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HomeMy WebLinkAbout15 - Newport Beach & Company's 2017/2018 and 2018/2019 Destination Marketing Plan and Biennial Budget and the NBTBID Fiscal Year 2016/2017 Annual Report and BudgetA, August 9, 2016 Agenda Item No. 15 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Tara Finnigan, Assistant to the City Manager, tfinnigan@newportbeachca.gov PHONE: 949-644-3035 TITLE: Newport Beach & Company's 2017/2018 and 2018/2019 Destination Marketing Plan and Biennial Budget and the Newport Beach Tourism Business Improvement District's Fiscal Year 2016/2017 Annual Report and Budget ABSTRACT: Visit Newport Beach, Inc. (VNB), a business unit 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). Under the terms of the Agreement, VNB is required to submit certain records to the City Council for its review and/or approval. Newport Beach & Company has submitted a 2017/2018 & 2018/2019 Destination Marketing Plan and a biennial 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 2016/2017 Annual Report and budget for the City Council's review and approval. RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Authorize a waiver of the timelines provided in section 6 of the Agreement; c) Receive and file VNB's Biennial Marketing Plan; d) Review, approve and/or modify VNB's FY 2016/2017 and FY 2017/2018 budget; e) Review, approve and/or modify the NBTBID's FY 2016/2017 Annual Report; and f) Review, approve and/or modify the NBTBID's FY 2016/2017 budget. 15-1 Newport Beach & Company's 2017/2018 and 2018/2019 Destination Marketing Plan and Biennial Budget and the Newport Beach Tourism Business Improvement District's Fiscal Year 2016/2017 Annual Report and Budget August 9, 2016 Page 2 FUNDING REQUIREMENT: 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. DISCUSSION: Visit Newport Beach, Inc. (VNB) VNB, a nonprofit 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 entered into on September 27, 2011. It was first amended on January 28, 2014 to extend the term to December 31, 2024, change from an annual to biennial budget, update contact information and to add public benefit funding. The City Council approved a second amendment to the agreement on August 12, 2014 to change the reporting timeline for the Performance Standards, Marketing Goals and Marketing Plan from annual to biennial to correspond with the biennial budget reporting timeline. Newport Beach & Company has submitted its biennial Destination Marketing Plan (Attachment A) for the City Council's review. It includes the marketing plan and goals for Visit Newport Beach (see pages 112-128 of the marketing plan). VNB's biennial budget (Attachment B) is included for the Council's review and modification or adoption. Newport Beach & Company also submitted the VNB Performance Standards Report (Attachment C) for the Council's review. Section 6 of the Agreement stipulates that the VNB marketing plan, budget and performance standards are due to the Council by the second meeting in July. Staff is recommending a waiver of the timelines. 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 15-2 Newport Beach & Company's 2017/2018 and 2018/2019 Destination Marketing Plan and Biennial Budget and the Newport Beach Tourism Business Improvement District's Fiscal Year 2016/2017 Annual Report and Budget August 9, 2016 Page 3 programs - was approved by the City Council in January 2014. The NBTBID's current, 10 -year term will expire on January 31, 2024. The NBTBID includes eight hotels or resorts, each consisting of 100 hotel rooms or more, located within Newport Beach. They are: the Balboa Bay 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 2016 — 2017 Annual Report (Attachment D) and submitted a more detailed FY 17 budget for the NBTBID (Attachment E) 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 BID 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). ATTACHMENTS: Attachment A — Newport Beach & Company, Inc. Biennial Marketing Plan Attachment B — Visit Newport Beach Biennial Budget Attachment C — Performance Standards Report Attachment D — NBTBID FY 17 Annual Report Attachment E — NBTBID FY 17 Budget 15-3 rW. ATTACHMENT A � r Sy!' - ICONIC NEWPORT BEACH DESTINATION, MARKETING PLAN 201 7 / 20 1 8 • 201 8 / 2 01 9 ew vrt �A H 8c COMPANY 15-4 Table of Contents ■ Introduction =Executive Summary ................................ . .............._............ ......................... E. .............. _.... ............... .-------- ----- A ■ Newport Beach & Company Overview ............................ .......................................... _.:................ _.......... 8 Desti n ation N EXT Futures Study......................................................... .......................... :.................................... 12 BrandArchitecture....... ........... ............ ................................. ............................... ............ . ................................. 18 C Destination Marketing Plan Overview ................ _....................................................... .........._...._.............34 Customer -Base. Marketing Plans _■ Leisure Traveler ......................... _.................... -.................. ,.,.....,..................... __........................................ ..... ........ ........ .40 MeetingPlanner -_-------.....................................................................................................................................-- - - -.76 LocalCommunity -------------------------------------------------------- ...................................... ___ ......,...____ ....:.................................. 90 -A Organization & Baa rd of Director ........:......__....:....-.. ............... ........................... _................ ..,..............'102 ■ Business -Unit Marketing Plans jw_ Visit Newport Beach, Inc. t:= Visit Newport Beach, Inc.- Leisure Marketing_ ....................... ................................ 112 ■:- Visit Newport Beach, Inc.- Group Sales.....................................................w...........124 Newport Beach & Company DineNewport Beach .. ................... ................. .............. .................... ........... ........ ...._...... ........_.::....::._......._130 MEnterprise Newport Beach .......................... .._.......... ..................... ................... I ... ........ .... ,...................... 134 IWCelebrate Newport Beach.......................__.........................................._..................................,.....,...,....142 NewportBeach TV.........................................................................................,........_..............................142 =U Film Newport Beach................................................................._...................._......................--------. .--152 ■ Appendix ■ Executive Committee & Board of Directors ............................................... ,.....,.-......... ... .------------- 158 ■ Tourism Business Improvement District Boardof Directors,....._..............................._..........,............................................. ... ... ...................... ............... 159 RMarketing Committee., ........................... .._..... ........... _.......... ............... ... ---- ----- ............. ........ .... 159 ® Staff List . ... .......................... .......... ........................................................................... ..... ... ..... ... .... ..... ... ................. 160 Industry Terms ................ ...... ..... ........ ............. ...... ............. ....... _................. ......... ........ .... ..... . 164 ■ References..................................._................. ............,................... ............. _............ ......... ............. .......... ........... 168 15-6 Introduction Executive Summary ........................_..........._........ ■ Newport Beach & Company Overview ............._......_.... ......... 8 DestinationNEXT Futures Study ......................................... 12 Brand Architecture......._._.................................................... 18 ry destination Marketing Plan Overview ............... ..................._...34 4 1 2016-17/2017.18 MARKETING PLAN 15-7 est important to try and inspire so that they can t in whatever they do:' — Kobe Bryant Executive Summary What does it mean to be an Icon? What makes a place ic0 onic? What makes doing bold things iconic? ew ort /BEACH & COMPANY 6 1 2016-17/2017-18 MARKETING PLAN There are countless people, places and things around the world, but there is a rarified collection of those people, places and things that are truly iconic. Yet, there's one place in this world of sameness where that rarified collection has graced its presence. That iconic place is Newport Beach, California. It's a destination steeped in a rich history of iconic celebrities and people who have changed the world. It's found in the truly iconic reverberations of the waves crashing along the beach next to the Crystal Cove Cottages, to the sound of laughter twirling from the Fun Zone Ferris Wheel. It's clearly evident in the grand vision that Donald Bren had with Fashion Island, Island Hotel Newport Beach and The Resort at Pelican Hill. And, it comes to life each summer with the Hyatt Regency Newport Beach's rich history of jazz and music. When something becomes the'it'thing, it achieves that rarified status of becoming iconic. And, being iconic and doing big, iconic things resonates a little deeper in Newport Beach. As Newport Beach & Company embarks on its next two fiscal years, it continues its trend to be a role model for the destination -marketing industry and to become the destination -marketing organization of the future. The following two-year Destination Marketing Plan embarks upon a bold new mantra: Do big things. Do them in smart and efficient ways, and be emotionally impactful to all of the company's audiences. Doing big things, doing them smartly while being emotionally impactful is synonymous with being an iconic destination -marketing organization, doing iconic things, with iconic people and in iconic ways. As the destination -marketing organization of the future, Newport Beach & Company manages and oversees the complete Newport Beach brand across all aspects of marketing, selling and promoting the destination around the world—from tourism/meetings to economic development, from restaurant marketing to event marketing, and from the local television station to luring film production to Newport Beach. Newport Beach & Company has created six business units to oversee these disparate businesses under one common brand with one sales, marketing and media - relations team servicing this iconic community in a holistic approach. These business units include: Visit Newport Beach, Inc., Enterprise Newport Beach, Dine Newport Beach, Celebrate Newport Beach, Newport Beach TV and Film Newport Beach. Newport Beach & Company sells, markets and engages with four primary customer segments: leisure travelers, 15-9 meeting planners, local community and organization/ board of directors. Through a new, strategic -planning approach, the company developed the following strategic initiatives for each of those four customer segments to drive the organization forward to accomplish iconic things in the next two years. Since Newport Beach & Company has the privilege of marketing such an iconic destination, it must also do so in iconic ways with an iconic team, marketing an iconic place. Through a rigorous process of understanding its customers and their brand personas to exhaustive economic forecasting models for future leisure travel and meeting -planning trends, Newport Beach & Company has developed the following strategic initiatives to accomplish iconic things in the next two fiscal years. ICONIC LEISURE TRAVELER STRATEGIES The Leisure Traveler strategic -planning team developed strategies and tactics to achieve three overarching objectives. Those objectives focus on generating incremental leisure -hotel room nights and incremental economic impact; enhancing the visitor experience; and sparking global passion for Newport Beach. To accomplish those significant objectives, the integrated - planning team developed multiple strategies and tactics, which include: integrated, targeted marketing campaigns; taking the Newport Beach brand global; being emotionally impactful through more engaging visitor experiences, and doing big things in iconic ways to increase brand awareness for Newport Beach on a global scale. ICONIC MEETING -PLANNER STRATEGIES The Meeting Planner strategic -planning team developed strategies and tactics to achieve one overarching, ambitious objective. That objective focuses on generating a record -number of group meetings, definite hotel room - night bookings for tourism -business -improvement district hotel partners in Newport Beach. To accomplish the highest group definite room -night goal in the organization's history, the integrated -planning team focused its strategies and tactics around the following themes: pursue high -impact group meetings; keep meeting planners engaged through new digital -marketing initiatives; elevate relationships and effectiveness of third - party meeting -planner organizations; and encourage meeting planners to work with the Group Sales team from the beginning of the sales -planning process. ICONIC LOCAL -COMMUNITY STRATEGIES The Local Community strategic -planning team developed strategies and tactics to achieve several overarching objectives, which center around increasing awareness and respect for Newport Beach & Company and the value of tourism in the local community with its stakeholders, partners, civic leaders, government leaders, hotels, residents and local businesses. To accomplish these brand -building and reputation - management objectives, the integrated -planning team developed multiple strategies and tactics, which include: engaging with influential community partners and elected officials; producing local company events like the Annual Marketing Outlook Dinner; developing this two-year Destination Marketing Plan; creating a Hospitality Training Program; increasing incremental revenue to the company through sponsorships, ad sales and video services; and marketing support for the Newport Beach Restaurant Association and Dine Newport Beach, Balboa Village Merchants Association and Balboa Island Marketing, Inc. ICONIC ORGANIZATION & BOARD OF DIRECTORS STRATEGIES The Organization strategic -planning team developed strategies and tactics to achieve five overarching objectives. Those objectives include: increasing engagement with the board of directors; developing a comprehensive organizational operations and crisis plan for Newport Beach & Company; increasing the efficiency and performance of the company's business processes; and increasing employee performance, morale and retention. To accomplish these objectives for the organization and company, the integrated -planning team developed multiple strategies and tactics, which include: board outreach and communications strategy; developing a crisis and secession plan for the company; implementing a new enterprise -resource planning (ERP) system; developing tools and core values to retain and attract employees; and exploring the formation of a jointly funded Orange County Film Commission. Newport Beach & Company has a fully staffed, talented and engaged executive team, staff, executive committee and board of directors to accomplish these truly iconic strategic initiatives. With this ambitious two-year Destination Marketing Plan, Newport Beach & Company has truly setthe bar high and will drive incremental economic development and growth for Newport Beach over the course of the next two years. An iconic destination like Newport Beach deserves a truly iconic Destination Marketing Plan. Working together, iconic things can happen for Newport Beach, California. ■ NEWPORTBEACHANDCO.COM 1 7 15-10 From Fart Town to Luxury Resort LATE 1800s -- EARLY 1900s: The Imine Ranch is established, including most of Newport Beach; the steamship Vaquero proves the bays are navigable; the McFadden family establishes shipping ports, first on the Upper Bay and then where the Newport Pier stands today; the great flood creates Newport Harbor. 1920s -1930s: Silent movies are filmed on Newport Harbor; the first Crystal Cove cottages are built, creating a vacation village on the sand, while Prohibition makes the coves popular with rumrunners; the area becomes popularfor vacation homes. 1940s -1970s: Sal Week is a huge draw to the area, bringing spring breakers to the beach; the Rendezvous Ballroom is the focus for dancers doing the Balboa Shuffle, Balboa Hop and others; Shirley Temple is the first Miss Newport Beach; the town is known as the Hamptons of Hollywood, drawing stars to the Balboa Bay Club and the yacht harbors; Humphrey Bogart and John Wayne are among those who keep their boats berthed in the harbor. (Wayne's Wild Goose is still there, available for charters and tours.) BALBOA PAVILION, 1910 A Place of Many Icons 1889 First vacation house is built in Newport Beach.. 1 891 Newport Beach Dory Fishing Fleet is founded. It remains one of two open-air markets in Newport Beach where one can buy fresh -off -the -boat fish. (The other is Pea rson's Port.) 1905 Newport Bay Investment. Co. pledges $14000 to build Balboa Pavilion. 1 9©J Pacific Electric Railroad reaches Newport Beach, connecting the city by rail to Los Angeles. 1 908 Gondolier John Scarpa leads the first illuminated boat parade through Newport Harbor, which becomes the Newport Beach Christmas Boat Parade. ANNUAL -BATHING GIRL PARADE," BALBOA BEACH. JUNE 1924 1 912 Glenn Martin flies from Newport Bay to Catalina Island in 37 minutes, setting the longest over -water record in aviation history. 19 1 9 Balboa Island Ferry, the first ferry between Balboa Island and the mainland, is established by the Beek family (which they still operate today). 1 922 Duke Kahanamoku introduces surfing to the West Coast at Newport Beach, and the first Newport Yacht Regatta is held. 1 936 Dedication of Newport Harbor: Franklin D. Roosevelt opens the $4 million harbor by telegraph key from Washington, D.C. 1 936 The original Balboa Fun Zone is born with the merry-go-round, Ferris wheel and arcades. 8 1 2016-17/2017-18 MARKETING PLAN 15-11 AVIATOR GLENN MARTIN, 1912 967 Fashion Island opens. 970 Duffy Electric Boats launches its first boat. Sixteen -year-old Marshall "DufV Duffield entertains dates on his father's gas -powered boat, but when the engine gives out, he uses a golf cart's electric motor — and the Duffy Electric Boat is born. 1 979 Crystal Cove Historic District is placed on National Register of Historic Places. This enclave of restored cottages available for visitor rental was built from the 1920s to the 1950s. 999 The Inaugural Newport Beach Film Festival takes place. Less than an hour from Hollywood, the annual festival will eventually grow to showcase more than 300 films from around the world. 2016Newport Beach turns 110. A FEIN FILMS AND TV SHOWS FEATURING THE BEACH CITY CLEO PATRA Newport Beach plays the part of the River Nile. BEACHES The beach scenes are filmed in Crystal Cove State Park, using cottagesthat have been remodeled for visitor rental. Rxy�W'^+U:aJ- `/^''Y A11n.Po�ur'l` ('{ �.wl I NM.aall/.lMt. �/L1M1IM ALL QUIET ON THE WESTERN FRONT The Academy Award-winning A FEW GOOD MEN film includes scenes shot in Corona del Mar. JERRYMAGUIRE The lead character is based on Newport Beach sports agent Leigh A STAR IS BORN Steinberg, who has a cameo in the film. LASSIE COME HOME JOAN OF ARC TREASURE ISLAND AROUND THE WORLD IN 80 DAYS THE SHOOTIST This is the final film of Newport Beach resident John Wayne. When The Duke dies in 1979, the Grange County Airport is renamed in his honor. ROMYAND MICHELE'S HIGH SCHOOL REUNION THE O.C. TELEVISION SERIES premieres, featuring a fictional family living in Newport Beach. ARRESTED DEVELOPMENT This critically acclaimed comedy is set in Newport Beach and features the Bluth Banana Stand, modeled after the famcusfrozen banana stands found on Balboa Island. THE REAL HOUSEWIVES OF ORANGE COUNTY premieres. NEWPORT HARBOR: THE REAL ORANGE COUNTY premieres as a sequel to the hit MTV reality series Laguna Beach: The Real Orange County. `tiara Newport Beach & Company Overview 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. 10 1 2016-17/2017-18 MARKETING PLAN 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. 15-13 Two -Year Strategic Plan Schematic: 2016 / 2017 — 2017 / 2018 NEWPORTBEACHANDCO.COM 1 11 15-14 OUR CORE FOCUS Enhance Increase Drive New and/or Current Demand Community Entrepreneurship Engagement and Integration OUR • Elevate Destination/ Coordinate Measurable Raise Community Leverage Community Marketing Business Unit Strategies Involvement Necessary Awareness and Conversion and Profile Resources OUR •• VISIT NEWPORT BEACH CELEBRATE NEWPORT BEACH . Execute a • Continue LEISURE MARKETING Prepare and agree to a Newport proactive Board/staff • Maximize OCVA, Visit California and Beach Christmas Boat Parade community- talent search Brand USA marketing opportunities. strategic plan. relations and succession • Participate in OCVA China and . Implement a park &ride access program. planning. Middle East leisure PR and travel- program. • Accelerate local • Ensure self - trade programs. . Continue event financial support public relations supporting • Develop influential brand -marketing through new sponsorships. activities. business units. campaigns. . Seek an event central location to • Develop a •Develop and • Determine and present additional allow higher exposure. preferred -partner implement an ROI metrics. Develop ancillary on-site event community effective staff • Heighten top -of -mind brand programming. program. professional awareness globally. NEWPORT BEACH TV development/ • Promote new Lido House hotel & •Develop new revenue opportunities. • Launch new e-mail training Lido Marina Village development. program. • Create new hotel in -room video communications GROUP SALES channel. program ro ram to • Form a group -sales business unit. . Expand to 24-hour programming stakeholders/ • Increase Eastern Seaboard with new content creation. community. group sales. . Launch online lifestyle channel. . Implement • Expand innovative group -sales ENTERPRISE NEWPORT BEACH Newport Beach digital -marketing efforts. & Company • Strengthen TBID individual hotel • Strengthen Board capabilities and programming for neighborhood networkin g marketing efforts. districts based on individual strategic workshops. • Participate in China MICE Initiative. plans. DINE NEWPORT BEACH Further integrate district/event • Prepare and agree to a revised NBRA marketing across all business units. strategic plan. FILM NEWPORT BEACH • Determine and present additional . Investigate film commission ROI metrics. formation with other Orange County • Develop and execute an impactful communities. year-round culinary -marketing • Seek potential partnership CULTURENALUES strategy. opportunities with State of California. • Provide needed professional - rofessional- development/ training development/training programs for restaurants. • Improved communitywide marketing effectiveness • Higher group room -night production and client loyalty. across all business units. . Maximization of signature special -event production with • Strengthening of the Newport Beach community brand. improved economic impact and brand enhancement. • Greater and more integrated visitor -industry marketing. • Increased bottom line revenue for City and individual • Improved cost efficiency across all business units. businesses. NEWPORTBEACHANDCO.COM 1 11 15-14 VISIT NEWPORT BEACH, INC. Visit Newport Beach, Inc. partners with the tourism and hospitality industry by protecting and nurturing the destination brand and delivers additional spending by leisure and conference visitors, leading to enhanced community economic vitality and quality of life. Visit Newport Beach, Inc. encompasses both leisure marketing, funded by the tourism occupancy tax (TOT) and group sales, funded by the Tourism Business Improvement District (TBID) self-assessment. 12 1 2016-17/2017-18 MARKETING PLAN Community -Marketing Agency for Newport Beach Newport Beach & Company embraces its role leading the next generation of destination -marketing organizations. Through community integration and profitable initiatives, Newport Beach & Company developed a business -unit structure that expands upon the traditional tourism model. Founded in January 2013, Newport Beach & Co. is a non-profit organization established to serve as the official marketing agency for the city of Newport Beach. The agency brings together all of the marketing entities connected to the Newport Beach brand and is designed to oversee separate business units that include: Visit Newport Beach, Inc., Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach, Newport Beach TV and Film Newport Beach. Each business unit plays a specific, unique role in benefitting the Newport Beach visitor and community. The combined efforts of the business units allow Newport Beach & Company to collectively leverage all of its resources to elevate each individually. Ate.. DINE NEWPORT BEACH Created to keep Newport Beach top -of -mind and relevant in a competitive culinary marketplace, Dine Newport Beach showcases and promotes Newport Beach as a premier dining destination offering innovative cuisine, fresh fare, diverse experiences and exceptional restaurants. It is funded by the Newport Beach Restaurant Association Business Improvement District. CELEBRATE NEWPORT BEACH Celebrate Newport Beach is designed to give focused attention to marketing 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 funds to signature events and key marketing initiatives. Specifically, this includes the Newport Beach Christmas Boat Parade. 15-15 Destination Marketing Marketing, Sales Marketing Sales, Ser- Marketing, Sales Marketing, Sales Marketing, Sales Sales and Services and Services vices and Operations and Services and Services and Services • Meeting Planners • Residents • Select Event • Residents • BID Commmunications • Site/Facility • Visitors • Visitors Execution • Visitors • 626 Support Development • Special Events • New Event • Community Events • Business Retention Film Attraction Development Services • Sports Support Film Incentives ENTERPRISE NEWPORT BEACH As the official community -marketing organization for the Balboa Village Merchants Association (BVMA) and Balboa Island Marketing, Inc. (BIMI), Newport Beach & Company partners with each organization to focus on their growth and community vitality through marketing efforts and brand development. NEWPORT BEACH TV The aim of Newport Beach TV is to become the high-quality online, video network and video -content provider for Orange County, featuring local programming that highlights the luxury of the Newport Beach brand in and around the destination. Newport Beach TV is also the city's community channel and broadcasts city council and other public interest meetings. FILM NEWPORT BEACH The purpose of this business unit will be to bring brand -defining, revenue generating and hotel room -night - producing film, commercial and video production to Newport Beach and the participating cities. NEWPORTBEACHANDCO.COM 1 13 15-16 .r DestinationNEXT: A Strategi*C Framework for the Next Generation of Global Destination Marketing In 2014, the destination -marketing industry turned 100 years old and celebrated at its annual industry convention a century of destination marketing in cities, counties, regions and countries around the world. That year, the international association forthe destination -marketing industry, Destination Marketing Association International (DMAI), presented a comprehensive futures study called DestinationNEXTto look at the next 100 years of this fast -paced, ever-changing industry. DestinationNEXT provides practical actions and strategies for the viable success of destination -marketing organizations (DMOs) in an ever-changing world. Aiming to keep destination -marketing organizations relevant, DestinationNEXT arms these organizations with insight into how they can best benefit their community. 14 1 2016-17/2017-18 MARKETING PLAN 15-17 DestinationNEXT: First Phase The first phase of DestinationNEXT identified major upcoming trends within the coming years that were analyzed by two panels. The first panel was a "Futurist" Panel that was able to foresee impending trends for a destination -marketing organization based on the upcoming accumulated economic data and years of experience across a wide variety of industry sectors. The second panel was the "Industry" Panel, compiled of tourism specialists KEYTRENDS FOR DMOs TECHNOLOGY CUSTOMER EXPECTATIONS within the industry. DestinationNEXT surveyed 361 panelists that were a blend of 327 destination -marketing organizations in 36 countries and 34 supplier companies to identify opportunities for destination - marketing organizations. From 64 major trends, DestinationNEXT developed 20 potential opportunities that fell within two key overarching trends: technology and customer expectations. These 20 opportunities were united under three transformational opportunities that will and can change the entire destination - marketing industry. SELECTED TRENDS Taking all of the trends identified by the panel, DestinationNEXT plotted the top 20 trends on a Future Map based on whether the trends are controllable or uncontrollable, and a threat or an opportunity. The Future Map is a new take on the SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis. SELECTED TREND SUB -CATEGORIES GEOPHYSICAL LEGAL POLITICAL SOCIAL CUSTOMER COMPETITOR is ECONOMIC TECHNOLOGICAL 15-18 Additionally, DestinationNEXT identified three Transformational Opportunities for DMOs: 1. Broadcast to Engagement: Interacting with and leveraging the new marketplace 2. Brand Building: Building and protecting the destination brand 3. Collaboration & Partnerships: Evolving the DMO -business model Engagement • Find and engage with consumers on the platforms being used for vacation planning—online • Utilize the same tools customers use while planning trips to engage while in -market Brand Building • Play a central role in advocating for the destination • Connect visitor experience with the quality of life for residents New Business Model • Be involved in broader economic initiatives AVERAGE LEVEL OF IMPORTANCE 1 -Not Significant 5 -Very Significant 3.5 3.4 3.3 1111111 V HIGHER HIGHER • Agree on uniform methodology to measure economic impact • Engage more closely with non- traditional stakeholders Newport Beach & Company has taken a business direction inline with the Destination NEXT framework, working closely with the Newport Beach community, civic leaders, partners, and local businesses and residents to develop a comprehensive approach to leading-edge integrated marketing; brand development and advocacy; and forging new paths to evolve its business model. NEWPORT BEACH & COMPANY IS ICONIC In many ways, Newport Beach & Company is already leaps and bounds ahead on these three transformational opportunities and has taken Newport Beach to that next level. Across all of its business units, Newport Beach & Company creates engaging, new and digital platforms and tools to better engage with local businesses, visitors and residents. FUTURE MAP - TOP 20 TRENDS Social m promin, 16 1 2016-17/2017-18 MARKETING PLAN CONTROLLABLE Newport Beach & Company is able to deliver a comprehensive, singular brand platform (brand positioning, brand promise, brand values, brand personas and brand identity) for Newport Beach that is simple, memorable and market - tested. The genius of establishing Newport Beach & Company, as the community -marketing agency, is that this unique company can create a cohesive brand experience across multiple business units and programs under one common brand platform. Lastly, Newport Beach & Company is an example for the entire destination - marketing industry in showcasing the alignment of economic development and tourism and forging new partnerships and collaborations across a disparate group of business units, events and programs. Newport Beach & Company is the case study for the new business model of destination -marketing organizations in the future and already many are following this example around the country. BranA impact o leisure Touris integrated with conomic d elopment ed • - -- ile plat on ps pri 7ngagemenft ce � rand .. mpadfor groups ' Personal' ed travel experie ce Technolo ' --------- -enabling aster iision-makina Data EXPLOIT OPPORTUNITY 15-19 DestinationNEXT: Second Phase The second phase of DestinationNEXT educates destination -marketing organizations to prepare for these two key trends: technology and customer expectations. This new phase of DestinationNEXT applies the findings from the survey to individual destinations. Using the identifiers found in the first -phase study, DestinationNEXT encouraged each destination -marketing DESTINATION PERFORMANCE AIR ACCESS - 1- I_ , 1 IV L V V I GOVERNANCE MODEL organization to self -assess its place in the community to help identify future priorities and strategies for each destination. With these results, destinations were plotted on a quadrant map to identify and distinguish between developing destinations and established destinations and determine whether community engagement within the destination is strong or weak. DESTINATION STRENGTH BRAND ACCOMODATION ATTRACTIONS & CONVENTION & ENTERTAINMENT MEETING FACILITIES EVENTS SPORTING & COMMUNICATIONS MOBILITY & RECREATION FACILITIES & INTERNET ACCESS INFRASTRUCTURE COMMUNITY SUPPORT & ENGAGEMENT � I 11111 MEMBERSHIP INDUSTRY LOCALCOMMUNITY EFFECTIVEADVC STRENGTH SUPPORT SUPPORT PROGRAM HOSPITALITY REGIONAL FUNDING SUPPORT ECONOWRem CULTURE COOPERATION AND CERTAINTY DEVELOPMENT NEWPORTBEACHANDCO.COM 1 17 15-20 Through a survey completed by each destination -marketing organization's internal leadership, government leaders, customers and key stakeholders, the destination - marketing organization's ranking on community support and destination strength is then plotted on the map by the Destination NEXT team to determine if the destination marketing organiztion and the Developing destination are: Destination • Trailblazers: Established Destination with Strong Community Engagement • Voyagers: Developing Destination with Strong Community Engagement • Explorers: Developing Destination with Weak Community Engagement • Mountaineers: Established Destination with Weak Community Engagement Newport Beach & Company's executive team completed the DestinationNEXT survey and invited the board of directors, community leaders, partners, government officials and meeting -planner TRAILIBLAZE61 clients to complete the survey. Gaining insight from a range of stakeholders gave the Newport • Beach &Company team insight • on outside perspectives, seeing AewpQrt�BeacRi • 00 if perspectives are inline. . • • • Developing • ' _•' ' •' Destination•� ►�•�ni at a tesAv%rage • • « • • • f • DIFFERENT REALITIES FOR DMOS/CUBS Strong Community Engagement Weak Community Engagement NEWPORT BEACH OVERALL ASSESMENT-U.S. Strong Community Engagement The strength of Newport Beach community engagement and establishing the brand as a top destination has positioned Newport Beach in the Trailblazer quadrant, notably above the U.S. average. The results were compiled into a scorecard measuring Newport Beach's destination strength and community support. 18 1 2016-17/2017-18 MARKETING PLAN Weak Community Engagement Established Destination Established Destination 15-21 As a destination, every variable was above the industry average except events (at the average) and sports facilities (below average), with Newport Beach's overall destination strength 10 -percent higher than the industry average. Newport Beach is exceptionally strong in community support and engagement, with every variable registering above the industry average. The overall community support and engagement figure rated 20 -percent above the industry average. The DestinationNEXT profile demonstrated that the overall health of Newport Beach & Company and the Newport Beach destination are strong, but there is room to improve. The top issues to address according to the study are international tourism readiness, high-tech city, art and cultural attractions, public transportation and event capacity. Many of the objectives, strategies and tactics in the following, two-year Marketing Plan address some of these issues and further strengthen the company and the destination for future success. One of the strongest results derived from the survey is the alignment of stakeholder responses, a result not often found. The Newport Beach & Company executive team, government leaders, stakeholders and board of directors scored Newport Beach in the Trailblazers quadrant, with the management team scoring right at the average. This shows that the Newport Beach community views the role of tourism in a similar light. The lack of an outlier demonstrates the effectiveness of Newport Beach & Company's brand and community engagement. The goal for Newport Beach & Company is to continue the success by educating residents, stakeholders, visitors and meeting planners of the benefits and value of Newport Beach rESTINATION STRENGTH: VARIABLE Brand REP4r INDUSTRY AVERAGE 3.21 NEWPORT BEACH 4.10 STANDARD kpEVIATION_ 0.46 Destination Performance 3.83 4.45 0.45 Accomodation 3.42 4.01 0.66 Attractions & Entertainment 3.68 4.12 0.49 Communication & Internet Infrastructure 3.32 3.89 0.66 Mobility & Access 3.04 3.34 0.61 Air Access 2.90 4.07 0.67 Events 3.73 3.73 0.69 Convention & Meeting Facilities 3.12 3.45 0.69 Sports & Recreation Facilities 3.32 2.72 0.96 Destination Strength - Newport Beach 3.85 Industry Average Desination Strength RESULTING SCENARIO -. - 3.49 IMMUNITY SUPPORT &ENGAGEMENT: REP VARIABLE Funding Support & Certainty INDUSTRY AVERAGE 3.06 NEWPORT BEACH 4.39 Economic Development 3.91 4.38 Membership Strength & Support 3.42 4.39 Regional Cooperation 3.58 4.35 Industry Support 3.70 4.56 Effective Advocacy Program 3.39 4.26 Local Community Support 3.60 4.07 Hospitality Culture 3.60 4.17 Workforce 3.16 4.13 Community Support & Engagement - Newport Beach 4.34 Industry Average Community Support & Engagement SCENARIORESULTING 3.60 TRAILBLAZERS by providing fresh, relevant and engaging content. With a strong alignment among various stakeholder groups and a common understanding of the value of tourism to the destination, Newport Beach & Company and Newport Beach as a destination are both poised for even greater things. NEWPORTBEACHANDCO.COM 1 19 15-22 Newport Beach Brand Architecture In 2015, Newport Beach & Company conducted extensive research in order to develop a values -based brand -positioning platform that would resonate with both existing and potential visitors on an emotional level. The results of this research are helping to guide Newport Beach & Company to better understand and speak to the personal values that incite people to choose a travel destination. By communicating with the visitors in an engaging way on a sensory level, the hope is that they will become life-long advocates for the destination. Prior to 2015, Newport Beach & Company completed extensive research and brand - development work to develop a brand promise for the company as well as a destination brand promise that Newport Beach delivers to visitors, residents, meeting planners, meeting attendees, and all groups who experience the destination. A brand promise is literally a promise or service level that each brand or in this case Newport Beach delivers to each and every person or business who experiences the features, attractions, hotels and people in Newport Beach. A brand is not only a logo but also the brand promise, brand positioning and the DNA of a place or product. Understanding what the Newport Beach brand means to its customers is crucial to how a destination positions itself to speak to those customers. 20 1 2016-17/2017-18 MARKETING PLAN 15-23 Values -Based, Brand -Positioning Platform To develop a values -based, brand - positioning platform for Newport Beach, Newport Beach & Company and its branding agency, BVK started with the pre-existing brand promise and then matched that up to the values that Newport Beach visitors expect from their vacation, meeting or getaway to Newport Beach. The intersection of the Newport Beach brand promise and its customers' brand values is the value that most resonates with a Newport Beach visitor. Newport Beach is an Orange County coastal fantasyland that represents a "taste of the perfect life;' a place where visitors can experience 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 man-made and natural beauty of the destination, this is the place that allows the visitors to relax and dream what can be. POSITIONING FORMULA: ENRICHMENT= NEWPORT BEACH EMOTIONAL STATE BRAND PROMISE + OF MIND • Willing to pay more/exert effort • Appreciate & savor special moment M • Want meaningful & fulfilling Z experiences 70 n • Want to be and experience the best they can in life • Appreciate beauty M z • Want to escape reality • Enjoy variety • Prefer depth over superficiality • Drawn to texture & contour NEWPORTBEACHANDCO.COM 1 21 15-24 The result of this research determined that Newport Beach's most valuable visitor prospect is one who seeks to experience enriching experiences both simple and refined. With Newport Beach's highly sophisticated, aspirational lifestyle and wide variety of experiential activities, the visitor concludes their stay feeling fully recharged and enriched in every sense. Newport Beach visitors and meeting planners seek deeper more satisfying experiences, and research shows they are willing to pay more forthose depth - defying, enriching experiences. It's this value of enrichment that best fits with what visitors and prospects seek from a vacation or meeting in Newport Beach. Combine the feeling of enrichment with Newport Beach's core destination brand pillars: Abundance, Inspiration, Refinement, Fulfillment, Vitality and Smart Luxury, and Newport Beach delivers a powerful, values -based brand promise to its visitors and residents. The value -based brand -positioning platform of enrichment will serve as the foundation for all of Newport Beach & Company's marketing activities and messaging in 2017 and 2018 across all six business units: Visit Newport Beach, Dine Newport Beach, Newport Beach TV, Celebrate Newport Beach, Enterprise Newport Beach and Film Newport Beach. This strategic approach ensures that the destination's brand -positioning platform is communicated consistently and cohesively across all marketing touch -points -which enhances recall and familiarity - but more importantly, drives preference for the destination that promises to deliver the emotional pay-off that visitors, meeting planners and meeting attendees are craving. 22 1 2016-17/2017-18 MARKETING PLAN IINSPIRpi1�N , 11,�ILlit0 G BRAND CORE vxvRv Brand -Targeting & Brand -Persona Framework According to research conducted in September 2015 by Destination Analysts, Inc., Newport Beach's tourism economy generates more than $1 billion in direct visitor spending annually from its seven million visitors each year. That is equivalent to approximately $2.8 million being spent in Newport Beach per day, driving an estimated $31 million in tax revenue to the city annually. For a destination with a population of just over 85,000, that translates to roughly $12,000 per resident. The research also revealed some powerful insights that helped determine the targeted, strategic approach. Namely, a staggering 83 -percent of all Newport Beach visitors are day-tripper guests who disproportionately account for only 30-percent($308 million) of Newport Beach's annual direct visitor spending. Conversely, accounting for a slim 10 -percent of Newport Beach visitors (1.2 million), overnight guest spending is disproportionately off the charts, accounting for the majority of Newport Beach visitors' annual spending in 2015 ($718.3 million). This imbalance presents significant potential to increase the Newport Beach leisure -visitor revenue by right -sizing the spending gap for day-trippers while bolstering Newport Beach's overnight -visitor volume. In combination, these adjustments have potential to bring unprecedented levels of spending to the destination. 15-25 When Newport Beach & Company better understands its customers, it can then refine and make better business and marketing decisions to reach those customers. A highly effective way to better understand a destination's target customers and the values that will trigger them to visit is to create brand personas for each customer profile. Brand personas are the psychographic profiles, personality traits and brand characteristics that define and describe the media habits, demographics and lifestyles of Newport Beach's primary customers around the world and meeting planners who book meetings or conferences in Newport Beach. Leisure-Traveler/Business-to- Consumer (132C) Targeting Strategic Approach: Drive greatest possible upside potential to scale Newport Beach leisure -visitor spending by categorizing first by term of stay (day-tripper vs. overnighter); then demographical ly/psychographical ly (Micro Targets). Recognizing that those who visit Newport Beach for a day -visit consume the destination very differently than those staying over an extended term, it enables us to dissect and cater to each group's distinct needs, revealing key white space opportunities to drive incremental spending and positive word of mouth/ advocacy for the destination. Meeting Planners/Business-to- Business (B2B) Targeting Strategic Approach: Aim to satisfy key motivators for meeting planners that also play to Newport Beach's enriching assets: beach, ocean, cuisine, pristine aesthetics, world-class shopping and distinct activities. Newport Beach & Company and Visit Newport Beach, Inc., will design programs and messaging with the goal of making their key B2B partners feel confident and secure in their destination decision while also boosting their professional credibility internally. Newport Beach & Company has organized its target audiences into three core categories with multiple brand personas under each of these three overarching brand - persona categories (geographic brand personas, niche -market brand personas and high-stakes hosts brand persona). CORE PERSONA CATEGORES 1. Geographic Brand Personas (Daytripper vs. Overnight Visitors) • Backyard BFF • Refined -Escapist 2. Niche -Market Brand Personas (Psychographic Micro Target Visitors) • Grandma & Grandpa • Polished -Parent • Captain -Mom • Global-Adventurist • Millennial -Maven • LGBT LT (lesbian, gay, bisexual, transgender leisure traveler) 3. High -Stakes Hosts (Meeting Planners) Brand -Persona Framework- In ramework In further defining the Newport Beach brand targets, Newport Beach & Company developed personas that bring to life the context of each group with individual brand -persona profiles. Each persona captures the following data: • Value -Based Priorities: Insights into the persona's value set, what inspires, motivates and drives daily decision making. Lifestyle Snapshot: Sample day - in -the life activities or attitudes of each persona. Media Consumption Habits: How they stay current and informed. • Media -Partner Considerations: Types of media that reach the target personas. • Highest -Resonating Newport Beach Activities: Neighborhoods or specific activities in Newport Beach that would most appeal to the persona. The final product is a rich collection of strategically -relevant target audiences for Newport Beach & Company and all of its business units to focus tailored - marketing efforts that drive measurable results: more overnight visits; more direct visitor spending; more meetings and conferences; more positive word of mouth; more organic advocacy for the destination. NEWPORTBEACHANDCO.COM 1 23 15-26 Geographic Brand Personas (Daytripper vs. Overnight Visitors) Geographic Brand Personas focus on the types of visitors or prospective visitors to Newport Beach and their proximity, familiarity and geographic relationship to the destination. Proximity and familiarity to the destination are critical factors to the types of people who already visit or are prospective visitors (target markets). The closer a visitor is to Newport Beach the less likely they are to stay overnight when visiting, so the goal is to transition those "daytrippers" into overnight visitors. Those who visit Newport Beach for a day visit experience the destination very differently than those staying overnight for an extended term; therefore there are different brand personas based on geographic location of visitors. BACKYARD BFF BRAND PERSONA (Nearby Newport Beach Best Friends Forever) • SoCal visitors who live, breathe or aspire to experience the Newport Beach aspirational, Southern - California lifestyle but typically do not stay in Newport Beach overnight. The largest proportion of Newport Beach's visitors hail from Orange County—followed by Los Angeles, San Diego and Inland Empire. These backyard day-trippers account for a staggering 83 -percent of Newport Beach's annual visitor population each year, and are Newport Beach's most loyal, devoted visitor base. • Recognizing how important this unique visitor is to the Newport Beach tourism economy, Newport Beach & Company will design marketing programs to maintain and strengthen its ties, and foster its advocacy and ambassadorship of the destination in order to influence friends and family to visit Newport Beach; generate overnight stays and repeat visits; and increase length of stay in Newport Beach. • These Backyard BFFs are loyalists and brand advocates for Newport Beach, yet they may only see Newport Beach as a daytrip and don't generally stay overnight. REFINED -ESCAPIST BRAND PERSONA (Sophisticated International, National or Regional Overnight Visitors) • Accounting for a slim 10 -percent of Newport -Beach visitors (1.2MM), overnight -guest spending is disproportionately off the charts, accounting for the majority of Newport Beach's annual visitor spending ($718.3MM). Bolstering Newport Beach's overnight -visitor volume can drive unprecedented levels of spending in the city. 15-27 GEOGRAPHIC BRAND PERSONAS CATEGORY DEMOGRAPHIC PROFILE if of HIGH -HOUSEHOLD WOMEN ikif-nknC. C4On nnn Af-CC OC Akin NEWPORTBEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL K 4TH OF JULY CELEBRATION MOVIES IN THE PARK CORONA DEL MAR 5K RUN !�m MARRI nj GENERATION XAND BABY BOOMERS WELL-EDUCATED (52 -PERCENT HAVE A COLLEGE EDUCATION) FROM ORANGE COUNTY INLAND EMPIRE LOS ANGLES SAN DIEGO 1 AMBASSADOR OF NEWPORT BEACH - INFLUENCER OF FRIENDS INTERESTS rK - 7alla PARENTING/ HEALTHY NATURE TECHNOLOGY CHILDREN LIVING FLA." Illy ENTERTAINMENT MOVIES TRAVEL DINING MEDIA CONSUMPTION TELEVISION RADII ONLINE MOBILE SOCIAL MEDIA PRINT NEIGHBORHOOD & LANDMARKS CRYSTAL COVE/ FASHION ISLAND CRYSTAL COVE BALBOA ISLAND NEW PORT COAST COTTAGES GEOGRAPHIC BRAND PERSONA CATEGORY DEMOGRAPHIC PROFILE ICONIC NEWPORT BEACH MOMENTS CHRISTMAS BOAT PARADE y NEWPORTBEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL NEWPORT BEACH WINE & FOOD FESTIVAL NEWPORT BEACH JAZZ FESTIVAL 26 1 L DRIVE MARKETS: ORANGE COUNTY LOS ANGLES PALM SPRINGS SAN DIEGO u NATIONAL MARKETS: PHOENIX SAN FRANCISCO SEATTLE DALLAS HOUSTON CHICAGO NEW YORK Q INTERNATIONAL MARKETS: CANADA UNITED KINGDOM CHINA MIDDLE EAST INTERESTS :R I ENTERTAINMENT HEALTHY LIVING TRAVEL U 400 SEEK VACATIONS TO INDULGE & ESCAPE ROUTINE & EXPERIENCE A DIVERSE ARRAY OF ACTIVITIES VALUE: ENJOYMENT QUALITY FULFILLMENT BALANCE ai0� HIGH -HOUSEHOLD HALF MALE WELL-EDUCATED INCOME: $160,000 HALF FEMALE AGES 25-54 L ICONIC NEWPORT BEACH MOMENTS CHRISTMAS BOAT PARADE y NEWPORTBEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL NEWPORT BEACH WINE & FOOD FESTIVAL NEWPORT BEACH JAZZ FESTIVAL 26 1 L DRIVE MARKETS: ORANGE COUNTY LOS ANGLES PALM SPRINGS SAN DIEGO u NATIONAL MARKETS: PHOENIX SAN FRANCISCO SEATTLE DALLAS HOUSTON CHICAGO NEW YORK Q INTERNATIONAL MARKETS: CANADA UNITED KINGDOM CHINA MIDDLE EAST INTERESTS :R I ENTERTAINMENT HEALTHY LIVING TRAVEL U 400 SEEK VACATIONS TO INDULGE & ESCAPE ROUTINE & EXPERIENCE A DIVERSE ARRAY OF ACTIVITIES VALUE: ENJOYMENT QUALITY FULFILLMENT BALANCE MEDIA CONSUMPTION TELEVISION RADIO ONLINE �O SOCIAL MEDIA PRINT ICONIC NEIGHBORHOOD & LANDMARKS fir• J CORONA CRYSTAL COVE/ FASHION ISLAND LIDO VILLAGE DEL MAR NEWPORTCOAST Y'-- . ii NEWPORT HARBOR ai0� J NATURE TECHNOLOGY L d DINING MEDIA CONSUMPTION TELEVISION RADIO ONLINE �O SOCIAL MEDIA PRINT ICONIC NEIGHBORHOOD & LANDMARKS fir• J CORONA CRYSTAL COVE/ FASHION ISLAND LIDO VILLAGE DEL MAR NEWPORTCOAST Y'-- . ii NEWPORT HARBOR Niche -Market Brand Personas (Psyehogr-aphie Micro -Target Visitors) Niche -Market Brand Personas are smaller subsets of visitors who fall into micro -markets such as millennials; grandparents/intergenerational travelers; lesbian, gay, bi-sexual, transgender (LGBT) travelers; value - conscious moms; affluent parents; and international travelers. Each of these niche markets consumes media; books travel differently, and does different activities in Newport Beach, so Newport Beach & Company has developed brand personas for each of these niche -markets. Visitors in each of these niche -market brand personas can fall into one or both of the two geographic brand personas. In other words, they can either be Backyard BFFs or Refined Escapists. Living within each brand -persona category are key micro -targets, identified through existing Newport Beach & Company research, which align with Newport Beach's value - based, brand -positioning platform of enrichment. The micro -targets allow the destination to dissect and cater to each group's distinct needs, revealing key opportunities to drive incremental spending and positive word of mouth and advocacy for the destination. GRANDMA & GRANDPA BRAND PERSONA Grandparents traveling alone or with grandkids. Intergenerational travelers (grandparents/grandkids) traveling together with their family is a huge new opportunity market. These travelers typically need more than one hotel room or vacation -home rental making them valuable customers to Newport Beach. POLISHED -PARENT BRAND PERSONA Financially successful parents who are not typically value -conscious who like to spoil their families with the finer things in life. The mom typically plans the travel in this family. CAPTAIN -MOM BRAND PERSONA Successful, yet value -conscious moms who seek enriching experiences at a good price, are drawn to Newport Beach, Balboa Island and Balboa Village with their bevy of activities, beach and outdoor experiences. GLOBAL-ADVENTURIST BRAND PERSONA Successful, international travelers who seek enriching experiences and an aspirational, SoCal lifestyle, flock to Newport Coast, Crystal Cove, Fashion Island and The Resort at Pelican Hill. MILLENNIAL -MAVEN BRAND PERSONA Millennial travelers who seek personalized, one -of -a -kind experiences. Milliennials are defined as consumers who were born or became adults in the 21 st century. These confident, "follow -your -dreams" consumers are ethnically diverse and are generally tolerant of differences. They consume media quite differently and demand marketers speak to them differently and "as adults." LGBT BRAND PERSONA Lesbian, gay, bisexual and transgender leisure travelers may or may not have children, therefore they have a high -disposable income and tend to travel quite frequently. This is a diverse psychographic target falling across multiple demographic and psychographic groups, but these travelers typically seek rewarding, enriching and fun experiences and travel with groups of friends or family or as couples. 15-30 NICHE -MARKET BRAND PERSONAS CATEGORY HIGH -HOUSEHOLD INCOME: $150,000 ICONIC NEWPORT BEACH MOMENTS CHRISTMAS BOAT PARADE NEWPORT BEACH RESTAURANTWEEK NEWPORTBEACH FILM FESTIVAL lip NEWPORT BEACH WINE & FOOD FESTIVAL P e E" m HOMEAND GARDEN TOURS HYATT REGENCY NEWPORT BEACH SUMMER CONCERT SERIES • • HALF FEMM AGES 55-65 •r• BOOMERS ARRIED BABY BOOMERS WELL-EDUCATED t9i FROM ORANGE GIVE ADVICE COUNTY ONAVARIETI INLAND EMPIRE OFTOPII LOS ANGLES L SAN DIEGO ONE -IN TH AMERICANS INTERESTS S � Aw ,t FINANCE HEALTHY NATURE If' _ LIVING h� f ENTERTAINMENT MOVIES TRAVEL DINING MEDIA CONSUMPTION x TELEVISION RADIO ONLINE MOBILE SOCIALMEDIA PRINT c LANDMARKS 'e. BALBOAVILLAGE NEWPORT FUN ZONE HARBOR TpNIGh1T r: 7 a. -r TOPICAL NEWS SHOPPING DINING MEDIA CONSUMPTION x TELEVISION RADIO ONLINE MOBILE SOCIALMEDIA PRINT c LANDMARKS 'e. BALBOAVILLAGE NEWPORT FUN ZONE HARBOR NICHE -MARKET BRAND PERSONAS CATEGORY DEMOGRAPHIC PROFILE ICONIC NEWPORT BEACH MOMENTS CHRISTMAS BOATPARADE NEWPORT BEACH RESTAURANT WEEK X, NEWPORTBEACH FILM FESTIVAL } i NEWPORT BEACH WINE & FOOD FESTIVAL CORONA DEL MAR CHRISTMAS WALK NTERESTS HEALTHY CELEBRITY SHOPPING 9 lei ®r WELL-EDUCATED FROM ORANGE INVOLVED IN THE COUNTY COMMUNITYAS INLAND EMPIRE WELL AS LOCAL - LOS ANGLES FUNDRAISING PALM SPRINGS COMMITTEES SAN DIEGO r ENTERTAINMENT FAMILY HEALTf MEDIA CONSUMPTION /. R3ap " TELEVISION RADIO ONLINE MOBILE SOCIAL MEDIA PRINT ICONIC NEIGHBORHOOD & LANDMARKS FASHION ISLAND BALBOAVILLAGE FUN ZONE NEWFURI HARBOR ,Z9 t ��r1 BOOMERS HIGH -HOUSEHOLD 30% MALE MARRIED BABY BOOMERS INCOME: $150,000 70% FEMALE AGES 35-54 tl� cow; SHOPPING IS ORGANIZER OF THERAPEUTIC DATE NIGHT ICONIC NEWPORT BEACH MOMENTS CHRISTMAS BOATPARADE NEWPORT BEACH RESTAURANT WEEK X, NEWPORTBEACH FILM FESTIVAL } i NEWPORT BEACH WINE & FOOD FESTIVAL CORONA DEL MAR CHRISTMAS WALK NTERESTS HEALTHY CELEBRITY SHOPPING 9 lei ®r WELL-EDUCATED FROM ORANGE INVOLVED IN THE COUNTY COMMUNITYAS INLAND EMPIRE WELL AS LOCAL - LOS ANGLES FUNDRAISING PALM SPRINGS COMMITTEES SAN DIEGO r ENTERTAINMENT FAMILY HEALTf MEDIA CONSUMPTION /. R3ap " TELEVISION RADIO ONLINE MOBILE SOCIAL MEDIA PRINT ICONIC NEIGHBORHOOD & LANDMARKS FASHION ISLAND BALBOAVILLAGE FUN ZONE NEWFURI HARBOR ,Z9 t ��r1 NICHE -MARKET BRAND PERSONAS CATEGORY DEMOGRAPHIC PROFILE HIGH -HOUSEHOLD WOMEN INCOME: $110,000 AGES 35 AND rIIIIIIIIIII OLDER 70 -PERCENT OF MOMS OWN SMARTPHONES ICONIC NEWPORT BEACH r MOMENTS CHRISTMAS BOATPARADE ham. i � J"ff" NEWPORT BEACH RESTAURANT WEEK s� NEWPORT BEACH FILM FESTIVAL CORONA DEL MAR CHRISTMAS WALK FASHION ISLAND TREE LIGHTING 14 30 1 2016-17/201 TIP 70% OF MOMS WOMEN MAKE ARE VACATION 85 -PERCENT DECISION- OFTHE MAKERS IN THE PURCHASING HOUSEHOLD DECISIONS INA HOUSEHOLD INTERESTS WELL-EDUCATED MOMS APPRECIATE AND VALUE EFFICIENCY w a MOTHERS APPRECIATE HONESTYAND REALISM IN COMMUNI- CATIONS, AND THEY WANT TO BE TREATED AS INTELLIGENT AND SMARTAND MORE THAN JUST A MOM L_m� 1�1.1. HEALTHY SHOPPING ENTERTAINME'. FAMILY HEALTH TRAVEL LIVING MEDIA CONSUMPTION mJaz. ��.... TELEVISION RADIO ONLINE MOBILE SOCIALMEDIA DINING CONIC NEIGHBORHOOD & LANDMARKS FASHION ISLAND BALBOA VILLAGE UPPER NEWPORT FUN ZONE BAY NICHE-MARKEI BRAND PERSONA! s CATEGORY DEMOGR, HIGH -HOUSEHOLD HALF MALE INCOME: $175,000 HALF FEMALE 1 1 55 -PERCENT OF -- " EUROPEANS PLANNING _ A HOLIDAY ICONIC NEWPORT BEACH MOMENTS FASHION ISLAND s GOLF !-4w !I- SPA 741 •� I FINE -DINING i WHALE -WATCHING Do 0 31%OF THE LONGER LENGTH WELL-EDUCATED UNITED STATES RECOMMEND - GLOBAL OF STAY AND IS THE TOP ATION FROM POPULATION USE HIGHER SPENDING LONG-HAUL, FRIENDS AND SOCIAL MEDIA, IN MARKET INTERNATIONAL FAMILY IS THE EQUIVALENT VISITOR MARKET 'MOST -USED' TO 2.3 BILLION SOURCE OF SOCIAL -MEDIA INFORMATION USERS, FACEBOOK HAS SOME 1.59 BILLION MONTHLY ACTIVE USERS GLOBALLY INTERESTS I ENTERTAINMENT FAMILY HEALTH TRAVEL MEDIA CONSUM TION 0 r TELEVISION RADIO ONLINE �r MOBILE SOCIAL MEDIA `ai� ICONIC NEIGHBORHOOD & LANDMARKS v� i W BALBOA ISLAND THE RESORT AT NEWPORTCOAST FASHION ISLAND CRYSTAL COVE NEWPORT PELICAN HILL COTTAGES HARBOR 131 NICHE -MARKET BRAND PERSONAS CATEGORY DEMOGRAP 0 Ila If *o a �� tZ%-k MEDIAN- HALF MALE VIEW TRAVEL ACTIVE DIGITAL BUDGET- HARD WORKING: MOST HOUSEHOLD HALF FEMALE AS A PRIORITY NATIVE, LIFE IS CONSCIOUS PRIMARY REASON INFLUENCED BY INCOME: $75,000 EXPERIENCED YET WILLING FOR VACATIONING PEERS, ONLINE EQUALLY ON AND TO INDULGE IN IS TO ESCAPE REVIEWS AND OFFLINE QUALITY ROUTINE, WORD OF MOUTH 24/7 -CONNECTED; RECHARGE AND NOT BRAND - SAVVY SHOPPERS; INDULGE IN LOYAL CAN AND WILL "LIVING THE LIFE FIND DEALS THEYASPIRE FOR" NEWPORT BEACH MOMENTS NEWPORT BEACH WINE & FOOD FESTIVAL BALBOA VILLAGE CRAFT BEER EFESTIVAL 32 INTERESTS MEDIA CONSUMPTION M TECHNOLOGY Lp 0 A" r -� A NDIGITAL ONLINE MOBILE SOCIALMEDIA N_ 4fta ICONIC NEIGHBORHOOD & LANDMARKS • _ A� = BALBOA MARINERS MILE/ NEWPORT PENINSULA WESTCLIFF HARBOR 101[a]a=0►Vi/_1:7N4 PERSONA: CATEGORY DEMOGRAPHIC PROFILE HIGH -HOUSEHOLD LESBIAN FAMILIES: INCOME: $110,000 PRIORITIZE FAMILY VACATIONS OVER GAY -HOSPITABLE VACATIONS ICONIC NEWPORT BEACH MOMENTS CHRISTMAS BOATPARADE NEWPORT BEACH RESTAURANT WEEK NEWPORTBEACH FILM FESTIVAL it w r t P 1 " t NEWPORT BEACH WINE & FOOD FESTIVAL i • q* • NIT GAY FAMILIES: PRIORITIZE BOTH EVENLY PRIORITIZE GAY -HOSPITABLE VACATIONS/ VENDORS/ DESTINATIONS/ HOTELS INTEREST HEALTHY LIVING t rr� CELEBRITY HOTEL In STAYS IN PAID - ACCOMMODATIONS -THE MAJORITY HOTELS (50 -PERCENT OR MORE) / ONLY 10 -PERCENT ARE STAYING WITH FRIENDS AND FAMILY VERY LOYAL COMMUNITY, ADVOCATE FOR AND ARE PATRONS OF BRANDS THAT SUPPORT OR CATER TO THE LG BT COMMUNITY NATURE TECHNOLOGY DINING /IEDIA CONSUMPTION Joe, .. P TV DIGITAL ONLINE MOBILE SOCIAL MEDIA CONIC NEIGHBORHOOD & LANDMARKS NEWPORT FASHION ISLAND COAST vs V1 34 1 2016-17/2017-18 MARKETING PLAN High -Stakes Hosts Brand Persona (Meeting Planners) High -Stakes Host Brand Persona is a psychographic profile of the typical meeting planner who books meetings in Newport Beach and other meetings destinations for their clients, their company or their association. • Meeting planners feel tremendous pressure to deliver a quality, enriching and productive experience for their stakeholders. With so much on the line, their expectations for excellence are highly calibrated. Newport Beach & Company and Visit Newport Beach, Inc., will craft programming that delivers great value for their investment and a seamless experience that leaves planners confident and secure in their decision. 19 15-37 MEETING PLANNER PERSONAS CATEGORY DEMOGRAPHIC PROFILE • PRIMARILY 50 -PERCENT FEMALE CALIFORNIA PROFESSIONAL AND 50 -PERCENT PLANNERS AGES DOMESTIC UNITED 30 YEARS AND UP NATES ICONIC NEWPORT BEACH MOMENTS e HYATTREGENCY NEWPORT BEACH SUMMER CONCERT SERIES NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL f r A� "i NEWPORT BEACH WINE & FOOD FESTIVAL sj PLANNING FOR BOUTIQUE DESTINATIONS; SMALL -TO MID- SIZE GROUPS Ift 10 -PERCENT OFATTENDEES ARRIVE EARLY OR STAY LATE SEEKING A DESTINATION MINI -VACATION LOOKING FOR DESTINATIONS THAT INSPIRE, INVIGORATE AND OFFER A DIVERSE ARRAY OF EXPERIENCES PREFER CHOOSING DESTINATIONS THAT WILL BOLSTER ATTENDANCE INTERESTS HEALTHY SHOPPING ENTERTAINMENT LIVING onc� �V ECO -FRIENDLY DINING TOPICAL NEWS ENVIRONMENT MEDIA CONSUMPTION sas- TV DIGITAL ONLINE MOBILE RADIO MAGAZINE/ SOCIALMEDIA TRADE PUBLICATION ICONIC NEIGHBORHOOD & LANDMARKS r TBID HOTELS OFFSITE MEETING CRYSTAL COVE/ FASHION ISLAND LIDO VILLAGE NEWPORT VENUES NEWPORT COAST HARBORI ; Destination Marketing Plan Overview In this new, two-year Destination Marketing Plan, Newport Beach & Company underwent an innovative strategic -planning approach to create an iconic and bold roadmap for the company's next two fiscal years. Using this integrated approach, Newport Beach & Company split into four customer - focused, strategic -planning teams to develop this two-year Destination Marketing Plan. Every staff member across all departments from the CEO on down broke into multiple teams to develop objectives, strategies and tactics that utilize all of Newport Beach & Company's resources. Diverse perspectives were integral to creating a holistic plan exploring the best and most innovate ideas and iconic solutions to drive economic development and growth for Newport Beach. With its unique business -unit structure, Newport Beach & Company is uniquely poised to reach these ambitious goals and objectives to propel Newport Beach to iconic status worldwide. 36 1 2016-17/2017-18 MARKETING PLAN 15-39 LEISURE TRAVELER Visitors and potential visitors to Newport Beach who bring valuable revenue to enhance the local economy primarily through the tourism occupancy tax (TOT) and direct visitor spending. LEISURE TRAVELER PLANNING TEAM DIGITAL. MARKETING . SROPUBLIC DINE ALES . RELATIONS . NEWPORT BEACH MEETING PLANNER Meeting planners interested in hosting group meetings, a conference or event in Newport Beach tourism -business - improvement -district (TBID) hotels. MEETING PLANNER PLANNING TEAM ORGANIZATION & BOARD OF DIRECTORS Staff, executive team, executive committee and board of directors of Newport Beach & Company and Visit Newport Beach, Inc. ORGANIZATION & BOD PLANNING TEAM DIGITAL MARKETING GROUP SALES EXECUTIVE DIGITAL MARKETING GROUP SALESPUBLIC RELATIONS • - • - - - - - . • ., , . ;•. • • - • LOCALCOMMUNITY Members and leaders of the Newport Beach community including local residents, partners, City of Newport Beach, City Council, civic organizations, t hotels, business-improvement-districts (BIDS), merchant associations, regional destination -marketing organizations ' = (DMOs), Orange County Visitors Association Orange County (OCVA), government leaders and influential community stakeholders. LOCAL COMMUNITY PLANNING TEAM MMI DINE PUBLIC MARKETING GROUP SALES NEWPORTBEACH EXECUTIVE RELATIONS ORGANIZATION & BOARD OF DIRECTORS Staff, executive team, executive committee and board of directors of Newport Beach & Company and Visit Newport Beach, Inc. ORGANIZATION & BOD PLANNING TEAM DIGITAL MARKETING GROUP SALES EXECUTIVE VISIT NEWPORT BEACH FY 2017- 2018 GOALS 38 1 2016-17/2017-18 MARKETING PLAN 15-41 FY2016 FY2 017 FY2018 WEBSITE VNB Web Visits 1,060,400 1,134,600 1,191,300 Page Views 3,080,000 3,172,400 3,267,500 SOCIAL MEDIA Social Followers 140,000 156,000 172,000 Social Reach 4,120,000 4,485,000 4,908,000 ADVERTISING Total Ad Impressions 153,617,970 161,290,000 166,120,000 Online Ad Click to Site 303,710 312,000 321,000 Marketing Room Nights 15,000 60,000 61,200 Marketing Campaign/Economic Impact 15,000,000 40,000,000 40,800,000 PUBLIC RELATIONS Placements 500 525 550 Media Impressions 2,000,000,000 2,200,000,000 2,300,000,000 Domestic Media Visits 105 110 115 International Media Visits 20 25 30 Media Assists 275 285 300 INTERNATIONAL Wholesalers Trained 173 200 205 In -Market Agent Visits 22 25 27 38 1 2016-17/2017-18 MARKETING PLAN 15-41 NEWPORT BEACH & COMPANY FY 2017- 2018 GOALS lvp'FY2016 FY2017 FY2018 CELEBRATE NEWPORT BEACH WEBSITE Web Visits 50,000 224,000 243,000 ADVERTISING Total Ad Impressions 1,000,000 5,800,000 5,900,000 PUBLIC RELATIONS Placements 60 70 75 NEWPORTDINE WEBSITE Web Visits 115,023 155,000 158,100 SOCIAL MEDIA Social Followers 5,500 15,000 21,000 PUBLIC RELATIONS Placements N/A 30 30 NEWPORTENTERPRISE BALBOAVILLAGE WEBSITE Web Visits 25,000 33,000 41,000 SOCIAL MEDIA Social Followers 5,500 7,200 10,000 ADVERTISING Total Impressions 1,680,000 1,760,000 1,812,800 PUBLIC RELATIONS Placements 50 75 80 NEWPORTENTERPRISE :A:•A ISLAND WEBSITE Web Visits 35,000 41,000 54,000 SOCIAL MEDIA Social Followers 4,500 6,600 8,700 ADVERTISING Total Impressions 670,000 703,500 724,605 PUBLIC RELATIONS Placements 25 30 30 NEWPORT SOCIAL MEDIA Social Followers N/A 5,500 9,000 YouTube Channel Views 22,000 1 80,000 160,000 NEWPORTBEACHANDCO.COM 1 39 15-42 <ogcwo DOUBT RRFORMAwe(g rC: « SOBEVBECH m9% oweeCou 6 Mlo Dmw,k by Gwen Stefaoi,P «_d >meClan&s sB�-ai wrtyal the NewportDuw: WateihomRme ,xd M a Premit-re locii1ionom outdoor events, mnG6 adka+G mRL wmee an � tan O girl.) Livia in 0 aor&nary world'.' — Gwen Stefam - Leisure Traveler Customer -Based Destination Marketing Plan Newport Beach & Company presents this integrated marketing, media -relations, digital - marketing, brand -development, communications and meetings -services plan to attract a record number of leisure travelers (visitors) to Newport Beach. The City of Newport Beach has contracted with Newport Beach & Company to foster a strong tourism environment; to attract visitors with strategic -marketing efforts; and to engage them in -market to create a positive visitor experience. By enticing visitors to stay in Newport Beach, the City of Newport Beach generates Tourism Occupancy Taxes (TOT), its third-largest revenue source. This income benefits residents, saving them on average nearly $1,000 per household on property taxes every year, while maintaining the exceptional infrastructure expected in Newport Beach. And to keep the economy churning at the levels tourism generates, each household would have to spend over $35,000 more locally each year. 42 1 2016-17/2017-18 MARKETING PLAN 15-45 Tourism plays a vital role in the Newport Beach economy. Visitors spend significant dollars at hotels, restaurants, attractions and local businesses. The seven million visitors infuse $1 billion into Newport Beach, supporting over 9,500 jobs each year making tourism one of the purest and most lucrative forms of economic development. Last year, Newport Beach & Company began a rigorous process to track and evaluate the effectiveness and return -on -investment for all of its leisure marketing initiatives. Third - party research vendors tracked incremental trips to the destination, visitor spending in the destination, hotel -room nights and overall ROI of each integrated -marketing campaign. Visitors come into Newport Beach; spend significant dollars locally; use few, if little public resources like schools and hospitals; and then they return to their home cities. In the next two fiscal years, Newport Beach & Company plans to continue thorough marketing -campaign tracking and benchmarking studies to further refine and direct marketing funds and staff resources on media markets, media channels and visitors who are most likelyto visit Newport Beach, spend more dollars in the destination, stay longer and visit Newport Beach more often. Newport Beach & Company plans to build integrated -marketing campaigns based on the new comprehensive, values -based brand -positioning platform developed in 2015. The new brand -positioning value proposition, brand pillars and brand personas built around an enriching brand - architecture strategy will help direct an over -arching brand strategy and integrated marketing campaigns to better target and reach the Newport Beach leisure traveler. With the internal mantra, "Be Big. Be Smart. Be Emotionally Impactful;' Newport Beach & Company plans to think in iconic ways to take the Newport Beach brand global and drive worldwide name recognition and brand awareness to even greater heights. The Newport Beach & Company Marketing Team will fully utilize its three teams to accomplish the objectives setforth in this plan. Digital Marketing & New Media, Marketing & Strategic Partnerships and Media Relations & Brand Management will work together to keep Newport Beach at the forefront of travel trends and drive incremental visitation to Newport Beach. With record marketing goals, the Newport Beach & Company leisure -marketing and meeting - services teams collaborated across all functional areas to develop an integrated approach. By leveraging all of the teams' resources, the cross -functional, services -and - marketing team developed this integrated -marketing plan for the leisure -traveler customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form strategic approaches to reaching the objectives, and tactics are projects that support overarching strategies. LEISURE TRAVELER CUSTOMER -BASED PLANNING TEAM TEAM LEADER Reilly Wilson, Media Relations & Communications Manager CROSS -DEPARTMENTAL TEAM Doug McClain, CDME Mark Rudyk Brett Erskine SVP & Chief Senior Director of Digital Digital Marketing & Marketing Officer Marketing & New Media Video Coordinator Katy Dennis Senior Director of Marketing & Strategic Partnerships Colleen Costello Marketing Manager Polly Peak Dine Newport Beach Amanda Kenning Sales & Services Associate NEWPORTBEACHANDCO.COM 1 43 15-46 SCO 5TH Total Overnight Visitation 3RD Length of Stay 2ND Number of Trips to NB 1STAverage Annual Room Nights 2ND Average Total Spend per Party Leisure Traveler Domestic Feeder Markets To most effectively reach potential visitors, Newport Beach & Company conducted a media -market analysis to see where resources would best be utilized. Newport Beach & Company looked at visitation data to determine visitor markets. Other factors were also taken into consideration including market cost efficiency. • Total Overnight Visitation - How many visitors from the market stayed in Newport Beach overnight in the last 12 months • Length of Stay- Average number of days overnight visitors spent in Newport Beach each trip • Number of Trips - Average number of trips overnight visitors made to Newport Beach in the last 12 months Average Annual Room Nights -Total number of nights overnight visitors stayed in Newport Beach over 12 months • Average total spend per Party - Amount spent in Newport Beach over all visits over the course of 12 months LAS VEGAS Q TOP TIER MARKETS 4TH Total Overnight Visitation SECOND TIER MARKETS 6 PALM SPRINGS 6TH Total Overnight Visitation 5TH Length of Stay 3RD Number of Trips to NB STH Average Annual Room Nights 6TH Average Total Spend per Party SOURCES: DESTINATION ANALYSTS, INC.; BVK 44 1 2016-17/2017-18 MARKETING PLAN DIST Length of Stay STH Number of Trips to NB 2ND Average Annual Room Nights 1ST Average Total Spend per Party Domestic Competitive Set Newport Beach offers a unique vacation destination to travelers—a beautiful coastal retreat providing the 90 perfect combination of affluence, quaintness, casual 80 glamour and attention to detail. Though nowhere else 70 is Newport Beach, it is important to understand the 60 competitive landscape. 50 40 Newport Beach & Company has identified four top 30 competitive leisure -traveler markets: Santa Barbara, 20 Beverly Hills, Palm Springs and La Jolla. All of the 10 destinations are Southern California, small -to mid-sized 0 markets with an emphasis on upper -middle to luxury accommodations. After a thorough competitive analysis, the four destinations have many common elements. They all offer high-quality -NIL LAJOLLA dining experiences, great shopping, upscale lifestyle and .COM a relaxing escape. Newport Beach shares coastal charm 6000 with La Jolla and Santa Barbara, and all with the addition 5000 of Palm Springs offer scenic outdoor beauty. Beverly Hills and Santa Barbara share the super -affluent lifestyle with 4000 Newport Beach, but Newport Beach is alone in positioning 3000 itself around a consumer value. All other leisure competitive set destinations are positioning themselves 2000 around physical attributes vs. consumer values -based 1000 positioning. 0 VISITGREATERPALMSPRINGS.COM SANTA BARBARA ADVERTISING TOP COMPETITIVE MARKETS CONFERENCE Loc VISITORS BUREAU -NIL LAJOLLA nr,�r, u� �Y 1, .COM 2015 HOTEL OCCUPANCY RATE (%) PALM BEVERLY SANTA NEWPORT LAJOLLA SPRINGS HILLS BARBARA BEACH Source: STR, Inc. 2015 AVAILABLE HOTEL ROOMS BEVERLY LAJOLLA NEWPORT SANTA PALM HILLS BEACH BARBARA SPRINGS Source: STR, Inc. 2015 HOTEL AVERAGE DAILY RATE ($) 600 500 400 300 200 100 0 PALM LAJOLLA NEWPORT SANTA BEVERLY SPRINGS BEACH BARBARA HILLS Source: STR, Inc. VISIT palm springs SANTA BARBARA TNF AMERICAN RIVIERA' Y :hange Y :hange NEWPORTBEACHANDCO.COM 1 45 15-48 Leisure Traveler Economic Forecast & Research Leisure travel and tourism projections rely heavily on the overall economic condition of international, national and local markets. By looking at economic factors, particularly gross -domestic product (GDP) and economic growth, inferences can be made on future -travel behaviors. Analyzing research and travel trends guides Newport Beach & Company and Visit Newport Beach, Inc., when planning initiatives. With the assistance of Tourism Economics, a leading tourism economic -research firm, and other key research tools, Newport Beach & Company has analyzed the economic situations and travel trends of domestic and key international markets. Newport Beach & Company examines economic situations and travel trends for four critical international feeder markets into Newport Beach from the following countries or regions of the world: Canada, China, United Kingdom, and the Middle East. International travelers are vital drivers of economic impact and visitor spending to Newport Beach, because of their longer lengths of stay and disproportionately higher spending. Domestic travelers make up the majority of Newport Beach's visitation. National economic patterns reflect the traveler behavior as well as Newport Beach & Company's business functions. The largest faction of domestic travelers to Newport Beach comes from within California. Visit California, the state destination -marketing organization, invests in valuable research when looking at statewide -travel patterns and impact of visitors within the state. Knowing how travelers behave in the destination is paramount. Newport Beach & Company invests in analyzing these patterns to make more informed business decisions on where to invest marketing dollars; staff resources; and international media- relations- and travel -trade initiatives. Every other year, Newport Beach & Company contracts with Destination Analysts, Inc., to study the economic impact of tourism to Newport Beach. In fiscal -year 2014, seven million visitors came to Newport Beach directly spending more than $1 billion. INTERNATIONAL Newport Beach & Company understands the value of international travel to Newport Beach. With higher spending and longer lengths of stays, international travelers provide a significant visitor sector. Newport Beach has four primary international markets: Canada, China, United Kingdom and the Middle East. Of those markets, Newport Beach & Company directly invests in marketing, media relations and travel -trade with an office in the United Kingdom. For China and Middle East, Newport Beach & Company partners with Orange County Visitors Association (OCVA) to market and promote Newport Beach and other participating destinations in those markets. Source: U.S. Department of Commerce via U.S. Travel Association 46 1 2016-17/2017-18 MARKETING PLAN 15-49 00•INBOUND Historic Arrivals by Market ORIGIN COUNTRY 2009 ARRIVALS (OOO'S) 2014 ARRIVALS (OOO'S) Canada 17,973 23,003 2014 RANK 1 2 Mexico 13,373 17,070 3 U.K. 3,899 4,149 4 Japan 2,918 3,620 5 Brazil 893 2,264 6 China 525 2,190 7 Germany 1,687 2,056 8 France 1,204 1,658 9 South Korea 744 1,460 10 Australia 724 1,304 World 55,103 75,011 Overseas (does not include Mexico and Canada) 23,756 34,938 Source: U.S. Department of Commerce via U.S. Travel Association 46 1 2016-17/2017-18 MARKETING PLAN 15-49 1 1 •' • 1 111 1 1 111 1 1 1 Canada 23,003 23,807 3.5% 2 Mexico 17,070 21,183 24.1% 3 China 2,190 5,019 129.2% 4 U. K. 4,149 4,949 19.3% 5 Japan 3,620 3,655 1.0% 6 Brazil 2,264 2,671 18.0% 7 Germany 2,056 2,293 11.5% 8 South Korea 1,460 1,986 36.0% 9 France 1,658 1,903 14.8% 10 Australia 1,304 1,650 26.5% $4,624 World 75,011 90,267 20.3% Germany Overseas 34,938 45,276 29.6% F = Forecast Source: U.S. Department of Commerce via U.S. Travel Association 2014 RANK 1 2009-2014: ORIGIN COUNTRY119 Canada TOP TRAVEL -EXPORT MARKETS Historical Spending • $17,493 TO TH , �S, _ 1 • $26,282 2014/09 ' CHANGE 50.2% 2 China $6,869 $24,019 249.7% 3 Mexico $14,553 $18,665 28.3% 4 Japan $12,636 $17,676 39.9% 5 U.K. $11,581 $13,496 16.5% 6 Brazil $5,235 $13,429 156.5% 7 India $6,712 $9,842 46.6% 8 South Korea $4,624 $7,799 68.7% 9 Germany $5,792 $7,360 27.1% 10 Australia $4,393 $6,180 40.7% World $146,005 $220,757 51.2% Overseas $113,959 $175,810 54.3% Source: U.S. Department of Commerce via U.S. Travel Association NEWPORTBEACHANDCO.COM 1 47 15-50 United Kingdom Market Profile The United Kingdom has been the mainstay of Newport Beach's international traveler, continuing to hold strong in visitor representation. In 2015, approximately 50,000 U.K. travelers spent their holiday in Newport Beach, making the United Kingdom one of the top overseas visitor markets traveling to Newport Beach. KEY TAKEAWAYS • Gross -domestic product (GDP) growth in fourth quarter of 2015 stayed at 0.5 percent. • The referendum on European -Union (E.U.) membership has placed the value of the British Pound Sterling in flux. ECONOMIC OUTLOOK The second estimate for quarterly GDP growth in the fourth quarter of 2015 was unrevised at 0.5 percent. This came as a pleasant surprise since the weaker monthly production and construction data had flagged the possibility of a downgrade. That said, 2015 was a year of sub -par growth, which was particularly disappointing given the extent of the support from low inflation. The U.K. Prime Minister has announced that the referendum on the United Kingdom's membership in the European Union will be held on June 23, 2016. Tourism Economics' baseline forecast assumes that the United Kingdom remains a member of the European Union. Markets have reacted nervously with the British Pound sinking to a seven-year low against the U.S. Dollar. But after the initial hysteria it is expected that markets become calmer and, should the 'remain' camp establish a clear lead in the opinion polls, then it is quite possible that the British Pound Sterling will regain some of its recent losses. The February Inflation Report saw the Monetary Policy Committee (MPC) strike a more dovish tone than in previous reports, but a more hawkish view than financial markets. On the dovish side, the forecasts for wages, inflation and GDP growth were revised down compared with November. But the forecast for inflation - based upon market expectations, which assumed a first interest -rate hike in the second half of 2017 - was way above the two -percent target at the end of the forecast horizon, which was a signal that the MPC thought that markets were too dovish. 48 1 2016-17/2017-18 MARKETING PLAN U.K.: CONSUMER SPENDING & INCOME % year 6 -2 -4 -6 2004 2006 2008 2010 2012 2014 2016 2018 Source: Oxford Economics 15-51 NUMBER OF VISITORS FROM THE U.K. TO CA 700 680 TRAVELER RESEARCH 660 The United Kingdom was California's second-largest o 640 overseas market, with an estimated 686,000 visitors o 620 arriving in 2014 and the largest overseas market to 600 the United States overall. 580 560 Visit California has detailed the characteristics of U.K. traveler behaviors. Compared to all overseas visitors 540 to California, travelers from the United Kingdom are more likely to: • Travel for the purpose of vacation/holidays • Plan and book their air trip directly with the airline • Have a decidedly longertrip-planningand advance airline -booking horizon • Sit in premium -economy class • Travel with a spouse/partner • Stay less time in the United States • Spend a higher proportion of their time in California • Go on guided tours while in the United States • Spend their travel money on food/beverages • Have a higher annual -household income Conversely, visitors from the United Kingdom are less likely to: • Book their air trip via a travel agency office • Be on their first trip to the United States • Visit Los Angeles or New York City as part of their trip • Visit amusement/theme parks • Use air travel for transportation between U.S. cities • Spend their travel funds in the United States as well as in California • Spend their travel funds on gifts or souvenirs • Use a credit card for trip expenses 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Commerce, National Travel & Tourism Office Revised by Tourism Economics for Visit California Purpose of Trip Vacation/Holidays 66% 75% Visit Friends/Relatives 34% 35% Business 18% 12% Convention/Conference Sources• Plan Trip 12% 7% Airline 43% 54% Online Travel Agency 32% 36% Travel Agency Office 25% 19% Personal Recommendation 29% 23% Travel Guide 15% 14% Corporate Travel Department 12% 10% Tour Operator/ Travel Club 10% 15% National/State/City Travel Office Visitor Spending 8% 5% CA Visitor Spending in the U.S. per Visitor $3,590 $2,141 Per Visitor/Day(CA) $153 $121 Per Visitor/Trip(CA) $1,872 $1,319 Average Travel Party Size .- of Lodging 1.7 1.7 Hotel/Motel 76% 76% Private Home 30% 32% Other Length of Stay 6% 4% Mean Nights in the U.S. 23.4 nights 17.7 nights Mean Nights in California 12.2 nights 10.9 nights %of California Nights Activities Experienced in U.S. 52% 62% Shopping in 89% 90% Sightseeing 83% 89% Experience Fine Dining 44% 39% Historical Locations 35% 43% Guided Tours 33% 45% Source: U.S. Dept. of Commerce, National Travel and Tourism Office, "Survey of International Air Travelers" via Visit California NEWPORTBEACHANDCO.COM 1 49 15-52 China Market Profile Travelers from China have been flocking to the United States Since the simplification of the tourist visa was implemented, travel from China has increased by double-digit percentages. Newport Beach & Company in partnership with the Orange County Visitors Association is eager to entice this lucrative market to visit Newport Beach. KEY TAKEAWAYS • The National People's Congress set the growth target for 2016 at 6.5 percent to seven percent. Forecasters predict the gross -domestic product (GDP) to actually grow 6.2 percent in 2016. ECONOMIC OUTLOOK The Government Work Report presented to the National People's Congress in early March confirms that economic growth remains the government's key objective. The report L 50 1 2016-17/2017-18 MARKETING PLAN stressed that the aim to double GDP and per -capita income by 2020, set in 2010, calls for average growth of at least 6.5 percent in 2016-20. The growth target for 2016 was set at 6.5 percent to seven percent. However, downward pressure on growth persisted atthe start of 2016. Retail sales volumes growth eased amid weaker wage growth and increased uncertainty. Tourism Economics estimates volumes grew by around 9.5 percent year-on-year compared to 10.8 percent in the fourth quarter. The ambitious growth target for this year requires the government policies that have been implemented to support policy stimulus. However, given the challenging external and domestic environment, Tourism Economics expects GDP growth of 6.2 percent this year. Continued implementation of supply-side reforms is vital to enable robust organic growth over the medium term and to achieve the targeted level of income. CHINA: REAL CONSUMPTION & INVESTMENT i yEar 12 .` Forecast 11 10 8 ✓ Household 7 GDP consumption 41 Fix. - j -3 investment 21 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Oxford Economics 15-53 1200 Visit California has detailed the characteristics of Chinese -traveler behaviors. Compared to all overseas visitors to California, travelers from China are more likely to: • Have a decidedly shorter trip -planning and advance airline -booking horizon • Make use of an inclusive -travel package including attractions, events and entertainment • Have a longer stay in the United States as well as in California • Be on their first trip to the United States • Visit Los Angeles as part of their trip • Experience fine -dining and visit art galleries and museums while in the United States • Use a private or company auto for transportation in the United States • Spend more while in the United States and California • Spend a higher percentage of their travel funds on gifts and souvenirs in the United States • Use a credit card to make purchases • Have a lower average annual -household income Conversely, visitors from China are less likely to: • Travel to California for vacation/holiday purposes • Use a travel -agency office as a trip -planning source or means of booking air -trip • Visit historical locations • Use a taxicab/limousine for transportation in the United States # OF VISITORS FROM CHINA TO CA 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Commerce, National Travel & Tourism Office Revised by Tourism Economics for Visit California Purpose of Trip Vacation/Holidays 1000 TRAVELER RESEARCH 54% Chinese travelers are now the largest overseas travel 800 C) market to California as of 2012 with 996,000 visitors o boo to California in 2014. Visitors from China are forecasted 22% to surpass Brazil, Japan and the United Kingdom to 400 become the largest market to the United States in 200 2020; 2014 saw over two million Chinese visitors 39% to the United States. 0 Visit California has detailed the characteristics of Chinese -traveler behaviors. Compared to all overseas visitors to California, travelers from China are more likely to: • Have a decidedly shorter trip -planning and advance airline -booking horizon • Make use of an inclusive -travel package including attractions, events and entertainment • Have a longer stay in the United States as well as in California • Be on their first trip to the United States • Visit Los Angeles as part of their trip • Experience fine -dining and visit art galleries and museums while in the United States • Use a private or company auto for transportation in the United States • Spend more while in the United States and California • Spend a higher percentage of their travel funds on gifts and souvenirs in the United States • Use a credit card to make purchases • Have a lower average annual -household income Conversely, visitors from China are less likely to: • Travel to California for vacation/holiday purposes • Use a travel -agency office as a trip -planning source or means of booking air -trip • Visit historical locations • Use a taxicab/limousine for transportation in the United States # OF VISITORS FROM CHINA TO CA 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Commerce, National Travel & Tourism Office Revised by Tourism Economics for Visit California Purpose of Trip Vacation/Holidays 66% 54% Visit Friends/Relatives 34% 32% Business 18% 22% Convention/Conference . SUNINOW 12% 16% Airline 43% 39% Online Travel Agency 32% 24% Travel Agency Office 25% 15% Personal Recommendation 29% 32% Travel Guide 15% 15% Corporate Travel Department 12% 16% Tour Operator/ Travel Club 10% 13% National/State/City Travel Office 8% 5% Average Travel Party Size Visitor Spending 1.7 2 CA Visitor Spending in the U.S. per Visitor $3,590 $4,092 Per Visitor/Day (CA) $153 $138 Per Visitor/Trip(CA) Type of $1,872 $2,253 Hotel/Motel 76% 68% Private Home 30% 36% Other Length of Stay 6% 6% Mean Nights in the U.S. 23.4 nights 29.6 nights Mean Nights in California 12.2 nights 16.3 nights % of California Nights Activities Experienced in U.S. 52% 55% Shopping 89% 95% Sightseeing 83% 85% Experience Fine Dining 44% 55% Historical Locations 35% 25% Guided Tours 33% 27% Source: U.S. Dept. of Commerce, National Travel and Tourism Office, "Survey of International Air Travelers" via Visit California NEWPORTBEACHANDCO.COM 1 51 15-54 Middle -East Market Profile Newport Beach & Company and Orange County Visitors Association have identified the Middle East as the next major international opportunity market, with high in -market spending and a desire to experience luxury lifestyles. Newport Beach & Company and Orange County Visitors Association have targeted the United Arab Emirates, Saudi Arabia and Qatar as the primary Middle -East country markets. KEY TAKEAWAYS • The Persian Gulf economies experienced their weakest economic growth since 2009 at three percent in 2015 due to decreased oil costs. • Persian Gulf economies are in a more stable place than they were prior to the economic downturn of 2008 ECONOMIC FORECAST Falling oil prices have triggered a tightening of liquidity in financial markets across the Gulf Cooperation Council (GCC) in recent months, reflected in a sharp deceleration in monetary growth, tighter bank -finding conditions, rating - agency downgrades, rising -market interest rates and stock- 52 1 2016-17/2017-18 MARKETING PLAN market declines. If unchecked, this risks reducing access to credit for firms and households and ultimately a more serious economic downturn than to date. So far, credit growth has held up well thanks to a steady pipeline of infrastructure projects and solid household sector demand. But banks are showing increasing signs of stress, corporate bond issuance has dried up and various governments have suffered credit rating downgrades, raising the cost of funding further. The collapse in oil prices has brought a significant economic slowdown in the oil -exporting Gulf economies, with growth estimated atjust three percent last year- its weakest since 2009. But there are growing signs that things could be getting worse as the ease of access to funds in the financial system continues to tighten. The plunge in oil prices since mid -2014, however, has triggered a steady tightening in monetary conditions that recently appears to have kicked up a gear. This has been evident across a number of channels. The tightening of liquidity conditions across the GCC region may have further to go. Oil prices are forecast to remain weak into the long term, implying no quick improvement in economic conditions or confidence. Although conditions in the regional -banking sector could get tougher, a full- blown credit crunch comparable to that of 2009 still looks some way off. For a start, although there are clear risks, the chances of a synchronized global downturn of the intensity that sparked the global -financial crisis of 2008/2009 look slim. And even if the global economy does turn down, the GCC region looks considerably less vulnerable than it was then: growth has already slowed from its unsustainably -fast pre -crisis speed and bubbles in stock and property markets have been purged. 15-55 TRAVELER RESEARCH Visit California has detailed the characteristics of Middle Eastern traveler behaviors. Compared to all overseas visitors to California, travelers from the Middle East are more likely to: • Travel to California to visit friends/relatives • Plan and book their trip using the airlines • Plan theirtrip using a personal recommendation • Have a decidedly shorter trip -planning and advance airline -booking horizon • Travel alone • Have a longer stay in the United States and California • Visit New York City while in the United States • Visit amusement/theme parks while in the United States • Make use of air travel between cities as a means of transportation while in the United States • Spend per -visitor per -trip in the United States as well as in California • Be in management, business, science and arts occupations Conversely, visitors from the Middle East are less likely to: • Make use of a pre -paid package • Visit San Francisco or Las Vegas while in the United States • Visit National Parks/monuments or historical locations while in the United States • Go on guided tours • Make use of taxicab/limousines as a means of transportation while in the United States • Be in service occupations # OF VISITORS FROM THE MIDDLE EAST TO CA 300 250 200 N O 6 150 100 50 0 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Commerce, National Travel & Tourism Office Revised by Tourism Economics for Visit California Source: U.S. Dept. of Commerce, National Travel and Tourism Office, "Survey of International Air Travelers" via Visit California NEWPORTBEACHANDCO.COM 1 53 15-56 r ALL OVERSEAS VISITORS ALLVISITORS FROM EAST Purpose of Trip Vacation/Holidays 66% 66% Visit Friends/Relatives 34% 45% Business 18% 21% Convention/Conference 12% 10% Airline 43% 56% Online Travel Agency 32% 40% Travel Agency Office 25% 17% Personal Recommendation 29% 38% Travel Guide 15% 10% Corporate Travel Department 12% 14% Tour Operator/Travel Club 10% 50% National/State/City Travel Office Average Travel Party Size Visitor Spending 80% 1.7 10% 1.5 CA Visitor Spending in the U.S. per Visitor $3,590 $4,750 Per Visitor/Day (CA) $153 $155 Pe r Vi s ito r/Tri p (CA) Type of Lodging $1,872 $2,349 Hotel/Motel 76% 71% Private Home 30% 36% Other Length of Stay 6% 8% Mean Nights in the U.S. 23.4 nights 29.8 nights Mean Nights in California 12.2 nights 15.2 nights % of California Nights Activities Experienced in U.S. 52% 51% Shopping 89% 96% Sightseeing 83% 82% Experience Fine Dining 44% 47% Historical Locations 35% 25% Guided Tours 33% 27% Source: U.S. Dept. of Commerce, National Travel and Tourism Office, "Survey of International Air Travelers" via Visit California NEWPORTBEACHANDCO.COM 1 53 15-56 Canada Market Profile Canada is a major visitor market to the United States and California. In 2015, 1.5 million Canadian visitors are expected to arrive in California. Looking for warm -weather destinations and direct flights operating between John Wayne Airport, Orange County and Vancouver, British Columbia, Canada is an opportunity market for Newport Beach & Company to expand international marketing. KEY TAKEAWAYS • Canada's real gross -domestic product (GDP) grew 1.2 percent in 2015. • The economy is expected to keep at a similar pace in the coming year. ECONOMIC FORECAST Canada's economy surprised to the upside in the fourth quarter of 2015 as real GDP grew by 0.8 percent annualized However, the details of the report are not inspiring. The positive growth rate came largely from a collapse in CANADA: UNEMPLOYMENTAND THE NAIRU* year 12 i ,, i iff 10 s 1990 1994 1998 2002 2006 2010 2014 2018 Source: Oxford Economics *NAIRU = Non -Accelerating Inflation Rate of Unemployment 54 1 2016-17/2017-18 MARKETING PLAN imports, which, though it helps support headline real GDP, signals weak domestic demand. Business investment continued to spiral, down 12.5 percent while consumer spending growth slowed to just one percent. Real GDP grew a modest 1.2 percent on average in 2015, and Tourism Economics believes real activity will fail to accelerate much this year. The oil price collapse will continue to cast its shadow over the economy, constraining business investment and energy exports. Non -energy activity will mitigate the impact of the oil -price shock, but the offset will be fairly weak. With these factors in mind, Tourism Economics forecasts real GDP growth this year of only 0.9 percent. The Bank of Canada delivered no surprises at its March policy meeting as it kept the overnight rate steady at 0.5 percent, judging thatthe current policy rate was appropriate given the balance of risks. Though low oil prices remain a major downside risk to the outlook, the central bank sees economic activity and inflation progressing in line with its January forecast. The forthcoming Prime MinisterTrudeau spending package is certain to drive federal finances further into the red in coming years. It is unclear how much additional spending, particularly in infrastructure investment, the government will undertake. The debt burden will rise as a consequence but action is being taken in an attemptto counterthe oil -price drag. 15-57 # OF VISITORS FROM THE CANADA TO CA 1, 800 1,600 1,400 1,200 0 1,000 0 800 600 400 200 2008 2009 2010 2011 2012 2013 Source: U.S. Department of Commerce, National Travel & Tourism Office Revised by Tourism Economics for Visit California CANADIAN VISITOR TRAVELER HIGHLIGHTS Canadian Visitors to the United States (2013): • Total Visitors: 23.4 million • Total Spend: $21.6 billion • Average spend per visitor: $923 Canadian Visitors to California (2013): • Total Visitors: 1.6 million • Total Spend: $2.2 billion • Average spend per visitor: $1,396 • Air Traveler Length of Stay: 5 nights • Average Group Size: 2 people SOURCE: FORWARD KEYS VIA VISIT CALIFORNIA u U.S. Domestic -Market Profile The majority of travel to Newport Beach is from the ECONOMIC OUTLOOK domestic United States. Understanding the economic A strong U.S. dollar, sluggish global growth and reduced situation at a national level is essential to identifying oil and gas investment will continue to constrain activity. traveler patterns. Domestically, however, strong -income growth should support robust spending and housing activity while the U.S. Federal Reserve Bank will tighten policy only very gradually. KEY TAKEAWAYS • The U.S. economy is expected to grow around two percent to 2.5 percent in the coming years, and then slow toward two percent. • Strong income growth should support robust spending and housing activity • GDP was up 2.1 percent in 2016, and is expected to increase 2.4 percent in 2017 • Consumer -spending growth should average 2.6 percent in 2016-2017 56 1 2016-17/2017-18 MARKETING PLAN Tourism Economics revised its 2016 gross -domestic product (GDP) up a tick to 2.1 percent while 2017 growth was shaved to 2.4 percent on weaker net exports and business investment. The picture remains one of solid domestic fundamentals constrained by global headwinds. Real GDP growth was revised up to one percent in fourth quarter 2015 with final sales rising 1.2 percent. Consumer spending advanced modestly, up two percent, while residential investment capped off a strong year with a 7.9 -percent advance. The major drags on growth came from net trade and business investment. 15-59 Key forecast drivers include: • Solid labor -market gains - nonfarm payrolls rose 242,000 in February, while the unemployment rate fell to 4.9 percent, the participation rate rose to 62.9 percent and wage growth slipped to 2.2 percent year -over -year. • Stronger consumer spending - boosted by buoyant private -sector confidence, steady increases in employment and faster wage growth, consumer - spending growth should average 2.6 percent in 2016-2017. • Financial conditions - financial -market strains will weigh on confidence and marginally affect the momentum in private -sector outlays. • Business investment constrained - business investment will remain constrained by the strong U.S. dollar, weak global growth and depressed oil prices. • Sluggish global trade - U.S. exports are anticipated to pick up modestly in 2016, albeitthey will continue to be hindered by the strong U.S. dollar and weak global growth. The U.S. economy is expected to grow at an annual pace just around 2 percent to 2.5 percent in the coming years, before slowing towards 2 percent. In part, this reflects a reduction in the output gap, which is currently estimated to be around 2 percent of GDP. GDP 0- 2015 2016F 2017F 2018F 2.4 2.4 2.1 2.4 2.3 2019F 2.1 Private Consumption 2.7 3.1 2.7 2.5 2.3 2.1 Fixed Investment 4.1 3.7 2.9 3.9 3.9 3.5 Government Consumption -0.5 0.4 0.7 0.4 0.4 0.4 Exports of Goods and Services 3.4 1.1 0.5 2.7 3.8 4.3 Imports of Goods and Services 3.8 4.9 0.9 2.7 3.9 4.3 Stockbuilding (% of GDP) 0.4 0.6 0.3 0.2 0.2 0.2 Industrial Production 3.7 1.3 0.4 2.6 2.5 2.2 Consumer Prices 1.6 0.1 1.1 1.8 2.2 2.3 Current Balance (% of GDP) -2.2 -2.7 -2.4 -2.4 -2.4 -2.5 Federal Budget (% of GDP) -2.8 -2.4 -2.6 -2.7 -2.9 -3.1 Short -Term Interest Rates (%) 0.23 0.32 0.78 1.65 2.40 3.00 Long Term Interest Rates (%) 2.54 2.14 2.08 2.51 2.94 3.31 Exchange Rate (US$ per Euro) 1.33 1.11 1.07 1.06 1.09 1.12 Exchange Rate (Yen per US$) 105.9 121.0 118.2 124.5 125.2 125.0 Source: Tourism Economics F= Forecast NEWPORTBEACHANDCO.COM 1 57 15-60 U.S. TRAVEL -TRENDS INDEX On a monthly basis, the U.S. Travel Association releases the Travel Trends Index (TTI), providing an analysis conducted by Oxford Economics of current trends in travel demand, as well as a near-term outlook for the direction and pace of travel to and within the United States. As reported in the February 2016 Travel Trends Index, U.S. travel volume grew in February 2016 at a slightly slower rate than in January. The expansion in domestic -leisure travel eased as domestic -business travel fell. International -inbound travel grew more slowly than domestic travel for the eighth month in a row, and domestic travel is expected to maintain its lead over the next six months. The following are some key highlights from the February 2016 report: • The Current Travel Index (CTI) read 51.1, a 2.2 percent year -over -year increase, in February, dipping below the 6 -month moving average of 51.8 while marking the 74th straight month that the U.S. travel industry has expanded. Modest growth in international inbound travel continues as the strong U.S. dollar weighs on foreign buying power in the United States. Domestic leisure will remain the leading U.S. travel segment, while domestic -business travel is expected to decline through the summer. Through August 2016, U.S. travel volume will average two -percent growth. FEBRUARY TRAVEL TRENDS INDEX Index (>50=exxpansion, <50=decline) 55 54 53 52 3 -ma, 51.3 51 6 -mo, 512 50 ----------------------------------------- 49 48 LL¢ g¢ cn o z o A¢¢ Source: Oxford Economics, U.S. Travel Association 1. U.S. Travel Association (February 2016), Travel Trends Index: https://www.ustravel.org/research/travel-trends-index 2. Defined as: person trips to or within the United States involving a hotel stay or air travel Total PERSON TRIPS DOMESTIC 2011 2012 11997.5 2030.3 growth 2014 2109.3 4.0 201 6F 12202.712236.1 201 7F 201 8F 12273.3 2019F 12309.5 Forecast 3.5 -3.3 3.3 3.0 1.6 Leisure 2.5 2.4 Person Trips 2.0 1.7 1.6 1.5 1.0 Business Person Trips 0.5 0.0 By purpose -0.5 2013.1 2014.1 2015.1 2016.1 2017.1 Source: Tourism Economics Total 7�(Millions) 00• 11900.1 2010 11963.7 DOMESTIC 2011 2012 11997.5 2030.3 PERSON 2013 2059.6 2014 2109.3 2015F 2160.4 201 6F 12202.712236.1 201 7F 201 8F 12273.3 2019F 12309.5 202OF 2348.7 % change -3.3 3.3 1.7 1.6 1.4 2.4 2.4 2.0 1.5 1.7 1.6 1.7 By purpose Business 434.3 446.6 440.7 439.4 444.9 451.0 459.9 466.2 472.2 478.7 485.1 491.2 % change -5.8 2.8 -1.3 -0.3 1.3 1.4 2.0 1.4 1.3 1.4 1.3 1.3 Leisure 1465.9 1517.1 1556.8 1590.9 1614.7 1658.3 1700.5 1736.5 1763.9 1794.6 1824.5 1857.4 % change -2.5 3.5 2.6 2.2 1.5 2.7 2.5 2.1 1.6 1.7 1.7 1.8 Hotel room demand Room nights 940.7 1008.1 1057.5 1086.8 1108.6 1157.7 1188.4 1215.0 1241.5 1268.6 1292.3 1316.4 -% Change -6.2 7.2 4.9 2.8 2.0 4.4 2.6 2.2 2.2 2.2 1.9 1.9 Forecast prepared November 2015 Source: Tourism Economics F= Forecast 58 1 2016-17/2017-18 MARKETING PLAN 15-61 Though expected to lead the industry, domestic leisure travel may be headed for some moderation in coming months. Growth in vacation intentions by U.S. consumers appears to be softening, along with forward-looking travel searches and bookings. The recent turmoil in financial markets, while influenced by rising concerns about global -growth prospects, is indicative of faltering business sentiment, which will continue to weigh on domestic business -travel volumes into mid -2016. The drag on foreign buying power from a strong U.S. dollar remains the primary weight on inbound travel volumes, which are forecast to grow around one percent through the second quarter. Future airline bookings for travel from overseas have declined from the same time last year, but more robust gains in recent months support a more moderate, near-term growth outlook than one of declines in visitors from abroad. U.S. TRAVEL FORECAST Despite a bumpy ride for the U.S. economy, the domestic -travel forecast is smooth. 2015 marks the sixth straight year of visitation growth and the outlook has been improving as tourism -related economic conditions remain strong and the appetite for travel grows. International visitation is struggling as exchange rate changes and individual countries' economic performances have a strong effect on international travel. Few weather disruptions benefitted 2015 travel - winter storms were mainly to the north (and, yes, Boston might disagree with the weather disruptions) and hurricanes stayed mainly offshore. Add in strong consumer optimism, growing incomes and employment- and travel consumption is up along with overall consumption. The short-term view remains favorable. Despite bumpy economic indicators, economic growth in the United States is on a strong trend line, and the second half of STATE OF THE AMERICAN TRAVELER 2015 should continue that trend. There are some risks to the forecast - global growth is sluggish at best and, while the drop in gas prices helps consumers, it has impacted oil companies negatively, affecting capital expenditures in that industry. But the expectation is for travel to continue to out perform; ending 2015 up 2.4 percent with continued two -percent growth in 2016. Among the surprises has been air travel. Air travel has increased by more than 3.5 percent in the 12 months ending in June 2015 - and remaining summer months of 2015 air -travel growth was forecasted to be even higher. A combination of farther distances and the impact of more millennial travel (more likely to be using group forms of transportation) are two drivers of air travel. Both overnight and day travel are registering above -par growth rates. The healthy economy continues to support higher room demand and overnight travel. Lowertravel costs supports travel in both the day and overnight sectors. For the first time in a couple of years, growth in domestic travel is outpacing international travel. International travel has, in general, been impacted by the strong U.S. dollar - making it more expensive for travelers to visit the United States. Along with that, individual country economic performances have added downward pressure on visitation. International visitation of some key markets, including Canada, Brazil and China, is trending downward with the struggles of those economies. Overall, the travel outlook is taking off - both literally and figuratively. Economic factors such as wage and job growth, optimistic consumers, funds available to travel and lower prices are driving travel demand up, up and away. And, literally, the data is showing Americans taking to the skies to get to their destinations. AMERICAN TRAVELER NEWPORT BEACH APPEAL OVER LAST *SOURCE: DESTINATION ANALYSTS, INC. OVER LAST NEWPORTBEACHANDCO.COM 1 59 15-62 California Market Profile The California Travel & Tourism Outlook produced by Tourism Economics for Visit California in February 2016 projects 2.3 -percent growth in total visitation to California in 2016, following a 2.6 -percent increase in 2015. Overseas visits to California will grow by 4.9 percent in 2016, continuing to slow from stronger rates seen during much of the recovery. Domestic visitation is expected to rise 2.2 percent in 2016, following a 2.6 percent increase in 2015, as robust domestic day- and leisure -travel gains offset weaker gains in domestic -overnight visitation and mediocre growth in domestic -business visits. Growth in California -visitor volume is easing after a strong post -recession rebound. Domestic -economic fundamentals remain on a firm footing, but more muted gains in demand for travel to California from U.S. origins are expected through 2020 as growth approaches historical averages. The recent boost to domestic visits from lower travel costs will also ease as fuel prices normalize, with domestic -visitor growth in range of two percent anticipated over the forecast horizon. 60 1 2016-17/2017-18 MARKETING PLAN On the international inbound side, a strong U.S. dollar and weaker demand drivers in key California source markets, such as Canada, China and parts of Europe, are driving softer growth in visitation. Weakness in Canada and the lack of a steady, broad-based recovery in Europe are also driving a more modest inbound travel outlook for California, with growth in total inbound visits expected to settle around 3.8 percent by 2020. Despite some near-term easing, California visitor -spending growth is expected to firm over the forecast horizon. The advance of food and lodging prices in 2015 was offset by a drop in transportation costs, holding travel -price inflation at bay, and causing spending growth to moderate at 2.8 percent. These pressures, along with a strong dollar, will persist into 2016, with expected growth in visitor spending at 2.7 percent. Longer-term, the projected rise in gas prices, stronger consumer price inflation, and improvements in foreign -buying power will drive total visitor -expenditure growth in California north of four percent. 15-63 Domestic 2010 ANNUAL 2011 PERSON (Annual 20121 • CALIFORNIA % change) 114 2015 201/ 3.4%2.6% 8F 276.1 Total 9.0% 4.7% 3.1% 5.6% 3.4% 2.6% 2.2% 2.3% 2.1% Business -0.9% 0.9% -3.8% 0.8% 0.3% 1.1% 1.9% 1.7% 1.4% Leisure 12.2% 5.7% 4.9% 6.8% 4.1% 2.9%0 2.3% 2.4% 2.2% Day 9.8% 5.2% 3.4% 6.1% 3.6% 3.0% 2.2% 2.4% 2.1% Overnight 8.2% 4.1 % 2.8% 5.2% 1 3.2% 2.1 % 2.2% 1 2.3% 2.1% Source: Tourism Economics; DKSA,TNS Global (domestic); CIC Research, OTTI (international); Dean Runyan, (Expenditures) F = Forecast CALIFORNIA• (Annual % change) 2010 2011 20121 114 2015 201. 1201 8F Total Visits 9.0% 4.9% 3.1% 5.6% 3.5% 2.6% 2.3% 2.4% 2.2% 2010 212.6 Domestic Total Visits 9.0% 4.7% 3.1 % 5.6% 3.4%2.6% 8F 276.1 2.2% 2.3% 2.1% Leisure Visits 12.2% 5.7% 4.9% 6.8% 4.1% 2.9% 2.3% 2.4% 2.2% 183.4 International Total 9.4% 8.8%0 3.5% 4.5% 5.1% 3.0% 3.5% 4.0% 3.6% Total Expenditures ($B) 100.4 107.4 110.6 113.4 117.5 120.8 124.1 129.0 134.4 % change 8.9% 7.0% 3.0% 2.5% 3.6% 2.8% 2.7% 3.9% 4.2% Domestic 83.4 88.3 90.7 91.3 94.2 96.4 98.6 102.0 106.0 & change 8.9% 5.9% 2.7% 0.7% 3.1% 2.3% 2.3% 3.5% 3.9% International 17.0 19.1 19.9 22.1 23.3 24.4 25.6 27.0 28.5 % change 8.9% 11.7% 4.1% 11.1% 5.7% 4.6% 4.7% 5.6% 5.5% Source: Tourism Economics; DKSA, TNS Global (domestic); CIC Research, OTTI (international); Dean Runyan, (Expenditures) F = Forecast Total 2010 212.6 2011 223.1 PERSONANNUAL 2012/ 230.0 • CALIFORNIA 242.8 114 251.3 2015 257.9 2016F1201 263.8 270.2 8F 276.1 Business 47.4 48.1 46.6 47.1 47.5 48.1 49.2 50.2 51.5 Leisure 165.2 175.0 183.4 195.7 203.8 209.8 214.6 220.0 225.0 Domestic Total 199.3 208.6 215.1 227.2 234.8 240.9 246.2 251.9 257.2 Business 43.8 44.2 42.6 42.9 43.0 43.5 44.4 45.1 45.8 Leisure 155.5 164.4 172.5 184.2 191.8 197.4 201.9 206.8 211.4 Day 104.1 109.6 113.3 120.1 124.4 128.1 131.0 134.1 136.9 Overnight 95.1 99.1 101.8 107.1 110.5 112.8 115.3 117.9 120.3 International Tota 1 13.3 14.5 15.0 15.7 16.5 17.0 17.6 18.3 18.9 Source: Tourism Economics; DKSA,TNS Gloval (domestic); CIC Research, OTTI (international); Dean Runyan, CIC Research (Expenditures) F=Forecast NEWPORTBEACHANDCO.COM 1 61 15-64 Orange County Market Profile Orange County continues to be a top visitor destination. With major visitor attractions, scenic beaches and world- class shopping, visitors from across the country and around the world choose Orange County for their vacations. The PKF Southern California Lodging Forecast examines visitor information throughout Southern California, and economic factors that impact travel. 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2009 2010 2011 Source: John Wayne Airport, Orange County 1 4 4' 4" At JOHN WAYNE AIRPORT, ORANGE COUNTY ARRIVALS 5,097,797 4,632,597 4,369,031 4,321,053 �4,7004,741 4,353,282 4,440,345 Orange County is in a very stable destination, recovering from the recent OF economic downturn. Unemployment is down to 4.7 percent; lower that the State of California's 6.2 percent and national unemployment at 5.3 percent. 4 0� 0 Newport Beach is fortunate to have one of the country's most efficient airports just outside its borders. John Wayne Airport, Orange County is the major gateway for non -regional visitors to Orange County and Newport Beach with more than 20 non-stop destinations serviced. 62 1 2016-17/2017-18 MARKETING PLAN 0 �Jeh A-. 47 Source: PKF Southern California Lodging Forecast 2012 2013 2014 2015 2016 ORANGE COUNTY HOTEL FORECAST +4.4% 772%+3o/. X164.80 +51% 15-65 . , t � *.�, � . v. � .w.. .tit•• ..� �. • . ,,�� All , r • r THE ICONIC "WEDGE" The Wedge is a hot spot for powerful and awesome surf. An area known for its shore -breaking waves, the Wedge is more a place to admire than to engage. Either way, this spot with the biggest swell, sometimes with waves up to 30 feet, is a must see in Southern California. Newport Beach Market Profile The Newport Beach hotel sector has enjoyed strong performance over the past five years. The industry sold 18 percent more rooms in 2015 than in 2011 and charged an average of 43 percent more per hotel room night. Occupancy rates averaged 78 percentforthe year in 2015. Following national and regional trends, the pace of Newport Beach hotel -demand growth is expected to slow in 2016. This is a function of continued economic headwinds as well as high occupancy rates, which will constrain demand in the peak summer -travel season. Still, economic fundamentals indicate further growth potential through the 2018 forecast horizon with occupancy rates exceeding 80 percent by 2017. By 2018, hotel demand is predicted to reach 965,475 room -nights sold. RevPAR (revenue -per -available room) will be driven primarily by ADR (average daily rate), which will continue to grow between three percent and four percent per annum over the next three years. SUPPLY NEWPORT. DEMAND OCCUPANCY OUTLOOK REVENUE .- REVPAR 2010 1,153,213 774,488 67% $127,869,420 $165 $111 2011 1,161,065 825,367 71% $148,556,223 $180 $128 2012 1,164,500 848,319 73% $166,009,305 $196 $143 2013 1,168,641 857,784 73% $181,372,477 $211 $155 2014 1,168,455 890,181 76% $202,062,811 $227 $173 2015 1,168,365 916,067 78% $216,872,711 $237 $186 2016F 1,170,702 929,808 79% $226,729,576 $244 $194 2017F 1,173,043 946,545 81% $238,427,461 $252 $203 2018F 1,175,389 965,475 82% $251,707,871 $261 $214 Source: STIR, Inc.; Tourism Economics F= Forecast ADR= Average Daily Rate REVPAR= Revenue per available room 64 1 2016-17/2017-18 MARKETING PLAN 15-67 NEWPORT BEACH HOTEL PERFORMANCE The most obvious indicator of visitors to the city is hotel performance. Newport Beach & Company tracks monthly hotel data through STR, Inc., comparing year -over -year numbers as well as looking at competitors' behaviors to see how Newport Beach is pacing. NEWPORT BEACH HOTEL PERFORMANCE 2015 7 8.4% + 2.9 % AVERAGE OCCUPANCY $236.14 +4.3�io AVERAGE DAILY RATE $185,013 +7.3% REVPAR* 916,019 +2.9% DEMAND (ROOMS SOLD) X216,304,649 +7.3% REVENUE *REVPAR= Revenue per available room NEWPORT BEACH HOTEL OUTLOOK, % CHANGE SUPPLY DEMAND OCCUPANCY REVENUE ADR REVPAR Newport Beach Visitor Information Knowing who the current Newport Beach visitor is helps identify new potential visitors and encourage repeat visitation. In 2015, Newport Beach & Company conducted a visitor profile to understand who the visitors to the city are and what they do while they are in the city. This study helps target key markets, travel patterns and top metrics. 7 MILLION TOTAL VISITOR VOLUME $1 BILLION TOTALVISITOR SPENDING 10 MILLION TOTAL VISITOR DAYS TOP TRIP -PLANNING RESOURCES: 38% 14°0 OPINIONS USER - OF FRIENDS GENERATED AND CONTENT RELATIVES OR REVIEW HAVE WEBSITES 17% FACEBOOK CONTENT 66 1 2016-17/2017-18 MARKETING PLAN 95% VISITORS SATISFIED WITH THEIR EXPERIENCE 3.2 AVERAGE # OF TRIPS $310 AVERAGE SPEND/DAY/ TRAVEL PARTY TOP NEWPORT BEACH ACTIVITIES: 74% DINING 50% OUTDOOR ACTIVITIES 40% SHOPPING TRAVELER DEMOGRAPHICS: 40.6 52.5% AVERAGE MARRIED AGE $ 110K 23.6% HAVE HHI CHILDREN METHOD OF BOOKING LODGING: 45% HOTEL WEBSITE 24% TRAVEL WEBSITE 15-69 Leisure Traveler Future Map EXPLOIT STRENGTHS Natural Resources Government & Community • International efforts Development • Newport Harbor/Beaches . Airline opportunities Individual Traveler (FIT) • Safe community • State Beach . Metro and public markets • Clean, efficient airport • Back Bay - local estuary (SNA) • Clean beaches . Relatively close to events LAX airport Year -Round Outdoor Weather • Infrastructure maintained • Biking/Hiking Central Southern California location • Boating/Kayaking Restaurants Visitor Offerings Retail/Shopping • Diverse accommodations Diverse neighborhoods • Engaging activities Brand -defined destination • Award-winning hotels and resorts • World-renowned events • Supportive Hotel Partners MONITOR OPPORTUNITIES Expanded visitor markets Newport Beach & Company in-house talent • Niche audiences Lido Marina Village revitalization • Lido Marina Village • Lido House Hotel MITIGATE WEAKNESSES Traveler patterns • Length of stay • Daytrip to overnight ratio • Low winter occupancy Limited waterfront hotels Parking and public transportation options Service level Sharing economy Limited in -city attractions PREPARE FOR CONTINGENCIES OR THREATS Weather and environmental hazards Economy Varying political situations Coastal competition International currency flux Sharing economy NEWPORTBEACHANDCO.COM 1 67 15-70 Transportation • International efforts Relationships • Business/Frequent . Airline opportunities Individual Traveler (FIT) and airport • Second- and third -tier . Metro and public markets transportation Leisure sales partnerships Fostering recognized events Lido Marina Village revitalization • Lido Marina Village • Lido House Hotel MITIGATE WEAKNESSES Traveler patterns • Length of stay • Daytrip to overnight ratio • Low winter occupancy Limited waterfront hotels Parking and public transportation options Service level Sharing economy Limited in -city attractions PREPARE FOR CONTINGENCIES OR THREATS Weather and environmental hazards Economy Varying political situations Coastal competition International currency flux Sharing economy NEWPORTBEACHANDCO.COM 1 67 15-70 STRATEGY STRATEGY Launch Targeted, Integrated -Marketing Campaigns International Influencers 101 Develop fully integrated, targeted -marketing campaigns Educate international travel influencers on the to attract visitors to Newport Beach during slow periods Newport Beach attributes that are most applicable (need periods) for tourism -related Newport Beach to the target market. businesses (hotels, retail, attractions and restaurants.) TACTICS • Place strategic, paid -media buys to promote Newport Beach on channels relevant to potential travelers in targeted media markets to drive incremental visitation, spending and repeat business. • Utilize digital resources to push messaging to existing Newport Beach audiences. • Explore target audiences who are apt to travel during need periods such as a couple's getaway in late August and families on spring break in March and April. • Develop packages with hotel, retail, activities and dining partners to offer vacation options during need -periods. • Use media relations to spread message through trusted - media sources while promoting participating partners. • Investigate a loyalty program to entice repeat visitors and reward need -period visitation. • Plan a quarterly events calendar to guide messaging, timing and placements. 68 1 2016-17/2017-18 MARKETING PLAN TACTICS • Develop integrated -marketing, media -relations and travel -trade programs in the United Kingdom. • Work with Orange County Visitors Association (OCVA) and its offices in China and the Middle East to reach travel agents, tour operators and travel media who influence travel -planning decisions for consumers in each region. • Bring international travel agents, tour operators and travel media to Newport Beach for familiarization (FAM) tours to fully understand the destination and establish a personal connection when selling to travel clients and travel media. • Create in -language Newport Beach collateral pieces and videos for non -English-speaking markets. • Explore international in -market travel -agent training and press visit options to best utilize resources to reach as many influencers as possible. • Develop a travel -agent training presentation to best represent Newport Beach to agents who have not experienced the destination. • Develop website -landing page, travel -agent Web content and an e -newsletter for the travel -trade market. 15-71 STRATEGY Act Global. Be local. Target leisure travelers and travel influencers in international and fly markets who have longer lengths of stay and spend more while in the destination. TACTICS • Continue partnership with Orange County Visitors Association to market to domestic markets that are financially out -of -reach when marketed to independently. • Collaborate with Black Diamond in the United Kingdom and Orange County Visitors Association in China and the Middle East to continue press and travel -trade outreach in each market. • Investigate opportunities to expand international reach into Canada, a high-volume market. STRATEGY Convert Daytrippers to Overnight Visitors Convert day-trippers to overnight visitors to increase incremental leisure travel to Newport Beach. TACTICS • Develop drive -market campaign focused on overnight visitation for local audiences. • Investigate incentive -based drive market campaign to add additional benefits to visit. • Create packages with hotel partners including a focus on activities that draw daytrippers. • Educate locals on new destination features such as Lido Marina Village and Lido House Hotel to encourage overnight stay. STRATEGY Convert Event Attendees to Overnight Visitors Increase brand awareness and economic impact of signature Newport Beach events, and entice event visitors to stay overnight. TACTICS • Promote Newport Beach signature event partners through marketing efforts to reach potential visitors focusing on drive and fly markets based on the event's scope. • Expand overall revenue with increased sponsorship opportunities to support events and Visit Newport Beach, Inc. • Continue growth of Newport Beach's most iconic signature event, the Newport Beach Christmas Boat parade through strategic marketing, sponsorships and expanded parade enhancements. • Promote public events hosted at hotels with associated overnight accommodations. • Develop packages around signature events that include hotel packages. • Partner with Newport Beach TV for all signature events to share with wider audience, with the intent to create a draw to Newport Beach for future events. STRATEGY Encourage Meetings Attendees to Extend Stay Increase attendance at meetings held and booked in Newport Beach at tourism business -improvement district JBID) hotel partners and promote extended stays by promoting Newport Beach's appeal as a leisure getaway destination. TACTICS • Develop pre- and post -meeting leisure hotel packages to encourage meetings attendees to attend their Newport Beach meeting and extend their stay in the destination as a leisure vacation by combining a business trip with a leisure getaway. • Build a meeting-plannertoolkit that includes a refreshed photo and video library, logos, pre -written destination copy blocks, e-mail banner templates and social -media graphics, so meeting planners can promote their upcoming meeting in Newport Beach and in -turn build attendance. NEWPORTBEACHANDCO.COM 1 69 15-72 STRATEGY Be Emotionally Impactful via Enhanced Visitor Experiences Connect with leisure travelers, meeting attendees and all visitors while they are in Newport Beach via one-to- one, personalized experiences to improve the visitor experience, which in turn results in repeat visitation and positive, word-of-mouth endorsements of Newport Beach. TACTICS • Utilize Newport Beach & Company-owned digital assets by developing in -market resources and sharing stimulating and useful content. - Develop and deploy an enhanced mobile experience customized to each visitors' unique desires and interests - Share and post visitor -generated content on Facebook,Twitter, Instagram, Google+, Pinterest, YouTube and other social -media channels. - Provide visitors timely responses to social media inquiries. - Post up-to-date events, content, videos, blogs and special offers on VisitNewportBeach.com. - Create website -landing pages with content that meet current visitor needs. • Maintain the Fashion Island Visitor Center to provide personalized Newport Beach experiences - Provide in-person assistance from the Visit Newport Beach Visitor Concierge Team. - Stay informed on Newport Beach tourism activities, retail stores, attractions and restaurants to provide the best recommendations to visitors. 70 1 2016-17/2017-18 MARKETING PLAN - Manage and update the visitor kiosk, which provides information, printed maps and attraction tickets. • Create engaging, up-to-date collateral pieces that help visitors plan their trip and guide them in -market, while also promoting Newport Beach tourism partners Create the annual Inspiration Guide, a trip planning and memento piece distributed to future travelers by request and in Newport Beach hotel rooms. Create annual Mini -Guide, an in -market piece focused on the Newport Beach neighborhoods with a detailed map. Provide opportunities for Newport Beach partners to advertise in Visit Newport Beach collateral. - Distribute collateral to prospective visitors through fulfillment services, in -market displays and local concierges. INSPIRATION GUIDE CONCEPT 15-73 e5 RIESTAURANT GW IOE - s�.0 STRATEGY Maintain Dine Newport Beach as the premiere visitor dining resource highlighting Newport Beach restaurants TACTICS • Develop an integrated digital strategy to inform diners that utilizes DineNB.com, the Dine Newport Beach Blog, e -newsletters and social channels. • Keep DineNB.com listings and events up-to-date to best inform visitors, while in Newport Beach. Leverage existing relationships with industry and local partners. DINE NEWPORT BEACH FACEBOOK PAGE 4_Nl�',11 NEWPORTBEACHANDCO.COM 1 71 15-74 STRATEGY Be Big. Be Iconic. Increase brand awareness for Newport Beach through bold, iconic brand -building initiatives on a global scale TACTICS • Develop a guerilla -marketing campaign, public - relations stunt or some other sustained, attention - getting media relations and brand -building tactic. • Develop a "big idea" guerilla -marketing tactic that will increase global brand awareness and generate far-reaching media interest in Newport Beach. • Hire external agency to assist with developing the "big iconic idea" to put Newport Beach on the map as a global collection of luxury resort destinations, e.g. Cannes, Monaco, etc. EXAMPLE OF A BRAND -BUILDING TACTIC 72 1 2016-17/2017-18 MARKETING PLAN Bring Newport Beach Brand to Life Integrate new brand -architecture platform (brand positioning, pillars and personas) and imagery into integrated -marketing campaigns and all marketing initiatives, business units and throughout the destination. TACTICS • Develop campaigns targeting Newport Beach -market personas. • Plan to engage micro -segments through strategic - media placements and content development. • Continue to build library of imagery, video assets and messaging to support the new values -based brand positioning, pillars and personas. • Integrate and leverage new destination assets in communications, particularly Lido Marina Village and the Lido House Hotel. LIDO MARINA VILLAGE 15-75 STRATEGY Earned Media = Free Media Increase global brand awareness of Newport Beach as a tourism destination via positive earned -media coverage showcasing the destination's values -based brand positioning, pillars and attributes with an emphasis on garnering high-profile media placements vs. media impressions. TACTICS • Educate journalists, travel writers and bloggers about Newport Beach through in -destination familiarization (FAM) tours. • Build upon the success of the Newport Beach U.K. Holiday Promotion to continue guerilla -marketing campaigns and celebrity pre-BAFTA Award reception to generate local and international media coverage. • Achieve rankings, accolades and awards for Newport Beach as a tourism destination in influential publications through pro -active outreach. -�- Q1 Q2 July August September October November -of Labor Day Halloween Thanksgivin SUMMER CONCERT SERIES CHRISTMAS BOAT PARADE NEWPORT BEACH U.K. HOLIDAY PROMO NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH WINE & FOOD FESTIVAL NEWPORT BEACH FILM FESTIVAL VISIT NEWPORT BEACH SEASONAL CAMPAIGNS BALBOA ISLAND CENTENNIAL NEWPORT HYATT REGENCY JAZZ FESTIVAL LIGHTING OF THE BAY/POLAR PARADISE ANNUAL MARKETING OUTLOOK DINNER SUMMER CONCERT SERIES CHRISTMAS BOAT PARADE NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH WINE & FOOD FESTIVAL NEWPORT BEACH FILM FESTIVAL VISIT NEWPORT BEACH SEASONAL CAMPAIGNS BALBOA ISLAND CENTENNIAL NEWPORTTO ENSENADA HYATT REGENCY JAZZ FESTIVAL LIGHTING OF THE BAY/POLAR PARADISE ANNUAL MARKETING OUTLOOK DINNER NEWPORTBEACHANDCO.COM 1 75 15-78 SUMMER CONCERT SERIES CHRISTMAS BOAT PARADE NEWPORT BEACH NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH WINE & FOOD FESTIVAL VISIT NEWPORT BEACH SEASONAL CAMPAIGNS BALBOA ISLAND CENTENNIAL NEWPORTTO HYATT REGENCY JAZZ FESTIVAL LIGHTING OF THE BAY/POLAR PARADISE ANNUAL MARKETING OUTLOOK DINNER INTERNATIONAL FAMS DOMESTIC FAMS VISITOR PROFILE SURVEY AD EFFECTIVENESS STUDIES SMITH TRAVEL RESEARCH REPORT - 02 r November Labor D en Thanviing Q3 Q4 December January February March April May June Hannukkah/ Martin Luther lWalentines Day IIBSpring Break Ease Mother's Day Father's Christmas/ coq's Birthday �I Meeting Planner Customer -Based Destination Marketing Plan Newport Beach & Company and Visit Newport Beach, Inc., jointly present this integrated group -sales, marketing, digital -marketing, public -relations and communications plan to attract a record number of meetings to Newport Beach and its Tourism -Business - Improvement -District (TBID) hotel partners for the 2017 and 2018 fiscal years. With the highest meetings room -night goal in the company's history, Newport Beach & Company's Marketing Team and Visit Newport Beach, Inc.'s Group Sales Team worked as a unified, customer -focused, cross -functional team to develop this integrated -marketing plan to meet or exceed this and other benchmark goals. With the internal mantra, "Be Big. Be Smart. Be Emotionally Impactful;' Newport Beach & Company and Visit Newport Beach, Inc. plan to think in iconic ways to take the Newport Beach brand as a premier meetings destination to even greater heights. The cross -functional, sales -and -marketing team developed this integrated -marketing plan for the meeting -planner customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form strategic approaches to reaching the objectives, and tactics are projects that support overarching strategies. 78 1 2016-17/2017-18 MARKETING PLAN 15-81 MEETING PLANNER CUSTOMER -BASED PLANNING TEAM TEAM LEADERS Michelle Donahue, CDME, SVP of Group Sales Doug McClain, CDME, SVP & Chief Marketing Officer CROSS -DEPARTMENTAL TEAM Jenny Wedge Enrique Paulo Brianna Grimaldi Senior Director of Media National Account Digital Marketing Relations & Brand Director Manager Management Katy Dennis Senior Director of Marketing & Strategic Partnerships Amanda Kliem Director of Sales Michelle Devine National Account Director Jane Dryden Director of Brand Management & Design Colleen Costello Marketing & Analytics Manager Kim Thompson Manager of Special Events NEWPORTBEACHANDCO.COM 1 79 15-82 Meeting -Planner Research Meetings and conferences (groups) provide an important source of revenue both nationally and to Newport Beach. Asignificant portion of the meetings business is generated by destination - marketing organizations. Looking at trends and forecasts helps guide meeting planners when choosing a destination; hotels to accommodate planner preferences; and destination - and hotel -sales teams when attracting clients. Group business brings valuable revenue to the accommodating hotels through room- and meeting -space bookings and to the destination - marketing organizations through transient -occupancy taxes (TOT) and tourism -business -improvement -district (TBID) assessments. Additionally, groups bring business to local establishments, including restaurants and attractions to provide attendees a memorable experience. GROUP MEETINGS PERFORMANCE: DOMESTIC & NEWPORT BEACH The group market is an important component of hotel room demand in Newport Beach, representing 28 -percent of all rooms sold in 2015. Demand is expected to continue to grow through the forecasted period, but at a more modest pace than the overall market due to space limitations and the relative strength of transient (individual traveler) demand. The group market represents an important part of the overall visitor economy. In terms of hotel room demand (rooms sold), the group market generated 28.2 -percent of all hotel room nights in 2015. While this was down from its peak of 29.8 -percent in 2014, group -room demand is expected to level off at just below 28 -percent of the market over the next few years. 80 1 2016-17/2017-18 MARKETING PLAN UNITED STATES MEETING PERFORMANCE $280.4 BILLION DIRECT SPENDING FROM THE U.S. MEETINGS INDUSTRY IN 2012 $28 BILLION TOTAL FEDERAL, STATE AND LOCAL TAXES 1.8 MILLION NUMBER OF U.S. MEETINGS 225 MILLION MEETING PARTICIPANTS Source: Convention Industry Council/ PricewaterhouseCoopers, LLC, "Economic Significance of Meetings to the U.S. Economy." Source: STIR, Inc.; Tourism Economics F= Forecast ADR= Average Daily Rate NEWPORT BEACH GROUP OUTLOOK ROOM DEMAND AREVENUE DR 2010 223,466 $170 $38,067,056 2011 230,707 $174 $40,179,923 2012 248,352 $183 $45,506,974 2013 255,458 $190 $48,582,076 2014 251,137 $201 $50,370,799 2015 255,393 $211 $53,796,967 2016F 258,458 $216 $55,912,478 2017E 262,180 $223 $58,402,131 2018E 266,375 $230 $61,205,667 Source: STIR, Inc.; Tourism Economics F= Forecast ADR= Average Daily Rate Source: STIR, Inc.; Tourism Economics F= Forecast ADR= Average Daily Rate 15-83 NEWPORT BEACH ROOM DEMAND GROUP OUTLOOK,% CHANGE ADR - -i 1W REVENUE 2011 3.2% 2.2% 5.6% 2012 7.6% 5.2% 13.3% 2013 2.9% 3.8% 6.8% 2014 -1.7% 5.5% 3.7% 2015 1.7% 5.0% 6.8% 2016F 1.2% 2.7% 3.9% 2017F 1.4%0 3.0% 4.5% 2018F 1.6% 3.2% 4.8% Source: STIR, Inc.; Tourism Economics F= Forecast ADR= Average Daily Rate 15-83 35% 30% 25% 20% 15% 10% 5% 0% GROUP SHARE OF TOTAL MARKET 2011 2012 2013 2014 2015 2016F 2017F 2018F F = Forecast Source: STR, Inc., Tourism Economics 0 Demand 0 Revenue NEWPORT BEACH GROUP AVERAGE DAILY RATE FORECAST 280 230 170 180 0 a 130 a 80 30 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F F = Forecast Source: Tourism Economics, STIR, Inc. NEWPORT BEACH GROUP ROOMNIGHT DEMAND FORECAST 290,000 266,375 270,000 258,458 -0 248,352 251,137 ° 250,000 262,180 223,466 255,458 255,393 o 230,000 230,707 a 210,000 c m E 190,000 0 170,000 150,000 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F F = Forecast Source: Tourism Economics, STR, Inc. In terms of hotel revenue, group demand represents a somewhat smaller share (25 -percent in 2015) as transient (individual traveler) hotel demand tends to command a stronger -rate premium. This has been evident over the past seven years, with group average daily rates nearly 12 -percent less than the overall market. This is consistent with national trends. In 2015, U.S. group average daily rates ($185) averaged 13 -percent lower than transient ($213) within the luxury and upper -upscale classes. The Newport Beach group market is nevertheless critical to balancing out seasonality and stabilizing the market, which is apparent in 2011 when group rates exceeded transient by three percent. The seasonal benefits are clear when examining transient and group -room demand over the course of the year. Group demand is strongest during the lowest -transient demand months of the year. Group demand has averaged 38 -percent of January and February total room demand over the past three years—significantly higher than its 29 -percent share for the entire period. The same is true in September and October, where group has averaged 31 percent of demand across 2014and 2015. And in the peak summer months for transient visits, group demand softens. All of this helps to fill hotel rooms over the course of the year. NEWPORTBEACHANDCO.COM 1 81 15-84 GROUP MEETINGS TRENDS Understanding what meeting planners want from a destination -marketing organization allows destination -sales teams to best work to meet their needs and make the sale. According to a Fulcrum/Kliman Group survey of meeting planners, almost half of all meeting planners have increased their engagement with destination -marketing organizations. Lodging accommodations and air access continue to be the most appealing factors of a destination, with meeting assets and Internet capacity closely following. These meeting planners intend to utilize destination -marketing organizations most for the following over the coming years: • Meeting -attendee marketing - Hotel room -block sourcing - Sponsorship identification and solicitation • Entertainment- and cultural -activities sourcing The most effective destination - marketing engagement tactics are: - Site inspections or familiarization (FAM) tours (with over a third of all meeting -planner respondents stating that was the most informative) • Face-to-face meetings or tradeshow appointments and networking events The least effective tactics were print advertising and phone calls, with over 60 -percent of respondents choosing one of those options. 82 1 2016-17/2017-18 MARKETING PLAN NEWPORT BEACH GROUP HOTEL DATA 250 200 ,;, 150 0 a 100 50 0 2010 2011 2012 2013 2014 2015 Source: Tourism Economics, STIR, Inc. 0 Average Daily Rate: +24% Revenue: +41 % 53.7 21 0.164 60 50 40 30 20 10 0 NEWPORT GROUP DEMAND ADIR REVENUE 2011 28.9% 3.2% 29.8% 2012 28.0% -3.2% 27.0% 2013 29.3% -6.4% 27.4% 2014 29.8% -10.1% 26.8% 2015 29.2% -11.6% 24.9% 2016F 27.9% -11.0% 24.8% 2017F 27.8% -11.3% 24.7% 2018F 27.7% -11.6% 24.5% F = Forecast Source: Tourism Economics, STIR, Inc. ADR= Average Daily Rate MEETING TRENDS 1. Hotels have the upper hand in negotiations. High demand gives hotels power. 2. Lead time becomes scarcer. Average lead time in 2016 is 18 weeks. 3. Following Foodie trends for a price. Healthy, trendy food important but keeps costs up. 4. Experience matters. Meeting planners looking to create compelling meeting experiences. 5. Mobile Apps. Integrated, mobile applications connect attendees and share content. 6. Meetings Go Virtual and Hybrid. Virtual -meeting technology popular way to reach more people. Source: Successful Meetings 15-85 NEWPORT BEACH MEETING MIX The Visit Newport Beach, Inc. Group Sales team actively seeks out new business for Newport Beach Tourism -Business -Improvement -District JBID) partner hotels Though most of Visit Newport Beach, Ines business is in California, out-of-state markets are increasingly important and beginning to make up a larger share of the market, particularly since these groups tend to have longer lengths of stay. Orange Co International 2% San Diego 4% Northern California/ Pacific Northwest 6% Mid -Atlantic c 157 ROOM NIGHTS BY REGION 2013 - 2015 Northeast 7% 2% Sacramento 17% west 11% Meeting Planner Future Map EXPLOIT STRENGTHS Experienced internal sales staff IL Destination appeal Boutique -destination trend Small- to medium-sized group importance Mild year-round weather Airport accessibility Newport Harbor Beaches Ocean MONITOR OPPORTUNITIES Emerging new TBID partners Increased customer understanding of destination location Expanded airlift Amplified Group Marketing • Digital marketing, improved brand messaging, audience - specific messaging 84 1 2016-17/2017-18 MARKETING PLAN MITIGATE WEAKNESSES Limited meeting and Lack of variety of hotel ballroom space at hotels properties- both in terms of brand flags and also No conference center type of property (no high - No central, walkable end, incentive property, nightlife directly beachfront, economy 'bl f group hotel) access i a rom meeting space Limited number of Limited Orange County unique, offsite venues air access to some major for large groups markets Perception of being Limited hotel variety too expensive PREPARE FOR CONTINGENCIES OR THREATS Local competition hotel upgrades, new hotels and meeting venues Higher hotel occupancies driving out group availability Rising group rates Sourcing platforms make it easy to circumvent DMO Maintaining strong partner engagement 15-87 0 0 t _74 - ef"-"M. ICONIC CHRISTMAS BOAT PARADE Hailed as one of the "World's Best Christmas Parades' by Conde Nast Traveler and one of "Top Ten Christmas Happenings in the Nation" by The New York Times, Newport Harbor transforms into an illuminated wonderland with the annual Christmas Boat Parade. _NEWPORTBEACHA:•y„w STRATEGY Pursue High -Impact Businesss Pursue high -impact meetings business to deliver higher - priced, longer length -of -stay group meetings prospects to the Visit Newport Beach, Inc., TBID hotel partners. TACTICS . • Continue conversation with TBID partners regarding their key customer profile in the group meetings segment. • Work with TBID hotel partners on time -of -week, seasonality of need periods for group meetings business Proactively pursue account directors' target accounts. • Seek prospects that offer longer lengths of stay and higher revenue, particularly long-haul markets like the eastern seaboard of the United States. • Expand efforts to attract high -yield, niche -market business such as financial- and insurance -conference planners (FICP) and pharmaceutical meetings. • Customize booking incentives to encourage desirable group arrival and departure patterns. • Utilize the search parameters in the destination - marketing industry's MINT database to find need - period groups. • Host small familiarization tours (FAMs) for accounts with high -impact programs. Implement meetings, incentives, conferencing, exhibitions (MICE) program in China with Orange County Visitors Association (OCVA). • Leverage growing United Kingdom brand awareness to parlay branding into gaining group meetings bookings. • Target tradeshow and other client -facing opportunities on the eastern seaboard of the United States. 86 1 2016-17/2017-18 MARKETING PLAN STRATEGY Keep Meeting Planners Engaged With Visit Newport Beach, Inc. Create a group meetings -marketing campaign and marketing tactics to assist the Group Sales team in generating awareness and motivating action with meeting - planner clients at any point in the relationship cycle. TACTICS • Develop a strategic, customer -focused marketing campaign to reach meeting planners at all phases of the purchase cycle to: - Generate positive brand awareness of Newport Beach as a premier meetings destination. - Promote the customer -focused Group Sales team's excellent services to assist clients with booking and servicing their meetings in Newport Beach. - Motivate meeting planners to: 1. Book meetings in Newport Beach. 2. Work with the Visit Newport Beach, Inc. Group Sales Team to book meetings in Newport Beach. 3. Submit requests for proposals (RFPs) for meetings in Newport Beach. 4. Build attendance for meetings in Newport Beach. 15-89 • Retool the new marketing campaign for each subset of the group meetings clientele (third -party meeting planners, pharmaceutical planners, tradeshow contacts, all prospects). • Optimize all digital platforms (website, e-mail marketing system and social media)to influence meeting planners and transition them into Visit Newport Beach, Incas customers; being aware that all customers have "preferred platforms" and the Marketing and Group Sales Teams need to broaden outreach to "meet them where they are". • Keep active presence on social media. • Develop digital, e-mail and promotional campaign tied into the overarching new group meetings -marketing campaign to encourage submission of Request for Proposals and convert RFPs into confirmed bookings. • Expand public -relations outreach to meetings trade publications. • Strengthen Visit Newport Beach, Inc., and the Group Sales Team's presence on social -media platforms to engage conference planners. • Develop a comprehensive, e-mail marketing strategy to keep Visit Newport Beach top of mind with meetings planners. • Develop strategic and consistent digital -marketing campaign to Visit Newport Beach's client database in the SimpleView customer -relationship management (CRM) system. • Develop a new Visit Newport Beach, Inc. meetings website branded with new marketing campaign graphics and campaign messaging. • Gather testimonial reviews from meeting planners with positive experiences in Newport Beach to incorporate in all of the above. • Implement consistent servicing pre- and post - actualized meetings (before and after meetings are held in Newport Beach). • Create a quarterly e-mail/blog that engages customers (quizzes, vote on favorite recipes, pick the new spring cocktail, and other engaging topics.) These tactics will bring a more humanistic/active-engagement approach to create a relationship and desire to experience Newport Beach, remembering that engagement is key in retention. • Utilize the talents and resources of the Newport Beach & Company Marketing Team to create and integrate short videos into all digital marketing efforts. • Build a meeting -planner toolkit that includes a refreshed photo and video library, logos, pre -written destination copy blocks, e-mail banner templates and social -media graphics, to assist meeting planners in promoting upcoming meetings in Newport Beach and in -turn build attendance. • Educate planners on new destination features including the opening of the newest TBID Property, the Lido House Hotel. NEWPORTBEACHANDCO.COM 1 87 15-90 STRATEGY Third -Party Meeting Planners Elevate effectiveness of partnerships with preferred third - party, meeting -planner organizations to increase definite bookings forTBID hotel partners. TACTICS • Implement early engagement strategy to onboard planners new to their third -party organization highlighting advantages of partnership with Visit Newport Beach, Inc. • Invest in destination partnerships with third -party, meeting -planner organizations such as HelmsBriscoe, ConferenceDirect HPN and Prestige. Commit to leverage all partnership benefits with these destination partnerships (eblast communications, Intranet presence, Pinterest boards, etc.) • Maintain strong presence at all third -party conferences and events open to suppliers. • Secure third -party programs in the destination where possible (host third -party conferences in Newport Beach, so the Group Sales Team can showcase the destination to this audience). • Sponsor third -party programs where possible to further ingratiate them toward Visit Newport Beach, Inc. • Launch promotional -marketing campaign to third -party meetings organizations that includes direct mail, digital marketing, incentives and visits to the destination when applicable. • Develop a campaign to garner nominations/votes from third -party planners to be awarded top Destination Marketing Organization partner designation(s) at their annual meetings beginning at least four months before their annual meetings. • Take photos of associates with the Group Sales Team and Tourism Business Improvement District (TBID) hotel partners when the third -party meeting planners are in the destination on site visits. Post those photos on their Intranet sites as well as other social media platforms. $$ 1 2016-17/2017-18 MARKETING PLAN • Create Group Sales Team's personal biographies to highlight the team's experience, strengths and strong knowledge base. For example, third -party organizations promote their associates with customized biographies on each associate; Group Sales would develop similar biographies of each Group Sales professional at Visit Newport Beach, Inc. • Enhance Visit Newport Beach, Incas presence on third - party Web portals and Intranet sites. Attend industry events such as Meeting Planners International (MPI) and Society of Incentive Travel Executives (SITE) in key markets. 15-91 STRATEGY Get Meeting Planners Working With Group Sales From the Beginning Create an indelible link in minds of meeting planners between involving the team at Visit Newport Beach, Inc., at the very start, and seamlessly accessing all Newport Beach hotel properties/destination support. TACTICS • Share client testimonials through all existing channels to support the claim of being a leading-edge destination - marketing organization (DMO)to meeting planners. • Earn meetings- and DMO -industry awards and rankings. • Use experiential tradeshow booth and sponsorships to elevate tradeshow presence with TBID hotel partners. • Update sales presentations to engage the audience and reinforce value proposition. • Further define and target lucrative niche markets with customized messaging and marketing. • Develop current roster of top destination competitors nationally and update Future Map/SWOT analysis regularly to better address how to lead in that competitive set. • Create collateral pieces for target audiences. • Work through empowerMINT, Cvent and other channels to deliver relevant content that position Visit Newport Beach, Inc., as experts in the industry. • Use social -media channels to share "who are the Group Sales team members?" as a way of letting clients know the caliber of their Visit Newport Beach, Inc., Group Sales partners. • Create a campaign highlighting "Where is Newport Beach?" to eliminate confusion with Los Angeles or San Diego. This continued "geography lesson" will provide a good platform to promote the ease of accessibility to Newport Beach, as well. E-1 fe STRATEGY Preferred -Partnership Program Establish a preferred -partner program with community businesses that can elevate client experiences in the destination. TACTICS • Target restaurants, offsite venues, retailers, transportation operators and destination management companies with the capabilities to elevate customers' experiences. • Create presentation and collateral materials educating community partners about the organization, value of group business and meeting planners, economic impact of such business, value the Visit Newport Beach, Inc. Group Sales Team can bring to local businesses through paid events, site visits and added exposure to meeting planners. • Create an "application" for interested businesses to be considered as "preferred partner'. • Create orientation program for community partners who want "preferred " status. • Communication regularly with "preferred partners" to keep engagement strong. • Share list of preferred partners/contacts with TBID hotel partners as a shared benefit to both parties (hotels also need to know where they can bring clients for "red - carpet" service!). • Look at prospective businesses outside Newport Beach that would further enhance offerings to groups. NEWPORTBEACHANDCO.COM 1 89 15-92 E -NEWSLETTER E -BLASTS QUARTERLY PRESS RELEASE MEETING PLANNER CELEBRATIONS (Birthdays, Anniversaries) INCENTIVE COMMUNICATIONS TRADESHOWS/EVENTS LUXURY SUMMIT MEETINGS BRISCOE CARES CONFERENCE DIRECT CDX INCENTIVE WORKS (Partner Participation) MPI CAROLINAS CHAPTER EDUCATION & BUSINESS EXCHANGE IMEX CALSAE"SEASONAL SPECTACULAR" GLOBAL PHARMACEUTICAL & MEDICAL MEETINGS SUMMIT CBI PHARMA FORUM MEETING INDUSTRY COUNCIL Q2 November Q7 , Q2 August September October November Day December December January Q3 Q4 February March April May ImEaster Mm Q3 Q4 February March April May Easter Mother's Day June June Local Community Customer -Based Destination Marketing Plan This integrated marketing, communications and advocacy plan creates awareness of Newport Beach & Company as a community -marketing agency and demonstrates the value of tourism, meetings industry, destination branding and strategic marketing to local residents, partners, City of Newport Beach, City Council, civic organizations, hotels, business -improvement districts (BIDs), merchant associations, regional destination - marketing organizations (DMOs), Orange County Visitors Association (OCVA), Orange County government leaders and influential community stakeholders. Additionally, this planning team's charge is to establish Newport Beach & Company as the community resource for what's happening in Newport Beach. Newport Beach & Company will create awareness and positive perceptions about tourism, the company, its staff and its board of directors through the following integrated -marketing plan. 92 1 2016-17/2017-18 MARKETING PLAN 15-95 This plan encompasses the following three themes to generate awareness of Newport Beach & Company and the economic value of tourism and meetings to Newport Beach: • Partnerships • Enhance communication with residents and community leaders • Engage and support community neighborhoods Additionally, through its unique business -unit structure, Newport Beach & Company serves as a community -marketing agency providing integrated marketing, sponsorship, event -planning, and brand -building services to drive economic -development for the Newport Beach Restaurant Association, Balboa Village Merchants Association and Balboa Island Marketing, Inc. Newport Beach & Company also serves as a community -marketing agency and provides integrated marketing, public relations, sponsorship, event -planning, and brand -development services to increase attendance, enhance the customer experience and enhance and promote the overall Newport Beach brand for signature events in Newport Beach. Newport Beach signature events include but may not be limited to: Newport Beach Christmas Boat Parade, Newport Beach Film Festival, Newport Beach Wine & Food Festival, Newport Beach Restaurant Week, Hyatt Regency Newport Beach Summer Concert Series, Hyatt Regency Newport Beach Jazz Festival and Newport -to -Ensenada Yacht Race. LOCAL COMMUNITY CUSTOMER -BASED PLANNING TEAM TEAM LEADER Jenny Wedge, Senior Director of Media Relations & Brand Management CROSS -DEPARTMENTAL TEAM Gary C. Sherwin, CDME Amanda Renee Kenning Polly Peak President & CEO Sales & Services Dine Newport Beach Associate Michelle Donahue, Michelle St. Amour CDME Colleen Costello Buisness Development SVP of Group Sales Marketing Manager Manager Lori Hoy Haly Haigh National Account Marketing Coordinator Director NEWPORTBEACHANDCO.COM 1 93 15-96 Local/Community Team Future Map EXPLOIT STRENGTHS MITIGATE Credible reputation WEAKNESSES • Local officials Community involvement • Industry Neighborhood stories Positive financial impact Community tourism education Product we offer: Restaurants; Harbor; Beach; Explore more venue weather options - outdoors, city Flagship hotels vs. spaces - also benefits small inns the city Neighborhoods - NBTV diversity/ uniqueness NBTV MONITOR OPPORTUNITIES PREPARE FOR Community activists CONTINGENCIES Economic and political OR THREATS changes Lack of awareness Traffic/Parking Limited large event venues Airport Multilayered brand identity 94 1 2016-17/2017-18 MARKETING PLAN 15-97 ! .dipae 100, — Y i IL _• �S --- �` i -- - i!--' -_ �' _ � '� Sys N ";►* - '. d � d � _ E ICONIC BALBOAVILLAGE "HOME OFTHE FUN ZONE" The Balboa Island ferry connects Balboa Island with historic Balboa Village - Home of the Fun Zone, a shopping, dining and entertainment district that draws millions of visitors each year. 44EWPORTIBEACHANDCO.COM 95 STRATEGY Engage with influential community partners and elected officials to ensure an understanding of the benefits of tourism in Newport Beach and the importance of Newport Beach & Company as an economic driver to local residents, businesses and stakeholders. TACTICS • Orange County Board of Supervisors, e.g. Michele Steele. • Congressional -delegation briefing - invite to Annual Marketing Outlook Dinner. • Irvine Company (Resort & Retail Divisions). • John Wayne Airport. • Provide annual tourism update at City Council about Newport Beach & Company accomplishments. • Business -improvement districts (BIDS), merchant associations, small inns. • Orange County Visitors Association (OCVA). STRATEGY Develop a community -partnership strategy with influential community partners and leaders to drive awareness for the importance of tourism, meetings and Newport Beach. TACTICS • Identify 10 influential community partners and leaders to further explore partnerships with Newport Beach & Company. 96 1 2016-17/2017-18 MARKETING PLAN • Develop consistent communication about Newport Beach & Company to share with partners about the destination and the DMO for those partners to share to their constituencies. • Distribute Newport Beach & Company partner e -newsletter quarterly. • Host twice -yearly, in-person meet and greet, tourism update. • Provide tourism update at open forums in elected officials' or influential stakeholders' environments/meetings. • Submit news articles and blog posts to these groups' publications that go to the community. • Establish relationship with business/civic reporters for OC Register, Orange County Business Journal and Los Angeles Times for better engagement on community stories. • Coordinate local news coverage with other DMOs to offer Newport Beach as an expert in community marketing, tourism and meetings industries. STRATEGY Identify community issues that may impact tourism. TACTICS • Monitor community -activist groups for issues impacting tourism, Newport Beach & Company and Visit Newport Beach, Inc. • Monitor Newport Beach City Council agendas. 15-99 • Attend Newport Beach City Council meetings and to local audiences, civic leaders, residents other civic gatherings. and businesses. • Review news clippings about Newport Beach tourism, Newport Beach & Company and Visit Newport Beach, Inc. • Check activist blogs regularly. STRATEGY Create, plan and conduct a high -impact Annual Marketing Outlook Dinner each year to: • Promote the accomplishments of Newport Beach & Company. • Celebrate the impact of tourism and meetings to Newport Beach. • Recognize the impact of tourism ambassadors and front-line employees. TACTICS • Create an annual theme and messaging that conveys the impact and plans of the organization and promote that messaging at a formal, sit-down dinner. • Create awards program recognizing tourism ambassadors and front-line employees. • Create an Annual Report showcasing the accomplishments of Newport Beach & Company and Visit Newport Beach, Inc. STRATEGY Create a two-year Marketing Plan, two-year budget and Annual Marketing Plan Addendum to showcase future, integrated sales, administration and marketing planning TACTICS • Through a new customer -focused planning approach, Newport Beach & Company and Visit Newport Beach, Inc., jointly produce a cross -departmental two-year Marketing Plan and corresponding budgets for each fiscal year. • On annual basis update the two-year Marketing Plan with an annual Marketing Plan Addendum, which further refines and updates each two-year Marketing Plan. STRATEGY Identify Newport Beach & Company as the voice of tourism and a community -marketing resource. TACTICS • Support civic events through marketing support vs. direct -cash sponsorship support. • Create a visible, year-round presence of Newport Beach & Company in the community to create awareness through repetition. • Provide programming on Newport Beach TV as a resource of all City of Newport Beach information for civic leaders, local stakeholders and local residents. • Capture video at all major civic events. • Develop a speakers' bureau and present at six Newport Beach civic events. • Attend community events both for networking and to provide destination information. NEWPORTBEACHANDCO.COM 1 97 15-100 STRATEGY STRATEGY Engage with and encourage residents to be ambassadors Create a robust hospitality -training program for front - for the Newport Beach destination and invite friends and line employees resulting in community ambassadors for relatives to visitthrough a visiting -friends -and -relatives Newport Beach. local marketing campaign. TACTICS • Create a fully -integrated, grassroots local marketing campaign targeting local residents. • Utilize digital and online presence to communicate with locals about community events, events calendar. • Curate ongoing video programming about Newport Beach (for locals). • Build on Discover Newport Beach section of website related to local happenings, neighborhoods. • Maintain a full calendar of events on Visit Newport Beach website. • Develop a campaign that speaks to residents about why they love Newport Beach and to invite their friends. • Video programming on Newport Beach TV. • Host guest bloggers from the community neighborhoods to write about Newport Beach happenings. 98 1 2016-17/2017-18 MARKETING PLAN TACTICS • Develop customer -service curriculum, presentations, handouts and tests for a Newport Beach -specific hospitality -training program. • Develop destination branding and product knowledge curriculum, presentations, handouts and tests for a Newport Beach -specific hospitality -training program. • Schedule and promote quarterly hospitality -training group classes at off-site venues for large groups of front-line employees. • Develop refresher courses or online tools to keep front- line employees who have been through the program up-to-date with destination and customer -service knowledge. • Offer customized, individual classes for individual Newport Beach businesses, civic organizations or City of Newport Beach public -safety departments. • Develop marketing program to promote new hospitality -training program. • Develop updated, new hospitality -training program videos for Newport Beach Police Department, Newport Beach Fire Department and Newport Beach Lifeguards. 15-101 STRATEGY Expand Newport Beach & Company's community -partner and sponsorship programs and acquire additional funding to benefit Newport Beach & Company, its business units and signature events. TACTICS • Create and sell Founding -Partner sponsorships to global, national and regional brands. 1. Contract with IEG to sell overarching Founding - Partner sponsorships to international and domestic brands seeking to align with the Newport Beach brand. 2. Business Development Manager drives $30,000 in incremental Founding -Partner sponsorship revenue through local/regional Founding Partners. 3. Identify benefits that are valuable to Founding Partners. • Reignite existing Newport Beach Partner Program 1. Identify 25 community partners to engage via refreshed Partner Program. 2. Develop new Partner Program collateral and forms. • Increase signature -event sponsorships for Christmas Boat Parade and other signature events. 1. Update parade sponsorship packet. 2. Sell signature -event sponsorships. STRATEGY Sell digital advertising on Visit Newport Beach and business units' digital -advertising channels (websites, e-mail marketing, social media and blogs). TACTICS • Develop and refresh on an annual basis media kits and sponsorship packets. • Create bundled -packages for larger advertisers STRATEGY Sell sponsorship opportunities on the Newport Beach TV government -access channel and the new NBTV online - lifestyle channel. TACTICS • Develop and refresh on an annual basis media kits and sponsorship packets. • Create bundled -packages for larger sponsors. • Develop underwriting opportunities for the Newport Beach TV government -access channel. • Develop product -placement, promotional and paid - advertising opportunities on the new NBTV online - lifestyle channel. STRATEGY Sell video -production services and rent new Digital Media Centerto local businesses, civic organizations and groups requiring high -impact videos and state-of-the-art television -studio space. TACTICS • Develop and refresh on an annual basis media kits and sponsorship packets. • Host Digital Media Center Open House to promote the new television studio and video -production services. • Promote services via integrated -marketing campaign via e-mail marketing, social media, public relations and direct sales. • Develop rate cards for services. • Develop demo reel to demonstrate the high-quality video services available for rent. • Showcase past customers who have utilized the new television studio through case studies and pitch to local media. • Contract with major Los Angeles -based network television affiliate (KTLA, KTTV, KABC, KNBC, KFLA, KCAL) or national, cable network (CNN, Fox News, MSNBC, Univision) to secure the Newport Beach TV Digital Media Center (television studio) as their Orange County broadcast partner. NEWPORTBEACHANDCO.COM 199 15-102 STRATEGY Develop integrated marketing campaigns for each merchant association that drive incremental visitation and spending to merchants in Balboa Village and Balboa Island. TACTICS Balboa Village • Develop a three-year strategic plan for Balboa Village Merchants Association. • Create integrated marketing campaigns to support and drive attendance for Balboa Village events. • Develop year-round advertising and brand -building marketing campaigns. • Promote merchants and Balboa Village through media pitches, press releases and media visits. • Launch and promote new Balboa Village merchant website. • Identify improvements the City can make in the area and speak at council meetings in support of improvements to support tourism and quality of life for residents and merchants. Balboa Island • Continue to implement tactics in the existing Balboa Island Marketing, Inc. three-year strategic plan. • Capitalize on Balboa Island's 100 -year anniversary through an integrated program of events and marketing tactics. • Create integrated marketing campaigns to support and drive attendance for Balboa Island events. • Develop year-round advertising and brand -building marketing campaigns. • Promote merchants and Balboa Island through media pitches, press releases and media visits. • Identify improvements the City can make in the area and speak at council meetings in support of improvements to support tourism and quality of life for residents and merchants. 100 1 2016-17/2017-18 MARKETING PLAN STRATEGY Develop integrated marketing campaign that drives incremental spending to Newport Beach restaurants. TACTICS Newport Beach Restaurant Association • Develop three-year strategic plan to guide Newport Beach Restaurant Association initiatives. • Create a signature event to highlight Newport Beach restaurants for visitors and residents. • Identify new restaurants and promote through owned media channels. Dine Newport Beach • Promote DineNB.com as a restaurant and culinary resource for residents and visitors. • Continue weekly Dine Newport Beach e -newsletters and blog posts. • Create an annual/seasonal marketing campaign strategy for dining out in Newport Beach. • Support Newport Beach Restaurant Association through digital and social media. • Invite residents to participate in Newport Beach Restaurant Week. • Engage restaurant stakeholders in promoting Newport Beach Restaurant Week through e -newsletters, social media to reach individual restaurant clientele. • Create landing page on website for Newport Beach Restaurant Week featuring participating restaurants, menus and pricing. • Provide promotional collateral to participating restaurants in advance of restaurant week. • Engage local social media influencers to promote Newport Beach Restaurant Week by attending media preview event. 15-103 B Now_ .. r- BANNER 'ti1011 d.; JOWL VMMMTS� THE ICONIC CANNERY RESTAURANT This warehouse that used to function as an actual tuna canning company now offers some of the best harborside alfresco dining in Newport Beach. IN WPORTBEACHANDCO.COM 101 Q1 July August SPEAKER SERIES PARTNER E-NEWLETTER BALBOA VILLAGE CRAFT BEER FEST BALBOA VILLAGE CHALK FEST BALBOA ISLAND ART WALK BALBOA ISLAND CENTENNIAL- CELEBRATION September Liu ng � 1 -1 1-9-01 00. 4 Q3 , Q4 March April May June r THE ICONIC DUFFY BOAT A Newport Beach invention created by Marshal Duffield, this electric boat is prominently seen throughout the harbor, used by both residents and guests for recreation and transportation. NEWPORTBEACHANDCO.COM 1 103 Organization & Board of Directors Customer -Based Destination Marketing Plan Newport Beach & Company and Visit Newport Beach, Inc., jointly present this integrated administration, information -technology, finance, marketing and group sales plan to engage the staff and board of directors of both companies and increase productivity, performance and employee and board retention at all levels of the two organizations. This team is focused on issues and solutions to increase engagement, productivity and performance for Newport Beach & Company and Visit Newport Beach, Inc.; the employees in both companies; and the boards of directors for both companies. The cross -functional team developed this integrated marketing plan for the organization and board customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form strategic approaches to reaching the objectives, and tactics are tactical projects that support overarching strategies. 104 1 2016-17/2017-18 MARKETING PLAN 15-107 ORGANIZATION & BOARD OF DIRECTORS CUSTOMER -BASED PLANNING TEAM TEAM LEADER Lesley Swain, CDME, Chief Financial Officer CROSS -DEPARTMENTAL TEAM Gary C. Sherwin, CDME Catherine Kennedy Erin Stapley President & CEO Director of Sales & Research Administration/Assistant Coordinator Mark Rudyk to the CEO Senior Director of Haly Haigh Digital Marketing & New Marketing Coordinator Media NEWPORTBEACHANDCO.COM 1 105 15-108 Organization/Board of Directors Future Map EXPLOIT STRENGTHS Committed Executive Committee and Board of Directors l novative DMO model mployee satisfaction Core values, benefits, educational opportunities, open communication and collaboration Premier destination product 10-yearTBID &TOT contracts with the city Office Infrastructure kNew Studio space Partner relationships Ll MONITOR OPPORTUNITIES City and board engagement • Build city relationships and educate potential candidates Partner with the best vendors/negotiate best price/quality Maximizing efficiencies Leading the DMO industry • Industry reputation, staff expertise, team and organization, credentials Technology updates Continuing to maintain positive culture Board reporting- engaging - video things they care about TOT Growth Increase lodging properties- advocating 106 1 2016-17/2017-18 MARKETING PLAN MITIGATE WEAKNESSES Sharing economy Technological updates Outdated emergency plan Adjusting to growing organization PREPARE FOR CONTINGENCIES OR THREATS Economic and political changes Weather and environmental hazards Competing destinations Hotel leadership Cost of benefits 15-109 STRATEGY STRATEGY Develop a communications- and outreach -strategy Create a comprehensive, emergency plan with to board members of each company in an effort administration, media -relations and technology - to increase their engagement, attendance and components in the event of inclement weather, commitment to the organization. ground disturbances, terrorism, cyber -terrorism and infrastructure collapse. TACTICS • Develop monthly e -newsletters with video content and messaging from the President & CEO that is sent monthly to all partners. • Create a board -specific version of the President & CEO e-mail template for months when there is no board meeting. • Create video messages from the President & CEO. • Bring in board members for focus group. • Review functionality of processes for board meetings. • Create engaging board meetings with guest speakers. • Create a short, five-minute highlight video. • Include a 30 -second update on a board member and their organization in each video. TACTICS • Establish an emergency -planning committee with involvementfrom the executive team, media relations, administration, administrations and information - technology functional areas of the company. • Create a hard -copy and digital versions of a comprehensive emergency plan. • Include succession plans for critical functional positions within the company. • Choose designated media spokespeople for the company. • Develop phone -tree or some other communications plan to reach board of directors, executive committee, employees, city of Newport Beach staff, Newport Beach Emergency Command Center, Orange County government, State of California, Visit California and neighboring destination -marketing organizations. • Implement a rehearsal procedure via an annual drill. NEWPORTBEACHANDCO.COM 1107 15-110 STRATEGY Transition business -process management software and finance infrastructure system to a state-of-the-art, cloud -based, enterprise -resource planning (ERP) system to reduce processing time, eliminate redundancies and add new functionality to the company's business - process systems. TACTICS • Integrate new ERP system to facilitate improved reporting and accounting processes. • Train executive team and staff on new ERP system • Start fiscal -year 2017 using new ERP system. • Generate reports, expense reports, budgets, forecasts and board reports from new ERP system. • Continue to look for enhancements, features and new tools within the new ERP system to maximize return on investment. STRATEGY Explore adding a Film Commission and a new business unit called Film Newport Beach to Newport Beach & Company. TACTICS • Explore joint -funding opportunities among Newport Beach & Company, Visit Anaheim and Visit Huntington Beach for an Orange County Film Commission. • Provide marketing, media relations, graphic design, finance and accounting support and office space for a jointly funded Orange County Film Commission. • Generate revenue for Newport Beach & Company through fee -for -services. • Hold focus group with film producers and directors to guide strategic direction and focus of a potential Orange County Film Commission. 108 1 2016-17/2017-18 MARKETING PLAN W* ha y- � II �+ gou s 11 STRATEGY Develop a toolkit of resources to better explain the value of each employee to the organization. TACTICS • Develop an Employee Value -Proposition Report showing each employee's total compensation (including base salary, bonus potential, benefits, other costs and payroll taxes), so employees know their total value to the organization. • Prepare the report for each employee and deliver that report following their annual performance review, mid- year review and other events such as a promotion. • Develop an annual survey that measures employee - satisfaction levels. STRATEGY Develop a series of employee awards, events, staff meetings and staff outings to celebrate the employees of both companies. TACTICS • Continue the above -and -beyond award for employees who accomplish something well outside their core job description. • Continue tradition of an employee holiday lunch and holiday gift to appreciate employees during the holidays. • Continue the tradition of a staff outing, which usually takes place during the summer months. • Request staff attend Annual Marketing Outlook Dinner. • Celebrate staff birthdays and key anniversaries during monthly staff meetings and during special occasions. STRATEGY Continue to refine and explore the company's core values and ensure those values are instilled in every employee and in everything the company does each and every day. TACTICS • Continue the above -and -beyond award for employees who accomplish something Staff Retreat. • Continue to refine and include core values in employee performance reviews, so all employees are evaluated on the same core values and competencies. • Base annual merit increases on each employee's scores on the company's core values within the performance review. STRATEGY Continue to focus on employee, executive team and board of directors' education, learning and overall strategic -planning abilities. TACTICS • Continue tuition reimbursement at $1,000 per employee per fiscal year. • Continue to encourage participation in certifications, outside learning and core job -training skills through online classes, certified destination marketing executive (CDME) certification and other learning opportunities • Continue to provide ongoing human -resource management training for the executive and management teams. • Continue tradition of a full-day staff retreat to focus on a single topic, human -resources trainings and other team -building exercises. • Continue tradition of annual executive team retreat to focus annual strategic -planning into a productive, solutions -oriented leadership retreat. • Continue tradition of annual executive committee retreat to focus on a major issue facing the organization, industry or destination and to build bonds within the executive committee and between that committee and the executive team. NEWPORTBEACHANDCO.COM 1 109 15-112 Core Values Newport Beach & Company believes the corporate values should be lived and not just written down. The values below help make Newport Beach & Company a great organization to work for, motivating employees to work their best to benefit the community: 1. INNOVATION/ADAPTABILITY ("Adaptovation") - Maintain our place at the cutting edge of our industry, fostering an environment of creative thinking and continuous improvement with change viewed as opportunity. 2. CUSTOMER AND STAKEHOLDER CENTRIC - Champion a quality culture, focused on surpassing expectations of customers and stakeholders. 3. LEARNING AND KNOWLEDGE - Kindle the passion for lifelong learning and encourage team members to embrace the mindset and habits of thinkers and learners. 4. RESPECT- Show respect, courtesy and dignity while demonstrating emotional intelligence in all interactions. 5. WELLNESS - Foster an environment that supports individual's overall health and wellbeing. 6. EMPLOYEE ENGAGEMENT - Cultivate an environment of passion, commitment, positivity, teamwork and fun. 7. INTEGRITY- Let honesty and ethics be the guide in all decision-making, keeping trust and credibility at the core of all we do. Organization/Board of Directors Marketing Calendar 110 1 2016-17/2017-18 MARKETING PLAN 15-113 a t Tr ICONIC HENRY SAMUELI, CO-FOUNDER OF BROADCOM; OWNER OF THE ANAHEIM DUCKS; LOCAL PHILANTHROPIST "Passion is what gives meaning to our lives. It's what allows us to achieve success beyond our wildest imagination." December Q3 Q4 January February March April May June irtinME Lu m,Valentines Day Spring Breaker ■ Easter Mother's Dlw Business-Unit Destination Mark-efing Plans =Visit Newport Beach, Inc. ■ Visit Newport Beach, Inc.- Leisure Marketing..... 112 ■ Visit Newport Beach, Inc.- Group Sales ...............124 IIIIIIIIIIIIIIIIIINewport Beach & Company Dine Newport Beach .................................................130 Enterprise Newport Beach _. ........... ...................... 134 M Celebrate Newport Beach ...................................138 Newport Beach TV........................................................142 Film Newport Beach ......................................................152 112 1 2016-17/2017-18 MARKETING PLAN 15-115 row hopes we yarned something esterd-ay* — John Wayne Visit Newport Beach, Inc. Leisure Marketing Visit Newport Beach, Inc. (VNB) Leisure Marketing shares the Newport Beach brand story with traveling consumers throughout the visitors' planning, purchasing and in -market phases of the travel journey. From inspiring visitors to take a trip to Newport Beach to creating a place to share memories, Visit Newport Beach, Inc. engages with the visitor at all points in the travel process. Leisure Marketing is funded by a portion of transient -occupancy tax (TOT), the third largest source of revenue for the city of Newport Beach, which is paid by visitors staying in hotels and vacation rentals in Newport Beach. The Leisure Marketing Team is divided into three functional departments: Media Relations & Brand Management, Digital Marketing & New Media and Marketing & Strategic Partnerships. 114 1 2016-17/2017-18 MARKETING PLAN 15-117 Marketing & Strategic Partnerships ADVERTISING & PROMOTIONS Visit Newport Beach, Incas Marketing & Strategic Partnerships Team develops integrated advertising and promotional campaigns in key target markets that are on -brand and are integrated with the other marketing disciplines in order to: • Increase year-round leisure travel from day-trippers and first-time visitors • Extend visitors' length of stay • Encourage repeat visitation Extensive brand development during the 2016 fiscal year will continue to be implemented in upcoming advertising efforts with a new brand creative campaign planned for the 2017 fiscal year. With an all-encompassing brand message and voice, the Marketing Team will work together to integrate all communications through seasonal and special integrated media plans to best reflect the Newport Beach brand across all platforms. SPRING SWEEPSTAKES CAMPAIGN A SPRING GETAWAY TO NEWPaR a EAi ­� ew,00rt e EACH CALIPOkN1A Integrated -marketing campaigns will be developed and launched in-house to target specific need periods throughout each fiscal year. Typical need periods are the last two weeks of August; November, December and January; and some springtime periods. RESEARCH & PLANNING Visit Newport Beach, Inc., conducts tourism destination research to support brand and marketing initiatives. Research initiatives include ad effectiveness studies, visitor profile studies and economic impact reports. Investing in research helps define the Newport Beach traveler and allows the marketing team to best target the appropriate audiences who make the largest impact to tourism in Newport Beach. INTERNATIONAL MARKETING International visitors continue to be vital to Newport Beach tourism. In close collaboration with our international public relations and travel trade agencies, the Marketing Team educates and promotes Newport Beach to international travel -trade companies and travel media in order to generate visitation to Newport Beach. Key international markets include China, Middle East and United Kingdom. Efforts include the following: Travel Trade Newport Beach's top international markets are the United Kingdom, the Middle East and China. Travel trade encompasses travel agents, tour operators, online travel agencies and airline suppliers who book individual or group tours for travelers. In the United States most consumers book travel directly via an online booking source, while international travelers in many countries continue to rely on a third party travel agency or tour operator to assist with travel planning and booking. NEWPORTBEACHANDCO.COM 1 115 15-118 Visit Newport Beach, Inc. works with travel trade agencies that specialize in behaviors of travelers and travel trade representatives in those markets. Visit Newport Beach, Inc. has contracted directly in the United Kingdom with Black Diamond—a full-service public relations, travel trade and strategic partnership agency. Black Diamond represents Newport Beach as a tourism and vacation destination throughout the United Kingdom. Black Diamond also represents Visit California, so Visit Newport Beach, Inc. experiences many advantages through this unique partnership with an agency that thoroughly understands California and specifically Newport Beach. Visit Newport Beach, Inc. partners with the Orange County Visitors Association (OCVA) and its external agencies to represent Newport Beach and participating Orange 116 1 2016-17/2017-18 MARKETING PLAN County destinations, hotels and attractions in China and in specific countries throughout the Middle East. These agencies educate travel agents about Newport Beach and Orange County as a vacation destination. Sales Missions As part of Orange County Visitors Association's effort to educate tour operators about Orange County, annual in-person meetings are held in key international markets. In 2017, Visit Newport Beach, Inc. will participate in China and/or Middle East Sales Missions through partnership with Orange County Visitors Association with specific sales presentations to Ctrip—the largest online travel agency in China, and the world—as well as major international travel providers. 15-119 VISITNEW PORTBEACH.CN OCVA MIDDLE EAST WELCOME VIDEO China Travel Trade & Public Relations Initiatives In an effort to further communicate directly with the Chinese visitor, Visit Newport Beach, Inc., in conjunction with a digital agency in China, developed a Mandarin -language Newport Beach website, www. VisitNewportBeach.cn. The Visit Newport Beach, Inc. team will continue develop and distribute visitor -related content to the Chinese market through this medium. In addition to the website, an in further coordination with Orange County Visitors Association to communicate with the Chinese visitor, Visit Newport Beach, Inc. has created a Mandarin - language destination video and is a founding partner in Orange County Visitor Association's Ctrip initiative. As the world's largest online travel agency, Ctrip enables Visit Newport Beach, Inc. to reach consumers, travel agents and tour operators directly via its robust online booking capability. In 2016, Visit Newport Beach, Inc. worked extensively with Newport Beach hotels to enable direct booking capability between Newport Beach hotel websites and Ctrip, which resulted in a 1,440 -percent increase in bookings for Orange County hotels compared with the previous year. CHECK -INN TV SCREEN Through partnership with Orange County Visitors Association for travel trade and public relations representation in China, Visit Newport Beach, Inc. will continue providing travel -agent and wholesaler training to agents across China who are booking travel for clients to destinations around the world. China has leaped to one of the top international, inbound markets to California with more than 110 weekly nonstop flights to three gateway cities: San Francisco, Los Angeles and San Jose. Middle East Travel Trade & Public Relations Initiatives As with international marketing efforts in China, Visit Newport Beach partners with Orange County Visitors Association's Middle East office in Dubai for travel trade and public relations representation in targeted Middle East countries. Orange County Visitors Association was one of the first United States destinations to have representation in the Middle East, and Newport Beach has been at the forefront of this strategic partnership. The Orange County Visitors Association Middle East sales office provides travel -agent and wholesaler training to agents across the Middle East who are booking travel for their clients to destinations around the world. NEWPORTBEACHANDCO.COM 1 117 15-120 STRATEGIC PARTNERSHIPS Visit Newport Beach, Inc. is actively looking to establish strategic partnerships within the tourism industry and the local community. Through these efforts, Visit Newport Beach, Inc. will leverage its existing marketing resources to promote selected partners while raising revenue to support organizational initiatives. These partnerships aim to elevate the brand of both Visit Newport Beach, Inc. and the partner, using unique and innovative strategies. There are several strategic partnership levels all designed to drive incremental revenue for Visit Newport Beach, Inc. while aligning with and promoting complementary lifestyle brands and companies through unique strategic partnerships. Founding Partnerships The first and highest level of strategic partnerships is Founding Partner. This level is reserved for strategic partners who directly align with the Newport Beach aspirational lifestyle and brand. These brands seek to align with a luxury destination to promote their goods or services to Newport Beach residents and visitors. 118 1 2016-17/2017-18 MARKETING PLAN Digital & Print Advertising Solutions The next level is reserved for companies who would like to advertise or promote their goods or services via Visit Newport Beach, Inc. marketing assets such as the inspiration guide, collateral materials, websites, e -Newsletters, social media and blogs. There are numerous advertising and promotional opportunities available for sale on almost all Visit Newport Beach, Inc. assets. Digital Media Center Another way to form a strategic partnership with Visit Newport Beach, Inc. is through use and rental of the new Digital Media Center, TV Studio and video production and editing services. A full media kit was created with all partnership opportunities. Visit Newport Beach Partner Program The Partner Program allows for strategic partnerships with businesses outside of Newport Beach, such as restaurants and attractions, in order for those businesses to reach the lucrative Newport Beach residents and/or visitors. Businesses, attractions, hotels or restaurants in Newport Beach are automatically listed as official partners of Visit Newport Beach, Inc. at no cost. rt � r�crr M [YY I�MY 2016 MEDIA KIT 15-121 • • Community Relations & Visitor Services Visit Newport Beach, Inc. works with our community partners and visitor concierges to provide helpful information and enhance the visitors' experience. The concierge will continue to operate the Fashion Island Visitor Center and provide the community with content -rich visitor information through destination maps and visitor guides. Additionally, Visit Newport Beach, Inc. created and manages a fully interactive visitor kiosk at Fashion Island, which provides instantaneous visitor information about the destination. Visit Newport Beach, Inc. is embarking on a leading-edge new initiative to put a mobile concierge in the palm of the visitor's hands via an entirely new, industry-leading way to serve up personalized destination content geographically near each and every visitor. This new mobile, location - based smartphone initiative takes the power of the Newport Beach partner database and matches the data to each customer providing content personalized to the consumer's location in the destination. MOBILE WEBSITE NEWPORTBEACHANDCO.COM 1119 15-122 Media Relations & Brand Management The goal of the Media Relations MEDIA RELATIONS & Brand Management team is to Visit Newport Beach, Incas media -relations efforts hinge on strong, ongoing generate awareness of a positive relationships with target media, bloggers and social influencers. Nurturing destination brand identity that is current relationships, growing our media database and increasing media visits in sync and consistent with Visit to the area are top priorities. Sharing the Newport Beach brand story through Newport Beach's Brand Promise. respected media outlets not only gives the destination credibility, but also County exposes these audiences to the destination. Target Media Audiences iTLI M& TIER 1 MARKETS y OPPORTUNITY (DRIVE -MARKETS) (FLY -MARKETS) (FLY -MARKETS) Los Angeles Las Vegas Chicago Greater Orange San Francisco New York County Bay Area Publications Inland Empire Dallas Seattle Palm Springs Houston Portland San Diego Austin Vancouver Phoenix Denver Canada United Kingdom China � � Middle East AL Z OR IV HI / CA % NV i ij UT Q NM BUSINESS TO CONSUMER MARKETTIERS 120 1 2016-17/2017-18 MARKETING PLAN 11 N o� PRINT ONLINE BROADCAST magazine digital social &CABLE newspaper blogs•video television radio - ME ND MN VT NH MA NY wl MI 9\\Rl RI IA O PA CT OH -� IL IN \, �NJ � WV VA DE KS FAR KY NC M D � � TN� DC l SC I OK AL GA Q MS TX LA �— v o o FL 15-123 National (travel National Meetings industry trades) Trade Los Angeles National Business Publications Orange County State-wide Meetings Trade Newport Beach Local/Regional Target Media Channels 11 N o� PRINT ONLINE BROADCAST magazine digital social &CABLE newspaper blogs•video television radio - ME ND MN VT NH MA NY wl MI 9\\Rl RI IA O PA CT OH -� IL IN \, �NJ � WV VA DE KS FAR KY NC M D � � TN� DC l SC I OK AL GA Q MS TX LA �— v o o FL 15-123 Domestic Consumer & Travel Trade Media Relations: • Devise compelling story angles centered around the Newport Beach lifestyle and its brand -defining events. • 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. • Develop new, leading-edge Online News Room on all company - managed websites to promote all business units. National, Local & Regional Business - to -Business Media Relations: • Devise continual drip of new stories and news about Newport Beach & Company, Visit Newport Beach, Inc., and the Newport Beach/Orange County tourism/meetings industry to local and regional media. • Devise communications plan to promote Newport Beach & Company President & CEO, Gary Sherwin, as he assumes role as Chairman of Destination Marketing Association International. • Create presentation and talking points for CEO's DMAI Annual Convention Keynote Speech. • Generate local positive news coverage for CEO in local/regional media to push positive stories higher in search engines. • Develop a Crisis Communications Plan for the company and destination. International Consumer & Travel Trade Media Relations: • Devise story angles for international travelers. • Work with Black Diamond (United Kingdom) and Orange County Visitors Association (China, Middle East) to develop stories that resonate with these international markets. • Develop custom itineraries for international visiting media and plan familiarization (FAM) trips for larger groups of media. National & Regional Meetings Media Relations (1132113): Devise continual drip of new stories and news about Visit Newport Beach, Inc., Group Sales, meetings news in Newport Beach and hotel meetings improvements/features in national and regional meetings trade publications and websites. • Secure positive ratings and rankings for Group Sales Team and Newport Beach as a meetings destination in meetings trade publications and websites. • Secure positive stories about Newport Beach as a meetings destination in national business magazines, newspapers and websites, e.g. Forbes, Business Week, The Wall Street Journal, etc. NEWPORTBEACHANDCO.COM 1 121 15-124 I q B NEWPORT BEACH TELEVISION TASTE of 1111\IDI BALBOA N=WPORTBEACH 11(all NO NEWPORT BEACH RTV RESTAURANT WEEK iT�H'CEiZAA�CIH� oA E LBO PN A cap" BALBOA ISLAND STYLE GUIDE BLOG STRATEGY The Visit Newport Beach blog offers fresh content each week for locals and visitors alike. The original content shares what's new in Newport Beach, information on upcoming events, local profiles and more. All blogs are written by a dynamic group of guest bloggers and in-house Marketing team members who each bring a unique perspective to the destination. VISIT NEWPORT BEACH.COM BLOG PAGE BRAND MANAGEMENT Serving as an in-house creative services agency, Visit Newport Beach, Incas brand management team brings tremendous graphic design, art direction, photography, videography and creative direction to Visit Newport Beach, Inc. and all of its business units. The Brand Managementteam has created the brand identity systems for Newport Beach TV, Dine Newport Beach, Newport Beach Restaurant Week, Balboa Island, Balboa Village, Newport Beach TV—the new 24/7 online lifestyle channel—and numerous other graphic design initiatives. This team helps drive the new brand advertising campaign creative and serves as the central source for brand voice, brand look and brand identity for Visit Newport Beach, Inc. and all of its business units. 122 1 2016-17/2017-18 MARKETING PLAN COLLATERAL Visit Newport Beach, Inc. produces annual collateral and sales promotion materials to assist the visitor while they are planning their trip and to guide them when they are in the destination. In 2016, Visit Newport Beach, Inc. revamped its collateral collection with the new Newport Beach Inspiration Guide and the new Newport Beach Mini -Guide, replacing the traditional Visitor Guide and Map with all new, content -rich marketing collateral. Produced annually, the Newport Beach Inspiration Guide is an engaging print publication that is intended to inspire travelers to visit and keep Newport Beach top of mind during the inspiration phase of the travel journey. The magazine -format, Inspiration Guide has an annual distribution of 100,000 through direct mail, trade shows, in -market newsstands, in hotel rooms, select West Coast Barnes &Noble retail stores and digitally. All advertising placed in the Inspiration Guide is native integration, seamlessly blending the advertiser's message with the Newport Beach brand story. This new format provides cover -to - cover magazine stories without the intrusion of typical display advert ising. This provides a seamless brand experience for the consumer. The Newport Beach Mini -Guide is an in -market guide to exploring the city's unique neighborhoods with detailed maps showcasing dining, shopping and places to explore in Newport Beach. More than 100,000 copies are printed annually and distributed throughout hotels, resorts, Fashion Island and the Visit Newport Beach, Inc. concierge center as well as local hotel concierge desks throughout Newport Beach. 15-125 BRAND MARK TYPOGRAPHY ; BCGEFGHIJKLM f lytA,ItA abcdefghijklm 0123456789 ABCDEFGHIJKLM abcdefghifldm COLOR PALETTE 0123456789 BLOG STRATEGY The Visit Newport Beach blog offers fresh content each week for locals and visitors alike. The original content shares what's new in Newport Beach, information on upcoming events, local profiles and more. All blogs are written by a dynamic group of guest bloggers and in-house Marketing team members who each bring a unique perspective to the destination. VISIT NEWPORT BEACH.COM BLOG PAGE BRAND MANAGEMENT Serving as an in-house creative services agency, Visit Newport Beach, Incas brand management team brings tremendous graphic design, art direction, photography, videography and creative direction to Visit Newport Beach, Inc. and all of its business units. The Brand Managementteam has created the brand identity systems for Newport Beach TV, Dine Newport Beach, Newport Beach Restaurant Week, Balboa Island, Balboa Village, Newport Beach TV—the new 24/7 online lifestyle channel—and numerous other graphic design initiatives. This team helps drive the new brand advertising campaign creative and serves as the central source for brand voice, brand look and brand identity for Visit Newport Beach, Inc. and all of its business units. 122 1 2016-17/2017-18 MARKETING PLAN COLLATERAL Visit Newport Beach, Inc. produces annual collateral and sales promotion materials to assist the visitor while they are planning their trip and to guide them when they are in the destination. In 2016, Visit Newport Beach, Inc. revamped its collateral collection with the new Newport Beach Inspiration Guide and the new Newport Beach Mini -Guide, replacing the traditional Visitor Guide and Map with all new, content -rich marketing collateral. Produced annually, the Newport Beach Inspiration Guide is an engaging print publication that is intended to inspire travelers to visit and keep Newport Beach top of mind during the inspiration phase of the travel journey. The magazine -format, Inspiration Guide has an annual distribution of 100,000 through direct mail, trade shows, in -market newsstands, in hotel rooms, select West Coast Barnes &Noble retail stores and digitally. All advertising placed in the Inspiration Guide is native integration, seamlessly blending the advertiser's message with the Newport Beach brand story. This new format provides cover -to - cover magazine stories without the intrusion of typical display advert ising. This provides a seamless brand experience for the consumer. The Newport Beach Mini -Guide is an in -market guide to exploring the city's unique neighborhoods with detailed maps showcasing dining, shopping and places to explore in Newport Beach. More than 100,000 copies are printed annually and distributed throughout hotels, resorts, Fashion Island and the Visit Newport Beach, Inc. concierge center as well as local hotel concierge desks throughout Newport Beach. 15-125 Digital Marketing & New Media WEBSITE Maintain and grow industry-leading, responsive visitor website for Newport Beach, VisitNewportBeach. com. For the 2017 and 2018 fiscal years, continue to grow the website content and functionality. Dedicate a section for video on the website to showcase Newport Beach TV and the variety of new online lifestyle channel programming. Continue to ensure all website initiatives are mobile -friendly and work as a companion digital tool in -market. The nexttwo fiscal years will continue phase II of a full mobile plan, to enhance experiences on mobile devices, identify integration points with emerging technology and hardware (Apple watches/wearable products) and increase key metric goal conversions. Other areas of focus will include: SOCIAL MEDIA Visit Newport Beach, Inc. has an active social media following. Social platforms allow Visit Newport Beach, Inc. to share partner and visitor content. Additionally, it allows the team to interact with visitors planning their trip and in -market visitors who might have questions. Social Media has been an active part of the overall marketing plan for Visit Newport Beach, and will continue an aggressive growth pattern into the new two-year cycle. The Marketing team will focus on monitoring up-and-coming social media channels, while maximizing the offerings of top social platforms to better coincide with all advertising and marketing efforts to reach the visitor audience. Video will be a major point of integration, generating more content that will be distributed on the social • 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 Newport Beach, Enterprise Newport Beach and Newport Beach TV to bring full -featured stakeholder representation • Reservations: Continue the growth of partner activities for booking online (hotel, restaurant, golf tee times and spa), while promoting networks. New programming ideas with quick and compelling content will be generated out of larger pieces being produced for web and other marketing initiatives. SEARCH -ENGINE OPTIMIZATION Continual search -engine optimization (SEO) and content creation is vital for the indexing and organic search growth of VisitNewportBeach.com and all of the partner websites managed by Visit Newport Beach, Inc. including DineNB.com, ExploreBalboa Island. com and BalboaVillage.com. Focus will remain on improving the front and back -end keyword content while creating new, engaging content. Optimization of content generated on social channels will be integrated to benefit search indexing. SEARCH -ENGINE MARKETING Search -Engine Marketing (SEM) is paid -search advertising that supplements organic growth through Visit Newport Beach, Incas search i� \AA lklkl'll�: 11 "" 0 more opportunities for lodging, restaurant, golf and spa exposure • Group Sales: Develop content to showcase the destination and hotel offerings while making the process of contacting and submitting an RFP even easier • Video: Incorporate more video on all relevant pages and sections while showcasing detailed video in stakeholder listings. engine and its partner websites (DineNB.com, ExploreBalboa Island. com, BalboaVillage.com). Search - Engine Marketing is a key tactic of the overall objectives of digital marketing. Search -Engine Marketing 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. Keyword research provides the opportunity to optimize bidding and search density for popular related search terms and allows the Digital Marketing Team to focus on the high -impact words that will bring qualified traffic back to the Visit Newport Beach website. Video objectives will be reinforced with active adword video campaigns to promote new content developed and published on YouTube. NEWPORTBEACHANDCO.COM 1 123 15-126 ki ,� 11 u I iiik.l:. • 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 Newport Beach, Enterprise Newport Beach and Newport Beach TV to bring full -featured stakeholder representation • Reservations: Continue the growth of partner activities for booking online (hotel, restaurant, golf tee times and spa), while promoting networks. New programming ideas with quick and compelling content will be generated out of larger pieces being produced for web and other marketing initiatives. SEARCH -ENGINE OPTIMIZATION Continual search -engine optimization (SEO) and content creation is vital for the indexing and organic search growth of VisitNewportBeach.com and all of the partner websites managed by Visit Newport Beach, Inc. including DineNB.com, ExploreBalboa Island. com and BalboaVillage.com. Focus will remain on improving the front and back -end keyword content while creating new, engaging content. Optimization of content generated on social channels will be integrated to benefit search indexing. SEARCH -ENGINE MARKETING Search -Engine Marketing (SEM) is paid -search advertising that supplements organic growth through Visit Newport Beach, Incas search i� \AA lklkl'll�: 11 "" 0 more opportunities for lodging, restaurant, golf and spa exposure • Group Sales: Develop content to showcase the destination and hotel offerings while making the process of contacting and submitting an RFP even easier • Video: Incorporate more video on all relevant pages and sections while showcasing detailed video in stakeholder listings. engine and its partner websites (DineNB.com, ExploreBalboa Island. com, BalboaVillage.com). Search - Engine Marketing is a key tactic of the overall objectives of digital marketing. Search -Engine Marketing 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. Keyword research provides the opportunity to optimize bidding and search density for popular related search terms and allows the Digital Marketing Team to focus on the high -impact words that will bring qualified traffic back to the Visit Newport Beach website. Video objectives will be reinforced with active adword video campaigns to promote new content developed and published on YouTube. NEWPORTBEACHANDCO.COM 1 123 15-126 MOBILE MARKETING Visit Newport Beach, Ines primary consumer -facing, tourism website, VisitNewportBeach.com, was built in 2013 and is completely mobile responsive, which means it automatically resized, rearranges and redistributes digital content based on the size and type of device from desktop to tabletto mobile. Next year, Visit Newport Beach, Inc. will explore a new mobile strategy to augment the current, responsive -designed website. Visit Newport Beach, Inc. is embarking on a leading-edge new initiative to put a mobile concierge in the palm of the hands of those searching for information about Newport Beach. Via an entirely new, industry-leading way to serve up personalized destination content geographically, near each and every visitor, this new mobile, location -based smartphone initiative takes the power of existing partner databases and matches the data to each customer to provide content personalized to the consumer's interest when in the destination. NEW MEDIA The Digital Marketing Team is in the process of creating a new, 24/7 online lifestyle channel called Newport Beach TV. This new digital channel will be available on the VisitNewportBeach.com website and contain search - engine optimized content and allow for brand storytelling via compelling video content. VISIT NEWPORT BEACH LEISURE MARKETING % OF BUDGET 17% 0 Advertising Community Relations 0 Collateral International Marketing Digital Marketing Public Relations 15 124 1 2016-17/2017-18 MARKETING PLAN Visit Newport Beach Leisure Marketing Budget VISITMEW909LUACH LEISURE MARKETING • Revenue LEISURE BUDGET ALLOCATION FY2017 FY2018 $4,794,512 $4,917,094 Expenses Operating Expenses $134,458 $138,536 Advertising $1,125,057 $1,196,184 Community Relations $157,000 $142,000 Collateral $162,000 $172,000 International Marketing $363,590 $373,590 Digital Marketing $408,000 $408,000 Public Relations $219,000 $219,000 Fees and Contributions to NB&Co. $2,225,407 $2,225,407 9% 7% 6% 46% 15-127 Visit Newport Beach Goals WEBSITE VNB Web Visits 1,060,400 1,134,600 1,191,300 Page Views 3,080,000 3,172,400 3,267,500 SOCIAL MEDIA Social Followers 140,000 156,000 172,000 Social Reach 4,120,000 4,485,000 4,908,000 ADVERTISING Total Ad Impressions 153,617,970 161,290,000 166,120,000 Online Ad Click to Site 303,710 312,000 321,000 Marketing Room Nights 15,000 60,000 61,200 Marketing Campaign/Economic Impact 15,000,000 40,000,000 40,800,000 PUBLIC RELATIONS Placements 500 525 550 Media Impressions 2,000,000,000 2,200,000,000 2,300,000,000 Domestic Media Visits 105 110 115 International Media Visits 20 25 30 Media Assists 275 285 300 INTERNATIONAL Wholesalers Trained 173 200 205 In -Market Agent Visits 22 25 27 NEWPORTBEACHANDCO.COM 1125 15-128 ' Jlul Visit Newport Beach, Inc. Group Sales & Marketing Visit Newport Beach, Inc., Group Sales actively brings valuable group and conference business to the Newport Beach Tourism Business Improvement District (TBID) hotel properties and local businesses. The Newport Beach TBID consists of eight hotel properties: Balboa Bay Resort, Fairmont Newport Beach, Hyatt Regency Newport Beach, Island Hotel Newport Beach, Newport Beach Marriott Bayview, Newport Beach Marriott Hotel & Spa, Newport Dunes Waterfront Resort & Marina and Radisson Hotel Newport Beach. The purpose of the TBID agreement is to directly enhance group business (meetings and conferences) for partner hotels. To deliver on the TBID promise, Group 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, the efforts of the Visit Newport Beach Group Sales team result in increased hotel room nights and additional revenue to TBID hotel partners. 126 1 2016-17/2017-18 MARKETING PLAN 15-129 DEPLOYMENT f HILLARY BURTON Canada - Pacific Northwest Alaska • Hawaii • Northern California • California State Associations rd.:,..,;..:_k DEVtNi_ Northeast � North Carolina . South Carolina • Los Angeles County Vertical Market Pharmaceuticals Nutdlite/Amway • Oakley • Omtco Pacific Communications • Ringer Associates • Woddview Travel Each year, the TBID Board of Directors sets a room -night goal for the Visit Newport Beach Group Sales team just before the start of the fiscal year. For the 2016 fiscal year, the Group Sales Team is on -track to meet its aggressive 82,000 -room -night goal, the highest in the organization's history. The Newport Beach & Company Marketing Team services the Group Sales team and provides thought - leadership, strategic -planning and integrated marketing campaigns that drive brand awareness for the destination and the Group Sales Team and ultimately increases overall group room -night bookings and meeting attendance. GROUP SALES The Group Sales National Account Directors are responsible for attracting group business to TBID hotel properties. Through tradeshows, client meetings and in -destination familiarization (FAM) tours, these industry experts deliver on impressive room -night goals and bring essential meetings business to partner hotels. LORI HOY AMANDA KLIEM Southern US • Riverside County • CO, MD, NV, UT, VA, Washington DC San Bernardino County • San Diego • Anaheim • Costa Mesa • Newport County • Silicon Valley • Hospitality Beach • Santa Ana • Meeting Sites Performance Network (HPN) Resource • JNR Inc. • Pacific Life They show clients why Newport Beach will meet their meetings' needs. The National Account Directors are deployed geographically. Extra emphasis will be placed on Eastern U.S. business in the next fiscal years due to their longer stays. Meetings and conferences traveling longer distances tend to stay longer in the destination. An important audience for Visit Newport Beach, Inc., Group Sales is third -party meeting planners. Companies and associations hire these third -party planners to plan their meetings. With many clients, each third -party planner brings potential for multiple end-user clients. Group Sales' key third -party partners are ConferenceDirect, HelmsBriscoe and Hospitality Performance Network (HPN) Global The Group Sales Team earns valuable contacts through tradeshow attendance. Visit Newport Beach, Inc., Group Sales ENRIQUE PAULO Midwest • Hernain ng Orange County elevated its dynamic, experiential tradeshow presence with the debut of its new booth in fiscal year 2015, and it still continues to catch the attention of attendees and competitors. A new audience for the Group Sales team is the Meetings, Incentives, Conferencing and Exhibitions (MICE) market in China. Through its partnership with Orange County Visitors Association, Group Sales is starting a new initiative to reach out to the MICE meetings market in China to book oversees, group/meetings travel from China to Newport Beach and Orange County. CONFERENCE SERVICES During the meeting planning process, the team offers clients insider perspective on Newport Beach. Conference Services assists with connecting clients to vendors, venues and services. Visit Newport Beach, Inc., has access to a robust list of providers to help planners find resources in Newport Beach to serve as the primary destination resource. NEWPORTBEACHANDCO.COM 1127 15-130 Marketing The Newport Beach & Company Group Marketing team is divided into three functional departments: Media Relations & Brand Management, Digital Marketing & New Media and Marketing & Strategic Partnerships. The Marketing Team provides marketing services and integrated -marketing campaigns to drive overarching brand awareness of Newport Beach as a premier meetings destination. It also promotes the Group Sales Team as an elite sales team that serves its meeting -planner clients with industry-leading sales and services. MARKETING & STRATEGIC PARTNERSHIPS Education and awareness are the key goals of marketing Visit Newport Beach, Inc. and its services, with the ultimate goal of booking meetings in Newport Beach. Through understanding the meeting planner audience, the Marketing Team will create an integrated marketing campaign that will include strategic advertising placements with an emphasis on digital platforms. Newport Beach & Company's Marketing Team will manage cross - departmental campaigns to educate planners and attendees about Newport Beach. Research & Planning Newport Beach & Company conducts meetings research to support sales and marketing initiatives. Research initiatives include the Event Impact Calculator, hotel occupancy and revenue reports, meeting planner surveys and external meetings research sources. Investing inresearch helps understand the meeting planners and attendees and allows the Group Sales and Marketing Teams to best target the appropriate audiences who make the largest impactto meetings and conferences in Newport Beach. 128 1 2016-17/2017-18 MARKETING PLAN MEDIA RELATIONS & BRAND MANAGEMENT As Leisure Marketing implements its brand campaign, Group Sales will integrate the new campaign and brand positioning into its creative and messaging. By way of a special meetings section on the Visit Newport Beach website, the Marketing Team shares current industry news through blog posts, as well as through its social media channels, demonstrating the ability Visit Newport Beach, Inc., Group Sales to be a resource for meeting planners considering Newport Beach. The Media Relations Team generated free, positive earned media about Newport Beach as a premier meetings destination in industry trade publications and regional media surrounding Newport Beach. The overarching goal of media relations is to keep Newport Beach meetings and the Group Sales Team top -of -mind for media writing about conference and meeting locations. National Account Directors show planners why Newport Beach is the right fit for their meeting, requiring engaging and up-to- date informational sales -promotion collateral. Newport Beach & Company develops collateral and sales pieces to educate planners and promote destination services. It also creates custom advertisements and invitations to help account directors attract clients. The Media Relations Team writes all advertising and sales -promotional -collateral copy to promote Newport Beach as a meetings destination and likewise promote the Visit Newport Beach, Inc., Group Sales Team. The Brand Managementteam ensures the Newport Beach brand identity and brand positioning is infused 15-131 throughout all meetings sales and marketing initiatives. It also designs all sales -promotion collateral, invitations, presentations and other graphic design initiatives. DIGITAL MARKETING & NEW MEDIA The Groups Sales and Marketing Teams plan to optimize digital communications in the coming year. Taking advantage of new media allows the Group Sales Team to stay on the leading edge. Plans for the upcoming fiscal year include an improved website experience for planners with destination resources and a simplified online request -for -proposal (RFP) submission form. E -communications are vital for connecting with meeting planners. Visit Newport Beach, Inc., will utilize this direct communication tool with pre- and post -tradeshow blasts, client event invitations and a newly implemented educational planner e -newsletter. With refinement and improved messaging, group sales e -communications will serve as a key marketing and educational tool, keeping Newport Beach top -of -mind. The marketing team works closely with Group Sales to ensure these communications reflect the appropriate audience and tradeshow and they are deployed in a timely manner. Through social media engagement and original content development, Visit Newport Beach, Inc., can keep interested planners informed on the latest Newport Beach happenings and industry trends. Visit Newport Beach, Inc., Group Sales has a strong presence on Linkedln and MEETINGSNB.COM ME6T11CS.i\➢CON VENTIO\S Facebook independent from Visit Newport Beach's leisure social media channels. Additionally, the Newport Beach Meetings Blog has new articles regularly on meeting trends, Newport Beach news and meeting -planning tips. The addition of in-house video production elevates the Group Sales Team's presentations and transports planners to Newport Beach. Sizzle reels shown at conferences and to clients supplement the traditional tools, creating a more vivid picture of the destination. Video will continue to be an essential tool in the coming fiscal years. GROUP SALES SIZZLE REEL NEWPORT BEACH MEETINGS BLOG M6Sl'Q(GS PRE -TRADESHOW EMAIL NEWPORTBEACHANDCO.COM 1 129 15-132 Visit Newport Beach Group Sales Budget VISIT NEWPORT BEACH GROUP SALES % OF BUDGET 3% 9% Advertising Site Inspections Client Events International Initiatives Conference Services CRM Maintenance Database/Prospecting Trade Shows Community Sponsorships Group Booking Incentives 6% 2% Hosted Industry Events Industry Partnerships/Sponsorships Customized Destination Support Research and Group Sales Marketing 130 1 2016-17/2017-18 MARKETING PLAN 5% 23% 15-13 GROUP.. Revenue $4,025,948 Expenses Operating Expenses $1,513,926 Advertising $195,500 Site Inspections $41,000 Client Events $105,000 International Initiatives $50,000 Conference Services $1,000 CRM Maintenance $12,000 Database/Prospecting $110,000 Trade Shows $495,000 Community Sponsorships $165,000 Group Booking Incentives $300,000 Hosted Industry Events $50,000 Industry Partnerships/Sponsorships $122,000 Customized Destination Support $421,816 Research & Group Sales Marketing $63,586 Other/Reserve $450,429 Total Budget $4,025,948 VISIT NEWPORT BEACH GROUP SALES % OF BUDGET 3% 9% Advertising Site Inspections Client Events International Initiatives Conference Services CRM Maintenance Database/Prospecting Trade Shows Community Sponsorships Group Booking Incentives 6% 2% Hosted Industry Events Industry Partnerships/Sponsorships Customized Destination Support Research and Group Sales Marketing 130 1 2016-17/2017-18 MARKETING PLAN 5% 23% 15-13 a •� a • • '.--= fir` ♦ . • r.:ri iOt � - rr •rrrrrr _ hr� THE ICONIC LIDO THEATRE The historic Lido Theatre on Balboa Peninsula opened in 1938, premiering Bette Davis's film "Jezebel" because she was a resident of Corona del Mar and insisted that the theatre open with her picture. NEWPORTBEACHANDCO.COM 131 Newport Beach & Company Dine Newport Beach Mission Statement Dine Newport Beach is a strategic marketing initiative cooperatively created and managed by Newport Beach & Company and the Newport Beach Restaurant Association (NBRA) and funded in part via the Newport Beach Restaurant Business Improvement District (RBID) to enhance the economic vitality of the Newport Beach culinary community. Created to keep Newport Beach top -of -mind and relevant in a competitive culinary marketplace, Dine Newport Beach showcases and promotes Newport Beach, California as a premier dining destination offering innovative cuisine, fresh fare, diverse experiences and exceptional restaurants. 132 1 2016-17/2017-18 MARKETING PLAN 15-135 Marketing Support Dine Newport Beach will deploy integrated online, print, broadcast, public relations and social media campaigns throughout the year during restaurant need periods, dining holidays and local signature culinary events. 4 `- j7 Q 3 8 24 F3reakfaa. Lunch. Dinner. Repeat. Satiate your - inner -fondle with some thing- the less routine_ From e-, c open-a,—h sego lavish gourmet restaura 'tcuNewport Beach offers full,enriching ' e,per s. Whether yaou «hing for farm-to- `�I -{ table freshne nal cocktails, you'll always J poo 5 feed you osity withamealto remember. _._. �-� � Y �11131\IDI -- -- I.7-WPORT6EACH MARKETING & STRATEGIC PARTNERSHIPS Advertising Marketing campaigns with fresh creative and messaging will generate consumer awareness and keep the Newport Beach dining destination, the local culinary community and DineNB.com top -of -mind in the market. Advertising will appear in a variety of media including online, print and broadcast outlets, as well as in partner channels. Signature Event Dine Newport Beach will produce Newport Beach Restaurant Week that not only promotes the participating local restaurants, but also positions Newport Beach as Orange County's premier dining destination. Partnership Opportunities Open to individuals and businesses that want to connect with Newport Beach Restaurant Association stakeholders and Dine Newport Beach diners, the Partner Program will generate new income through partner fees, advertising and sponsorship opportunities. Dine Newport Beach will continue to develop additional valuable assets to leverage for incremental income. Concierge Service Dine Newport Beach will provide a toll-free phone number serviced by the Visit Newport Beach concierge located at Fashion Island. The concierge service provides restaurant and dining recommendations and reservation assistance. N�-wWPO7 MEDIA RELATIONS & BRAND MANAGEMENT Media Relations Dine Newport Beach will develop relationships and increase engagement with food and travel writers, influential lifestyle bloggers and media professionals to ensure that the local culinary community, stakeholders and their promotions and events receive editorial coverage in local, regional and national media outlets throughout the year. Blog Dine Newport Beach strives to stay ahead of dining trends. The Dine Newport Beach Blog develops original content weekly to promote Newport Beach restaurants to the "foodie" community. Blog content will not only be provided by Dine Newport Beach, but also by food and lifestyle bloggers and influencers. Promotional Materials Marketing collateral will be created to promote DineNB. com and its comprehensive online dining guide. 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. NEWPORTBEACHANDCO.COM 1 133 15-136 N=IL'fs:HtT[.ti 1+ RESTPIRANTs [VENTS QiRRs R6iW0.hN[WEEF lt95 Q Experience NEWPORT BEACH RESTAURANTS m - YL [ I 'r L 5�0.mate y' — 'deapon 8sxh e . NAPPYHOURGVIDE DIGITAL MARKETING & NEW MEDIA The Newport Beach dining destination, culinary promotions and events will be advertised with targeted, paid -search ads on the major search engines and social networks. In addition, the digital marketing team will leverage key industry and media partners to promote the Newport Beach dining destination, Dine NB.com and program messaging. Website The Dine Newport Beach website, DineNB.com, will add relevant content, improved imagery, additional dining guides, curated dining experiences and user- friendly navigation. 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. Mobile As the majority of diners use mobile devices to explore culinary offerings and events, Dine Newport Beach will create an enhanced mobile experience for diners to easily search restaurants by neighborhood, cuisine, 134 1 2016-17/2017-18 MARKETING PLAN N-WPORTB7-4CH RESTAURANTS OFFERS EVENTS • ii• r, Enjoy Dinner & A Movie During the NB Film Festival price point and location. In addition to user-friendly access to dining guides and curated dining experiences, the Dine Newport Beach mobile experience will be optimized for easy online reservation capability. E-mail The Dine Newport Beach weekly e -newsletter will deliver relevant information to diners. The newsletter will provide motivating content including culinary round -ups, dining trends, restaurant offers and promotions, and dining events. Dine Newport Beach will continue to focus on e-mail acquisition strategies to grow its subscriber list and leverage partner channels to deploy program messaging. Social Media Trending culinary topics, images and video content on the existing social channels will drive followers and build online engagement. Dine Newport Beach has an active following on Facebook, Instagram, and Twitter. 15-137 AL OM 3 ANNUAL AV- ;j P� WINE, FOOD FESTIVAL &&.&.ohGG - '- _..------------- ....,... T BEAS'H CI4lt' CFfs Ftk Live Cooking Demos by Bravo TV Chefs • Tastingsfrom QC's Hest Restaurants Over 200 Different Wines Poured . Wine Panels. with Master Somme&iers • Live jazz Tickets on sale now at www.NewportWineandFood.com Video Production Messaging and content about Newport Beach dining will be produced in the Newport Beach TV Digital Media Center. An increased library of video content will be utilized to tell the story of Newport Beach as a dining destination and deployed through a variety of Dine Newport Beach and partner channels. Industry & Community Relations Dine Newport Beach will support organizations and events that assist in promoting the local restaurant and culinary community. Support will include cooperative marketing, online and social -media support, public - relations assistance and promotion of events with local restaurant and culinary components. Dine Newport Beach Goals WEBSITE Web Visits SOCIAL MEDIA Social Followers PUBLIC RELATIONS Placements NEWPORT BEACH RESTAURANT ASSOCIATION moo • or NEWPORT BEACH RESTAURANT ASSOCIATION ANNUAL MEETING MARCH 25,2015 N=WPORTBEACH Stakeholder Communications Dine Newport Beach will engage Newport Beach Restaurant Association (NBRA) restaurants, partners and local stakeholders with e-mail and occasional print communications. The quarterly NBRA e -newsletter includes information on Newport Beach Restaurant Business Improvement District 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. 115,023 1 155,000 1 158,100 5,500 15,000 1 21,000 N/A 1 30 1 30 NEWPORTBEACHANDCO.COM 1 135 15-138 FROZ BANANAS]- T_ Newport Beach & Company Enterprise Newport Beach Two neighborhood merchant associations work through the City of Newport Beach with the mutual goal of increasing economic development to the neighborhoods throughout the city. With the city recommendation, Newport Beach & Company partnered with these organizations to help build and implement each organization's own cohesive marketing plan and brand identity for each neighborhood. Newport Beach & Company manages the economic development for these merchant associations through its economic - development business unit, Enterprise Newport Beach. As the official community -marketing organization for the Balboa Village Merchants Association (BVMA) and Balboa Island Marketing, Inc. (BIMI), Newport Beach & Company partners with each organization to focus on their growth and the community vitality through comprehensive, integrated marketing campaigns and brand development and storytelling. Newport Beach & Company aims to strengthen the overall interest of each unique neighborhood, the overarching destination and support their governance, working with each group's advisory committee to understand and reach their long-term goals. 136 1 2016-17/2017-18 MARKETING PLAN 15-139 ABOUT BALBOA VILLAGE Situated along the Newport Beach coastline, Balboa Village is bustling with visitors along its two boardwalks and the Balboa Pier. With a host of dining and local retailers, Balboa Village has offered an affordable, laid- back coastal experience since 1936. The Fun Zone and ExplorOcean in Balboa Village provide entertainment for all ages. Visitors can stroll the bayside boardwalk, or take a long, relaxing ride on the historic Ferris wheel, which offers fantastic views of Newport Harbor and the Pacific Ocean. Balboa Village stretches from The Fun Zone and Balboa Ferry cross to Balboa Pier and the beaches. The heart of the village is near the world-famous surfing hangout, The Wedge, which is known for its amazing waves. With various water activities throughout the three- mile Newport Harbor, the annual Newport to Ensenada sailboat race begins at Balboa Village every April. BALBOA VILLAGE MARKETING STRATEGY Balboa Village Merchants Association was Newport Beach & Company's first merchant association to join its economic -development business unit, Enterprise Newport Beach. During its first few years with Newport Beach & Company, the a new brand identity was created for Balboa Village along with numerous ad campaigns, maps and collateral event marketing materials. As Balboa Village Merchants Association moves into its new fiscal year with Newport Beach & Company, the community -marketing agency is working with the merchants association on a new, three-year strategic plan. Additionally, the agency is assisting the neighborhood with the creation and development of a new neighborhood website. The new website will be fully mobile - responsive and work on all devices ABOUT BALBOA ISLAND With an illustrious history dating back to 1906, Balboa Island has been visited by some of the most famous Hollywood stars over the years. It is one of the most sought-after places to visit for those coming to Newport Beach. From its quintessential island charm seen on Marine Avenue, the tree -lined main street adorned with local merchants and long-standing restaurants, residents and merchants on the island strive to enhance the local community with their unique wares and maintain a state of historic charm for all those who visit. Balboa Island is most known for its world-famous Frozen Banana Stand where residents and visitors alike can grab a frozen banana or a decadent Balboa Bar. (desktop computers, tablets and smartphones). Marketing initiatives in fiscal years 2017 and 2018 will focus around building traffic to the newly built neighborhood website as well as continuing to drive economic development for the neighborhood businesses. Last year, the association took a new approach to creating and marketing neighborhood events. After several years of creating great events, the association realized that these events cost the association significant parts of its budget. As a result, the association took a new approach to create only money- making events. Last fall, Balboa Village hosted its first Craft Beer Festival, which raised money for the association. It plans to continue the same event in Spring 2016 and thereafter at least twice a BALBOAVILLAGE.COM oosr� OOOO year. Additionally, the association will layer on even more events throughout the year to drive traffic, brand awareness and economic development for Balboa Village and its merchants. NEWPORTBEACHANDCO.COM 1 137 15-140 EXPLOREBALBOAISLAND.cOM low (��►��J} WELCOM F: TY)€SAIP C).h ISIAND .-w MARKETING & STRATEGIC PARTNERSHIPS Newport Beach & Company will continue to offer consistency in branding and messaging and the ability to collaborate with each merchant association to help support their strategic marketing plans. BALBOA ISLAND MARKETING STRATEGY The community -marketing agency's paid -media Balboa Island Marketing, Inc., is entering approach is to build a media plan that will focus on both the second year of its three-year strategic local and drive markets to increase awareness of first - plan. In fiscal year 2017, Balboa Island time guests and repeat visitors. It will use a multi -channel, will be celebrating its historic 100- integrated media plan with targeted conversion tactics. year anniversary when the island was Part of the advertising focus will be aligning with content incorporated into the City of Newport that allows Newport Beach & Company to weave the Beach in September 1906. Last year, Balboa Island and Balboa Village story within relevant Newport Beach & Company created a environments as well as leveraging existing efforts within new brand identity system as well as a the overarching media plan for the destination. Newport new official logo for Balboa Island that Beach & Company will utilize highly engaging creative pays homage to the iconic bridge, which to drive intent and seek more information for both serves as the gateway to the island's neighborhoods. historic Marine Avenue. Newport Beach & Company created and launched MEDIA RELATIONS & BRAND MANAGEMENT Balboa Island's new website Through media and public relations, Newport Beach & ExpoloreBalboalsland.com, a mobile- Company will focus on creating an interest and demand responsive website that serves as a with the leisure audience not only for Newport Beach resource for visitors, local residents but those looking to explore Balboa Village and the and island merchants. Balboa Island neighborhoods. Plans include providing Inthe marketing and publicity for local events to drive next two fiscal years, Newport Beach attendance by using press releases and blog support & Company will continue to build brand and event calendar postings. awareness and promote Balboa Island's new brand identity through branding, Additional communication efforts include spotlighting advertising, collateral, digital marketing, each of these neighborhoods within the monthly media relations and social media newsletter of Visit Newport Beach to garner visitation campaigns. Additionally, the company throughout the year. will continue to build traffic and search engine marketing and optimization for Newport Beach & Company will promote the two the newly built Balboa Island website. merchant associations, their great work and their Much of the work for the next fiscal year partnership with Newport Beach & Company via local will be to promote the island's historic and regional media relations. 100th anniversary through a Centennial Celebration program of work. Additional As the Media Relations Team builds the new Online marketing efforts will drive economic News Room, the team will ensure there are sections impact and brand awareness for one in the Online News Room devoted to each merchant of the most historic and character -filled association and their respective neighborhoods. neighborhoods in Newport Beach. 138 1 2016-17/2017-18 MARKETING PLAN 15-141 DIGITAL MARKETING & NEW MEDIA Newport Beach & Company has built and managed Balboa Island's newly developed website that is mobile - responsive (ExploreBalboalsland.com). The community - marketing agency will finalize and launch Balboa Village's newly developed website in the next fiscal year. The new mobile -responsive website will increase functionality for the residents, visitors and merchants who depend on the Balboa Village website for current events and merchant information. Newport Beach & Company's goal is to increase visitations and page views as well as increase merchant listings and drive conversions for each merchant. The Digital Marketing Team will manage the websites for both Balboa Island and Balboa Village. Enterprise Newport Beach Goals WEBSITE Web Visits SOCIAL MEDIA Social Followers ADVERTISTING Total Impressions PUBLIC RELATIONS Placements WEBSITE Web Visits SOCIAL MEDIA Social Followers ADVERTISTING Total Impressions PUBLIC RELATIONS Placements do Aa 44 The Digital Team will cross -promote the signature events of Balboa Village and Balboa Island within the existing VisitNewportBeach.com to continue to build brand cohesiveness. The focus will be on growth and expansion of these key neighborhoods within Newport Beach. For Search Engine Marketing, the community -marketing agency will build its paid -search campaigns to promote both Balboa Island and Balboa Village through Google, Yahoo and Bing Search Engines. It will continue to refine its keyword optimizations for organic -traffic search for both neighborhoods as well as build search -engine optimization (SEO) strength and keyword writing to help index top pages of the websites. 25,000 1 33,000 1 41,000 5,500 1 7,200 1 10,000 1 1,680,000 1 1,760,000 1 1,812,800 1 1 50 1 75 1 80 1 1 35,000 41,000 1 54,000 1 4,500 1 6,600 1 8,700 1 670,000 1 703,500 1 724,605 25 1 30 1 30 NEWPORTBEACHANDCO.COM ! 139 15-142 Newport Beach & Company Celebrate Newport Beach Celebrate Newport Beach brings a professional, cohesive and coordinated approach to managing, marketing and raising sponsorship funds for brand -defining events in Newport Beach. Through marketing, sponsorship and event support, Celebrate Newport Beach provides ongoing, year-round, focused attention on creating better, brand -centric events and leveraging those events for the benefit of the entire Newport Beach community. Celebrate Newport Beach also focuses on establishing strategic partnerships for Newport Beach that will provide sponsorship revenue to some signature events and key marketing initiatives. 140 1 2016-17/2017-18 MARKETING PLAN 15-143 Marketing, event and sponsorship support can vary from event to event with the most resources put toward elevating the marketing and promotion of the Newport Beach Christmas Boat Parade. For some events, Celebrate Newport Beach merely provides recommendations for better ways to market an event, while other events warrant the full support of the Newport Beach & Company Marketing Team. Following is one example of how Celebrate Newport Beach assists the Newport Beach Chamber of Commerce with marketing and raising sponsorship dollars to promote and support the Newport Beach Christmas Boat Parade: CHRISTMAS BOAT PARADE As one of the community's longest and most -renowned events, the Newport Beach Christmas Boat Parade is the city's most cherished tradition. Visitors and residents celebrate the cavalcade of holiday -decorated and lit yachts, electric boats and kayaks every December in Newport Harbor. In 2014, Newport Beach & Company and the Newport Beach Chamber of Commerce, the event organizer, entered into a strategic partnership, where Newport Beach & Company oversees all marketing, public relations, sponsorship efforts and consumer enhancements. Since the partnership began in 2014, the Christmas Boat Parade has seen major improvements, including the addition of celebrity grand marshals, integrated media plans, a refreshed logo and enhanced viewing experiences. 15-144 MARKETING & STRATEGIC PARTNERSHIPS Newport Beach & Company creates an integrated -marketing campaign to raise awareness and attendance for the Christmas Boat Parade. Newport Beach & Company activates the media buy making strategic advertising placements to both inform locals and entice visitors to attend the event and stay overnight in Newport Beach. Campaigns have included digital, radio, television and print placements. EVENT POSTER _A_ tAu- WED-D­ 6.15 R TRURBDAY, DECEMRE�R BOAT l\P lAkADE. DECEMBER 16-20,2015 BEGI�RCNR-E.... M -DAY, DECEMBER 19 142 1 2016-17/2017-18 MARKETING PLAN Additionally, Newport Beach & Company works to procure event sponsors. Cash and trade sponsors are essential to the event's operation and bring additional exposure to both the Christmas Boat Parade and sponsors. MEDIA RELATIONS & BRAND MANAGEMENT Newport Beach & Company serves as the primary media resource for the Christmas Boat Parade. The Media Relations Team handles press inquiries and pitches international, national, regional and local media outlets for positive news coverage about the event. Newport Beach & Company also hosts a media event on the opening night of the Christmas Boat Parade to gain beneficial recognition and create awareness to support the remaining nights of the event. Newport Beach & Company suggested the 107 -year-old parade add Grand Marshals, and since this addition, the celebrity grand marshals make a guest appearance each year at the opening -night media event. The Newport Beach & Company Marketing Team produces all ads and informational materials including the parade -viewing map. Additionally, 15-145 the Christmas Boat Parade produces a program, and the Newport Beach & Company Marketing Team coordinates the content and design. DIGITAL MARKETING & NEW MEDIA Newport Beach & Company works to elevate the digital presence of the Christmas Boat Parade. The Christmas Boat Parade has a social presence on Facebook, Twitter and Instagram, and the Newport Beach & Company team works with the Newport Beach Chamber of Commerce to manage the accounts. The Newport Beach & Company Marketing Team also assists providing content for the official Christmas Boat Parade website. The Newport Beach TV camera crew films the parade each year and airs a special program on the Newport ROUTE MAP Beach government -access channel The video team also creates consumable content for social channels and b -roll footage for media outlets. ADDITIONAL, YEAR-ROUND SIGNATURE -EVENT SUPPORT Newport Beach & Company supports additional brand -defining events that attract visitors and benefit the City of Newport Beach. Each event calls for different levels of support; all Newport Beach & Company efforts and funds are used solely to market each event. MARKETING & STRATEGIC PARTNERSHIPS Newport Beach & Company provides marketing guidance for signature events. The team will provide an advertising recommendation based on each event's audience and secures media placements as needed. Additionally, Newport Beach & Company is actively looking to advance its strategic alliances and corporate partnerships with the establishment of the Founding -Partner Program. This level of partnership is reserved for strategic partners who directly align with the Newport Beach Celebrate Newport Beach Goals WEBSITE Web Visits 1011111111111 aspirational lifestyle and brand. These brands seek to connect with a luxury destination to promote their goods or services to Newport Beach residents and visitors. The goal of the partnership is to establish a mutually beneficial marketing collaboration between the partner and Newport Beach & Company, while generating funds to support brand initiatives and business units. MEDIA RELATIONS & BRAND MANAGEMENT The Newport Beach & Company Media Relations Team supports signature events by pitching media to attend and generate positive media coverage. The event and Newport Beach teams collaborate to find interesting story angles to pitch to national, regional and local media. DIGITAL MARKETING & NEW MEDIA Using existing Newport Beach & Company channels, the Digital Marketing Team uses the reach of all the business units to promote signature events. The business unit social media channels and websites expose new audiences to events in the city. Newport Beach & Company also promotes events through social - media giveaways to engage followers. ;�I�>•��Fc�iI�P] ADVERTISING Total Ad Impressions 1,000,000 5,800,000 5,900,000 PUBLIC RELATIONS I Placements 1 60 1 70 75 1 NEWPORTBEACHANDCO.COM 1 143 15-146 Newport Beach & Company Newport Beach TV VISION STATEMENT Become the high-quality online, video network and video -content provider for Orange County featuring local programming that highlights the luxury of the Newport Beach brand in and around the destination. The venture should be aligned with an entrepreneurial mindset and a compelling business plan to accomplish the goal. 144 1 2016-17/2017-18 MARKETING PLAN MISSION STATEMENT Tell the compelling, integrated Newport Beach brand story that drives economic success through production of daily, quality local video content, in two -to three- minute segments and long -form segments, that have advertising sponsorships sold and embedded in content to coverall related costs. CORPORATE VALUES • Integrity for content • Customer -centric • Respect for other internal departments at Newport Beach & Company • Adaptability • Innovation • Entrepreneurship 15-147 Overarching Two -Prong Strategy GOVERNMENT -ACCESS CHANNEL PROGRAMMING Produce City of Newport Beach government -access television programming and content as well as provide branded content that tells the Newport Beach brand story to local residents and visitors. 2. VIDEO LIFESTYLE PROGRAMMING Create an online lifestyle channel with multiple distribution points and compelling video content about the Newport Beach lifestyle, destination and brand. Strategic Insights: CRITICAL • Tie segments to events where possible • Utilize existing advertising budgets within Newport Beach & Company business units • Sell strategic partnerships and generate new revenue IMPORTANT • Create additional business -to - business (6213) programming, e.g. How to engage with a Chinese tourist • Create video internship program • Create new local resident and visitor to develop cost-efficient new (consumer) video programming programming NEWPORTBEACHANDCO.COM 1 145 15-148 Newport Beach TV Future Map EXPLOIT STRENGTHS No other local Orange County TV stations Lucrative marketplace Having Visit Newport Beach as partner Knowledge of advertising marketplace Strong economy MONITOR OPPORTUNITIES New TV studio Dedicated online -lifestyle website Strong marketing budget Real estate, Hoag/medical Special thematic programs (Mother's Day, Christmas, etc.) Partner with another media group to utilize their sales team and content 146 1 2016-17/2017-18 MARKETING PLAN MITIGATE WEAKNESSES No established programming Lack of proven viewership No established revenue stream Lack of start-up resources PREPARE FOR CONTINGENCIES OR THREATS Competitors for ad dollars (newspapers, magazines) Chamber and other related organizations competing for sponsor dollars 15-149 Marketing & Strategic Partnerships The Marketing & Strategic Partnerships Team's primary mission is to drive eyeballs, visitation and viewership for all video -content distribution points (government -access channel, online -lifestyle channel, in -room hotel channels, in -room waiting and patient hospital channels, etc.) as well as drive revenue to support the overarching Newport Beach TV Business Unit. MARKETING The Marketing Team will market and promote the government -access channel as well as drive traffic and visitation to the new online -lifestyle channel (NBTV). The Marketing Team will develop a full- integrated marketing, advertising and digital marketing campaign and media buy to increase viewership on the government -access channel as well as promote and market the NBTV online -lifestyle channel. NBTV will utilize various advertising outlets to help promote the digital channel and to encourage new followers. Besides using the native - advertising platforms originating in the video social media sites, the Marketing Team also will work with content - distribution platforms, showcasing marquee videos and expanding reach. • Create and implement marketing and promotion plan • Promote NBTV Programming Schedule • Leverage Visit Newport Beach marketing/media plans • Promote via Visit Newport Beach assets • Promote via partner sites and local businesses • Promote on NBTV Cable Channels STRATEGIC PARTNERSHIP, SPONSORSHIP & TV STUDIO SERVICES The Business Development and Strategic Sponsorship team has a three -pronged approach to driving revenue for the NBTV online -lifestyle channel and the overarching Newport Beach TV business unit. Founding Partner Sponsorships Drive incremental revenue for Newport Beach & Company through the selling of large-scale founding partners with the revenue split across all business units including the Newport Beach TV Business Unit. 2. NBTV Online -Lifestyle Channel Sponsorships The Business Development Team will sell sponsorship opportunities on or within television programming on the online lifestyle channel, hotel - room channel, hospital waiting and patient -rooms channel and other distribution points. NBTV online -lifestyle channel sponsorships include: On -Air Benefits • Intro, close and embedded advertisements • Product placements • 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 on NBTV website • Inclusion in outside marketing materials • Linked logo in masthead throughout the NBTVwebsite • Visibility across NBTV social media pages 3. TV Studio & Video Production Services The Business Development Team will sell the Newport Beach Digital Media Center (TV Studio) to local and regional businesses who need a high-tech, full-service television production studio to achieve their marketing needs. The studio rental fee includes the services of a Video Production Coordinatorto assist from an audio-visual perspective. Additionally, the Business Development Team will promote services for -hire for the video production team of video professionals. Already, this team has produced a number of high-quality videos for big -brand clients. NEWPORTBEACHANDCO.COM 1 147 15-150 Media Relations & Brand Management The Media Relations & Brand Management Team is responsible for generating positive publicity for Newport Beach & Company, the Newport Beach TV Business Unit, the government -access channel and the NBTV online -lifestyle channel and all of its distribution points. MEDIA RELATIONS Content -creation will be part of a bigger distribution plan, working with local media to cross -promote destination videos and new programming, as they become available. Press releases, inclusion in education of the media trips and also utilizing content as accent for stories about Newport Beach will play a big part in the overall video plan. 148 1 2016-17/2017-18 MARKETING PLAN • Develop press releases and media pitches for new show and programming announcements. • Promote new Digital Media Center television studio and video services to local media. • Create a media kick-off event showcasing the new Digital Media Center. • Work with the Digital Marketing & New Media Team on new show content, story ideas and programming suggestions that align with all other business units. BRAND MANAGEMENT The Brand Management Team drives the creative direction and look -and - feel for all programming, themed - show logo identity systems, NBTV online -lifestyle channel brand identity and video content. This team ensures the overarching brand positioning and identity for the Newport Beach aspirational lifestyle is infused through all video content and programming. 100 f' f1.1... NEWPORT BEACH TELEVISION 1 I B 15-151 Digital Marketing & New Media The Digital Marketing & New Media Team oversees the production of Newport Beach destination and official City of Newport Beach video content and programming for traditional television distribution on the local government - access channel. Additionally, the Digital Marketing & New Media Team leads the distribution strategy for digital content across multiple channels including the new NBTV online lifestyle channel while promoting all businesses and lifestyle qualities of the Newport Beach destination. The team will tell the compelling brand story of the Newport Beach area that stimulates and enhances advertisers' business objectives through the production of quality video content. Ranging from full-length programs, to social media quick hits, this content will convey the Newport Beach lifestyle, while also providing additional revenue streams and sponsorship opportunities. NEW NBTV ONLINE LIFESTYLE CHANNEL PROGRAMMING Expand the digital video reach with the NBTV online - lifestyle channel, creating content that will have multiple distribution and sponsorship avenues. The content will support the brand initiatives and tell the compelling story of the area, where to go, what to do, and how to enjoy this one -of -a -kind city. Programming & Content Creation Action Plan • Create content for Newport Beach TV (government -access channel) • Create content for online lifestyle channel • Secure video production team • Explore B2B Programming: example: How to welcome the Chinese tourist? • Hire Multimedia Journalist • Outsource animated digital graphics package and branding/logo assistance New 10 for 10 Neighborhood Shows NBTV will look to produce shows that originate with each of the 10 unique neighborhoods, and will focus on all aspects including lifestyle, dining, events, activities and lodging. With the opportunities of sponsorship, tailored content will be created that will assist in the funding of the business unit, while providing additional content for overall distribution. Newport Beach TV's online video content plan will allow for distribution on all websites, social media, hotel rooms and other partner affiliates. The primary goal is to promote the city of Newport Beach, showcasing all the uniqueness and beauty, while reinforcing the brand message of an "enriching" destination. The videos will live on a branded YouTube channel, and also on the website at NB TVcom. 10 Unique Neighborhoods 1. Balboa Island 7. Corona del Mar 2. Balboa Village 8. Fashion Island 3. Balboa Peninsula 9. Mariner's Mile/Westcliff 4. John Wayne Airport 10. Newport Coast/ Crystal Cove 5. Back Bay 6. Cannery/Lido Marina Village Shoot each neighborhood and focus content on the following areas: • Outdoor Beauty/ • Activities/Things to Do Beaches/Parks • Hotels • Restaurants/Dining • Events For each neighborhood there will be a longer master - overview piece, accompanied by a shorter two -minute video that focuses on certain areas in the neighborhood. These can be as specific as one particular business (in the sponsorship program) or can be grouped programs of several restaurants, several activities and more. These will filter into playlists broken out for each of the 10 neighborhoods. Some of these video pieces will include interviews with partners, chefs, but may or may not have an on -camera host. NEWPORTBEACHANDCO.COM 1 149 15-152 New 24 Seconds in Newport Beach Commercials Out of the footage shot for each neighborhood, creation of a social media series (as well as an additional playlist on the main YouTube Channel) to focus on the shorter attention span of social followers will be created. These will all be 24 -second segments, but will also provide an unlimited ability to showcase parts of the destination and neighborhoods. These will consist of overall pieces on a neighborhood, 24 -seconds of dining, 24 -seconds of activities, or the entire 24 seconds focused on one partner/business/activity, providing another opportunity to sell sponsorships. ECONDS OF Z.ROR�U LAC NEWPORT TO ENSENADA RACE -COVERAGE OF THE CROWDS 150 1 2016-17/2017-18 MARKETING PLAN The Newport Beach 10 This will also be another playlist channel born out of the neighborhood content. Featuring 10 things, these segments will be focused by either Neighborhood - specific or overall destination. Some examples include: 1. Rent a Pedego Electric Bike 2. Check-out Ocean Boulevard views 3. Have an outdoor breakfast 4. Walk the shops downtown 5. Explore Little/Big Corona Beaches 6. Explore the Nightlife 7. Take in a movie at the historic NewPortTheatre 8. Explore the Corona del Mar Christmas Walk 9. Walk the Corona del Mar Bridge 10. Enjoy a fine -dining experience Some of these will get focused: 10 places to eat breakfast, 10 things to do at the beach, and so on. All things produced can roll up into one of the specific neighborhoods or can be broken out into individual playlists. Additional Video Content Future program concepts will expand with shows on Active Lifestyles, Family Focused Travel, Smart Luxury and Personality Pieces on individuals residing in the Newport Beach area. By tapping into the various aspects of Newport Beach, content development will continue to reinforce the brand messaging and supporting brand pillars, while sharing this unique and historic story. 15-153 NEW GOVERNMENT -ACCESS CHANNEL PRIME TIME LINEUP Produce and oversee the local government -access channel on Cox Cable and Time Warner Cable as part of an agreement with the City of Newport Beach, focusing on local events and happenings while conveying the Newport Beach lifestyle to residents and visitors. All of the new NBTV online -lifestyle channel programming detailed above will flow into the new 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM government -access channel programming as well as numerous other distribution points. Following is an example of the new daybreak -to -late- night programming queued up to start running on the government -access channel. As soon as new NBTV online -lifestyle channel content is created, the Digital Marketing & New Media Team will flow that new content into the government -access channel's programming line-up. DIGITAL MARKETING & DISTRIBUTION Content also will be worked into the Newport Beach hotel in -room channels with partnerships of the local lodging community. Content will primarily focus on destination marketing, activities and in -destination amenities. Additionally, the Digital Marketing & New Media Team will create a new video section on the VisitNewportBeach.com website that will be the center hub of digital -video communications. Providing multiple play lists, Search Engine Optimized and indexed content, the new areas will provide additional organic growth on search engines while creating a video -centric sphere of all things Newport Beach. Branded content will utilize and be redirected via the NB TVcom web address URL. Videos will reside on YouTube, the second-largest search engine behind Google. This will be the starting point and main hub for content integration into the Visit Newport Beach website. Newpwt B"Ch N Maw 1.. aorlarraaabMfiW hwr WMrIWw IrgrlrlM�IYmIa- MaWwarA ugnN oars vaa wrwwtm �✓w'dr Avera ay.a�e maaxrweaaac raaMan Lamllo Maaaan vr4 Na.iovrawrram carr-w.vv+e.�nrar r..:„. x+wrorwrwwatwa la avaoMrMMa.pon War oa Foarar-MMperl�aaNCa i�EaaMtltwne Mw.avr al asar.MweonBw�CM ]r S.cwN.�.Crve+.M U Yap MaO fJ Lrw nr.v Mvryr�oucnu n +rso•wn'r MrroT wry prtipi.hn rr n'tioa Fra�:v NEWPORTBEACHANDCO.COM 1 151 15-154 PROGRAMMING & CONTENT DISTRIBUTION • Develop website, social channels to support content for digital channel • Visit Newport Beach digital assets (websites, blog, e-mails, social) • Dine Newport Beach digital assets (website, blog, e-mail, social) • Balboa Island and Balboa Village digital assets • Event Digital Assets (Christmas Boat Parade, 4th of July, Film Festival, etc.) • Explore content -distribution plan via partner sites • Explore in -room hotel channel • Explore Hoag Hospital waiting and patient rooms channel Social media also will be another key tactic, with compelling shorter and easily viewed segments targeted specifically toward the mobile consumer Video on smartphones has continued to rise, with the YouTube mobile application usage rates increasing by 34 -percent year -over -year. Mobile consumption will achieve double-digit growth in the next year continuing the change from desktop -to -mobile phone as the primary platform for video consumption. The Visit Newport Beach, Inc. Group Sales Team also will leverage content creation for the promotion of the destination in relation to conference and group sales. By creating compelling videos that showcase the location's beauty, amenities and activities, group sales will integrate video pieces into overall sales communication tactics. New responsive e-mail templates will showcase video content front and center, while bringing meeting planners back to the hub of the Visit Newport Beach website and group meetings sections. Newport Beach TV Goals NEWPORT BEACH TV DIGITAL MEDIA TEAM Mark Rudyk Senior Director of Digital Marketing & New Media Brianna Grimaldi Digital Marketing Manager Brett Erskine Digital Marketing & Video Coordinator NBTV GOVERNMENT -ACCESS CHANNEL STAFF Ed Olen Videographer/Editor Luis Herrera Videographer/Editor Dominic Dimare Prod ucer/Editor SOCIAL MEDIA Social Followers N/A 5,500 9,000 YouTube Channel Views 22,000 80,000 160,00 152 1 2016-17/2017-18 MARKETING PLAN 15-155 •0 0 i 40 t\*Ak �J# ICONIC LESLIE MANN Grew up in Newport Beach and graduated from Corona del Mar High School, was the first woman Grand Marshal (with Mark McGrath) in the 2014 Christmas Boat Parade. "It's always fun to think about winning an award.... Everybody wants to win an award for something." NEWPORTBEACHANDCO.COM 1 153 Newport Beach & Company Film Newport Beach In fiscal year 2017, Newport Beach & Company along with neighboring destinations will explore the possibility of creating a new business unit called Film Newport Beach, which would service a jointly funded Orange County Film & Digital Media Commission called Film OC. This new film commission would be a non-profit, 501(c)(6) possibly established in fiscal year 2018. Film OC could be a combined effort and funded by three or more Orange County destination marketing organizations including possibly: Visit Newport Beach, Visit Huntington Beach and Visit Anaheim. FILM NEWPORT BEACH OVERARCHING OBJECTIVE The purpose of this business unit will be to bring brand -defining, revenue -generating and hotel room -night -producing film, commercial and video production to Newport Beach and the participating destinations and cities. 154 1 2016-17/2017-18 MARKETING PLAN 15-157 Possible objectives of the Film Newport Beach/Film OC Business Unit include: • Economic Impact: Bring film, commercial and video production to participating cities • Brand Building: Generate positive, brand -building film and video content for participating cities through new, additional film and video production • Hotel Room Nights: Generate and track hotel -room nights generated through film production • Workforce Employment: Employ workers from participating cities forfilm/commercial production • Newport Beach & Company Revenue -Driver: Assist with generating video production and TV studio rentals for the Newport Beach TV Digital Media Center This new business unit is designed to increase the job market for our community within the film -and commercial - production industries. In addition, this proposal will generate an increase in hotel room nights through film production, which would lead to an increase in overall revenue for Newport Beach and Orange County participating destinations. Film Newport Beach Structure Newport Beach & Company would explore locating Film OC and its staff in the Newport Beach & Company offices. The Film Newport Beach Business Unit within Newport Beach & Company would service Film OC like it does the company's other five business units. Newport Beach & Company would charge Film OC a predetermined fee for the following services: finance, accounting, office space, business - equipment use, marketing and public relations support. Initial plans propose this Film Newport Beach Business Unit and the Film OC Film Commission to employ a full-time Film Commissioner and possibly a Film Production Coordinator. This team will promote and market the participating cities as film -friendly destinations and encourage and facilitate all forms of film, commercial and video production to be shot, produced or edited within Film OC's participating cities. The Newport Beach & Company Marketing Team would then provide marketing, strategic partnership, media relations, brand management, digital marketing, new media, finance, accounting and administrative support through this new business unit, which would serve the Film OC Film Commission. NEWPORTBEACHANDCO.COM 1155 15-158 While exponentially growing the film - production sector of the Newport Beach economy, Film Newport Beach will remain unwavering stewards for Newport Beach and its diverse neighborhoods and the overall participating cities. Film OC will approach key film festivals and industry expositions with a proactive and strategic approach for Newport Beach and the other participating cities. Film OC will research local film experts and industry insiders to help advocate for film, commercial and video production to be produced in the participating destinations. Destination Marketing Marketing, Sales Sales and Services and Services • Meeting Planners • Residents • Visitors • Visitors New Event • Special Events 156 1 2016-17/2017-18 MARKETING PLAN The Newport Beach TV Digital Media Center will assist with generating video production as well offer studio rentals to potential film productions. The state-of-the-art studio will be utilized as an asset to all film - production companies in need of studio space, a/v equipment and video personal to assist them with creating compelling video content. Newport Beach & Company is excited about this potential new business unit, which would help position Newport Beach and other participating destinations as premier, film -friendly Marketing Sales, Ser- Marketing, Sales vices and Operations and Services Select Event • Residents Execution • Visitors New Event • Community Events Development Services • Sports Support Film Incentives destinations. This powerful partnership with other participating destinations will deliver a wealth of knowledge about filming in Orange County that no other entity can provide. And one of the lasting benefits of the Film Newport Beach business unit is that it would promote the production of film, commercial and video content that further promotes the aspirational, SoCal Newport Beach and Orange County lifestyles to audiences around the world. Marketing, Sales Marketing, Sales and Services and Services BID Commmunications • Site/Facility • B2B Support Development • Business Retention Film Attraction Services Film Incentives 15-159 f ICONIC MARK MCGRATH Growing up in Newport Beach, McGrath, also lead singer of band Sugar Ray, still considers the oceanfront city home; in 2014 he joined Leslie Mann as Grand Marshal of the Christmas Boat = Parade. "All I knew, then, about Newport Beach was palm trees and surfing..." L. NEWPORT BEACH & COMPANY BUDGET FY2017 ICONIC HUMPHREY BOGART AND LAUREN BACALL The Newport Harbor is where legendary actors Humphrey Bogart and Lauren Bacall fell in love and spent most their time together. Bogart, an avid sailor, spent most his time away from Hollywood it the harbor and introduced Bacall to Newport Beach. "I had a tunes tl I was in y achtin lot of wonderful sere and, of course, .troduced to the g world there 0 is is — Lauren Bacall, sailing with Humprhey Bogart Governance Board of Directors 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 Sam EI-Rabaa Balboa Bay Resort Executive Committee ! ?, -"� � , " .14 CHAIR Andy Theodorou Newport Dunes Waterfront Resort & Marina 160 1 2016-17/2017-18 MARKETING PLAN Russ Kline American Express VICE CHAIR Dennis O'Neil City of Newport Beach Appointee TREASURER Linda Beimfohr Hornblower Cruises & Events SECRETARY Candace Bisconte ACCESS Destination Services PAST CHAIR MEMBER AT Debbie Snavely LARGE Marriott Newport Homer Bludau Beach Hotel & Former City Spa Manager Karl Kruger Fairmont Newport Beach Giuseppe Lama The Resort at Pelican Hill TBA Radisson Hotel Newport Beach Dan Matusiewicz Finance Director City of Newport Beach Carol McDermott Entitlement Advisors, LLC Dennis O'Neil City of Newport Beach MEMBERAT LARGE Karl Kruger Fairmont Newport Beach Rhanda Richardson Newport Beach Marriott Bayview Gregg Schwenk Newport Beach Film Festival Debbie Snavely Newport Beach Marriott Hotel & Spa Andy Theodorou Newport Dunes Waterfront Resort & Marina Tanya Thomas Fashion Island Jim Walker Bungalow Restaurant Gerard Widder Island Hotel Newport Beach 15-163 Tourism Business Improvement District TBID Board of Directors CHAIR Debbie Snavely Marriott Newport Beach Hotel & Spa VICE CHAIR Karl Kruger Fairmont Newport Beach SECRETARY Andy Theodorou Newport Dunes Waterfront Resort & Marina Ruth Benjamin Hyatt Regency Newport Beach Sam EI-Rabaa Balboa Bay Resort Rhanda Richardson Newport Beach Marriott Bayview Gerard Widder Island Hotel Newport Beach TBA Radisson Hotel Newport Beach Marketing Committee CHAIR Lindsey Strutzenberg Hyatt Regency Newport Beach VICE -CHAIR Chad Ceretto Newport Beach Marriott Hotel & Spa SECRETARY Kevin Lorton Hornblower Cruises & Events Chad Bustos The Irvine Company Resort Properties Angela Cortright Spa Gregories Christine Duvall The Irvine Company Retail Properties Tara Finnigan City of Newport Beach Nancy Gardner Newport Bay Conservancy Marcel Ford Balboa Village Merchants Association Nicole Hay 21 Oceanfront Restaurant/ Doryman's Oceanfront Inn Amber Kasses Fairmont Newport Beach Dan Miller The Village Inn Ann McCarley John Wayne Airport, Orange County Sasha Robles Balboa Bay Resort Maureen Sloan OC California's Golf Coast NEWPORTBEACHANDCO.COM 1 161 15-164 Newport Beach & Company Team Executive Team Gary C. Sherwin CDME President & CEO Marketing Michelle Donahue CDME Senior Vice President of Group Sales Katy Dennis Senior Director of Marketing & Strategic Partnerships Mark Rudyk Senior Director of Digital Marketing & New Media Jenny Wedge Senior Director of Media Relations & Brand Management Jane Dryden Director of Brand Management & Design Brianna Grimaldi Digital Marketing Manager Doug McClain Lesley Swain CDME CDME Senior Vice Chief Financial President & Chief Officer Marketing Officer 162 1 2016-17/2017-18 MARKETING PLAN Reilly Wilson Media Relations & Communications Manager Colleen Costello Marketing Manager Brett Erskine Digital Marketing &Video Coordinator Haly Haigh Marketing Coordinator Polly Peak Dine Newport Beach Michelle St. Amour Business Development Manager Kim Thompson Manager of Special Events Administration Catherine Kennedy Director of Administration/ Assistant to the CEO Dina Alleluia -Carr Accounting Assistant Group Sales Amanda Kliem Director of Sales Hillary Burton National Account Director Michelle Devine National Account Director Lori Hoy National Account Director Enrique Paulo National Account Director Amanda Kenning Sales & Services Associate Erin Stapley Sales & Research Coordinator 15-165 t � � alifornia Historical Landmark number 794. ■ ICONIC UCI Founded in 1965, the University of California, Irvine was originally located in what is now Newport Beach. The City of Irvine had not yet been founded. Today UCI is the largest employer in Orange County and its crew rowing team trains in the Newport Back Bay. WP Accolades If you took the tourism industry away from Newport Beach... To keep Newport Beach government services flowing at the same levels: It would cost every Newport Beach household an additional 5991.31 in taxes per year. To keep Newport Beach economy churning at the same levels it would cost every Newport Beach household an additional X36,628 in additional local spending per year. 164 1 2016-17/2017-18 MARKETING PLAN Newport Beach 2016 Top 10 Best West Coast Beaches (Little Corona Del Mar & Crystal Cove) USA TODAY Top 25 Beaches in the U.S. (Newport Beach & Crystal Cove) TRIP ADVISOR Top 10 Best Boardwalks USA TODAY 2015 International 5 -Star Diamond Award AMERICAN ACADEMY OF HOSPITALITY OF SCIENCES WORLD-CLASS DESTINATION 1 -of -30 Best Cities in America CONDE NASTTRAVELER Crystal Cove State Park named 1 -of -10 Amazing Beach Hotels Under $100 -YAHOO! TRAVEL Corona del Mar named America's Happiest Seaside towns COASTAL LIVING 15-167 2014 Top 50 Meetin Destinations in the United Mates CVENT, INC. 1 -of -35 Superstar Clean Beaches in the United States RECIPIENT OF THE ONLYTITLE IN CALIFORNIA NATIONAL RESOURCE DEFENSE COUNCIL Newport Beach & Company 2016 Silver Addy Award BRANDSCAPE VIDEO FILM, VIDEO AND SOUND Bronze Addy Award 2015 ANNUAL REPORT Platinum Award WEBSITE OVERALL NONPROFIT ■ 2014 2 Gold Awards HERMES CREATIVE • MOBILE WEBSITE • WEBSITE HOMEPAGE/WEB ELEMENT 4 Silver Communicator Awards for Visit Newport Beach ACADEMY OF INTERACTIVE VISUALARTS • TRAVEL TOURISM • STRUCTURE AND NAVIGATION • VISUALAPPEAL • MOBILE SITES 2 Platinum AVA Awards ASSOCIATION OF MARKETING AND COMMUNICATIONS PROFESSIONALS • WEBSITE HOMEPAGE • WEBELEMENT 15-168 Industry Terms M A/B TESTING 1 (OR SPLIT TESTI NG) Comparing two versions of a web page or ads to see which one performs better ADR Average daily rate for hotel accommodations ARES a Res Travel is Visit Newport Beach's private-label online booking engine and hotel, airline and car rental reservation system v BABY BOOMERS A person born in the years following World War II, when there was a temporary marked increase in the birth rate 13213 Business -to -Business B2C Business -to -Consumer BAFTA British Academy of Film and Television Arts; annual awards held in February BID Business Improvement District BIMI Balboa Island Marketing Inc.—the merchant association representing Balboa Island merchants, which is serviced through Newport Beach & Company's economic -development business unit, Enterprise Newport Beach BLACK DIAMOND Creative and communications agency who provides in -market public relations, travel trade representation and event support for Visit Newport Beach, Inc. and Visit California in the United Kingdom 166 1 2016-17/2017-18 MARKETING PLAN BOD Board of Directors BRAND USA Destination marketing organization for the United States, which began in 2009 with the Tourism Promotion Act BRAND PILLARS The most influential attributes of the Visit Newport Beach brand BRAND PERSONAS Personality attributes of the Visit Newport Beach brand BRAND PROMISE Statement made to customers that identifies expectations for all interactions with Newport Beach & Company BRAND VALUE Establishing a brand that is memorable, easily recognizable to the consumer and superior in quality BUSINESS UNITS The various segments of Newport Beach & Company: Visit Newport Beach, Inc. -Leisure Marketing, Visit Newport Beach, Inc.—Group Sales, Celebrate Newport Beach, Dine Newport Beach, Enterprise Newport Beach, Film Newport Beach, and Newport Beach TV BVMA Balboa Village Merchant Association— the merchant association representing Balboa Village merchants, which is serviced through Newport Beach & Company's economic -development business unit, Enterprise Newport Beach CALTRAVEL California Travel Association, the hospitality and travel industry's trade association in California reflecting the unified voice for California's travel and tourism industry 15-169 0 o M CDME Certified Destination Management Executive, DMO industry's highest educational achievement CDM Corona del Mar, neighborhood in Newport Beach CO-OP Co-operative programs and opportunities that involve multiple groups or partners working together on a common program, campaign or event CONFERENCEDIRECT Provider of global meeting - planning solutions; third -party meeting planners CRM Customer -relationship management system—database of customer data CVB Convention & Visitors Bureau, now known as Destination Marketing Organization (DMO) CVENT Event -management technology company, enables increased group business demand through targeted advertising and online meetings requests for proposals (RFPs) M DESTINATION ANALYSTS, INC. Tourism market research contractor DMAI Destination Marketing Association International, global trade association for official destination marketing organizations worldwide DMO Destination Marketing Organization, formerly known as Convention & Visitors Bureau E-MAIL SEGMENTATION Separating audiences into different groups to provide content best suited to their interests EVENT IMPACT CALCULATOR (Destination Marketing Association International's (DMAI) tool to measure the economic impact of an event to destinations ERP Enterprise resource planning, business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources E.U. European -Union, Apolitical union, to which the member states of the European Economic Community are evolving u FAM Familiarization tour or trip, hosting a travel agent/tour operator, member of the media or meeting planner to increase destination knowledge and generate interest FISCALYEAR Newport Beach & Company's fiscal year runs July 1 to June 30 each year FICP Financial & Insurance Conference Planners FIT Frequent individual traveler FULFILLMENT Fulfilling by mail visitor -requested collateral pieces GCC Gulf Cooperation Council, political and economic alliance of six Middle Eastern countries—Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman GENERATION X The generation born after that of the baby boomers (roughly from the early 1960s to mid 1970s) GDP Gross Domestic Product, the monetary value of all the finished goods and services produced within a country's borders in a specific time period GUERRILLA MARKETING Innovative, unconventional technique aimed at obtaining maximum exposure u HELMSBRISCOE Site -selection agency, consultants focused on the meeting planning process; third -party meeting planners HOUSEHOLD INCOME Measure of the combined incomes of all people sharing a particular household or place of residence HPN Hospitality Performance Network Global; third -party meeting planners E IEG Company that offers consulting, research and valuation services related to event marketing, sports marketing, cause marketing and sponsorship IMEX America's worldwide exhibition for incentive travel, meetings & events NEWPORTBEACHANDCO.COM 1 167 15-170 INTEGRATED MARKETING MINT OCVA Utilizing both modern and (Destination Marketing Association Orange County Visitors Association, traditional marketing strategies, International's (DMAI) meeting- provides visitor advocacy, to optimize the communication industry database communications and brand -marketing of a consistent message support to Orange County partners IPW U.S. Travel Association's premier travel -industry marketplace E JWA John Wayne Airport, Orange Country- only commercial -service airport in Orange County KPI Key performance indicator E LEAD Meeting planning request of rooms, event space or goods and services sent to qualified partners LG BT Lesbian, Gay Bisexual & Transgender MILLENNIAL A person reaching young adulthood around the year 2000 MAS Merchant Associations, examples include Balboa Island Marketing, Inc., and Balboa Village Merchants Association MICE Meetings, Incentives, Conventions & Exhibitions MOBILE RESPONSIVE An approach to web design aimed at crafting sites to provide an optimal viewing and interaction experience across a wide range of devices (from desktop computer monitors to mobile phones) MPC Monetary Policy Committee, a committee of the Bank of England, which meets for three and a half days twelve times a year to decide the official interest rate in the United Kingdom NBCC Newport Beach Chamber of Commerce, OTA Online Travel Agency such as Expedia, Travelocity, Orbitz or Ctrip (in China) E PPC Pay -per -click (online ads or promoted videos) 9 RBID Restaurant Business Improvement District, which funds Newport Beach Restaurant Association promotes economic opportunity REFERRAL to enhance the social and civic List of qualified Newport Beach & environment of Newport Beach Company partners sent to meeting planners or media outlets NBRA Newport Beach Restaurant Association RFP Request for proposal NBTV DIGITAL MEDIA CENTER Newport Beach & Company's in-house video production suite and television REVPAR studio Revenue per available room, performance metric in hotel industry NEED PERIODS Referencing a period of time when visitor volume is down NEWPORT BEACH NEIGHBORHOODS Balboa Island, Balboa Peninsula, Balboa Village, Cannery/Lido Marina Village, Corona del Mar (CDM), Fashion Island/Newport Center, Airport District, Mariner's Mile/Westcliff, Upper Newport Bay, Newport Coast/Crystal Cove M OCBJ Orange County Business Journal 168 1 2016-17/2017-18 MARKETING PLAN ROI Return on investment ROOM NIGHT Statistical unit of occupancy; one hotel room occupied for one night SALES MISSION Selling and showcasing Newport Beach in other markets 15-171 SITE VISIT (also known as Site Inspection) Tour of property or meeting space to familiarize a potential client SEM Search -engine marketing—Internet marketing that helps improve visibility in search engine results SEO Search -engine optimization - formatting and writing content to perform at its highest level in online searches STR Smith Travel Research, Inc.—hotel market data & benchmarking reports utilized by Visit Newport Beach and Newport Beach hoteliers 0 TARGETAUDIENCE Particular group of people, identified as the intended recipient of an advertisement or message TBID Tourism Business Improvement District—hotel-room assessment on the participating lodging businesseswithin city limits of Newport Beach to market Newport Beach as a meetings destination. TRANSIENT Individual traveler not traveling for group/meetings business TRAVELTRADE Collective term fortour operators, wholesalers, and travel agents TRADESHOW Event with exhibitors showcasing products or services TOT Transient Occupancy Tax also known as "bed tax" U.S. TRAVEL ASSOCIATION National, non-profit organization representing all components of the travel industry that generates $2.1 trillion in economic output and supports 15 million American jobs u VFR Visiting friends and relatives VISIT CALIFORNIA California Travel & Tourism Commission, organization with mission to develop marketing programs that keep California top -of -mind as a premier travel destination ■ T �1 i' DANGERI NOT R©t-K M-6 Destination Marketing Plan References BVK CIC Research City of Newport Beach Convention Industry Council Dean Runyan Associates Destination Analysts, Inc. Forward Keys Fulcrum/Kliman Group- Meeting Planner Survey John Wayne Airport, Orange County National Travel & Tourism Office Office of Travel &Tourism Industries Orange County Visitors Association Oxford Economics PKF PricewaterhouseCoopers, LLC STIR, Inc. (Smith Travel Research) Successful Meetings Tourism Economics TNS Global United States Travel Association United States Department of Commerce Tourism Economics Visit California 0 170 1 2016-17/2017-18 MARKETING PLAN 15-173 15-174 NEWPORT BEACH & COMPANY • 1600 Newport Center Drive • Ste. 120 Newport Beach, CA 92660 VisitNewportBeach.com • 949.719.6100.800.94.COAST 15-175 g.rT ewvrt �vrt� ,ea !R COMPANY ,,oas forever summer - CALIFORNIA NEWPORT BEACH & COMPANY • 1600 Newport Center Drive • Ste. 120 Newport Beach, CA 92660 VisitNewportBeach.com • 949.719.6100.800.94.COAST 15-175 Proposed Budget VNB Inc. TOT ATTACHMENT B Ordinary Income/Expense Income 40000 • Income 41000 • TOT Income $ 4,791,512 4,914,094 42000 • Partnership Fees $ 3,000 3,000 43000 • Co -Op Advertising Income $ 44200 • Annual Marketing Outlook Dinner $ - Total 40000 • Income $ 4,794,512 4,917,094 Total Income $ 4,794,512 4,917,094 $ 4,794,512 4,917,094 Expense 61000 • Salaries 61010 • Salaries $ 52,012 53,558 61030 • Payroll Tax Expenses $ 4,104 4,226 61140 • Retirement Plan (401k) - 2,410.11 Total 61000 • Salaries $ 56,116 60,194 63000• Insurance 63100 • General Liability Insurance $ - - 63200 • Workers Compensation Insurance $ - - 63300 • Board of Directors Insurance $ 7,830 7,830 Total 63000 • Insurance $ 7,830 7,830 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) $ 3,900 3,900 64130 • Voice, Data & Cable - Office $ 1,080 1,080 64135 • Telephone - Mobile $ - - 64136 • Cable $ 64140 • Postage $ 64145 • Shipping Charges $ - - 64150 • Bank Fees $ 540 540 64151 • Merchant Account Fees $ - - 64160 • Membership Dues $ 54,996 US 54,996 64165 • Subscriptions $ - - 64170 • Team Meetings $ 64175 • Governance Meetings $ 64180 • Education $ 64190 • Business Licensing and Fees $ - 64200 • Professional Services 64201• Audit Fees $ 6,500 6,500 64202 • Tax Preparation Fees $ 1,000 1,000 64203 • Recruiting Fees $ - - 64204 • Legal Fees $ - - 64205 • Payroll Processing Service $ 1,896 1,896 Total 64200 • Professional Services $ 9,396 9,396 64300 • Depreciation Expense $ 600 600 64500 •Other Operating Expense $ - - 64600 • Business Meals/Entertainment $ 64700 • Temporary Personnel $ - - Total 64000.Operating Expenses $ 70,512 70,512 15-176 Proposed Budget VNB Inc. TOT 66000 • Advertising ATTACHMENT B 66101 • Leisure - Advertising $ 719,882 767,184 66102 • Local Event - Advertising $ 95,000 95,000 66103 • Media Promotions $ 10,000 10,000 66104 • Non -Media Promotions $ 30,000 30,000 66105 •Other Consulting Fees $ - - 66200 • Agency Management $ 10,000 10,000 66201•Fees and Expenses $ - - 662 02 • Ad Production $ 100,000 124,000 66203 • Creative Design/Development $ 120,000 120,000 66204 • Contests/Consumer Promotions $ - - 66205 • Photography $ 50,000 50,000 66206 •Other Contingencies $ - - Total 66200 -Agency Management $ 270,000 294,000 Total 66000 • Advertising $ 1,124,882 1,196,184 67000 • Marketing $ 70,000 70,000 67100 • Community Relations $ 120,000 120,000 67101 • Research $ 130,000 130,000 67103 • Community Sponsorships $ - - 67104 • Annual Marketing Outlook Event $ - - 67105 • Awards $ 2,000 2,000 67106 • Video $ - - 67107 • Promotional Items $ 5,000 5,000 67108 • Partner Engagement Events $ 5,000 5,000 67109 • Hospitality Training $ 15,000 - Total 67100 • Community Relations $ 157,000 142,000 67300 • Collateral 67301 • Inspiration Guide $ 10,000 10,000 67302 • Mini -Guide Map $ 35,000 35,000 67305 • Calendar of Events $ - - 67307 • Destination Brochure $ - - 67308 • Annual Report $ 10,000 10,000 67309 • Marketing Plan $ 10,000 10,000 67310 • Partnership Packets $ 5,000 5,000 67311 • Collateral Shoot Expenses $ 50,000 60,000 67312 • Collateral Distribution $ 42,000 42,000 67315 • Special Interest Leisure Guide $ - - Total 67300 • Collateral $ 162,000 172,000 67400 • International Marketing 67401 • Consulting Fees $ 115,340 115,340 67402 • TTI FAMs $ 30,000 30,000 67403 • Promotions $ 175,000 185,000 67404• Trade Shows $ - 67405 • Airfare $ 14,250 14,250 67406 • Accommodations $ 10,000 10,000 67407 • Meals $ 3,000 3,000 67408 • Transportation Costs $ 7,000 7,000 67409 •Other Travel Costs $ 1,000 1,000 67410 • Business Meals/Entertainment $ 3,000 3,000 67411 • Promotional Items $ 5,000 5,000 Total 67400 • International Marketing $ 363,590 373,590 67500 • Digital Marketing and Programming 67501 • Social Media $ - - 67502 • Website Maintenance $ 70,000 70,000 67503 •Online Search Advertising $ 120,000 120,000 15-177 Proposed Budget VNB Inc. TOT 67504 • Digital Advertising 67505 •Online Contests/Promotions 67506 • Mobile Initiative 67507 • Consulting Fees 67508 • Website Design 67509 • CRM Annual Licensing 67510 • Digital Media Software (non-Deprec) 67511 • NB Lifestyle Channel Production Total 67500. Online Marketing ATTACHMENT B $ 40,000 40,000 $ 60,000 60,000 67602 • Media FAM Tours $ 45,000 45,000 $ 35,000 35,000 $ 9,000 9,000 $ 50,000 50,000 $ 8,000 8,000 $ 10,000 10,000 $ 75,000 75,000 $ 408,000 408,000 67600 • Public Relations B 67601 Media Services $ 60,000 60,000 67602 • Media FAM Tours $ 45,000 45,000 67603 Promotions $ - - 67604 • Consulting Fees $ 67605 Special Programs 67607 • Media Road Shows 676089 • Digital Asset/Media Library Total 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 $ 1,309,590 1,314,590 $ 2,225,407 2,267,785 0 c $ o $ 2,225,407 2,267,785 $ 4,794,337 4,917,095 $ 175 r 15-178 B $ 95,000 B 95,000 $ 10,000 10,000 $ 9,000 9,000 $ 219,000 219,000 $ 1,309,590 1,314,590 $ 2,225,407 2,267,785 0 c $ o $ 2,225,407 2,267,785 $ 4,794,337 4,917,095 $ 175 r 15-178 ATTACHMENT C Newport Beach & Company Key Performance Indicators WEBSITE Web Visits 1,060,400 1,211,491 114% SOCIAL MEDIA Social Post Reach 4,120,000 4,361,829 106% ADVERTISING Total Ad Impressions 153,617,970 159,586,254 1.04% Marketing Room Nights Generated 15,000 71,800 479% PUBLIC RELATIONS Local/National Media Placements 500 823 165% Total Media Assists 275 340 124% INTERNATIONAL Wholesaler/Agency Reps Trained 173 195 113% 15-179 ATTACHMENT D NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2017 JULY 1sT 2016 THROUGH JUNE 30TH 2017 ORIGINATION: Implemented beginning May 1St, 2009 through an approved ordinance by the City Council, the Newport Beach TBID was amended effective January 29th, 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 annual report of the Newport Beach Tourism Business Improvement District (TBID), is for the FY2016-2017 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 eight TBID lodging businesses. These services are designed to benefit the eight 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 • Island Hotel COST BASIS AND EXPECTED REVENUE FOR FY2016-2017: The annual assessment rate is 3% of gross short-term (less than 30 days) room rental revenue on the eight 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. The expected revenue for FY2016-2017 is $4.025M. 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 initial two-year budgeting cycle as well. 15-180 ACTIVITIES FOR FY2016-2017: The strategic initiatives detailed in the Newport Beach & Company FY2016-2017 Marketing Plan include pursuing high -impact business (longer stays and higher priced), continuing with enhancing exposure to targeted clientele through participation in appointment -based shows, and elevating the effectiveness of relationships with portfolio accounts such as HelmsBriscoe and ConferenceDirect. The development of a "Preferred Partner" program is also an objective for the next two fiscal years. A summarized breakdown of the TBID draft strategic initiative marketing and advertising budget for FY2016-2017 is as follows: GROUP SALES INITIATIVES Advertising $195,000 Site Inspections 61,000 Client Events 105,000 International 50,000 Database/Lead Development 110,000 Trade Show Expense 495,000 Group Booking Incentives 300,000 Hosted Industry Events 50,000 Industry Partnerships 122,000 Sponsorships 165,000 Research 63,586 Other/Reserve 463,000 Customized Destination 421.816 $2,601,402 ASSESSMENT AND BOUNDARIES: No changes in the assessment rate or boundaries of the TBID are currently proposed. The TBID was renewed in January 2014 for a 10 -year term. ESTIMATE OF NON -ALLOCATED FUNDS CARRIED OVER FROM FY2015-2016: $0.00 AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY2015-2016: $0.00 15-181 Proposed Budget FY2017 VNB Inc. TBID Income 103,034 97,325 40000 • Income 600 41100 • TBID Income 3,964,265 4,025,948 Total 40000 • Income 3,964,265 4,025,948 Total Income 3,964,265 4,025,948 Expense 3,024 5,490 61000 • Salaries 5,000 10,440 61010 • Salaries 785,644 789,209 61015 • Bonuses and Commissions 192,556 199,574 61020 • Auto Allowance 17,340 17,340 61030 • Payroll Tax Expenses 78,548 79,383 Total 61000 • Salaries 1,074,088 1,085,506 61100 • Benefits 1,200 1,200 61110 • Medical Insurance 67,690 69,235 61120 • Dental Insurance 7,406 5,808 61125 • Vision Insurance 978 981 61130 • Life Insurance 6,495 6,525 61140 • Retirement Plan (401k) 69,688 40,245 61150 • Flexible Spending Plan 500 S00 61160 • Personnel Benefit 3,096 7,396 Total 61100 • Benefits 155,853 130,690 62000 • Office Expenses 62100 • Lease 103,034 97,325 62110 • Office Repairs and Maintenance 600 Total 62000 •Office Expenses 103,034 97,925 63000• Insurance 63100 • General Liability Insurance 808 890 63200 • Workers Compensation Insurance 3,024 5,490 63300 • Board of Directors Insurance 5,000 10,440 Total 63000 • Insurance 8,832 16,820 64000. Operating Expenses 64100 • Office Supplies 6,000 6,000 64101 • Stationary 3,000 3,000 64110 • Office Equipment Leases 2,916 3,444 64115 • Office Equipment (non-deprec) 1,200 1,200 64120 • Equipment Repairs & Maintenance 8,136 6,600 64125 • Computer Software (non-deprec) - 3,900 64130 • Telephone - Office 3,324 4,500 64135 • Telephone - Mobile 7,980 9,570 64140 • Postage 300 - 64145 • Shipping Charges 900 900 64150 • Bank Fees 360 - 64160 • Membership Dues 29,496 29,496 64165 • Subscriptions - - 64170 • Team Meetings 30,000 30,000 64180 • Education 5,000 10,000 ATTACHMENT E 15-182 Proposed Budget FY2017 VNB Inc. TBID 64200 • Professional Services 64201 • Audit Fees 1,000 1,875 64202 • Tax Preparation Fees 500 500 64203 • Recruiting Fees 64204 • Legal Fees - - 64205 • Payroll Processing Service 2,710 3,096 Total 64200 • Professional Services 4,210 5,471 64300 • Depreciation Expense 33,770 31,540 64500 • Other Operating Expense 1,514 1,514 64600 • Business Meals/Entertainment 9,000 9,000 64700 • Temporary Personnel - Total 64000 •Operating Expenses 147,106 156,135 65000•Travel 65100 • Airfare 8,150 9,000 65200 • Accommodations 17,400 14,000 65300 • Meals 2,250 1,650 65400 • Transportation Costs 1,650 1,650 65405 • Mileage - - 65500 • Other Travel Costs 550 550 Total 65000 • Travel 30,000 26,850 66000 • Advertising 66100 • Meetings Advertising 21,000 15,000 66102 • Production 5,000 2,500 66105 • NB&Co Consulting Fees 60,000 77,000 66120 • Special Promotions - 66121 • Gift Cards 50,000 31,000 66122 • Promotional Events 10,000 10,000 66123 • Client Gifts 35,000 35,000 Total 66120 • Special Promotions 95,000 76,000 Total 66000 • Advertising 181,000 170,500 66200 • Direct Sales Initatives 66202 • Site Inspections 50,000 61,000 66203 • Client Events 103,500 125,000 66204 • International Initiatives 30,000 50,000 66205 • Database/Prospecting 130,000 110,000 66206 • Conference Services 1,000 1,000 66207 • CRM Maintenance 12,000 12,000 66220 • Trade Show Expense - 66221 • Travel Expenses 108,000 105,000 66222 • Registration 292,500 290,000 66223 • Booth Expenses 133,000 95,000 66224 • Shipping 5,000 Total 66220 • Trade Show Expense 533,500 495,000 15-183 Proposed Budget FY2017 VNB Inc. TBID 66230• Sponsorships 66212 • Community Sponsorships 155,000 165,000 66231 • Group Booking Incentives 215,000 290,000 66232 • Hosted Industry Events 150,000 50,000 66233 • Industry Partnerships 42,000 42,000 66234 • Industry Sponsorships 40,000 80,000 Total 66230 • Sponsorships 602,000 627,000 66240 • Customized Destination Support 66243 • Booking Incentives 325,000 281,816 66247 • Partner Engagement Expenses 15,000 15,000 66248 • Group Marketing Initiatives 275,000 125,000 Total 66240 • Customized Destination Support 615,000 421,816 Total 66200 • Direct Sales Initiatives 67000 • Marketing 67003 • Research 67004 • Group Sales Marketing Total 67000 • Marketing Total Expense Net Income 2,077,000 1,902,816 7,000 3,586 129,000 60,000 129,000 63,586 3,905,913 3,650,828 58,352 375,120 15-184