Art Menius Partnership and Marketing Coordinator, MerleFest

PO Box 120 Wilkesboro, NC 28697

336­838­6423; Fax: 240­250­7229 art.menius@wilkescc.edu

Sponsor Representative Tyson Foods, Inc. 2210 Oaklawn Dr Springdale, AR 72763

May 10, 2005

Dear Rep:

Thanks so very much for your partnership with MerleFest. An extraordinary line­up greeted record crowds to

MerleFest 2005, the 18 th annual festival in celebration of the music of the late Merle Watson and his father Doc

Watson on April 29 – May 2. Wilkes Community College will present MerleFest 2006 on its campus in

Wilkesboro, NC on April 27­30, 2006. MerleFest again drew an enormous, well behaved, and appreciative

audience with a preliminary estimated total participation including volunteers and school children of 82,666. This

surpasses last year’s 81,592. Paid attendance increased by 0.8% over 2004 to 39,595 including a gain of more

than 2500 in Sunday tickets. A preliminary estimate calculates that the regional economic impact of MerleFest

2005 will reach $14,554,991. MerleFest 2004 had an estimated impact of $13,749,915, three years after 2002’s

record $15,045,673. Proceeds from MerleFest have permitted Wilkes Community College to make numerous

capital improvements, including the Eddy Merle Watson Memorial Garden for the Senses, the Doc & Merle

Watson Theatre, fiber­optic wiring for the campus, and the endowment of scholarships for its students. MerleFest

has pledged $920,000 to the Next Step Campaign, the first phase of which includes the Science & Technology

Building for which ground was broken on March 22, 2005.

• Please make note of my new address, email, and phone above which took effect on November 1, 2004.

The view from above Watson Stage Audience enjoys Del McCoury Photos: Becky Johnson

• As a reminder, you have a right of first refusal on your particular MerleFest sponsorship through

July 1, 2005. This means I shall not make the sponsorship you held for MerleFest 2005 available to

others until after that date. Per our contract, please let me know by that date, using email, fax, or snail

mail, whether you want to maintain your involvement for MerleFest 2006. If you have chosen not to

renew, it is critical that I know as soon as possible. I should also be most pleased to discuss with you

other sponsorship opportunities or conversion to a multi­year arrangement.

As we proceed with renewal, I hope we can review the entire sponsorship package. Our arrangement is subject to

negotiation so that both the sponsors and MerleFest are happy with the deal. If, for example, you wish to obtain

additional sponsor benefits, we can work together to upgrade your partnership to obtain these.

I have established a goal of getting our contracts out to you far earlier than in the past. Whereas the past few years

I have issued the last contracts during the initial fortnight of December, my goal for the MerleFest 2006 cycle is to

have all sponsor contracts issued by October 31, 2005.

More than a week before its April 28 start, MerleFest 2005 had received 74,459,275 impressions in more than

1350 published articles in publications from more than 35 states and three foreign countries. The previous

MerleFest record was 34,753,953. Public television system UNC­TV rewarded pledges with 360 MerleFest 2005

tickets. Ninety­seven radio stations in 16 states and Canada participated in MerleFest 2005 promotions, giving

away $86,290 worth of tickets to their listeners. Including media sponsorships with that total, MerleFest 2005

bartered for $184,550 worth of radio airtime, magazine, website, newspaper, and cable TV advertising. XM

Satellite Radio and Wilkes Community College station WSIF again broadcast live from MerleFest.

MerleFest’s website, www.merlefest.org, received a complete overhaul for MerleFest 2005. Between November

9, 2004 and April 25, 2005, the MerleFest site received 10,486,436 hits from 303,200 visitors, an average of 1804

visitors per day. In early April we posted the .pdf files of the MerleFest Program and Pocket Schedule to the web.

During less than three weeks, visitors downloaded 22,877 copies of the Program and 15,047 copies of the Pocket

Schedule. While more than 95% of the visitors came from American addresses, the MerleFest site drew visitors

from 96 countries, including almost 4100 from the United Kingdom, 746 from Australia, and 644 from China.

• For the first time, I have included a sponsor survey instrument in this mailing. Please fill this out and fax

back to me at 240­250­7229 by May 30.

• Your further comments are encouraged. Please send them to me by email, fax, or snail mail.

The growth we have experienced at MerleFest could not have been achieved without our sponsors. We hope that

you share our pride in this exceptional annual event. If I know that you did not attend MerleFest 2005 personally,

I have enclosed a copy of the program. If you attended, but did not pick up a program, please let me know, and I

shall send you one. Also, I shall be emailing or faxing a copy of the Economic Impact Report for MerleFest

2005, when it becomes available. Information from our audience surveys will become available later this summer,

as will a full print media report. If I have your email address, I shall email you .pdf files of these reports as they

are released.

The 19th annual MerleFest is set for April 27­30, 2006. I trust that sponsorship of MerleFest proved successful for

you and that you will again part of MerleFest next year.

Wishing you all the best with much appreciation,

Art Menius Partnership & Marketing Coordinator

MerleFest 2005 Contest Results

Steve Fishell, Caroline Herring, Hayes Carll, and Darrell Scott judged the finals of the Chris Austin Songwriting

Contest, which attracted a record 1154 entries, 250 more than 2004. First round judging from submitted

recordings produced twelve finalists who competed with the following results. General Category: 1 st : “Living in

the Good Ol’ Days” by Zane Williams, Nashville, TN; 2 nd : “Lay On The Tracks” by Stephen Simmons,

Nashville, TN; 3 rd : “Please Love My Baby” by Connie Leigh, Newport, AR; Bluegrass Category: 1 st : “T.V.A.”

by Sam Quinn, Johnson City, TN; 2 nd : “Behind Those Big Closed Doors” by Connie Leigh, Newport, AR; 3 rd :

“Old #9” by Randy Barrett, Falls Church, VA; Country Category: 1 st : “Hurry Home” by Zane Williams,

Nashville, TN; 2 nd : “Traded My Diamond” by Korby Lenker, Bellingham, WA; 3 rd : “O.K.C.” by Paul Kelly with

Salvatore Guido, Jr., Santa Fe, NM; Gospel Category: 1 st : “That First Stone” by Mike Finders, Iowa City, IA;

2 nd : “Lessons of the Book” by Lorraine Jordan, Garner, NC; 3 rd : “Start with Amazing Grace” by Zane Williams,

Nashville, TN.

First place in the Doc Watson Guitar Championship went to Chris Hale of Blacksburg, VA, with Brandon

Davis from Independence, VA yet again taking second and 2004 Mandolin champ Scott Pearson of Warren, PA

finishing third. Bruce Stockwell, Putney, VT, captured theMerle Watson Bluegrass Banjo Championship.

Donnie Little of Claremont, NC took second, as he did in 2004, with Mount Holly, NC’s Alana Nicole Flowers

third. 2004 runner­up Spencer Strickland of Lambsburg, VA won theMerleFest Mandolin Contest, followed by

Dominick Leslie, Evergreen, CO, and Rebecca Lovell of Calhoun, GA.

MerleFest Corporate Partner Survey

Please fax to Art Menius at 240­250­7229 by May 30, 2005

We want to know how better to manage our partnerships. Please help us in this endeavor by completing and

returning this sort survey.

1. What are the primary objectives for your sponsorship? Please indicate your five most important objectives with

‘5’ being the most important and ‘1’ indicating the fifth most important.

____ Associate your brand with MerleFest _____ Increase brand awareness & loyalty

____ Engage in on site sales _____ Entertain clients

____ Reward employees or clients _____ Meet artists and industry leaders

____ One on one interaction with customers _____ Showcase products

____ Credential or parking considerations _____ Network with other sponsors

____ Enhance dealer relationships _____ Capture database information

____ Enhance corporate image _____ Other (please specify)

2. Which benefits of our sponsorship packages are most beneficial to you? Please indicate your five most

important benefits with ‘5’ being the most important and ‘1’ indicating the fifth most important.

____ All access credentials & hospitality _____ Access to talent

____ On site display/sales/sampling _____ On site signage

____ Title to a festival component _____ Parking considerations

____ Ad in Festival program _____ Category exclusivity, if applicable

____ MC announcements _____ Inclusion in press releases, if applicable

____ Logo & link on MerleFest web site _____ Use of marks and logo

____ Access to research _____ Right to create co­branded product

3. Please list below any other potential benefits which would be of value to you.

4. To what degree does MerleFest deliver the benefits specified in the sponsor agreement?

____ completely _____ to some degree _____ not at all

If you did not select “completely,” please explain in what way we did not provide the agreed upon deliverables?

5. On top of your sponsorship fee, how much more do you spend in activating and promoting your partnership

with MerleFest. For example, if your fee is $6000 and you spent $2000 on activation and promotion, then the

ratio is $3 to $1. ___________________________

6. How many other properties do you sponsor in addition to MerleFest? ____________

7. Compared with your other event marketing partnerships, is your return on investment from MerleFest:

___ Above average _____ Average _______ Below Average

8. How does MerleFest staff do with service, fulfillment, and follow­up on your partnership? Please rate the

following attributes on a scale of “1” lowest to “10” highest:

Attribute Rating Comments

Accessibility: can you reach the staff

when you need them and do you get a

quick response.

Contract: Does the Sponsor Agreement

address all issues and concerns about the

relationship and specify deliverables.

Communication: Is staff proactive in

contacting you, providing year­round

communication and deadline reminders.

Creative Problem Solving: Does staff

move to address problems which occur

rather than just providing excuses.

Fulfillment: Is staff mindful of delivering

all MerleFest’s contractual obligations

Knowledgeable: Does staff know

MerleFest and your objectives.

Follow­up: Does MerleFest provide the

follow­up information you need.

SURVEY SUMMARY ­ MERLEFEST 2005

Attendees Surveyed: 601

Satisfaction with MerleFest

Staff responsive to needs: Yes 99.4%; No 0.6%

Percentage giving an overall satisfaction rating of 9 or 10: 82.2%

Mean overall satisfaction rating on 1 to 10 (best) scale: 9.24

Visited Burger King Little Pickers Area: 36.7%

Do Sponsors Benefit MerleFest? Percentage

Yes 67.5

Maybe 29.2

No 3.3

Number of MerleFest Sponsors

Identified from list 2004 Percentage

One 85

Two 48

Three 23

Demographics

Age Cohort Percentage

Under 18 10.9

18 – 24 4.3

25 – 35 13.6

36 – 50 29.8

51 – 65 37.3

Over 65 4.1

Marital Status: Single: 39.4%; Married 60.6% Gender: Male 48.7%; Female: 51.3% Those who have children under 18 living at home: 28%

Those who own their homes: 75.8%

Highest Level of Education Attained Percentage

Graduate Degree 35.2

Graduate Study 6.8

College Graduate 29.0

College (some) 17.9

High School Graduate 9.3

High School (some) 0.9

Grade School 0.9

Household Income Percentage

Up to $25,000 11.0

$25,001 ­ $50,000 25.4

$50,001 ­ $75,000 23.5

$75,001 ­ $100,000 19.3

$100,001 ­ $150,000 14.0

Over $150,000 6.8

Internet Access Percentage

None 11.5

Dial­Up 35.1

Cable 25.6

DSL 26.0

T1 1.8

Airline Flights per year Percentage

None 23.5

1 to 5 61.2

5 to 10 7.8

10 to 15 2.8

15 to 20 2.1

More than 20 2.5

CD purchases per year Percentage

None 3.6

1 to 10 42.3

11 to 30 31.3

31 to 50 14.2

51 to 100 4.6

More than 100 3.9

DVD purchases per year Percentage

None 0.8

1 to 10 68.1

11 to 30 18.5

31 to 50 8.5

51 to 100 3.1

More than 100 1.1

Tourism

Percentage of Tourists: 74% traveled 50 or more miles

Average Tourist Expenditures: Per Person

Dining $83.55

Gasoline $59.12

Lodging $129.25

Miscellaneous Purchases $82.34

Number of days attending MerleFest Percentage

One 14.1

Two 13.1

Three 14.5

Four 58.3

Average number of days attending: 3.17

Average number of days tourist stay in the area: 3.74 Nights Staying in area Percentage

None 37.8

One 4.1

Two 4.8

Three 23.3

Four 18.1

Five 9.6

Six or More 2.2

Tourists Visiting Other Areas/Attractions (2004):

Area Percent Visiting Area Percent Visiting

Asheville 10 Lenoir 6

Biltmore House 2 Mt. Mitchell 2

Blowing Rock 11 Statesville 2

Boone 21 Tweetsie 2

Grandfather Mtn. 7 Winston­Salem 6

Jefferson 2 Other 19

How Attendees Heard About the Festival Percentage

Word of Mouth 76.5

Radio 7.2

Web 4.9

Magazine 3.6

Newspaper 3.3

MF Brochure 3.3

TV 0.1

123 Log Analyzer report file:///C:/MerleFest/SPONSORS/123LogReport_files/p0.htm

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123 Log Analyzer Report

Report generated on Mon Apr 25 18:33:49 2005 Domain Name: merlefest.org

Time Period:09/Nov/2004:00:00:27 ­ 25/Apr/2005:19:52:49 total 168 day(s) Download Excel CSV report Open printable report

General Statistics

123 Log Analyzer report file:///C:/MerleFest/SPONSORS/123LogReport_files/p0.htm

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Statistics

Hits Total Hits 10486436

Total Cached Hits 10486436

Average Hits Per Day 62419

Average Hits Per Hour 2603

Average Hits Per Visitor 34.6

Average Data Transferred per Hit 0.0 KB

Visitors Total Visitors 303200

Average Visitors Per Day 1804

Average Time Spent 208 Seconds

Average PageViews per visitor 1.83

Average Downloads per visitor 0.34

Average Data Transferred per Visitor 0.0 KB

Uniq IPs Total Uniq IPs 101701

Visitors Who Visit Once 77854

Visitors Who Visit more than Once 23847

PageViews and Downloads Total PageViews 555217

Average PageViews Per Day 3304

Total File Downloads 102016

Average File Downloads Per Day 607

Total Images 9660692

Average Images Per Day 57504

Total failed requests 163861

Total Incomplete File downloads requests 58932

Number of visitors bookmarked your web site 61700

Bandwidth Total Data Transferred 0.00 KB

Average Data Transferred per Day 0.00 KB

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