brandnc-dspunc

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


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



Personality


9

North Carolina has beautiful and diverse natural assets that are unique to the state


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


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



Personality


13

The North Carolina brand should promise to foster a high-quality residential environment


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


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



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


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


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


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


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