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VLMDAC FINALAugBoardMtg v11VAIL LOCAL MARKETING DISTRICT VLMDAC BOARD MEETING AUGUST 23, 2018 AGENDA / •SWEARING IN OF NEW VLMDAC MEMBERS, TAMMY NAGEL •JULY 2018 MONTHLY FINANCIAL REPORT, CARLIE SMITH •APPROVAL OF MAY MINUTES, VLMDAC BOARD •DIGITAL MEDIA YEAR TO DATE RESULTS, CACTUS •2019 PROPOSED VLMD STRATEGIC PLAN & BUDGET, CACTUS & PARTNERS •BRAND UPDATE, VAIL MOUNTAIN MARKETING DIGITAL YEAR TO DATE RESULTS YOY CAMPAIGN SUMMARY / DIGITAL 2016 IMPRESSIONS •61.4M IMPs •104K Clicks •0.17% CTR •75% VCR 2017 IMPRESSIONS •33.2M IMPs •63K Clicks •0.19% CTR •77% VCR 2018 ENGAGEMENT •19M IMPs* •65K Clicks* •0.34% CTR* •88.3% VCR* *2018 metrics as of July 31, 2018; 2016 + 2017 metrics are final campaign delivery Strategy Results % Impressions delivered by July 82% 65% 80% DIGITAL IMPRESSION DELIVERY YOY / 2018 2017 2016 Purchased* Impressions Across Campaign 23.2M 33.2M 61.4M * Impressions are only inclusive of Digital Display + Digital Video; A full digital overview including social and influencer will be included in the year-end campaign wrap-up YOY PERFORMANCE (THROUGH 7/29) / DIGITAL MEDIA Overall Digital Video Cross- platform Video Connected TV Video Paid Social Video 2018 88% VCR 86% VCR 98% VCR 85.2% VCR 2017 78% VCR 79% VCR 96.5% VCR 75.3% VCR % change +13% +8% +2% +13% OCCUPANCY TO DATE ALIGNED WITH PAST YEAR / DIGITAL 2018 2017 Digital Impressions Delivered (through July) 19M 21.6M Total Occupancy (May-July) 49.3% 49.8% 2019 PROPOSED VLMD STRATEGIC PLAN & BUDGET, CACTUS & PARTNERS GOALS & OBJECTIVES Objectives: Specific direction for how we will reach our goals. DEFINITIONS / Goals: The ultimate results we are hoping to achieve. Strategies: Priorities that efforts must deliver. Indicators: How we measure the success of our objectives. Strengthen Vail’s position as a year-round destination that appeals to a broad audience, by elevating the summer brand position. VLMDAC OVERARCHING GOAL / 2014 – 2017 GOALS / RESULTS GOALS Sources 2014 Baseline 5 year Goals Net Growth 2014- 2017 Trend Results* Sales Tax TOV $7,000,000 +15% 20% ↑ Overall Occupancy Inntopia 43% +10% 49% ↔ Group Occupancy (Room Nights) Inntopia 8,570 +20% 33% ↑ *NOTE: 5 Year Results to be updated with 2018 after completion of summer 2014 - 2017 OBJECTIVES & INDICATORS / RESULTS TO DATE (MAY – JULY 31) *NOTE: Methodology for measuring Consideration and NPS changed YOY ACTUALS BY YEAR ACTUALS TO DATE Sources 2014 Baseline 2015 Results 2016 Results 2017 Results 2018 YTD Results Sales Tax TOV $7,000,000 $7,560,000 $8,141,190 $8,370,154 $2,465,121 (thru June) Overall Occupancy Inntopia 43% 42% 53% 49% 50% (May – July 31) Group Occupancy (Room Nights) Inntopia 8,570 7,285 10,037 11,437 16,849 Out of State Overnight Visits Intercept 55% 58% 54% 53% 55% International Visits Intercept 9% 9% 5% 6% 7.5% In State Visits (Overnight) Intercept 18% 19% 25% 19% 22% Consideration* Burke 55 55 NA 47 NA Net Promoter Score* Intercept 75 84 80 76 (web) 83 (on site) 72 (web) 86 (on site) •Increase YOY sales tax revenue •Increase YOY lodging tax revenue 2019 GOALS / TO BE QUANTIFIED GOALS Sources 2014 Baseline 5 year Goals Net Growth 2014-2017 Trend 2019-2021 Goals Results* Sales Tax TOV $7,000,000 +15% 20% ↑ TBD Lodging Tax TOV $2,796,770 18% ↑ TBD Overall Occupancy Inntopia 43% +10% 49% ↔ TBD Group Occupancy (Room Nights) Inntopia 8,570 +20% 33% ↑ TBD •Increase YOY overall occupancy •Increase YOY group occupancy *NOTE: 5 Year Results to be updated with 2018 after completion of summer 2019 STRATEGIES & BUDGET 2019 STRATEGIC PLAN & BUDGET / PROCESS The partners have worked together over the past two months to establish a strategic plan and budget that will empower the VLMDAC to succeed in its goals and objectives, while practicing bold brand leadership. •Brand: Strengthen Vail’s brand position as the world’s premier mountain resort by constantly elevating our industry leadership and tradition of excellence •Storytelling: Develop compelling and consumer-centric stories to bring the Vail brand to life throughout the decision making/purchase funnel •Data: Explore avenues for increased understanding and use of our summer research and data to impact awareness, consideration, and conversion •Focus: Continue to target key audiences/personas that are most likely to consider and convert 2019 STRATEGIES / PRIORITIES THAT EFFORTS MUST DELIVER 2019 BUDGET / $3.3 MILLION The 2019 proposed budget fulfills the 10% (-$300,000) YOY decrease in overall budget. Drive Overnight & Out-of-state Visitation $3.6 Million 75% Destination FR Overnight International Web/CRM/Social Public Relations Groups 47% 8% 8% 28% 3% 5% Digital Traditional PR 50% 2% 43% 2018 BUDGET / OVERVIEW Strategy Branding Research Photo/Video Fees 25% Other 5% 2019 BUDGET SHIFTS / ADDITIONS •BRANDING AND STRATEGIC PLANNING: •Addition of discovery line item to explore and streamline research initiatives and build VLMDAC database program •WEB/SOCIAL/EMAIL: •Addition of long format organic social video asset capture and production •EVENT: •$200K in Colorado Classic event support 2019 BUDGET SHIFTS / SAVINGS •PROFESSIONAL FEES: •Efficiencies and reduced scopes of work across all partners for reductions •BRANDING AND STRATEGIC PLANNING: •Continuation of current strategy and creative campaign •ASSET CAPTURE: •Streamlining TV/video productions and asset gathering •Capitalizing on 2017/18 asset capture •MEDIA: •Continued focus and refinement of messaging and targets in need time periods •Considering reduction in Vail App marketing support •INFLUENCER: •Leverage efficiencies discovered in 2018 2019 BUDGET SHIFTS / SAVINGS •PUBLIC RELATIONS •Expenses decreased and reduction in in-market visits from 3 to 2 •WEB •Reduced website fees with the launch of response site complete; maintenance mode •Rightsizing branded search terms based on summer learnings •INTERNATIONAL EFFORTS •Sales, marketing and PR effort reduced to sole focus of Mexico •RESEARCH •Elimination of DestiMetrics multi-destination comparison report • Refinement of 2019 Burke Brand Research to better address our media targeting and more accurately measure Awareness, Consideration, and Conversion funnel metrics •MISC. •Master event calendar shifted from printed to electronic Drive Overnight & Out-of-state Visitation $3.3 Million ($300,000 reduction YOY) 71% Destination FR Overnight International Web/CRM/Social Public Relations Groups 41% 14% 7% 29% 5% 4% Digital Traditional PR 53% 5% 35% 2019 BUDGET / OVERVIEW Strategy Branding Research Photo/Video Fees 29% Other 7% 2019 VS. 2018 BUDGET COMPARISON / Budget by Category 2019 BUDGET % of Budget 2018 BUDGET % of Budget 2019 vs. 2018 %Change in Budget Allocation Destination Efforts $968,560 29% $1,035,782 29% 0% Front Range $329,689 10% $358,114 10% 0% International $175,000 5% $226,552 6% -1% Branding/Production $109,400 3% $146,000 4% -1% Groups $680,738 21% $756,375 21% 0% PR $75,500 2% $85,200 2% 0% Research $120,929 4% $84,365 2% 1% Photo/Video $124,100 4% $98,000 3% 1% Professional fees $336,800 10% $359,960 10% 0% Web/Email/Social $154,284 5% $225,200 6% -2% Event Support $225,000 7% $225,000 6% 1% TOTALS $3,300,000 $3,600,000 NEXT STEPS & TIMING / •GAIN BOARD ALIGNMENT ON QUANTIFIABLE 2019 GOALS –Timing: Today - next 2 weeks (prior to Sept. 18 Town Council) •REVIEW AND APPLY INSIGHTS FROM YOY RESULTS AND RESEARCH –Timing: October/November •POTENTIALLY REVISIT BUDGET BASED ON YEAR END RESULTS AND RESEARCH –Timing: October/November •DEVELOP SPECIFIC OBJECTIVES & TACTICS FOR HOW WE WILL REACH OUR GOALS –Timing: October - December VAIL BRAND UPDATE, VAIL MOUNTAIN MARKETING BRAND ANALYSIS & EVOLUTION SUMMER 2018 EXISTING BRAND ANALYSIS MOUNTAIN RECREATION: More than 5,200 Skiable Acres Expansive, Accessible & Varied Terrain The Most Groomed Terrain on Earth Back Bowls Blue Sky Basin Lift System Ski School Adventure Ridge VILLAGE SOPHISTICATION: Après Ski Casual and Fine Dining High End Shops & Hotels Ice Rink Heated Cobblestone Streets CULTURE/LIFESTYLE: International Feel Events and Activities (Concerts, Athletic Competitions, Culinary/Wine Events, Film Festivals, etc.) Heritage (Purpose-built, Proven, World Class & World-wide Reputation) SERVICE EXISTING BRAND PILLARS / 30 make the MOUNTAIN proud Not ownable against other brands within or outside of the enterprise portfolio. Lacks emotion & personality as the brand foundation (the pillars) is built on tangible features not emotional benefits. Lacks a clear leadership position as the premier resort within the enterprise portfolio and across the world. Not actionable for resort to deliver on the brand promise or brand pillars. EXISTING BRAND ASSESSMENT / RECOMMENDED BRAND EVOLUTION BRAND VISION The core of what our brand represents and promises to deliver to our guests. Like nothing on earth. The World’s Premier Mountain Resort. BRAND POSITION [Strategic Imperative] Strategic position of the brand relative to the competition. BRAND PILLARS The foundational truths that define, guide and bring the brand to life. W Vail was born from a dream, and built with a vision of excellence. The same pioneering spirit with which we were founded and purposefully built, continues to drive us forward. We carry on the tradition of pursuing excellence, in order to hand down a legacy as distinctive and visionary as the one handed to us. LEGACY TIMELESS PURSUIT OF EXCELLENCE LEADER ENDURING SPIRIT OF INNOVATION Always looking forward, we don’t hold on to the past, we build upon it. Like our founders who taught us how to lead, we blaze our own trail and set the standard so that we always shape the industry. It is not in us to settle, instead we break the status quo and rethink what is possible. Vail is an aspiration unrestrained by boundaries, and earthly limitations. More than a place, Vail transcends cultures and generations. From the vastness of the Back Bowls to the vibrant villages, to be a part of Vail is to feel endless possibility and discover lasting moments that invigorate you Like nothing on earth. LIMITLESS EXPERIENCES THAT TRANSCEND POSSIBILITY WE ARE VAIL. We speak in a tone that is simple and succinct, inspiring and intelligent, confident and bold. The undeniable majesty of our destination and the character of our leadership is powerful enough to speak for itself. WE ARE VAIL. And Vail is Like nothing on earth. BRAND VOICE The tone we use and how we bring our brand to life. W THE TRAILBLAZER* Living life on their own terms, the Trailblazing Adventurer expects the best and desires both physical and emotional challenges. They want to know the natural world, hungry for new challenges and compelled by a desire to immerse themselves in inspiring experiences. While it is experiences they collect, deep down they are seeking a sense of accomplishment and belonging to something bigger. To travel is not enough, they are in pursuit of experiences that transform their inner-selves. In Vail they can discover exactly that. The Trailblazing Adventurer is Worldly … yet … Grounded Brave … yet … Humble Refined … yet … Thrill Seeking Influential … yet … Curious and above all else... LEADERS. TARGET AUDIENCE Who the Vail guest is and what motivates them. *Working draft. Will be solidified over the coming season based on additional research. THANK YOU! UPCOMING MEETINGS: VLMDAC TOWN COUNCIL BUDGET PRESENTATION: SEPTEMBER 18, 2018, TIME TBD VLMDAC MONTHLY MEETING, SEPTEMBER 20, 2018, 8:30 – 10:00AM, GRAND VIEW ROOM APPENDIX DIGITAL IMPRESSIONS BY TACTIC YOY / 2018 2017 2016 Display Purchased n/a 13M 52M Display Delivered through July n/a 86% 85% Video Purchased 18.2M 17M 4.3M Video Delivered through July 104%* 61% 46% Streaming Audio Purchased 5M 3.2M 5.1M Streaming Audio Delivered through July n/a n/a 73% * At 104% Digital Video delivery for 2018 because we’ve already received 600K+ added value video impressions 2018 DIGITAL IMPRESSION DELIVERY TO DATE / Digital Video 74% Social 24% Influencer* 2% * Influencer impressions only inclusive of Newsfeed posts; The final campaign report will include impressions from all Newsfeed and Stories posts DIGITAL MEDIA SUMMARY / DIGITAL VIDEO Digital Video is exceeding the July 2017 VCR performance by +13% 19M impressions have been delivered, vs. 65% impression delivery by July 2017 DIGITAL MEDIA SUMMARY / SOCIAL MEDIA Social Video is exceeding the July 2017 VCR performance by +13% :08 Instagram Stories completed with a 0.25% CTR to destination Families and Teenagers– 5x the video benchmark INFLUENCERS / The 3.9% engagement rate is more than double the 1.7% benchmark for tourism campaigns Or, the investment we would need to make in paid social to have the same impact organically