AMA Houston Presentation Sept 9, 2009

“Back To Basics”

Presentation to AMA Houston

September 9, 2009

• State of Texas Horse Industry• Sam Houston Race Park Profile• Rebranding Initiatives• Hurricane Ike• Creative Samples

Overview

55% drop in the number Thoroughbred stallions in Texas since 2001

26% drop in the number of accredited Quarter Horses since 2005

29% drop in the number of Quarter Horse broodmares from 2005 to 2007

50% drop in the total number of mares bred in Texas since 2001

42% drop in the number of registered foals since 2001

33% drop in the number of Quarter Horse stallions in Texas since 2005

The State of the Texas Horse Industry

75% increase in the number mares bred in Louisiana since 2001

82% increase in the number of registered foals in New Mexico since 2001

The State of the Texas Horse Industry

Texans are already gaming.

*Source: TXP, Inc.

$2.3 Billion*

Texans are gaming in all of our neighboring states.

$387,000,000

$478,400,000

$1,016,100,000

Source: TXP, Inc.

$387,000,000 $478,400,000 $1,016,100,000

Distribution of Racinos/Casinos Across the Country

Commercial Casinos: 12Racinos: 11 Tribal Casinos: 29

Texas is losing horses, revenue, jobs, and tax money to all of our neighboring states…

74% of Texans polled favored slot machines at racetracks to save the horse racing, breeding, and training industries*

Slot machines at racetracks would help the horse industry generate an additional $6.8 billion in economic activity to the state

Simply by leveling the playing field the Texas horse industry, without question, will be the finest in the country

Source: Baselice and Associates, Inc.

The State of the Texas Horse Industry

BACK TO THE BASICS

Here’s to Racing. Here’s to Music.More than 1.3 million visitors are expected to visit the Park in 2009! Live musicand more race dates at the Park will fuel for the most significant growth.

~120+ Live Racing DaysQuarter Horses - May to AugustThoroughbreds - Nov. to AprilLive racing during the triple crown!

30+ Live Music EventsSummer Concert Series – 14+Contemporary Concerts – 4xClassic Rock or Other Series – 6x Major Music Festivals – 6x+

In addition to racing and live music, Sam Houston Race Park is home to other marqueeevents in Houston. Sam Houston Race Park hosts:

Cirque de Soleil (returning in 2010)- 40 performances - 100,000+ people

Fourth of July – Live Racing & Fireworks Show- Largest Aerial Fireworks Show in Houston- 30,000+ people annually-

Triple Crown Simulcast– Kentucky Derby, Preakness and Belmont- Simulcast of the most popular days of live racing in the world- 20,000+ people annually

OTC Cook-off & BBQ- During the Oil Technical Conference each year- 15,000 to 20,000 people annually

Texas First Responders Cook Off- More than 40 cooking teams- Live music

New Years Eve - Zoom & Boom- Live racing and New Year’s Eve Party- Fireworks, balloon drop and champagne toast

TQHA Yearling Sale-Largest sale of Quarter Horses in the State-Over $4m in sales in 2008-10,000 people annually

Everything’s Bigger at the Park

Who are our customers?Sam Houston Race Park customers are well educated, affluent and eager to spend money!

• 52% Male, 48% Female• Age varies greatly by type of event, but averages to be about 49 years old

– 67% of live racing customers are aged 21-54 with more 33% aged 21-35– 86% of concert goers are aged 21-54 with more than 50% aged 21-35– Simulcast customer skews older

• 60% college educated• High household income

– 60% have household incomes of $75,000 or more– Median household income is $91,300 almost 60% higher than Houston average

• 80% own a single-family home

Scarborough Report 2/2008, On site surveys (May-August 2008)

Sam Houston Race Park strives to be a major player in the horse racing and entertainment business in Houston

Our Goal

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• Branding Goals– Create awareness of the brand– Educate core target of the entertainment options at

SHRP– Aide sponsor/partnership initiatives by building equity

for the brand– Increase attendance to the park

SHRP Rebranding Initiative (Summer 2008)

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SHRP Rebranding Initiative Cont.• Brand promise

– We promise you’ll have an active & engaging experience.

• Support– Horse racing is a sport that you become invested in,

whether one time or on-going. And the more you know the more fun you it is.

– ALL of our guests trade in the currency of social experiences.

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SHRP Rebranding Initiative Cont.• New Logo/Tag –Peter A. Mayer Agency (New Orleans)

• “Here’s to Racing” campaign

TV: Let’s Make Things Interesting

The Park ran two commercial spots tagged with weeklyevent highlights.

TV: Let’s Make Things Interesting

The Park ran two commercial spots tagged with weeklyevent highlights.

TV: Let’s Make Things Interesting

The Park ran two commercial spots tagged with weekly event highlights.

TV: Let’s Make Things Interesting

The Park ran two commercial spots tagged with weekly event highlights.

TV: And The Winner Is…

• Here’s To Racing: The Restroom Race was named one of the Funniest Commercials of 2008 and aired on the TBS televised special in December 2008.

• Here’s To Racing: The Restaurant Race spot was awarded “TV Best of Show” at the 2009 ADDY Awards.

Outdoor: Let’s Make Things InterestingThe Park ran billboards throughout the Houston market

•12+ boards during summer 2008

• 2 racing messages

• 1 live music message

Hurricane Ike – September 2008

Houston and the Park slammed by storm – Live Racingcancelled for nine months!!!

Marketing: We’re Back!!Following Hurricane Ike, The Park Grand Re-Opening Campaign debuted across print, radio, TV & online outlets beginning March 2009

Radio: What did they just say?The Park shakes things up with a new radio campaign!

Radio: What did they just say?The Park shakes things up with a new radio campaign!

Print: New Look & Feel The Park placed ads throughout the season focusing on key racing event, special events & concerts.

Interactive and Web 2.0The Park moved 20% of its budget online in 2009. The goals of the campaign were:

• Dominate Facebook (Coupons, other applications)• Create/enhance presence on Twitter, MySpace, other social media platforms• Aggressively build and tap mobile database (email, text)• A better ad buy (display ads, adwords)• TRACK IT!• SHRP Community Manager

Social Media: We’re Growing!

How are we doing?

• Branding GoalsCreate awareness of the brandEducate core target of the entertainment options at

SHRPAide sponsor/partnership initiatives by building equity

for the brand Increase attendance to the park

Now What?

• The Park continues to explore new technology & BUILD our ONLINE COMMUNITY

• Convert AWARENESS to ATTENDANCE

• FRESHEN UP our campaigns now that we have moved past Ike and initial campaign launch

• Keep working the Texas Legislature for CHANGE