North Carolina could attract more tourists through a new branding campaign focused on adventure. The team proposes branding NC with the slogan "Adventure Welcomes You" to appeal to tourists' interests in nature and activities. Implementing targeted marketing to neighboring states and growing awareness through advertising could increase NC's tourism revenues by 18% over 5 years, generating $8.84 billion in additional revenue. Rebranding involves emphasizing the state's natural beauty and positioning it as a destination for outdoor adventures.

1. Team: The Brandstormers
Jeremy Hollenbeck & George Imura
April 7, 2014

2. Brand Implement Grow
North Carolina could attract more tourists to the state by
creating an appealing brand that focuses on adventure
2
Implement the brand by
marketing to neighboring states
Grow NC tourism with a smart
ad campaign
Brand NC to encompass its
natural beauty and core values
A fun, memorable slogan will appeal
to NC tourists and out-of-state
tourists alike
Increase tourism #’s and $’s through
the brand launch
Emphasize NC’s natural wonders and
the adventures that await
Rebranding NC could lead to an 18% increase in tourism over the next 5 years,
and could garner incremental revenue of $8.84B by 2018
ADVENTURE
WELCOMES YOU
The New Slogan:

3. Brand Implement Grow
People strongly associate NC with hospitality and community,
but not with inclusiveness and equality
3
0
1
2
3
4
5
Core Values Rated by Agreement
“Adventure
Welcomes You”
reflects the
friendliness and
hospitality that NC
offers
Source: Nick Didow, Team Analysis
1 = Strongly Disagree
5 = Strongly Agree

4. Brand Implement Grow
NC is broadly associated with its natural beauty, but also stands
as a blank canvas to many
4
58% 42%
NOTHING
Due to the lack of specific identifiers,
“NC” should be explicitly included in
the slogan
Source: Nick Didow, Personal Analysis

5. Brand Implement Grow
NC stands to increase tourism revenues by emulating previous
successes in other states
5
StrongPoor
Higher
Tourism Ranking
SAS Brand Rating
Lower
Source: Bloom Brand Ratings

6. Brand Implement Grow
Crowdsourcing ideas could allow NC to have greater success
with its rebranding
6
-Contracted private agency
-Pretested
-Cumulative ROI of $4.10
per dollar spent since 2006
Source: Longwoods International, MEDC
-Abandoned successful
campaign in 2012
-Implemented new brand
without pretesting
Creating an authentic and
appealing slogan could
lead to greater ROI for
NC’s brand campaign

7. Brand Implement Grow
NC’s presence is not well-defined, but it ranks highly on
different metrics
7
1st most
desirable state
of residence
3rd most
friendly state
8th most
beautiful
scenery
6th favorite
state of
Americans
Use advertising campaigns to define NC as a destination
for adventure and differentiate it from surrounding states

8. Brand Implement Grow
Most overnight visitors in NC are residents; our brand could
expand overnight visits for surrounding states
8
States that account for overnight visitors in 2012
36%
SC8%VA 7%
GA 7% FL 7%
Average party size was 2
people
Festivals
Seasonal Ads
Social Media
Trip Packages
Source: US Travel Stats, NC Dept of Commerce

9. Brand Implement Grow
NC only captures a small percentage of family vacationers, but
could increase in popularity with targeted ads
9
Source: Simply Map, NC Dept of Commerce
Increase in 2012
tourism expenditures
of overnight visitors
come by automobile84%
5.4%
Capitalize on the heavy
use of automobiles and
target families in
neighboring states

10. Brand Implement Grow
After brand launch, NC could increase revenues and increase
tourism by 17.63% over 5 years
10
CAGR: 3.3%
5-year change: 17.63%
30
32
34
36
38
40
2013 2014 2015 2016 2017 2018
Projected room demand after
brand implementation (proxy for
visitor #s) High
Moderate
Low
Source: NC Dept of Commerce, Personal Analysis
$1,500.00
$1,600.00
$1,700.00
$1,800.00
$1,900.00
$2,000.00
2014 2015 2016 2017 2018
Projected revenue
from tax receipts ($M)

11. Brand Implement Grow
In the next 5 years, NC could get a total profit of $8.5B through
continued partnership with ad agency
11
Source: NC Dept of Commerce, Nick Didow
$-
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
2014 2015 2016 2017 2018
Projected Profit ($M)
using estimated ad agency budget
Assume that the
state’s investment
in the ad agency
will be frontloaded
as the brand is
launched

12. Brand Implement Grow
North Carolina could attract more tourists to the state by
creating an appealing brand that focuses on adventure
12
Implement the brand by
marketing to neighboring states
Grow NC tourism with a smart
ad campaign
Brand NC to encompass its
natural beauty and core values
A fun, memorable slogan will appeal
to NC tourists and out-of-state
tourists alike
Increase tourism #’s and $’s through
the brand launch
Emphasize NC’s natural wonders and
the adventures that await
Rebranding NC could lead to an 18% increase in tourism over the next 5 years,
and could garner incremental revenue of $8.84B by 2018
ADVENTURE
WELCOMES YOU
The New Slogan:

13. Brand Implement Grow
APPENDIX
13
Main Visitor Attractions
Comparable Branding Efforts
Day Trippers vs Overnighters Data
Tourism Growth Assumptions
Revenue Analysis
Increase in Tourism #s
Future Brand Awareness
Business Appeal
Visitor Spending Data

14. Brand Implement Grow
Main visitor activities in NC
14

15. Brand Implement Grow
Other comparable branding efforts
15
Colorado
Kentucky
Michigan
“It’s Our Nature.”
“Unbridled Spirit”
Appendix

16. Brand Implement Grow
Leisure is the most common reason for visiting NC, and
overnighters spend significantly more
16
$446.58
$63.18
$30.24
$132
$18
$36
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00 $500.00
Leisure
Business
Personal/Other
Average Total Spending by Daytrippers vs
Overnighters
NC Daytripper
NC Overnighter

17. Brand Implement Grow 17
Visitor spending and taxes due to advertising

18. Brand Implement Grow
Assumptions regarding tourist growth estimations
18
Appendix
- The official NC brand will be introduced in mid-2014
- The festival will take place after the US Open in Pinehurst
- The conservative growth estimate for room demand
(tourism #s) assumes a 2.75% CAGR
- The moderate estimate assumes 3.30% CAGR
- The optimistic estimate assumes 4.13% CAGR
- The conservative case leads to a 15% increase in tourism
over 5 years
- The moderate case leads to a 17.6% increase in tourism
over 5 years
- The optimistic case leads to a 22% increase in tourism
over 5 years

19. Brand Implement Grow
Revenue (tax receipts) analysis for all three cases
19
Appendix
Conservative Estimate (current CAGR) 2014 2015 2016 2017 2018
Assumed Growth Rate 2.66% 2.66% 2.66% 2.66% 2.66%
Yearly Revenue ($M) $ 1,621.79 $ 1,664.93 $ 1,709.22 $ 1,754.68 $ 1,801.36
Total Revenue ($M) $ 8,551.97
Moderate Estimate (+70% Decaying CAGR) 2014 2015 2016 2017 2018
Assumed Growth Rate 4.5% 3.5% 3.5% 3.5% 3%
Yearly Revenue ($M) $ 1,650.86 $ 1,708.64 $ 1,768.44 $ 1,830.34 $ 1,885.25
Total Revenue ($M) $ 8,843.51
Optimistic Estimate (+160% Decaying CAGR) 2014 2015 2016 2017 2018
Assumed Growth Rate 7% 5% 3.5% 3.5% 3.5%
Yearly Revenue ($M) $ 1,690.35 $ 1,774.87 $ 1,836.99 $ 1,901.28 $ 1,967.83
Total Revenue ($M) $ 9,171.32
The worst case assumes that NC tourism
revenues will grow at 2008-2012 CAGR

20. Brand Implement Grow
Increase in tourism numbers for all three cases
20
Appendix
20
22
24
26
28
30
32
2014 2015 2016 2017 2018
High
Moderate
Conservative

21. Brand Implement Grow
Future Plans Around Brand Awareness
21
Appendix
A strong, appealing brand that represents
NC while still attracting out-of-staters
Branded
merchandise
will keep NC
fresh in
people’s minds
More regular
festivals
celebrating the
brand
External
advertising to
increase out-
of-state
interest
ADVENTURE
WELCOMES YOU

22. Brand Implement Grow
NC room demand has accelerated quicker than overall travel
spending within US
22
0
100
200
300
400
500
600
700
800
23
24
25
26
27
28
29
30
31
32
2008 2009 2010 2011 2012 2013
Room Demand (M)
Domestic Travel Spending in US
($B)
Appendix
Source: Frost & Sullivan

23. Brand Implement Grow 23
“Adventure Welcomes You” also exhibits business appeal
NC is ranked 4th best state
for business
NC is the 2nd lowest
local and state tax
burdened state on
businesses
Source: NC Dept. of Commerce