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Home My WebLink About09 - Newport Beach & Company 2015/2016 Marketing Plan Addendum and Budget andCTY OF F NEWPORT BEACH City Council Staff Report August 11, 2015 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager — (949) 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Tara Finnigan, Assistant to the City Manager / Public Information Manager PHONE: 949 - 644 -3035 TITLE: Newport Beach & Company 2015/2016 Marketing Plan Addendum and Budget and the Newport Beach Tourism Business Improvement District Fiscal Year 2015 -2016 Annual Report and Budget ABSTRACT: Visit Newport Beach, Inc. (VNB), a division of Newport Beach & Company, provides destination marketing services to the City of Newport Beach (City) under an agreement for Tourism Promotion, Branding, and Marketing Services (Agreement). Newport Beach & Company has submitted a 2015/2016 Biennial Marketing Plan Addendum, which contains updated marketing strategies for VNB, and an updated Fiscal Year (FY) 2015 -2016 budget for VNB for the City Council's review. VNB also serves as the administrator for the Newport Beach Tourism Business Improvement District ( NBTBID). VNB has submitted the NBTBID's FY 2015 - 2016 Annual Report and budget for the City Council's review and approval. RECOMMENDATION: a) Receive and file VNB's 2015/2016 Biennial Marketing Plan Addendum; b) Review, approve and /or modify VNB's FY 2015 -2016 budget; c) Review, approve and /or modify the FY 2015 -2016 NBTBID's Annual Report; and d) Review, approve and /or modify the NBTBID's FY 2015 -2016 budget. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for this project. Under its Agreement with the City, VNB receives 18% of all Transient Occupancy Tax collected by the City to fund destination marketing services and activities. Under the terms of the separate, City - NBTBID agreement, the NBTBID assesses its eight member hotels 3% of gross short-term (stays less than 30 days) room rental revenue. The assessments levied for the NBTBID are applied toward the activities described in the NBTBID's Management District Plan (approved by the City Council on January 28, 2014) and summarized in its annual report. NE DISCUSSION: Visit Newport Beach, Inc. (VNB) VNB, a non - profit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. Under an Agreement with the City, VNB provides marketing services to the City and community using transient occupancy tax revenues. The Agreement was first entered into on May 12, 2004 and will expire on December 31, 2024. The Agreement was first amended on January 28, 2014. On August 12, 2014, the City Council authorized the City Manager to enter into a second amendment to the Agreement to change the reporting timelines for the Performance Standards / Marketing Goals report and the Marketing Plan from annual to biennial to correspond to VNB's budget reporting timeline. The change allows VNB to submit a biennial marketing plan and a biennial budget - in each even - numbered year during the term of the agreement - for the City Council's review and approval. The biennial plan and budget were approved by the City Council in August 2014. However, Newport Beach & Company submitted a 2015/2016 Biennial Marketing Plan Addendum (Attachment A), containing updated marketing strategies for VNB, for the Council's review. Newport Beach & Company also submitted an updated version of the FY 16 budget for VNB (Attachment B) for the City Council's review and approval. Newport Beach Tourism Business Improvement District (NBTBID) The NBTBID is a business improvement district formed pursuant to the Property and Business Improvement District Law of 1994, codified in Streets and Highways Code Section 36600 et seq., which helps fund marketing and sales promotion efforts for Newport Beach tourism businesses. It was established by Council Resolution 2009 - 21 on April 28, 2009 and is administered by VNB. The Management District Plan for the renewed NBTBID - the document that details the district's boundaries, funding and programs - was approved by the City Council in January 2014. The NBTBID's current, 10 -year term will expire on January 31, 2014. The NBTBID includes eight hotels or resorts, each consisting of 100 hotel rooms or more, located within Newport Beach. They are: the Balboa Bay Club and Resort, the Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Island Hotel Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Newport Dunes Waterfront Resort & Marina, and the Radisson Newport Beach. VNB, on behalf of the NBTBID owners association, has prepared the NBTBID's Fiscal Year 2015 — 2016 Annual Report (Attachment C) and submitted a more detailed FY 16 budget for the NBTBID (Attachment D) for the City Council's review and approval. The annual report includes a summary of the NBTBID's proposed activities and budget for the current fiscal year. The report does not contain recommendations to alter the TBID boundaries or the method and basis for levying assessments in this fiscal year. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 9 -2 ATTACHMENTS: Description Attachment A - Newport Beach and Company, Inc. 2015/2016 Marketing Plan Addendum Attachment B - Visit Newport Beach FY 16 Budget Attachment C - NBTBID FY 16 Annual Report Attachment D - NBTBID FY 16 Budget m ew ort & COMPANY MARKETING PLAN ADDENDUM 2015/2016 El rrNB E OF CONTENTS Newport Beach & Company Mission Statement Objectives and Strategies Executive Commitee Executive Staff Budget Strategic Plan Schematic Visit Newport Beach - Leisure Mission Statement Objectives and Strategies Goals Budget 04 05 06 07 08 09 10 11 13 13 Visit Newport Beach Conference Sales Mission Statement 14 Objectives and Strategies 15 Budget 17 Celebrate Newport Beach Mission Statement 18 Objectives and Strategies 19 Goals 20 Budget 21 Dine Newport Beach Mission Statement Objectives and Strategies Goals Budget Enterprise Newport Beach Balboa Village /Balboa Island Mission Statement Objectives and Strategies Goals Budget Newport Beach TV Mission Statement Objectives and Strategies Goals Budget 22 23 25 25 26 27 30 31 32 33 35 35 M NEWPORT BEACH&COMPANY Mission Newport Beach & Company is a creative and focused community - marketing agency that is singularly committed to telling the integrated Newport Beach brand story. By embracing a variety of neighborhoods, businesses and individual unique voices into a complementary story, Newport Beach & Company strengthens all of its partners, drives new revenue to the city and enhances its overall vibrancy. Vision Newport Beach & Company aspires to be the national model for outstanding integrated community marketing and brand leadership. As an entrepreneurial leadership organization, Newport Beach & Company is creative, innovative and professional in building destination awareness both locally and nationally which drives business and economic growth. It strives to do for its partners and stakeholders what they cannot do individually. Brand Promise Newport Beach & Company is a progressive, dynamic and innovative marketing organization that brings a results- oriented mindset along with forward - looking attitude to the community it serves. Embracing a learning centered environment where ideas can develop and be best used for the benefit of its partners, Newport Beach & Company's team is a passionate steward for the Newport Beach brand. It is resourceful in creating meaningful marketing programs and services and setting the standard for outstanding destination leadership. ew ort � EACH & COMPANY "Newport Beach & Company aspires to be the national model for outstanding integrated community marketing and brand leadership:' u Objectives Enhance and support all Newport Beach & Company efforts by providing consistent, ethical, and transparent policies in the financial, human resources, and technological operations. Strategies Professional development is important to Newport Beach & Company for the purpose of staff education and development especially since the team is now managing projects for a variety of business units. The purpose of encouraging staff to stay up -to -date on training in their field is to improve the performance of our team and keep Newport Beach on the cutting edge of what is happening in all areas. Professional development promotes the growth of individuals to strengthen their skills used on the job and in our community. Professional development also provides the opportunity to develop a sense of purpose, learn best practices, broaden a positive perception of our organization, network with those in our industry, and increase the capacity to gain knowledge and mastery of techniques. Technology Infrastructure & Support The technology infrastructure and support is a critical component of the existence of Newport Beach & Company. The technology infrastructure includes the hardware, software, communications platforms, and database management to ensure the organization is optimized for peak performance, management and security. The infrastructure and support includes contingency arrangements and direction for acquisition of technology resources. It considers changes in the competitive environment, economies of scale for information systems staffing and investments, and improved interoperability of platforms and applications. Newport Beach & Company will continue to seek out open - source platforms, such as our Content Management System (CMS) for our websites, which use WordPress software. Additionally, utilize our Customer Relations Management (CRM) tools to expand the organization and each business unit managed within it. Newport Beach & Company also will utilize strategic partnerships with vendor and service providers that will allow pinpoint accuracies and controlled cost variables to ensure as we grow we best manage tools (both hardware and software) that will benefit not just one but all parts of the overall organization. Operations The operation of Newport Beach & Company is best visualized in this schematic framework to indicate how we carry out all of the business functions. The Brand Marketing Team is where all of the marketing work is carried out for each of the business units. Within the Brand Marketing Team, the following areas execute specific roles and responsibilities. The Brand Marketing Team is comprised of three functional areas: communications and brand management; marketing and strategic partnerships; and digital marketing and new media. The communications and brand marketing team leads Newport Beach & Company's international marketing, media relations, communications, brand management and design initiatives. The marketing and strategic partnerships team leads the company's marketing and advertising, special events, business development and sponsorship, Enterprise Newport Beach, Dine Newport Beach and visitor concierge program including the Fashion Island Visitor Center. The digital marketing and new media team leads Newport Beach & Company's digital marketing, website, e-mail marketing, social media, blogging, video production and Newport Beach TV. Bestlnstion Makettng Marketing Sales Marketing Sales, Marketing, Saks Marketing, Base Sales and Services and Services Services and and Services and Services • Meeting Planners Residents Operations Resldads BIB • Visitors Visitors ' Select Event • Msimrs Cammmunlcatans Execution , MB Suppad • Special Events . New Event ' Commun'Ty Events �evesopme�rc •Business Retention •S'ne Support EXECUTIVE COMMITEE ANDY THEODOROU CILllR Newpurl Dunes AA�alerfroit Resort & Alarina DENNIS O'NEIL ICI? CH;VR ` ^ Cit3= of Newport Beach LINDA y BEIMFOHR y, SE( RETARI Iloruhlower Cruises & Events - CANDACE BISCONTE TREASI,IVIER ACCESS Destination Services BO=ARD OF DIRECTORS W BRION AMENDT Newport Channel Inn CRAIG BATLEY Burr White Realty LINDA M. BEIMFOHR, Hornblower Cruises & Events RUTH BENJAMIN Hyatt Regency Newport Beach CANDACE BISCONTE ACCESS Destination Services HOMER BLUDAU Former City Manager ANNIKA CHASE Disneyland Resort SAM ELRABAA Balboa Bay Resort CHIEF JAY JOHNSON Newport Beach Police Dept. RUSS KLINE American Express KARL KRUGER Fairmont Newport Beach GIUSEPPE LAMA The Resort at Pelican Hill MELODY LANTHORN -GALE Newport Beach Marriott Bayview ROBERT LECK Radisson Hotel Newport Beach DAN MATUSIEWICZ Finance DirectorCity of Newport Beach CAROL MCDERMOTT Entitlement Advisors, LLC DENNIS O'NEIL City of Newport Beach HOMER BLUDAU !T NE ATL_VIGE Former City Alauager KARL KRUGER AIEAIBERAT LARGE Fairmont Newport Beach DEBBIE SNAVELY PAST CILAIRPERSON Marriott Newport Beacli Resort & Spa TOM POLLACK ExplorOcean NINA ROBINSON Hoag Hospital GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa ANDYTHEODOROU Newport Dunes Waterfront Resort & Marina TANYA THOMAS Fashion Island JIM WALKER Bungalow Restaurant GERARD WIDDER Island Hotel M EXECUTI-V E TEAM GARY SHERNNI N MICHELLE DONAHUE y PRESIDENT & CEO _ SENIOR VICE PRESIDENT OF SALES LESLEY SWAIN (IIII =.F FINANCEII. OFFICER CATHERINE KENNEDY DIRECTOR OF ADMLNISTRATION/ ASSISTANT TO TIIE CEO DOUG McCLAIN SIAI(M AICI; PRESIDENT/ i..III]'_[, AI_iRkETLNCOFFICER NEWPORT BEACH & COMPANYTEAIII MARKETING TEAM MARK RUDYK Senior Director of Digital Marketing and New Media JANE DRYDEN Director of Brand Management and Design LESLIE DODS Director of Special Events and Development BRIANNA SAUCEDO Digital Marketing Specialist COLLEEN COSTELLO Marketing Coordinator HALY HAIGH Front Desk Visitor Concierge SALES TEAM AMANDA KLIEM Director of Sales (Orange County: Newport Beach, Costa Mesa, Santa Ana, Anaheim; Washington, D.C.; Maryland; Virginia; Utah; Colorado; Nevada) HILLARY BURTON National Account Director (Pacific Northwest; Hawaii /Alaska, California State Associations; Northern CA; Canada) MICHELLE DEVINE National Account Director (Orange County Key Accounts; North & South Carolina; Northeastern U.S.) LORI HOY National Account Director (Silicon Valley; San Diego; Arizona; Texas; New Mexico & Southeastern U.S.) ENRIQUE PAULO National Account Director (Orange County, CA; Midwest) AMANDA RENEE KENNING Sales & Service Associate ERIN STAPLEY Sales & Research Coordinator FASHION ISLAND VISITOR CONCIERGES LEON RODGERS Visitor Concierge STACY ALFARO Visitor Concierge KAREN FLEMING Visitor Concierge NEWPORT BEACH PRODUCTION TEAM DOMINIC DIMARE Production Team Leader LUIS HERERRA Videographer /Editor ED OLEN Videographer /Editor NEWPORT BEACH FOUNDATION HOMER BLUDAU Executive Director U BUDGET NEWPORT BEACH & COMPANY FORCASTED REVENUE FY 2015 $2,274,785 FY ,. $2,820,080 OPERATING EXPENSES $2,032,395 $2,527,380 ADVERTISING $76,264 $47,000 COMMUNITY RELATIONS $66,330 $145,500 DIGITAL MARKETING /ADVERTISING $16,000 $88,700 PUBLIC RELATIONS & COMMUNICATIONS $75,000 $11,500 } 9 -10 THREE -YEAR STRATEGIC PLAN SCHEMATIC: 2015/2016 2017/2018 9 -11 OUR . OUR PURPOSE AND DIRECTION Enhance Increase Mission Drive New and/ or Current Demand Community Entrepreneurship Newport Beach & Company is the Engagement and Integration community marketing agency that is OUR • singularly committed to telling the integrated Newport Beach brand story Elevate Destination/ Coordinate Measurable Raise Community Leverage to targeted audiences and thereby Community Marketing Business Unit Strategies Involvement Necessary strengthening all of its partners, driving Awareness and Conversion and Profile Resources new revenue to the city and enhancing • _ PRIORITY the overall economic vibrancy. Vision VNB • Increase linanclal support • Increase • Lead Board r., eport Beach & Company is the • Maximize OCVA and through sponsorships community succession national model for outstanding Visit California marketing • Enhance bleacher presence planning integrated community marketing and opportunities locations and sales for through brand leadership. As an entrepreneurial • Participate in OCVA China Parade offline /online • Institute organization, Newport Beach & Company and Middle East visitor • Explore further television conversations ongoing staff is innovative and professional in building market preparedness coverage of Parade talent search destination and community awareness program • Investigate new methods • Reinstitute both locally, nationally and internationally • Increase branded drive -in to sponsor the July 4 Partner • Know capital/ which drives business and economic market programming Dunes event Annual Dinner operating growth. It strives to do for its partners • Enhance digital platform system needs and stakeholders what they cannot do marketing NBTV • Reactivate with related individually. • Investigate mobile visitor • Develop new revenue Annual budget information center opportunities Marketing OUR CULTURE • Increase New York • Create new hotel in -room Forum • Ensure self Values conference sales video channel supporting Respect engagement • Expand to 24 hour • Increase business units Wellness • Expand overall conference programming . exposure for Integrity sales marketing • Develop new studio the Newport • Develop new Employee Engagement programming facility for improved Beach brand conference Learning and Knowledge • Strengthen TBID individual programming and revenue through sales Adaptability and Innovation hotel marketing efforts generation high value marketing Customer and Stakeholder- centric • Produce new historical opportunities business unit DNB series on Newport Beach to enhance Brand Promise •Increase stakeholder group Newport Beach & Company is a engagement ENB business progressive, dynamic and innovative programming • Strengthen programming marketing organization that brings a • Determine comprehensive for neighborhood districts results- oriented mindset along with a new funding formula based on individual forward- looking attitude to the community • Explore partnership with strategic plans it serves. Embracing a learning centered new Food and Wine • Further integrate environment where ideas can develop Festival enterprise marketing and be best used for the benefit of its • Continue strengthening across all business units partners, Newport Beach & Company's Restaurant Week team is a passionate steward of the • Increase online booking FNB Newport Beach brand. It is resourceful in capacity through new • Investigate film creating meaningful marketing programs website commission formation and services and setting the standard for • Seek potential partnership outstanding destination and community CNB opportunities with State leadership. • Develop "special guest" of California and Orange concept every night of the County OUR BUSINESS UNIT ABBREVIATIONS Christmas Boat Parade CNB: Celebrate Newport Beach DNB: Dine Newport Beach OUR OUTCOMES ENB: Enterprise Newport Beach FNB: Film Newport Beach NBTV: Newport Beach TV • Improved communitywide marketing • Higher group room night production and VNB: Visit Newport Beach effectiveness across all business units client loyalty • Strengthening of the Newport Beach • Maximization of signature special event community brand production with improved economic impact • Greater and more integrated visitor and brand enhancement industry marketing • Increased bottom line revenue for City and • Improved cost efficiency across all business units individual businesses 9 -11 I VTSIT NEWPORT BEACH LEISURE TRAVEL Mission As the City of Newport Bea&s official Destination Marketing Organization, the mission of Visit Newport Beach Inc. is to partner with the tourism and hospitality industry by protecting and nurturing the destination brand and to deliver additional spending by leisure and conference visitors, leading to enhanced community economic vitality and quality of life. Visitor Brand Promise Newport Beach is an Orange County coastal fantasyland that represents a "taste of the perfect life; a place where visitors can experience a friendly, sophisticated, aspirational lifestyle that permits them to escape from daily reality. Comprised of a collection of / unique islands and neighborhoods that form their own distinct character, the destination offers a combination of affluence, quaintness, casual glamour and attention to detail. Coupled with the manmade and natural beauty of the destination, this is the place that allows the visitor to relax and recreate the dream of what can be. 'VISIT eW ort EACH CALIFORNIA "...partner with the tourism and hospitality industry by protecting and nurturing the destination brand..." E i.: Objective Increase overall leisure travel to Newport Beach through research - based, innovative, and effective integrated marketing initiatives. Strategies Research & Planning Conduct annual tourism destination research and planning to support all brand and marketing initiatives. Awareness & Brand Management Generate awareness of a positive destination brand identity that is in sync and consistent with Visit Newport BeacNs Brand Promise. Collateral Produce a variety of online and printed collateral materials that promote Newport Beach and its partners to visitors and local residents. Online Marketing Website: For the 2015/16 year, focus will continue on phase Il of a full mobile plan, to enhance experiences on mobile devices, look at integration points with emerging technology and hardware (apple watches /wearable products) and increase key metric goal conversions. Other areas of focus will be the following: . Meetings: Look at expanding more tools and information in our meetings sections with the goal of RFP and planner conversions. . Weddings: Continue to develop content to help increase exposure for Newport Beach as a weddings destination. • Stakeholders: increase the business listings and leverage other developments from Dine NB, Enterprise Newport Beach and NBTV to bring full- featured stakeholder representation. • Reservations: Continue the growth of partner activities for booking online while promoting more opportunities for lodging exposure. Social Media: • The social media plan will continue to focus on content growth with increased segmented content from the different business units that fall under Newport Beach & Co. for a diversified offering to the Visit Newport Beach followers. Social media channels will continue to be developed with a content strategy plan to maximize engagement while building new channels for business endeavors supporting other business unit goals. Email: • Visit Newport Beach will continue developing email acquisition strategies and growth while focusing on segmentation of lists. The digital team will continue using ExactTarget for targeted drip campaigns and follow - up distribution flows with continual refinement of email practices and engaging with more frequency with partners, consumers, and meeting planners will be top priority. Search Engine Optimization: . Continual optimization and content creation is vital for the indexing and organic search growth of VisitNewportBeach.com. Focus will remain on optimizing the front and back -end keyword content while creating new content that is relevant to the overall objectives and goals of Visit Newport Beach. This includes expansion of detail in each of the individual 10 neighborhoods and growth of stakeholder representation among Restaurants and Things to Do. Additional content generation among the many social media channels will also focus on building searchable content while watching trends on how social media content feeds into search indexing. Focus also will be on increasing analytic data points to increase event tracking and set conversion goals to better understand how changes are positively affecting end results and allowing a better understanding of consumer behavior. Search Engine Marketing: . Paid search advertising is a key component of the overall plan and objectives online while supplementing SEO and organic growth. Budget resources will increase by 10% year over year and will focus on keyword matching results from analytics to optimize for best performing /volume keywords. Additionally continual A/B testing of ad groups for increased results will be optimized through the fiscal year. Leverage Newport Beach & Co. subsidiary websites & online channels: . Additional development and participation on divisional websites that fall under the Newport Beach & Co, umbrella will be a key part of the overall online marketing plan to cross - promote the destination and all of its components. These leveraged channels are: • Dine Newport Beach • Celebrate Newport Beach • Enterprise Newport Beach (Balboa Village Merchant Association, Balboa Island Marketing Inc.) • Newport Beach TV Media Relations & Communications Creating demand to leisure audiences is a key economic driver to the City 9 -13 of Newport Beach. The key role of public relations and communications is to pique the interest of travelers, drive visitation and grow overnight accommodation stays. Media Relations Public relations and communications' main media relations efforts hinge on strong, ongoing relationships with target media, bloggers and influencers. Nurturing current relationships, growing our media database and increasing media visits to the area are the top priorities for the fiscal year ahead. • Develop a 12 -month editorial outreach plan surrounding the following: •Seasons • Themes - family, romance, multi - generational • Holidays - Valentine's Day, Fourth of July, winter holidays • Signature annual events • Unique aficionado angles - family, outdoor active, culinary, etc. • Strategic travel trends and "best of" opportunities • Target Media Audiences: • National media • Drive markets including Los Angeles, Inland Empire, Palm Springs, and San Diego • Tucson and Phoenix • Southwestern Canada • Orange County for local events • Target Channels: • Print • Online • Television • Domestic Media Relations: • Devise compelling story angles centered around Newport Beach • Proactive pitching to local, regional, national media to place stories • Facilitate incoming media requests • Create custom itineraries for visiting media • Plan Familiarization (FAM) tours around aficionado angles • International Media Relations: • Devise story angles for international travelers • Work with Black Diamond (UK) to develop plans to resonate with their market • Develop custom itineraries for international visiting media Community Events We provide extensive media relations efforts around key events and seasonal holidays, including: • Dine Newport Beach Restaurant Week • Newport to Ensenada International Yacht Race /Balboa Village Fest • Newport Beach Film Festival • Newport Beach Jazz Festival • Newport Beach Summer Concert Series • 4th of July • Christmas at the Beach • Christmas Boat Parade E- Communications Blog Strategy The Visit Newport Beach blog views have grown substantially in the past fiscal year and we aim to continue that growth by the following: • Continue to post blogs three times per week for consistency and relevancy. • Incorporate SEO- targeted copy • Add to our dynamic group of guest bloggers. Consumer Enewsletter Similar to the Visit Newport Beach blog, the consumer Enewsletter has continued to gauge the interest of consumers. We will continue to give the consumer informative and interesting information about the destination to grown our audience base. Advertising & Promotions Develop intergrated, advertising and promotional campaigns in key target markets that are on -brand and are integrated with the other marketing disciplines in order to generate: • Increase year -round leisure travel from day - trippers and first -time visitors • Extend visitors' length of stay • Encourage repeat visitation International Marketing Work in close collaboration with our international agencies to educate and promote Newport Beach to travel - trade companies and travel media in order to generate visitation to Newport Beach. Key international markets include China, Middle East and United Kingdom. Proposed strategies for FY2016 include: Travel Trade Efforts • Sales Calls and Trainings • Trade and Consumer Shows • Co -op Marketing Programs • Consumer Promotion to encourage visitation and bookings (United Kingdom only) • Brochure Analysis • In- Market Familiarization Tours • Trade Communications PR Efforts • Press Office Functions • Story Development and Placement • Press Releases Nurture Travel Trade Press Relationships Media Familiarization Tours Community Relations Work with our community partners and visitor concierges to provide helpful information and improve the visitors' experience in order to generate repeat visitation. Continue to operate the Fashion Island Visitor Center and provide the community with content - rich marketing, collateral and visitor information. =1 GOALS *Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. BUDGET VISIT NEWPORT BEACH—LEISURE FORCASTED REVENUE FY 2015 $4,350,841 WEB VISITS 778,794 856,000 964,000 1,060,400 TOTAL PAGE VIEWS 2,194,511 2,413,000 2,800,000 3,080,000 COMMUNITY RELATIONS $268,750 SOCIAL FOLLOWERS 43,000 51,000 128,000 140,000 SOCIAL POSTS REACH — — 3,640,000 4,120,000 PUBLIC RELATIONS $176,000 TOTAL AD IMPRESSIONS 120,911,466 172,540,868 139,652,700 153,617,970 ONLINE AD CLICKS 239,054 251,000 276,100 303,710 VISITS TO SITE MARKETING ROOM — — — 15,000 NIGHTS GENERATED MARKETING CAMPAIGN ROI — — — $40 MARKETING CAMPAIGN — — — $15,000,000 ECONOMIC IMPACT: • LOCAL/NATIONAL — — — 500 MEDIA PLACEMENTS PARTNER LEADS 62 350 500 500 TOTAL MEDIA ASSISTS 186 205 250 275 DOMESTIC MEDIA 50 80 100 125 DESTINATIONS VISITS • WHOLESALER/ 55 155 165 173 AGENCY REPS TRAINED FAMILIARIZATION TOURS N/A 16 16 22 *Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. BUDGET VISIT NEWPORT BEACH—LEISURE FORCASTED REVENUE FY 2015 $4,350,841 .. $4,690,506 OPERATING EXPENSES $104,335 $130,372 ADVERTISING $1,124,833 $1,045,206 COMMUNITY RELATIONS $268,750 $287,500 COLLATERAL $175,100 $132,600 INTERNATIONAL MARKETING $258,090 $373,090 DIGITAL MARKETING $294,792 $305,600 PUBLIC RELATIONS $176,000 $189,159 FEES TO NEWPORT BEACH & COMPANY $1,948,941 $2,226,979 9 -15 M VISIT NEWPORT BEACH cowFERENCT S VLES Mission As the City of Newport Beach's official Destination Marketing Organization, the mission of Visit Newport Beach Inc. is to partner with the tourism and hospitality industry by protecting and nurturing the destination brand and to deliver additional spending by conference visitors, leading to enhanced community economic vitality and quality of life. VISIT ��e.w ort A C III NC. .f .. ►� r "In addition to the significant direct economic impact generated by meetings, they can generate positive experiences..:' v I I wf--�I*k7 �i AF Objectives The foundation of the TBID agreement is to directly impact the group segment of business for TBID partner hotels. To deliver on the TBID promise, conference sales must foster current client relationships and attract new meetings and conferences to Newport Beach through aggressive direct selling, innovative marketing initiatives, and strong community partnerships resulting in increased room nights and additional revenue. Objective: Increase definite room nights through research and analysis of key customer profile for each TBID partner hotel and more targeted market segmentation. Strategy Overview • Acquire group segment research and data about business coming into Orange County, San Diego, Los Angeles, and Palm Springs that offers information on geographic cities of origin, peak and total room nights, rates and patterns and market segmentation. • Merge market research with information coming from hotels directly to determine sales direction and focus as a destination and for each partner hotel. Objective: Create group - marketing campaign that can be retooled for each subset of group clientele (third parties, clients met at a tradeshow, clients currently in funnel, or any other part or whole of Simpleview database) to help sales team advance awareness and motivate action with clients at any point in the relationship cycle. Strategy Overview . Create a customer focus group to determine the messaging, timing and frequency, as well as communication vehicles for effective group marketing. • Develop digital, email and promotional campaign to encourage submission of RFPs and convert RFPs into confirmed bookings. • Sales efforts will focus on continued email list growth, social media outreach for conference planners, website enhancements and detailed information on the destination and its offerings, plus growth of search engine optimization for organic listings on all major search engines. • Execute through Exact Target for larger email drops, personal computers for smaller groups. Objective: Increase market penetration in key geographic territories of Northeast and Southeast geographic territories. Strategy overview • Create growth plan for NE and SE region that includes sales trips, membership and involvement in regional and local chapter industry organizations, sponsorship opportunities with same organizations • More robust trade show commitments in those regions with our partners • Garner lead generation support from our database research partners Objective: Host 3 or more industry events per year bringing in a volume of potential clients into the destination allowing personal experiences of destination and connections to be made with sales staffs of Visit Newport Beach and TBID hotels. Events will be planned and executed to be best in the industry. Strategy overveiw • Reach out to all industry organization and meeting publications leveraging our relationships as partners and advertisers to bring the next open meeting to Newport Beach . Work with TBID hotels to create equal opportunities to host events and showcase hotels • Follow through with mechanisms that track ROI of hosting /sponsoring industry event Objective: Establish strategic partnerships with community businesses who can help conference sales elevate our client experiences in the destination (restaurants, off site venues, retailers, transportation company, Destination Management Company..) Strategy overview • Determine assets from the side of Visit Newport Beach to articulate to prospective partners and create partnership collateral piece with Director of Special Events and Director of Creative Services. • Conduct personal calls with decision makers of targeted businesses introducing the many reasons to partner with Visit Newport Beach and the TBID community. • Create an orientation program for those interested in pursuing the strategic partnership that addresses the key aspects of Visit Newport Beach goals and initiatives as well as the basics of group business and meeting planning. Require selected partners to attend. Objective: Bring the new tradeshow booth on the road at every opportunity. With the strong emphasis of trade shows in the conference sales budget, Visit Newport Beach has created a new trade show booth identity that brings a strong brand presence for Newport Beach while also inviting the attendee into a comfortable setting to foster conversation and engagement with sales team. 9 -17 r Strategy overview • Expand trade show participation to include national and regional shows with I0x20 space for new booth for including maximum number of TBID partners • Invest in elevated registration "sponsorship status" giving us extra visibility wherever possible Objective: Continue to elevate destination partnerships with HelmsBriscoe, ConferenceDirect and HPN with the goal of increasing visibility and RFP /definite room night growth. Strategy Overview . Invest in highest level of destination partnership with 3 major third party companies . Attend all third party conferences and events open to suppliers . Secure third party programs in our destination where possible . Launch promotional marketing campaign to third parties that involves direct and digital mail, incentives, visit to the destination..... Objective: Continued education for staff on current and new technology/ social media trends of the industry Strategy overview • Personalized learning, based on the individual's strengths, talents and professional responsibilities (Photoshop, Excel, Simpleview, Cvent, General Marketing classes, etc. — should remain based on use of technology) • Core classes /education to increase each individual's knowledge in current technology already in use/ place; Allows for a more streamlined, cohesive sales process (Surface training /customization, Simpleview, Excel, Dropbox, etc.) 1ftft- Develop profile on relevant social media outlets (Twitter, Facebook, Instagram, YouTiibe, etc.) to showcase upcoming client events and/or reach out to targeted groups (HelmsBriscoe, ConferenceDirect, Pharmaceutical, etc.) BUDGET VISIT NEWPORT BEACH-CONFERENCE SALES FORCASTED REVENUE FY 2015 $3,838,042 FY ,. $4,094,082 OPERATING EXPENSES $1,498,351 $1,511,496 ADVERTISING $368,500 $350,000 DIRECT SALES INITIATIVES $1,923,880 $2,106,000 MARKETING $18,586 $126,586 u Zi. 9 -19 N CELEBRATE NEWPORT ��• • •designed to give BEACH ongoing, year -long, OVERVIEW Celebrate Newport Beach brings a professional, cohesive and coordinated approach to managing and marketing in Newport Beach in terms of marketing and sponsorship. Celebrate Newport Beach is designed to give ongoing, year -long, focused attention on creating better, brand - centric events and leveraging those events for the benefit of the entire community. Celebrate Newport Beach will establish strategic partnerships for Newport Beach that will traverse the marketing and media platforms providing sponsorship revenue to the signature events and key marketing initiatives. V ort ACH & COMPANY focused attention on creating better, brand - centric events and leveraging those events for the benefit of the entire community...." F^ Objectives 1. Create signature "brand- defining" events to see full potential 2. Provide the organizational fundraising efforts for signature events 3. Market these signature events with Newport Beach & Company's brand marketing team to further the Newport Beach brand 4. Work with area Business Improvement Districts, such as the Restaurant Association, Balboa Village and Balboa Island to develop signature events that promote those neighborhoods or businesses S. Develop key strategic partnerships to support Newport Beach & Company's marketing and sales initiatives, as well as provide additional revenue to provide enhanced elements to each signature event Strategic Partnerships Strategies . Establish a Founding Partner Program identifying key categories specific to the destination to be incorporated into the marketing and advertising efforts, which will continue to elevate the brand • Establish a Preferred Partner Program establishing a group of destination- specific partners who will work with the marketing and sales teams to deliver high -end experiences and client services for familiarization trips and sales missions Awareness & Brand Management • Attend community and county events to establish and steward key relationships integral to the partnership programs • Partner with other community organizations and events to increase the depth and breath of the partnership programs Technology • Develop an online platform for partner interaction and solicitation of new partners PR • Use media relations initiatives to support and promote Newport Beach & Company and its strategic partnership program. Collateral • Create partnership kits for solicitation efforts Strategic Partner Experience • Create a Partnership Summit to build awareness of the programs and present partners with activation ideas that meet our brand promise and provide a return on investment • Create unique activation experiences surrounding community events and key marketing initiatives as added - value opportunities for partners Events Strategies • Increase the exposure of the Newport Beach Christmas Boat Parade with enhanced experiences, audience engagement opportunities and vivid content for promotion by the marketing team • Create an international event in partnership with the Newport Beach Film Festival to promote both the festival and the destination . Develop key destination partner events to promote the tools available from the marketing and sales teams for continued success in promoting the destination and increasing economic impact. Events include: Marketing Summit, Annual Dinner and Workshops Awareness & Brand Management • Access to all marketing and media assets 9 -21 • Ensure quality of events meets brand promise • Work with current partners and identify new ones who meet the brand promise Technology • Ensure online access of information is accessible, current, rich with content, and meets our brand standards PR • Develop campaigns surrounding a media hook for each event and identify content that can yield the highest publicity value GOALS Advertising • Create campaigns consistent with experiential and emotional messaging in line with the brand promise Digital Marketing . Develop contest and sweepstakes campaigns to drive traffic to the websites . Identify creative content that will enlist conversations about event experiences and emotional responses focused on the destination Collateral • Produce a variety of online and printed collateral materials surrounding each event promoting the event, the destination and partners to visitors and local residents WEBSITE FY 12/13 ACTUALS FY 13/14 ACTUALS FY 14/15 GOALS 111 FY 15/16 GOALS* 1 111 SOCIAL MEDIA ADVERTISING • • 11 11 � • PUBLIC RELATIONS *Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. 9 -22 *'lot*, I - 9 -23 DINE NEWPORT BEACH ��• • • to enhance the economic vitality of the Newport Beach culinary community Mission by showcasing and Dine Newport Beach is a strategic promoting Newport marketing initiative cooperatively created and managed by Newport Beach as a dining Beach & Company and the Newport Beach Restaurant Association (NBRA) destination...' to enhance the economic vitality of the Newport Beach culinary community by showcasing and promoting ^ Newport Beach, California as a dining destination offering innovative cuisine, ort fresh fare, diverse experiences and JVE exceptional restaurants. A C H & COMPANY U f s � d _�� 41 Objectives 1. Continue development and growth of the Dine Newport Beach brand. 2. Foster the Newport Beach culinary communityto develop strong relationships in order to increase restaurant, stakeholder and partner engagement. 3. Promote Newport Beach restaurants and showcase the local culinary community year -round to increase diner awareness and generate foodservice revenue. Strategies Awareness & Brand Management The Dine Newport Beach program and brand will continue development in year two with integrated online, print and public relations campaigns, increased website content, consumer and stakeholder communications and programming targeted to the local culinary community, regional diners, area visitors and food, travel and lifestyle media. Advertising A new marketing campaign with fresh creative and messaging will be introduced to continue to generate consumer awareness of the Dine Newport Beach website and the local culinary community. Advertisingwill appear in a variety of media including newspaper, magazine and on -air outlets as well as in partner publications. Promotional Materials Marketing collateral will be created to promote the Dine Newport Beach website (DineNB.com) and its comprehensive online dining guide to consumers. Collateral will be distributed throughout Orange County at airports, hotels, office centers and key visitor locations, as well as at a variety of local events throughout the year. Website The Dine Newport Beach website, DineNB.com, will continue to progress with the addition of more robust and relevant content, improved imagery, additional dining guides, curated dining experiences and user - friendly navigation in order increase overall website traffic throughout the year. Also, the website will strive to improve its search engine optimization best practices and focus on Newport Beach dining and restaurant keywords to index higher in organic search. Focus will be on keyword research, volume and competitor analytic tracking. Social Media Strategic and trending messaging on the existing social channels will drive followers and build online engagement. In addition, Dine Newport Beach will conduct strategic outreach to key culinary and dining influencers in order to engage with these personalities to broadcast to the larger social population and expand the network. Digital Marketing The DineNB.com website, restaurant promotions and strategic events will be advertised with targeted paid search ads on the major search engines and social networks. In addition, the digital marketing team will work with key industry and media partners to promote the Dine Newport Beach website and programming through partner digital channels. Public Relations (PR) Dine Newport Beach will continue to develop and grow strong relationships with food and travel writers, influential lifestyle bloggers and media professionals to ensure that local culinary community, its foodservice establishments, promotions and events receive editorial coverage in local, regional and national media outlets throughout the year. Consumer E- Newsletter Communications Dine Newport Beach will develop a fresh e- newsletter template and increase distribution of the consumer e- newsletter from monthly to weekly over the course of the year in order to deliver relevant information to diners in a timely manner. The e- newsletter will contain robust content including culinary round -ups, dining trends, restaurant promotions, industry profiles, and dining events. Signature Events Dine Newport Beach will continue to produce Newport Beach Restaurant Week and any other citywide event that not only promotes participating Newport Beach restaurants, but also positions Newport Beach as Orange County's premier dining destination. Local Culinary Partnerships Dine Newport Beach will support organizations and events that assist in promoting the local restaurant and culinary community. Support will include cooperative advertising, online and social media support, public relations assistance and presence at events with a local restaurant component. Concierge Service Dine Newport Beach will continue to provide a toll-free phone number serviced by the Newport Beach & Company concierge located at Fashion Island. 'the Dine Newport Beach concierge provides restaurant and dining recommendations and reservation assistance. Stakeholder Communications Dine Newport Beach will engage NBRA 9 -25 members, partners and stakeholders with email and occasional print communications. A quarterly NBRA e- newsletter includes information on association news and meetings, promotional opportunities, as well as industry information and events. Stakeholder Activities Dine Newport Beach will work in partnership with NBRA to develop stakeholder events designed to engage and educate members on NBRA activities, promotions and industry issues. These events include neighborhood mixers, workshops and seminars. Community Events Dine Newport Beach will support and partner with businesses, organizations and events that assist in promoting the local restaurant and culinary community. Partnership will include cooperative advertising, online and social media support, public relations assistance and presence at events with a local restaurant component. NW. GOALS DINENB.COM VISITORS ,, ,. 87,189 115,000 PAGEVIEWS 367,949 550,000 AVG. PAGES PER VISIT 4.22 5.0 • • . FACEBOOK LIKES 4,000 4,500 TWITTER FOLLOWERS 1,700 2,000 INSTAGRAM 850 1,200 $16,000 $6,000 IMPRESSIONS 194,503,225 100,000,000 AD VALUE $1,201,560 $1,500,000 MEDIA VISITS 20 30 BUDGET DINE NEWPORT BEACH FORCASTED REVENUE FY 2015 $128,844 FY 01 $117,845 OPERATING EXPENSES $62,750 $99,845 ADVERTISING $46,264 $6,500 COMMUNITY RELATIONS $1,330 $5,500 COLLATERAL $2,500 N/A DIGITIAL MARKETING /ADVERTISING $16,000 $6,000 9 -27 I ENTERPRISE NEWPORT "...collaborate with BEACH Newport Beach & BALBOAVILLAGE/ RUBOA ISLAND Mission As the official marketing organization for the Balboa Village and Balboa Island neighborhoods, Newport Beach & Company will partner with each organization's board and its merchants to protect and nurture the destination brand and to deliver additional spending by locals and visitors, leading to enhanced community economic vitality and quality of life. V ort ACH & COMPANY Company to build more effective marketing strategies and develop strategic marketing plans." v A number of Business Improvement Districts (BID's) and Merchant Associations (MAs) work through the city to drive business to their specific neighborhoods. With limited resources, these BID's and MAs struggled at times to effectively market their neighborhoods. With the city recommendation, Newport Beach & Company started to work with these organizations to build more effective marketing strategies and to develop strategic marketing plans. As an organization well versed in effective destination marketing strategies, Newport Beach & Company has a wealth of information to help promote these neighborhoods. Currently Newport Beach & Company works with two neighborhood organizations — Balboa Village Merchant Association and Balboa Island Marketing Inc. With these two partnerships, we are building a more cohesive marketing effort for each while strengthening the overall appeal of the destination as a whole. Putting it all together: What we do at Newport Beach & Company is strive to support the BID and the MA to have their own governance. We work with their advisory committee to understand what their strategic goals are. Once we know the goals, we can put together a marketing strategy for how they can most efficiently and cost - effectively reach those objectives. Each set of objectives and goals is tailored and customized to fit their specific area or neighborhood. Newport Beach & Company provides recommendations that their board or advisory committee can approve. The BID's still operate under their own direction and objectives and are responsible for their own hard costs such as advertising, collateral or website fees, although Newport Beach & Company would facilitate some of that. Enterprise goals as a whole: • To be the marketing agency for a variety of our BID's or MAs so that we offer consistency in branding and messaging and the ability to leverage our already - existing marketing arm to assist the businesses within Newport Beach • Maintain the uniqueness and distinctive qualities of our neighborhoods and help them promote those qualities that make them one of a kind • Bring more business into Newport Beach and these unique neighborhoods . Execute against the strategic plans for both neighborhoods, supporting marketing, event and community development core focuses Research Highlights Community- centric marketing is advantageous in that it allows the `reframing of marketing challenges' to find new opportunities to service the needs of locals. All of which can be done at a much lower cost than trying to attract new customers. The added benefit of marketing to the community is that the sense of belonging to a greater cause breeds loyalty which organically spreads through the public. Forging a bond with the community can also help a brand evolve by forcing it to stay both innovative and authentic to its consumer's changing needs. This ability to adapt is a true testament to a brand's longevity. Forward trends C show that social media marketing will be a huge outreach forum for both community and non - community based marketing. Social media marketing provides an efficient vehicle to deliver quality content. These platforms cut through the clutter, which typically turn tech savvy consumers away. According to Business2Communitycom, `image based content will continue to drive social media engagement' and studies show that images receive `50% more interaction than text -based content' Visually engaging consumers will generate more interest and lead to increased business. Objectives Promote key events in order to n • Increase brand recognition as a individual component of the overall Newport Beach destination arhpr Crui boo E, EWAWr ZONE BOAT generate awareness and increased business while helping to expand reach and functionality • Ensure these BID'S and MAs have a strong consistent brand in the marketplace and are recognizable parts of Newport Beach Strategies: Awareness & Brand Management • Generate awareness of a positive destination brand identity that is on par with the overall Newport Beach Brand • Ensure that messages which define the uniqueness of each neighborhood are translated in all disciplines of marketing Collateral Produce a variety of online and printed collateral materials that promote Newport Beach and its partners to visitors and local residents. This can include brochures, magazines, flyers and all the various online outlets via social media and websites. Online Marketing For the 2015/16 year, Newport Beach & Company will oversee the websites and digital management of BalboaVillage.com and Balboa - Island. net. Balboa Island will launch a new responsive- designed website and a whole new URL (ExploreBalboalsland. com) and first year of the new site will focus on building SEO strength and keyword writing to help index top pages of the website. • Newport Beach & Co. will cross - promote the stakeholders and events of Balboa Village and Balboa Island, as sectioned out for each specific neighborhood. Users will be able to sort offers, stakeholder listings specifically to provide direct access to the individual neighborhood information. • Email: Focus will be on list growth, while generating information on upcoming events and activities in each respective neighborhood. • Website: Leverage all key promotions, contests, offers and event details on the DineNB. com, VisitNewportBeach. com, BalboaVillage.com and ExploreBalboalsland.com websites. • SEM: Paid search campaigns will be promoted for the Balboa Village and Balboa Island stakeholders, events C i and offers on Google, Yahoo, Bing search engines. • SEO: Refine keyword optimization for organic traffic increases for stakeholders specifically in the Balboa Village and Balboa Island locations. Also optimize for key events, activities and tourist information. Website Management of BalboaVillage.com and ExploreBalb oaI Bland, co m Both websites will be managed by Newport Beach & Co. and will focus on the growth and expansion of the key neighborhood initiatives while acting as a core supplement to consumers researching the Newport Beach area. Focus will be on the key stakeholders as outlined by category: Hotels, Dining, Activities and Services. These key areas will be promoted and updated and also integrated into other online touch points and outlets, websites managed by Newport Beach & Co. Key goals to accomplish will be: Increase site visitations, page views • Increase merchant listings • Direct promotions, sweepstakes and offerings • Drive action conversions (signups, purchases, downloads) While the new ExploreBalboaIsland. com website will be completely responsive and mobile friendly, eventual migration of the Balboa Village site to a responsive, updated look while increasing functionality will be the next recommended steps in development. Extra attention will be given to the current and future events for both neighborhoods. Homepage placement, dedicated landing pages and detailed event info will showcase on the websites and on VisitNewportB each. com. PR & Communications Public Relations & Communications will execute an emphasis on creating interest and demand for the destination to leisure audiences looking to explore Balboa Village and the Balboa Island neighborhoods. Community Events Plan and execute community publicity support for large events by the using the following techniques and outreach: • Alerting media of event to drive attendance • E- communications and blog support Media Relations Throughout fiscal Public Relations & Communications will glean publicity for Balboa Village and Balboa Island by developing unique spotlight stories to garner visitation year- round. In addition, Public Relations & Communications will include these neighborhoods in international and domestic FAM visits, if a writer's story -angle is deemed suitable for visitation. E- Communications As apart of our strategic effort to garner publicity to Balboa Village and Balboa Island, the Public Relations & Communications department will showcase stories in each of these neighborhoods including blog posts featured in email newsletters throughout the year. Advertising & Promotions Develop advertising and promotional campaigns that are on brand, are integrated with the other marketing disciplines, and promote key events in order to: • Increase year -round leisure visitation • Generate awareness of these unique areas • Grow event attendance • Leverage media buys & agency team to provide best rates on advertising 9 -31 ENTERPRISE BALBOAVILLAGE GOALS WEBSITE FY 12/13 ACTUALS FY 13/14 ACTUALS 10,650 FY 14/15 GOALS 20,000 GOALS* 25,000 9,572 25,776 45,000 55,000 E3,083 WERS — — 4,500 5,500 TOTAL AD IMPRESSIONS _ 1,301,804 1.6 MILLION ** 1.68 MILLION ** MEDIA PLACEMENTS — — — 50 PARTNER LEADS — 50 100 150 DESTINATION VISITS — 50 100 150 PUBLIC RELATIONS — $10,000 *Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. * *Dependent upon their budget ENTERPRISE BALBOA ISLAND GOALS *Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. * *Dependent upon their budget 9 -32 FY 12/13 ACTUALS FY 13/14 ACTUALS FY 14/15 GOALS FY 15/16 GOALS* WEBSITE ••e SOCIAL MEDIA ADVERTISING PUBLIC RELATIONS MEDIAPLACEMENTS PARTNER LEADS DESTINATION REVENUE *Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. * *Dependent upon their budget 9 -32 BUDGET 9 -33 NEWPORT BEACHTV Mission Newport Beach & Co will be launching and overseeing the expansion of Newport Beach TV leveraging the governmental access channel with promotional opportunities from different businesses around Newport Beach. "...leveraging the public access channel with promotional opportunities from different business around Newport Beach:' u Objective: Tell the compelling integrated brand story of Newport Beach that drives economic success through production of daily, quality local video content, in two -to three - minute segments, that have advertising sponsorships sold and embedded in content to cover all related costs. Two -Prong Strategy: 1. Produce City of Newport Beach government- access television programming and content to fulfill the legal obligations of the City of Newport Beach as well as provide branded content that tells the Newport Beach brand story to local residents and visitors. 2. Create an online lifestyle channel with multiple distribution points and compelling video content about the Newport Beach lifestyle, destination and brand. Produce one well - produced show, Smart Luxury, with a daily 2 -3 minute segment, utilizing videographer and video bloggers. Once these segments are underwritten, begin a second show, and so on. Other show ideas with strong ad potential include an active outdoor activities program, family adventures with fun and travel, and an at home show featuring home decor style and entertaining. All shows must pay for themselves. To do so, everything is bundled. Sales packages include video, web, events, collateral materials, point of purchase, etc. Then, find a way to repurpose content so they can continue to generate revenue and viewership. Programs Smart Luxury Magazine -style show format showcasing how to live and experience the ultimate Newport Beach luxury life but in a smart and sometimes economical way. Show topics range from home and garden to vacation and activities, how to pack smartly or a Newport Beach vacation, landscaping, decorating your home, luxury apparel, luxury cars and automotive. The program will be weekly and comprised of host and five 2 -3 minute videos. All segments will be edited so that they can be repurposed on various website. Active OC Active OC is Orange County's #1 health and active lifestyle show. This show features a variety of healthy and active lifestyle activities in Newport Beach, including: . Newport Beach sporting events from the OC Marathon to the Pacific Coast Triathlon to the Susan G. Komen Race for the Cure • Recreational activities: . Land: cycling, golfing, hiking, lawn bowling, running, Segway, tennis, volleyball • Water: canoeing, dragon boat racing, kayaking, outrigger canoeing, parasailing, rowing, snorkeling, stand -up paddle boarding, surfing, swimming, • Boat: Duffy Electric Boats, Pontoons, Yacht Charters • Parks & Recreational Centers Family Adventures Lifestyle show about all things family —from vacations to how to pack for a trip, to activities, free things to see and do and more. This show targets the core audience demographic of women 25 -44 with family- oriented content and material. At -Home In Newport Beach Lifestyle show about Newport Beach living focusing on shows ranging from coastal luxury (Newport Coast) to village life on Balboa Island. Show topics include decorating, landscaping, DIY projects, cost - saving tips, water - conservation tips, and more. Targeted Advertising Industries • Pharma • Telecom • Grocery • Furniture /Decorators • Tech 9 -35 • Arts • Fitness • Entertainment • Cosmetics /Skincare /Beauty • Government Grants • Green Tech • Active Sports • Jewelry • Cosmetic Medical • Financial Services •Insurance • Travel /Hotels • Attractions • Food & Beverage • Real Estate (Vacation Rentals, Home Sales, Second Homes) • Auto /Luxury Auto www�' no I !A Igloos N1111 11 111 N811 II 11 , W\Aim • Apartment • Retail • Marine Newport Beach TV Audience Demographics Deliver your message to one of the most desired, affluent and educated audiences. NBTV primarily serves the upscale community of Newport Beach. • Population: 85,186 • Median Age: 43.7 • Education: 97.5% (High School or Higher) • Housing Units: 43,460 • Median Household Income: $106,333 • Median Home Value: $1,532,500 Sponsorship Benefits On -Air Benefits • Intro, close and embedded advertisement • Clutter -free broadcast environment • Category exclusivity Off -Air Benefits • Opportunity for strategic partner booth to display products, distribute samples and literature, collect leads, etc. at select events • Display ads NBTV website • Inclusion in outside marketing materials • Linked logo in masthead throughout the NBTV website • Visibility across NBTV social media pages "A 9 -36 GOUS "Goals subject to change and will be finalized after FY 14/15 Actuals are reported at the end of the fiscal year. BUDGET NEWPORT FORCASTED REVENUE $190,000 ,. $308,256 OPERATING EXPENSES $108,704 $230,556 COLLATERAL $6,296 N/A PRODUCTION COSTS $75,000 N/A DIGITAL MARKETING /ADVERTISING N/A $77,700 9 -37 Ordinary Income /Expense Income 40000•Income 41000 - TOT Income 42000 - Partnership Fees 43000 • Co -Op Advertising Income 44000 • Event Hosting 44200 - Annual Marketing Outlook Dinner Total 40000 • Income Total Income Expense 61000 • Salaries 61010 • Salaries 61030 • Payroll Tax Expenses Tout 61000 • Salaries 63000• Insurance 63100 - General Liability Insurance 63200 - Workers Compensation Insurance 63300 • Board of Directors Insurance Total 63000• Insurance 64000.Operating Expenses 64100 -Office Supplies 64101 - Stationary 64110 -Office Equipment Leases 64115 •Office Equipment (non - deprec) 64120 • Equipment Repairs & Maintenance 64125 - Computer Software (non - deprec) 64130 - Voice, Data & Cable- Office 64135 - Telephone - Mobile 64136 - Cable 64140 • Postage 64145 • Shipping Charges 64150 Bank Fees 64151 - Merchant Account Fees 64160 - Membership Dues 64165• Subscriptions 64170 • Team Meetings 64175 - Governance Meetings 64180 - Education 64190 - Business Licensing and Fees 64200 - Professional Services 64201 • Audit Fees 64202 - Tax Preparation Fees 64203 - Recruiting Fees 64204 - Legal Fees 64205 - Payroll Processing Service Total 64200- Professional Services 64300 • Depreciation Expense 64500 -Other Operating Expense 64600 - Business Meals /Entertainment 64700 - Temporary Personnel Total 64000 - Operating Expenses 65000•Travel 65100 - Airfare 65200 -Accommodations Newport Beach Company Proposed Budget PY2016 VNB Inc. TOT 4,320,091 4,000 1,752 FY2016 Projected Budget 4,659,756 1,750 ATTACHMENT B *revenue split with 25,000 25,000 NB &Co 4,350,843 4,686,506 4,350,843 4,686,506 4,350,843 4,686,506 49,532.00 50,497 3,908.00 3,984 S3,440 54,481 2,255 2,255 2,255 2,255 1,500.00 1,500 540 540 250 250 OCVA membership, DMAI, and OCTC - US Travel new for FY16 at $25k (split 30,000 54,996 w1TBID) 5,000 5,000 1,000 1,000 600 600 6,600 6,600 600 600 39,490 64,486 4,150.00 4,150 3,000.00 3,000 NBE Newport Beach Company 65300 Meals 65400 Transportation Costs 65500 -Other Travel Costs Total 65000• Travel 66000 -Advertising 66101 - Leisure - Advertising 66102 - Local Event- Advertising 66103 • Media Promotions 66104 • Non -Media Promotions 66105 •Other Consulting Fees 66200 • Agency Management 66201 - Fees and Expenses 66202 - Ad Production 66203 • Creative Design /Development 66204 - Contests /Consumer Promotions 66205• Photography 66206.Other Contingencies Total 66200 -Agency Management Total 66000- Advertising 67000 • Marketing 67100 • Community Relations 67101 Research 67102• Trade Shows 67103 - Community Sponsorships 67104 - Annual Marketing Outlook Event 67105•Awards 67106 - Video 67107 • Promotional Items 67108 • Marketing Events 67109 - Hospitality Training 67110 - Memberships 67111• Local Event Marketing* 67112 • Street Team Total 67100 • Community Relations 67300• Collateral 67301 • Visitor Guide 67302 Map of Newport Beach 67303 • Great Stays Guide 67304 • Mini Maps 67305 - Calendar of Events 67306 - Wedding Guide 67307 - Destination Brochure 67308 • Community Report 67309 • Marketing Plan 67310 • Partnership Packets 67311 - Collateral Shoot Expenses 67312 - Collateral Distribution 67313 • Pet - Friendly Guide to NB 67314 • Trails Guide 67315 • Special Interest Leisure Guide Total 67300 • Collateral 67400• International Marketing 67401 - Consulting Fees 67402•TTI FAMs 67403 • Promotions 67404• Trade Shows 67405 - Airfare 67406 - Accommodations Proposed Budget PY2016 VNB Inc. TOT FY2016 Budget Projected Budget 1,500.00 1,500 500.00 500 91150 9,150 645,775 663,372 178,000 60,000 10,000 10,000 60,000 30,000 90,000 - 12,000 102,000 30,000 150,000 49,058 - 50,000 50,000 231,058 302,000 1,124,833 1,065,372 'includes OCVA county 35,000 75,000 research ($10k) 26,500 26,500 50,000 50,000 2,000 2,000 30,000 30,000 16,000 16,000 16,000 16,000 10,000 15,000 *Dunes partially sponsored by TBID Sales 66,250 50,000 Incentive funds ($50k) 268,750 280,500 10,000 10,000 38,000 38,000 - 29,000 6,100 6,100 - 10,000 10,000 10,000 5,500 5,500 55,500 55,500 45,000 45,000 5,000 5,000 175,100 214,100 NPIN *includes OCVA China mission ($10k) and OCVA Middle East mission 115,340 115,340 ($15k) 30,000 30,000 60,000 175,000 5,000 5,000 14,250 14,250 10,000 10,000 NPIN Newport Beach Company 67407 Meals 67408 Transportation Costs 67409 -Other Travel Costs 67410 • Business Meals /Entertainment 67411 • Promotional Items Tow] 67400 - International Marketing 67500.Online Marketing 67501 - Social Media 67502 • Website Maintenance 67503 •Online Search Advertising 67504 - Digital Advertising 67505 - Online Contests /Promotions 67506 - Mobile Application 67507 - Consulting Fees 67508 • Website Redesign 67509 • CRM Annual Licensing 67510- Software (non- Deprec) Tow] 67500 - Online Marketing 67600 - Public Relations 67601 • Media Services 67602 • Media FAM Tours 67603 - Promotions 67604 - Consulting Fees 67605 - Special Programs 67606 - Trade Shows 67607 • Media Relations 676089 • Digital Asset /Media Library Tow] 67600 - Public Relations Total 67000 • Marketing 68000 • Newport Beach & Company 68001 • NB & Co Fees 68002 • NB & Co Business Unit Sponsorships Total 68000 - Newport Beach & Company Total Expense Net Income Proposed Budget PY2016 VNB Inc. TOT 011MNotes 4,800 3,000 3,000 7,000 7,000 1,000 1,000 3,000 3,000 9,500 9,500 258,090 373,090 4,800 4,800 66,000 66,000 120,000 120,000 12,000 12,000 3,000 3,000 6,000 25,000 50,000 50,000 6,000 6,000 26,992 26,992 294,792 313,792 26,000 60,000 60,000 60,000 20,000 40,000 20,000 10,000 176,000 1,172,732 1,888,941 60,000 1,948,941 4,350,841 2 20,000 40,000 20,000 Australia Media FAM 10,000 9,000 219,000 1,400,482 2,030,280 60,000 $20kto each unit 2,090,280 4,686,506 ATTACHMENT C NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2016 JULY l" 2015 THROUGH JUNE 30r 2016 ORIGINATION: Implemented beginning May lit, 2009 through an approved ordinance by the City Council, the Newport Beach TBID was amended effective January 29`h 2014. The amendment included a revised assessment from 2% to 3% and a renewal period of ten (10) years. The Newport Beach TBID is a benefit assessment district proposed to help fund marketing and sales promotion efforts for Newport Beach lodging businesses. This is the third annual report of the Newport Beach Tourism Business Improvement District (TBID) for the FY2015 -2016 fiscal year and is filed with the City Clerk, according to the California Streets and Highways Code Sections 36650. PURPOSE: The Newport Beach TBID is responsible for representing and managing conference, meeting, and group sales efforts in partnership with the seven TBID lodging businesses. These services are designed to benefit the seven properties that will be assessed within the City of Newport Beach as well as generating additional revenue to grow the Newport Beach hotel and tourism industry. The current participating lodging businesses are as follows: • Newport Beach Marriott Resort and Spa • Fairmont Newport Beach • Radisson Newport Beach • Newport Beach Marriott Bayview • Hyatt Regency Newport Beach • The Balboa Bay Club and Resort • Newport Beach Dunes Waterfront Resort and Marina • The Island Hotel COST BASIS AND EXPECTED REVENUE FOR FY2014 -2015: Annual assessment rates are 3% of gross short term (less than 30 days) room rental revenue on the participating lodging businesses within the City limits of Newport Beach. Lodging business stays of longer than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Stays at time shares shall not be assessed. 2024 is the renewal year for the TBID. The expected revenue for FY2015 -2016 is $4.094M. Revenue forecasts are revisited in January of each fiscal year by the TBID Board of Directors to determine if adjustments need to be made. This will be the conclusion to the two -year budgeting cycle. ACTIVITIES FOR FY2015 -2016 The strategic initiatives detailed in the Newport Beach & Company FY2015 -2016 Marketing Plan include developing relationships with planners in new markets such as the Southeast and the Northwest. Market segments will continue to grow with greater visibility at national trade shows with an outstanding, continuing with enhancing exposure to targeted clientele through participation in appointment -based shows, and advancing relationships with portfolio accounts such as HelmsBriscoe and ConferenceDirect. A summarized breakdown of the TBID -board approved strategic initiative marketing and advertising budget for FY2015 -2016 is as follows: ADVERTISING Meeting Advertising $95,000 Production 80,000 Special Promotions 115,000 Fees (to NB &Co) 60,000 $350,000 DIRECT SALES INITIATIVES Site Inspections $50,000 Client Events 103,500 Database /Lead Development 150,000 Trade Show Expense 550,500 Sponsorships /Partnerships 626,000 Research 126,586 Customized Destination 615,000 $2,232,586 ASSESSMENT AND BOUNDARIES: The TBID Agreement was renewed this year in January extending the renewal period for ten (10) years. ESTIMATE OF NON - ALLOCATED FUNDS CARRIED OVER FROM FY2015 -2016: $250,000 (to increase reserve fund) AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY2012 -2013: $0.00 Income 40000•Income 41100 - TBID Income Total 40000• Income Total Income Expense 61000 • Salaries 61010 Salaries 61015 Bonuses and Commissions 61020 Auto Allowance 61030 - Payroll Tax Expenses Total 61000- Salaries 61100 - Benefits 61110 - Medical Insurance 61120 Dental Insurance 61125 - Vision Insurance 61130 - Life Insurance 61140 - Retirement Plan (401k) 61150 Flexible Spending Plan 61160 - Personnel Benefit Total 61100 • Became, 62000. Office Expenses 62100 Lease 62110 -Office Repairs and Maintenance Total 62000.Office Expenses 63000• Insurance 63100 - General Liability Insurance 63200 - Workers Compensation Insurance 63300 - Board of Directors Insurance Total 63000• Insurance 64000 Operating Expenses 64100 - Office Supplies 64101 - Stationary 64110 - Ofice Equipment Leases 64115 Office Equipment(non- deprec) 64120 - Equipment Repairs & Maintenance 64130 - Telephone- Office 64135 - Telephone- Mobile 64140 -Postage 64145 - Shipping Charges 64150 Bank Fees 64160 - Membership Dues 64165 - Subscriptions 64170 Team Meetings 64180 - Education 64200 • Professional Services 64201 Audit Fees 64202 Tax Preparation Fees 64203 Recruiting Fees 64204 Legal Fees 64205 Payroll Processing Service Total 64200 -Professional Services 64300 Depreciation Expense 64500 Other Operating Expense 64600 Business Meals /Entertainment 64700 Temporary Personnel Tom[ 64000.Operating Expenses 65000 Travel 65100 Airfare 65200 - Accommodations 65300 - Meals 65400 - Transportation Costs 65405 Mileage 65500 - Other Travel Costs Total 65000• Travel 66000 - Advertising 66100 - Meetings Advertising 66102 - Production 66105 - Other Consulting Fees 66120 - Special Promote. 66121 Gift Cards Newport Beach Company Proposed Budget FY2016 VNB Inc. TBID FV2016 Projected Budget 3,838,042 4,094,082. 3,838,042 4,094,082 3,838,042 4,094,082 795,177 189,131 13,580 78,732 1,076,620 66,165 7,605 972 6,366 63,786 750 3,336 148,980 ATTACHMENT D 808,732 'includes new Events staffing allocation 194,865 17,700 80,580 1,101,877 69,845 7,646 1,020 6,687 70,460 500 3,204 159,362 87,370 103,034 87,370 103,034 808 808 3,024 3,024 3,024 3,006 6,856 6,838 6,000 6,000 3,000 3,000 4,644 2,916 1,200 1,200 8,136 8,136 3,326 3,326 7,980 7,980 300 300 900 900 360 360 4,500 29,496 Add US Travel for S25k(splitw /END) 19,200 30,000 15,080 10,000 1,000 1,000 Soo Soo 25,000 2,700 2,710 29,200 4,210 15,000 5,047 1,600 1,600 22,500 3,000 142,926 117,471 12,000 7,000 11,000 6,150 6,000 1,650 6,000 1,650 600 550 35,600 17,000 192,500 95,000 20,000 80,000 BVKm.chution 36,000 60,000 N8 &Co Marketing allocation 60000 60,000 =1 Newport Beach Company Proposed Budget FY2016 VNB Inc. TBID :4YtiJ t Notes Planned promotion ($10k) and H8 promotion 66122 - Promotional Events 20,000 20,000 ($2.5k /qtr) 66123 Client Gifts 40,000 35,000 Total 66120- Spedal Prgmotlons 120,000 115,000 Total 66000• Advertising 368,500 350,000 66200 • Direct Sales Initatives 66202 Site Inspettions 50,000 50,000 66203 Client Events 109,000 103,500 BE Wild Goose, GlamFAMS, Rockies, Ducks, HE Spa 66204 International Sales Missions 15,000 - Cvent ($18k), empowerMINT (12 months $1Bit) LeadGen ($42k over 12 mo) SEE Sales Support ($201k) 66205 Database /Prospecting 168,000 150,000 Linkedln[$3k) Simpleview CRM f$3k) 66206 - Conference Services 3,000 1,000 66207 Public Relatres /Communications 10,000 PRConsulbng 66220 - Trade Show Espouse - 66221 Travel Expenses 134,548 114,000 66222 - Registration 258,000 300,000 -includes partner registramn for IMEX and ABIT 66223 Booth Expenses 57,000 126,000 'includes depredation expense for new booth 66224 Shipping 42,000 24,000 66225 - Sponsorship Total 66220- Trade Show Expense 491,548 564,000 66230 - Sponsorships 66212 - Community Sponsorships 155,000 155,000 City of NB Cultural Sponsorship; Marathon (May$5k) 66231 - Group Hooking Incentives 60,000 200,000 3% can be allocated to the group master account MeetingsFocusLive kept 2014), HE Conference (April 66232 - Hosted Industry Events 153,000 200,000 20151. DeACA[May 20151, SmartMeetings 66233 Industry Partnerships 82,832 42,000 HB and CD (revisit) Cvent AMEX DMAI (March $Sk), MIC ($10k March), MPIM W ($2k), 66234, Industry Sponsorships 51.000 40,000 BSAE($9k),PCMA- NE($5k), MPINCC($5k), SITE [$3k) Total 66230• Sponsorships 501.832 637.000 66240 • Customized Destination Support 66242 Trade Shows - Partner Expenses 3,000 - 66243 Booking firomaives 282,000 325,000 Partner Hotel incentives [variable) 66244 Client Events /Relations 15,000 - 66245 Client Gifts - 66246 Business Meals /Entertainment 2,500 - Lidcedln (54k split with Education), ImageConsultant 66247 Partner Engagement Expenses 13,000 15,000 ($3.5k) 66248 Group Marketing Initiatives 270,000 275,000 $35k per hotel partner ($30k for Dunes) Toted 66240- Customized Destination Support SRS,S00 615,000 Total 66200• Conference Sales 1,923,800 2,130,500 67000 • Marketing 67003 Research 18,586 18,586 EIC with DMAI 67004 Group Sales Marketing 108,000 Marketing and digital contractors (2)$6kand$3k Total 67000 • Marketing 108,000 Total Expense 3,790,732 4,094,082 Netlncome 47,310 :4YtiJ