brandnc-dspunc
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BRAND NC
LISA MYERS, NICK BRENNER, LAUREN GIL,
JOHN DEBLOCK, KENNY HAMILTON
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 Promise
North Carolina AssetsNorth Carolina Personality
3
Fresh Air, Open ArmsNorth Carolina
PromiseNorth Carolina AssetsNorth Carolina
Personality
Personality· Assets· Promise
4
To capture North Carolina’s personality, the brand must reflect North Carolinian values
Personality· Assets· Promise
22.5
33.5
44.5
5 North Carolina Core Values
“Fresh Air, Open Arms” reflects the values held by North Carolinians
Agreeableness• Warm• Compassionate• Co-operative• Friendly
Conscientiousness• Dutiful• Responsible• Self-disciplined
NC’s Highest Scoring Traits
Sources: Brand NC Fact Pack, Cambridge University Personality Map
5
North Carolina’s brand must appeal to changing demographics within the state
22.5
33.5
44.5
5 North Carolina Core Values
“Fresh Air, Open Arms” also captures an aspiration to improve inclusiveness and equality
Personality· Assets· PromiseSources: 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
North Carolina is home to people with different views all along the political spectrum
Personality· Assets· PromiseSources: USelectionatlas.org
2012
“Fresh Air, Open Arms” celebrates all kinds of diversity
Republican: 50.39%
Democrat: 48.35%
7
North Carolina has a wide variety of cultures spread throughout the state
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
Fresh Air, Open ArmsNorth Carolina
PromiseNorth Carolina AssetsNorth Carolina
Personality
Personality· Assets· Promise
9
North Carolina has beautiful and diverse natural assets that are unique to the state
Personality· Assets· Promise
Grandfather Mountain State Park
The Mile High Swinging Bridge
Blue Ridge Parkway The Outer Banks
10
The brand must build on North Carolina’s strong image as natural haven
Personality· Assets· Promise
Many people associate North Carolina with
natureGreat for professional/college sports Natural, unspoiled scenic beauty Interesting inns/bed & breakfasts
Truly beautiful scenery Warm, friendly people
Good weather in the summerGood 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 events
Diverse landscape
0 5 10 15 20 25 306677788999101011
1318
27NC Image Strengths vs. Competition
Source: Longwoods International, Trone Consumer Panel
11
Focusing on these areas will leverage North Carolina’s current tourism strengths
Personality· Assets· PromiseSources: North Carolina Department of Commerce
Overnight Visitor Activities in North Carolina 2012Visiting 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
Billi
ons
of D
olla
rs
Annual NC Visitor Expenditures
Average annual
growth: 4.7%“After our beaches take your breath away, you’ll breath a little easier”
12
Fresh Air, Open ArmsNorth Carolina
PromiseNorth Carolina AssetsNorth Carolina
Personality
Personality· Assets· Promise
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
Source: Thrivenc.com – North Carolina Dept. of Commerce
14
The North Carolina brand should promise to encourage educational opportunities
Personality· Assets· Promise
Funding for public research universities per enrolled student (2010)
$16,746
NC is the #3 state
in funding per
student
Source: National Science Foundation
15
The North Carolina brand should promise to foster a thriving business climate
Personality· Assets· PromiseSource: Forbes, Ernst & Young, CNBC
North Carolina is ranked the 4th best state for business#1 lowest local & state tax burden on business
#3 workforce (education, availability, etc.)
16
The North Carolina brand should promise to promote progress and innovation
Personality· Assets· PromiseSource: Researchtriangle.org
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
The North Carolina brand could increase state tourism revenues by $6.15 billion over the next 5 years
2013 2014 2015 2016 2017 20180
5000
10000
15000
20000
25000
30000
Incremental Tourism Revenues
Incremental RevenueBase Revenue
Mill
ions
of
Dol
lars Discounted
incremental revenues over 5
years of$6.15 billion
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 Promise
North Carolina AssetsNorth Carolina Personality
19
Appendix
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 Ranki
ngs• US Research University Fund
ing• K-12 Educational Statistics
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
NC Visitor Spending
Average Growth Rate
of 4.7% annually
Source: North Carolina Dept. of Commerce
Return to Appendix
22
NC Increasing Visitor Numbers
NC Hotel/Motel Room Demand 2008-2013
Source: North Carolina Dept. of Commerce
Return to Appendix
23
NC should crowd-source ideas, then emulate the campaign in Michigan, not Colorado
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
Pure Michigan Campaign Statistics• 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
Pure Michigan Spending BreakdownPure Michigan Out-of-State
Media Plan
Source: Michigan Economic Development Corporation
Return to Appendix
26
Pure Michigan Spending Breakdown cont.
Business Marketing ComponentMedia 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
Results of Colorado Branding Effort
It’s Our Nature
“That’s what we came up with?”– Mark Ferrandino, Colorado House SpeakerAccording 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
Effects of Cutting Advertising Spending
In 1993, Colorado became the first state to eliminate its tourism marketing function. It cut the budget from $12M annually to $0.
Summer ResortDestination Rank
1993 - #1
1994 - #17
Source: Longwoods International whitepaper
Return to Appendix
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 ForestUniversity
#23
Duke University
#7
These universities (and many more) provide NC residents with a variety of nearby, high-quality options for higher
educationSource: US News & World Report
Return to Appendix
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
Return to Appendix
31
NC is in the top quartile of all states in public research university funding
Source: National Science Foundation
Return to Appendix
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
Source: Thrivenc.com – North Carolina Dept. of Commerce, CBS News, Education Week
Return to Appendix
33
Financial Assumptions1. 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 forecast3. 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
Revenue Analysis – Pt. 1
2013 2014 2015 2016 2017 2018Current Revenue Projection (Millions) 19798 20194 20598 21010 21430 21859
In-State (60%) 11879 12116 12359 12606 12858 13115Out-of-State (40%) 7919 8078 8239 8404 8572 8744
Projected % increase due to advertisingIn-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 176Out-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
Revenue Analysis – Pt. 2
= Total incremental revenue over 5 years (non-discounted)
2013 2014 2015 2016 2017 2018Current Revenue Projection (Millions) 20322 21277 22277 23324 24421 25569
In-State (60%) 12193 12766 13366 13995 14652 15341Out-of-State (40%) 8129 8511 8911 9330 9768 10227
Projected % increase due to advertisingIn-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 307Out-of-State incremental revenue - 85 267 560 781 818
Total incremental tourism revenue - 340 936 980 1075 1125 4455
Moderate Case
36
Revenue Analysis – Pt. 3
Optimistic Case2013 2014 2015 2016 2017 2018
Current Revenue Projection 20769 22223 23778 25443 27224 29129In-State (60%) 12461 13334 14267 15266 16334 17478
Out-of-State (40%) 8307 8889 9511 10177 10889 11652Projected % increase due to advertising
In-State Increase - 3% 6% 4% 3% 3%Out-of-State Increase - 2% 4% 7% 10% 10%
Incremental Tourism Revenue OptimisticIn-State incremental revenue - 385 813 598 479 505
Out-of-State incremental revenue - 168 344 707 1132 1183Total incremental tourism revenue - 553 1158 1306 1612 1688 6316
= Total incremental revenue over 5 years (non-discounted)
37
Cost Analysis – Pt. 2Campaign Cost Pessimistic
2014 2015 2016 2017 2018Michigan 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 2018Michigan 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
Cost Analysis – Pt. 2
Campaign Cost Optimistic
2014 2015 2016 2017 2018Michigan 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
Profitability AnalysisPessimistic Case (in Millions)
2014 2015 2016 2017 2018Incremental Revenues 170 713 653 635 665Total 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 1125Total 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 1688Total Cost (10) (20) (30) (40) (40)Statewide Tourism Profits 543 1138 1276 1572 1648
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