Team: The Brandstormers Jeremy Hollenbeck & George Imura April 7, 2014
Team: The BrandstormersJeremy Hollenbeck & George Imura
April 7, 2014
Brand Implement Grow
North Carolina could attract more tourists to the state by creating an appealing brand that focuses on adventure
2
Implement the brand by marketing to neighboring states
Grow NC tourism with a smart ad campaign
Brand NC to encompass its natural beauty and core values
A fun, memorable slogan will appeal to NC tourists and out-of-state
tourists alike
Increase tourism #’s and $’s through the brand launch
Emphasize NC’s natural wonders and the adventures that await
Rebranding NC could lead to an 18% increase in tourism over the next 5 years, and could garner incremental revenue of $8.84B by 2018
ADVENTURE WELCOMES YOUThe New Slogan:
Brand Implement Grow
People strongly associate NC with hospitality and community, but not with inclusiveness and equality
3
0
1
2
3
4
5
Core Values Rated by Agreement
“Adventure Welcomes You”
reflects the friendliness and
hospitality that NC offers
Source: Nick Didow, Team Analysis
1 = Strongly Disagree 5 = Strongly Agree
Brand Implement Grow
NC is broadly associated with its natural beauty, but also stands as a blank canvas to many
4
58% 42%
NOTHING
Due to the lack of specific identifiers, “NC” should be explicitly included in
the slogan
Source: Nick Didow, Personal Analysis
Brand Implement Grow
NC stands to increase tourism revenues by emulating previous successes in other states
5
StrongPoor
Higher
Tourism Ranking
SAS Brand Rating
Lower
Source: Bloom Brand Ratings
Brand Implement Grow
Crowdsourcing ideas could allow NC to have greater success with its rebranding
6
-Contracted private agency-Pretested-Cumulative ROI of $4.10 per dollar spent since 2006
Source: Longwoods International, MEDC
-Abandoned successful campaign in 2012-Implemented new brand without pretesting
Creating an authentic and appealing slogan could lead to greater ROI for NC’s brand campaign
Brand Implement Grow
NC’s presence is not well-defined, but it ranks highly on different metrics
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1st most desirable state
of residence
3rd most friendly state
8th most beautiful scenery
6th favorite state of
Americans
Use advertising campaigns to define NC as a destination for adventure and differentiate it from surrounding states
Brand Implement Grow
Most overnight visitors in NC are residents; our brand could expand overnight visits for surrounding states
8
States that account for overnight visitors in 2012
36%
SC8%VA 7%
GA 7% FL 7%
Average party size was 2 people
Festivals
Seasonal Ads
Social Media
Trip Packages
Source: US Travel Stats, NC Dept of Commerce
Brand Implement Grow
NC only captures a small percentage of family vacationers, but could increase in popularity with targeted ads
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Source: Simply Map, NC Dept of Commerce
Increase in 2012 tourism expenditures
of overnight visitors come by automobile84%
5.4%
Capitalize on the heavy use of automobiles and
target families in neighboring states
Brand Implement Grow
After brand launch, NC could increase revenues and increase tourism by 17.63% over 5 years
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CAGR: 3.3%5-year change: 17.63%
30
32
34
36
38
40
2013 2014 2015 2016 2017 2018
Projected room demand after brand implementation (proxy for
visitor #s) High
Moderate
Low
Source: NC Dept of Commerce, Personal Analysis
$1,500.00
$1,600.00
$1,700.00
$1,800.00
$1,900.00
$2,000.00
2014 2015 2016 2017 2018
Projected revenue from tax receipts ($M)
Brand Implement Grow
In the next 5 years, NC could get a total profit of $8.5B through continued partnership with ad agency
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Source: NC Dept of Commerce, Nick Didow
$-
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
2014 2015 2016 2017 2018
Projected Profit ($M)using estimated ad agency budget
Assume that the state’s investment in the ad agency
will be frontloaded as the brand is
launched
Brand Implement Grow
North Carolina could attract more tourists to the state by creating an appealing brand that focuses on adventure
12
Implement the brand by marketing to neighboring states
Grow NC tourism with a smart ad campaign
Brand NC to encompass its natural beauty and core values
A fun, memorable slogan will appeal to NC tourists and out-of-state
tourists alike
Increase tourism #’s and $’s through the brand launch
Emphasize NC’s natural wonders and the adventures that await
Rebranding NC could lead to an 18% increase in tourism over the next 5 years, and could garner incremental revenue of $8.84B by 2018
ADVENTURE WELCOMES YOUThe New Slogan:
Brand Implement Grow
APPENDIX
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Main Visitor Attractions
Comparable Branding Efforts
Day Trippers vs Overnighters Data
Tourism Growth Assumptions
Revenue Analysis
Increase in Tourism #s
Future Brand Awareness
Business Appeal
Visitor Spending Data
Brand Implement Grow
Main visitor activities in NC
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Brand Implement Grow
Other comparable branding efforts
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Colorado
Kentucky
Michigan
“It’s Our Nature.”
“Unbridled Spirit”
Appendix
Brand Implement Grow
Leisure is the most common reason for visiting NC, and overnighters spend significantly more
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$446.58
$63.18
$30.24
$132
$18
$36
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00 $500.00
Leisure
Business
Personal/Other
Average Total Spending by Daytrippers vs Overnighters
NC Daytripper
NC Overnighter
Brand Implement Grow 17
Visitor spending and taxes due to advertising
Brand Implement Grow
Assumptions regarding tourist growth estimations
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Appendix
- The official NC brand will be introduced in mid-2014
- The festival will take place after the US Open in Pinehurst
- The conservative growth estimate for room demand (tourism #s) assumes a 2.75% CAGR
- The moderate estimate assumes 3.30% CAGR- The optimistic estimate assumes 4.13% CAGR
- The conservative case leads to a 15% increase in tourism over 5 years
- The moderate case leads to a 17.6% increase in tourism over 5 years
- The optimistic case leads to a 22% increase in tourism over 5 years
Brand Implement Grow
Revenue (tax receipts) analysis for all three cases
19
Appendix
Conservative Estimate (current CAGR) 2014 2015 2016 2017 2018
Assumed Growth Rate 2.66% 2.66% 2.66% 2.66% 2.66%
Yearly Revenue ($M) $ 1,621.79 $ 1,664.93 $ 1,709.22 $ 1,754.68 $ 1,801.36
Total Revenue ($M) $ 8,551.97
Moderate Estimate (+70% Decaying CAGR) 2014 2015 2016 2017 2018
Assumed Growth Rate 4.5% 3.5% 3.5% 3.5% 3%
Yearly Revenue ($M) $ 1,650.86 $ 1,708.64 $ 1,768.44 $ 1,830.34 $ 1,885.25
Total Revenue ($M) $ 8,843.51
Optimistic Estimate (+160% Decaying CAGR) 2014 2015 2016 2017 2018
Assumed Growth Rate 7% 5% 3.5% 3.5% 3.5%
Yearly Revenue ($M) $ 1,690.35 $ 1,774.87 $ 1,836.99 $ 1,901.28 $ 1,967.83
Total Revenue ($M) $ 9,171.32
The worst case assumes that NC tourism revenues will grow at 2008-2012 CAGR
Brand Implement Grow
Increase in tourism numbers for all three cases
20
Appendix
20
22
24
26
28
30
32
2014 2015 2016 2017 2018
High
Moderate
Conservative
Brand Implement Grow
Future Plans Around Brand Awareness
21
Appendix
A strong, appealing brand that representsNC while still attracting out-of-staters
Branded merchandise will keep NC
fresh in people’s minds
More regular festivals
celebrating the brand
External advertising to increase out-
of-state interest
ADVENTURE WELCOMES YOU
Brand Implement Grow
NC room demand has accelerated quicker than overall travel spending within US
22
0
100
200
300
400
500
600
700
800
23
24
25
26
27
28
29
30
31
32
2008 2009 2010 2011 2012 2013
Room Demand (M)
Domestic Travel Spending in US($B)
Appendix
Source: Frost & Sullivan
Brand Implement Grow 23
“Adventure Welcomes You” also exhibits business appeal
NC is ranked 4th best state for business
NC is the 2nd lowest local and state tax burdened state on businesses
Source: NC Dept. of Commerce