500,000 2,500,000 6% 8% International Tourism Spending - - 500,000 1,500,000 1,500,000 4% 3% National Business Marketing - 1,000,000 2,500,000 3,000,000 3,000,000 8% 8% Total 10,000,000 20,000,000 30,000,000 40,000,000 40,000,000 100% 100%
  39. 39. Profitability Analysis 39 Pessimistic Case (in Millions) 2014 2015 2016 2017 2018 Incremental Revenues 170 713 653 635 665 Total Cost (10) (10) (10) (10) (10) Statewide Tourism Profits 160 703 643 625 655 Moderate Case (in Millions) 2014 2015 2016 2017 2018 Incremental Revenues 340 936 980 1075 1125 Total Cost (10) (15) (20) (25) (30) Statewide Tourism Profits 330 921 960 1050 1095 Optimistic Case (in Millions) 2014 2015 2016 2017 2018 Incremental Revenues 553 1158 1306 1612 1688 Total Cost (10) (20) (30) (40) (40) Statewide Tourism Profits 543 1138 1276 1572 1648

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