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HomeMy WebLinkAbout03/17/1998, C6 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS Council "'�'3 1-1 j acEnaa Repoin �N C I T Y O F SAN LU I S O B 1 S P O FROM: Ken Hampian,Assistant City Administrative Officer � Prepared By: Wendy George,Assistant to the City Administrative Officer W SUBJECT: Use of Promotional Coordinating Committee (PCC) Enhanced Promotional Funds CAO RECOMMENDATION Approve the PCC's recommendation to allocate Enhanced Promotional Funds as follows: 1. $7,000 for promotion of the Business Improvement Association's Farmers' Market 15th Anniversary Celebration. 2. $1,400 for promotion and marketing of the Business Improvement Association's "How to Have a Farmers'Market in your Town" video. DISCUSSION Background Several years ago,in conjunction with an increase in the Transient Occupancy Tax (TOT) from 9% to 10%, the City created an Enhanced Promotional Fund to be used to finance innovative promotional ideas and provide seed money for new special events. Annually, the PCC makes recommendations to the City Council on how this fund should be spent. At its last meeting, the PCC was presented with two requests for funding from the Business Improvement Association (BIA). Promoting the Farmers' Market 15th Anniversary Celebration This year marks the 15th anniversary of Farmers'Market. The BIA plans to use the anniversary as an opportunity to upgrade the promotion for this event and encourage visitors to extend their stay in the community overnight. The celebration is scheduled for the Thursday before Cal Poly's graduation. The BIA has worked with the City's advertising firm, Barnett Cox and Associates, to create a marketing plan addressed toward graduation attendees. The BIA hopes to obtain lists of guest already registered at hotels in the area for Friday and Saturday nights and send them information encouraging them to attend the celebration on Thursday night, as well. As an enticement, the BIA would like to work with the hotels to develop a discounted "package" and will create an incentive program using giveaways for those guests who do include a visit to Farmers'Market as part of their graduation plans. The BIA will also advertise through the Mustang Daily so students can encourage their parents to come to town a day early. In addition to requesting funding for advertising and promotional materials, such as the Council Agenda Report-Use of Enhanced Promotional Funds Page 2 "giveaways", the BIA is also asking for help in purchasing anniversary banners. The banners will be designed with language allowing their use for future anniversaries as well. To do so,the banners will simply state the date the event was established, rather than designating the number of years being celebrated Funding for Farmers' Market Video The BIA is also requesting funding to cover expenses involved with promoting its new video "How to Have a Fanners'Market in Your Town". The video was created with a double purpose in mind. It will relieve the BIA of much time currently spent talking to other communities wishing to start their own Farmers' Markets. At the same.time, it also showcases San Luis Obispo as a lovely vacation area by presenting information on local tourist attractions and the history of the area. The BIA believes that when the video is shown in other communities it will not only provide needed information,but will have the effect of inducing viewers to visit San Luis Obispo. BIA members will be attending the National Main Street Conference in Pittsburgh, Pennsylvania, this spring and will have a trade show booth where the video will play on a continuous loop. The BIA has requested that PCC funding be used for costs involved with setting up the booth and providing advertising materials for the video. PCC Recommendation The PCC had some concerns with the BIA's first request for funding for the 15th Anniversary Celebration, as it is not scheduled during the off-season, the request is not for "seed money" for a new event, and it will likely not be cost effective in its immediate tourism returns. Accordingly, the PCC asked the BIA to work with Barnett Cox and Associates to refine the request so that it would constitute a more appropriate use of Enhanced Promotional funds. As a result, the proposal was narrowed to focusing on attendees at Cal Poly graduation and encouraging them to come to town a day early and stay overnight mid-week when motel rooms would not ordinarily be full. . Additionally, the general theme of the Celebration is to encourage people to "rediscover" Farmers' Market. While Farmers' Market continues to be successful, the BIA believes that many former visitors have drifted away and need to be enticed back to the event. By tying the Celebration into Cal Poly graduation,the BIA hopes to bring back former students and encourage graduates to come back in the future. The PCC strongly believes.that Farmers' Market is a significant year-round tourist attraction and that it deserves to be supported as such. Thus, the concept of reaching back to former visitors, as well as encouraging new ones,appealed to the committee members. Finally, while the idea of joining a Farmers' Market anniversary celebration with Cal Poly graduation on an annual basis in the future was not addressed by the proposal, staff believes that, if the event is successful, the BIA should be encouraged to pursue this option. The PCC was satisfied that the revised plan was realistic and would not only achieve recognition of the success and importance of Farmers' Market to the City of San Luis Obispo, but would provide additional promotional opportunities which would increase mid-week tourism. Accordingly, the PCC was pleased to approve the BIA's funding request. C-6-2 Council Agenda Report-Use of Enhanced Promotional Funds Page 3 FISCAL EM PACT There is currently$50,000 in the Enhanced Promotional Fund. The total BIA request is for$8,400, broken down as follows: Anniversary banners $3,500 Advertising and promotion for anniversary $3,500 Trade Show Booth $ 500 Advertising and marketing for video $ 900 Total $89400 Attachments 1 -Proposal from BIA 2 -PCC minutes for February 11, 1998 c-�-3 6 February 1998 To: Sandy Baer, PCC Chair From: Deborah Holley,BIA Administrator Re: Revised funding request The BIA respectfully submits this revised request for program funds that we believe more closely meets the criteria developed for enhanced promotional funding. This year marks the 15th Anniversary of Farmers' Market. Recognizing the opportunity to market this as a mega-promotion,the BIA has planned two specific activities designed to create awareness of the market while bringing visitors to the area for extended weekends. These are a video produced by the BIA entitled,"How To Have A Farmers' Market In Your Town,"and a special one-evening celebration on June 11 as described below. The video was initially produced in response to an overwhelming number of requests from other communities about how a Farmers' Market runs. Over the past years,it has not been uncommon for contingencies of representatives from these communities to come to San - - Luis Obispo for a consultation and tour. The video enables more communities to access the information without the travel expense and provides more information than can typically be provided in a two hour consultation. However, it is our feeling that once the video is shown, viewers will be inspired to make the trip anyway and see the event firsthand. Also,a handbook that includes detailed information on all aspects of the market is included with the video. The video is not simply a How-To,it also includes dialog about and shots of tourist attractions and historical data that serve to showcase San Luis Obispo as a lovely and enchanting vacation area. Marketing of the video is underway and sales have been made to communities in California. BIA Administrator Deborah Holley,along with TNA Coordinator Peter Eberle, will be attending the National Main St. Conference in Pittsburgh,PA,this spring to make a presentation on the video and have a trade show booth where the video will play on a continuous loop. The BIA will invite attendees at the National Town Meeting to the California Network Meeting in June to experience the market in person. It is critical to construct a professionally designed trade show booth and have materials available such as order forms, brochures and flyers available. In addition,all these materials will need to be shipped ahead and a fee paid for the booth. Estimated costs are as follows: Trade Show Booth 500.00 Printing 200.00 Fees 150.00 Postage 50.00 Other Advertising/ Marketing 500.00 (this would be in Main St. Publications, tourism and Total 1,400 trade publications) ATTACHMENT 1 Concerning the 15th Anniversary celebration,the BIA has planned events as outlined in our previous request that signify the special occasion such as a marching band, searchlight, special entertainment, giveaways and more. To make this an event that attracts overnight guests to the area,the BIA has decided to pursue a unique approach to filling hotel rooms on Thursday,June 11. As the weekend of June 13 - 14 is Cal Poly graduation,it may be feasible to obtain lists of guests already registered at hotels in the area for Friday and Saturday nights and send them information enticing them to attend the celebration on the previous Thursday night. Perhaps some hotels might be willing to offer a slight discount for that night as part of a three-night- package. As further incentive,the BIA could offer some type of giveaway such as a rib- bone key chains to those redeeming coupons that are sent with the flyers. This would also enable us to track how many "takers"there were on the offer. For those who haven't registered yet,the BIA would devise catchy advertising in the Mustang Daily so that students could encourage their parents to come a night early and see the market. We believe that reaching people who are already coming to town may be an easier sell than trying to attract guests for three evenings who may not be familiar with San Luis Obispo. For the 15th year celebration,we have or expect to incur expenses including the following: Banners 3,500 (these would be reused annually) Advertising 2,500 Promotional Costs 1.000 (giveaways,rental equipment) Total 7,000 Total request for funding8,400 Once again,thank you for your consideration of this request. It is our opinion that in working with the hospitality industry,we can realize success from both events both to create awareness of San Luis Obispo and attracting overnight guests from out of the area. C- 6- S V L PROMOTIONAL COORDINATING COMMITTEE DRAFT REGULAR MEETING MINUTES February 11, 1998 Council Hearing Room, City Hall San Luis Obispo, CA 93401 1. CALL TO ORDER The meeting was called to order at 5:31 p.m. by Chairperson Sandy Baer with the following members present: Pati Brown, Carol Ann Lockary, George Newland, Bill Pyper, Denis Rizzo and Wilda Rosene. Wendy George served as staff. Also present were Christine Bragg,Alex Cairns, Dave Garth, Jonni Biaggini and Maggie Cox. 2. INTRODUCTION OF NEW PCC MEMBER WILDA ROSENE Chairperson Baer welcomed Wilda Rosene to the committee and introduced the committee members to her. 3. PUBLIC COMMENT There was no public comment. 4. APPROVAL OF MINUTES Bill Pyper pointed out two instances when the initials"PCC"were used instead of the initials"BIA". Those corrections were made and the minutes were approved as corrected. 5. REVISED REQUEST FROM THE BIA FOR$15,000 OF ENHANCED PROMOTIONAL FUNDS Deborah Holley discussed the changes to the request from the BIA. The new request had been reduced to a total of$8,400. $1,400 would be used for promotion of the"How to Do a Farmers' Market"video at the Main Street Trade Show,with the balance being used for banners and promotion for the 15'"anniversary celebration of Fanners' Market. Deborah reported that with the help of Maggie Cox,they have developed some ideas on how to encourage people who are coming to Cal Poly graduation on the weekend following the Thursday Night 15"anniversary celebration to come a day early and join in the celebration. In this way, they hope to encourage more people to come to town a day early,which will help fill up hotels and motels on Thursday night as well as the weekend. Although the video is intended to help cities set up Fanners' Markets, by taking it to trade shows Deborah believes it is also a good showpiece for the City of San Luis Obispo, promoting the City as a travel destination. After asking a few clarifying questions, on a motion by Bill Pyper, seconded by Pati Brown, the PCC unanimously approved granting the BIA the requested $8,400 for the trade show and 15'" year celebration. Due to this being her first meeting as a board member and her lack of knowledge on the subject,Wilda Rosene abstained. Staff will take this recommendation to the City Council on March 171". 6. DEVELOPMENT OF A COORDINATED MARKETING PLAN Bill Pyper explained that the Chamber of Commerce Tourism Council made development of a coordinated marketing plan their number one goal for the upcoming year. The Council wants to work with the PCC to help develop this coordinated plan. Sandy Baer suggested referring this issue to the Marketing Subcommittee. Maggie Cox pointed out that we currently have a coordinated plan and the problem is not to create one but to educate the Tourism Council on what we are currently doing in the way of marketing. Dave Garth pointed out that we do have good ATTACHMENT 2 C- b- 6