Sun Valley Marketing committee recommendations

SUN VALLEY RESORT AREA 2010 Recommendations

Prepaed by the SUN VALLEY / KETCHUM INDEPENDENT MARKETING COMMITTEE May 18, 2010 SUN VALLEY INDEPENDENT MARKETING COMMITTEE

This presentaHon is available online

www.sunvalleytoday.com

May 18, 2010 SUN VALLEY INDEPENDENT MARKETING COMMITTEE

CommiQee and Structure

•  AddiHonal consulHng resources added as needed

Jim Knight Chair Jane Fairley Bill Wright

ConsulHng Resource: Bill White

ConsulHng Resource:

Stan Castleton

ConsulHng Resource: Tim Silva

ConsulHng Resource: Sheri

Howell & Cam

Hopkins

Sun Valley Co. Resort management experHse MarkeHng consulHng knowledge

Brand/retail/adverHsing/event experience ConnecHon to young markets

MarkeHng experience Deep business skills

Resort development experHse Deep business skills Deep understanding of Hotel Industry Branding expert

What you may think


Skier days were up in 2009/10 but LOT revenue was still down

-‐40

-‐35

-‐30

-‐25

-‐20

-‐15

-‐10

-‐5

0 2001 2002 2003 2004 2005 2006 2007 2008 2009

cumula:

ve percent cha

nge in LOT revenu

e (%

)

Ketchum

Sun Valley

Fact 1: LOT 2000 / 2010 is DOWN Overall indicator of economic health


-‐ Visitors make up 62% of our local spending -‐ Shopping is the #1 vacaHon acHvity according to travel industry research

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

total LOT category re

venu

e (200

9$)

year

Ketchum Retail Sales

Ketchum Bldg Material Sales

SV Retail Sales

SV Lodging Sales

Fact 2: Retail is the largest segment of the economy


28%

72%

Aware

Unaware

We are less known by those under 35 @ 15%

In our key Pacific NW market although a higher percentage are aware of Sun Valley none of the respondents could explain what differentiates Sun Valley

Source: SVKCVB

Fact 3: NaHonally Sun Valley does not have high awareness


•  Big Sky is similar to Sun Valley in # of skier days 400k/yr –  Remote

–  Access issues

–  Vacant 66% in Big Sky vs. 55% in SV/K

–  Similar number of condos but newer in Big Sky

–  Similar populaHon size

•  Sun Valley does not have ski in/out lodgings-‐criHcal variable in aQracHng high-‐end visitors

•  Sun Valley lags behind in 4-‐5 star accommodaHons

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Sun Valley Big Sky

Hotel Rooms / (000) skier days

Fact 4: We do not have enough (or the right) Hotel Product


0.40 0.60 0.80 1.00 1.20 1.40 1.60

Jackson

Aspen

Big Sky

Sun Valley

4-‐5 Star Hotel rooms/000 skier days

Fact #5: TransportaHon is lagging our needs


•  Commercial air transport into SUN –  Flights per day lag behind comparable resorts

–  Flights are focused on SLC and limit travel alternaHves/convenience

–  Visitors flying through SUN currently add ~$40M to the local economy

–  Flights do not provide enough seats to enable meaningful group travel

•  We lack regular quality scheduled bus service to/from Boise

–  Current service is limiHng

–  Our conservaHve (low) esHmate is over 100 people/day in transit BOI/SUN

–  Quality regular scheduled transport benefits visitors and full Hme residents

–  Other resorts of similar size have regular quality dependable service

Full Time Residents; 38%

Visitors without homes in SV/K; 24%

Visitors with property (2nd homeowners);

38%

Full Time Residents

Vistors without homes in SV/K

Visitors with property (2nd homeowners)

Fact 6: Visitors are the majority of local economy


Fact 7: Second Home Owners can make a Difference


2nd Home owners spend

today 5% increase

$10M into local economy • Equivalent to bringing in 4000 new visitors

Diagnosis Summary

SUN VALLEY INDEPENDENT MARKETING COMMITTEE

Economy

• One economy • Worse than the US economy and most other resorts

• ConstrucHon of second homes and SV faciliHes deluded us

• Retail acHvity extremely important to our economy

• Too much economic concentraHon

Brand

• AuthenHc community first with a resort (not a resort town)

• A unique niche/bouHque/special product unlike any other

• We have a very small share of the ski market (<1%) not right for everyone

• Brand is confusing, lacks clarity and consistency

Product

• Our hotel lodging product has not kept pace

• Condos for rent are in serious over supply, quality is deterioraHng

Transport

• Tough to get here • We have failed to maintain adequate local air service

• Roughly 30% of visitors come through Boise airport-‐unacceptable transport

• Other resorts have taken acHon to address this issue and we have not

MarkeHng

• Not meeHng expectaHons

• We are trapped in a markeHng paradox (scale and effecHveness)

• Our markeHng effort is trying to do too many things with too liQle money

• Visitors are 2/3 of our economy

• TacHcal markeHng to visitors who own homes is overlooked

May 18, 2010

Recommenda.on #1: ONE BRAND

Product Offering •  Emphasize and support in all ways possible the

authenHc outdoor experience •  Clear product definiHon •  Target new visitors •  100% Customer service throughout

community-‐every place the customer touches •  Single website

Strategic and Tac2cal Marke2ng •  Re-‐engineer organizaHonal responsibiliHes •  Focus responsibility for specific goals and hold

management accountable. •  Full Hme CMO

2nd homeowner visits/2me •  Learn more about them •  Leverage their ability and willingness to

promote (Promoter score of 87) •  Increase number of visits and Hme here

Chamber/Visitors bureau •  Change name to SV Visitors Bureau •  Focus on enhancing Visitor Experience , Visitor

Spend, Visitors Center, events and be the voice of business to the community


How do we do it? The Decision is Focus, Resources and Time

Op:on #1-‐-‐Accelerate

•  Divide responsibiliHes and budget –  Spend per visitor: Chamber –  Visitor Center: Chamber –  Events-Chamber

•  Attract new visitors: Responsibility - New Marketing with BOD oversight

•  Appoint BOD by 6/1 (1, SV, 1 K, 1, SVC plus 2 independent

•  Funding requirements by 6/30 with prelim approval in July

•  CMO by 10/1 with option for interim

•  Funding:$600k for Chamber and $600k to external marketing


Alterna:ve #A

Steady as she goes

•  SVKCVB

•  $1.2M budget

•  Normal budgeHng cycle

•  Improve effecHveness

Op:on #2 Carpe Annum

•  Option #1 plus •  Increase marketing

investment by $400k for each of next 3 years

•  New marketing budget of $1.1M

•  Take action to hire interim CMO immediately

•  Approval for increased budget by 6/1

•  Complete organization and funding commitment by 6/1

•  Capitalize in all ways possible on 75th Anniversary

Alterna:ve B Re-‐engineered for focus

RecommendaHon #2: A Single Common “Face” to Visitors

Chamber

Possible alternaHve

• Let Chamber do all markeHng

• Issues •  Present scale insufficient • EffecHveness does not meet expectaHons • Too large a group for effecHve oversight • Metrics unclear

Re-‐engineer

Recommended alternaHve

• Establish new customer focused independent common markeHng

• Issues

• EffecHve in other areas (Telluride and Aspen, etc.)

• Would need to be 501© organizaHon • Trust and CooperaHon essenHal • Managed by INDEPENDENT professional BOD with a CMO

• Funding from all with clear charter and metrics

Sun Valley Company

Possible alternaHve

• Let SVC do all markeHng

• Issues • Focus on resort • Can not accept public money


Focused MarkeHng Statement of Purpose

May 18, 2010

The goal of Sun Valley MarkeHng is to aPract visitors to Sun Valley during all seasons, to improve their experience once they are here, and to inspire them to return frequently.

The markeHng effort will be unified, strategically targeted, and cost effecHve.

The markeHng effort will be founded on the Sun Valley Experience-‐-‐the heritage, the ski mountain, the authenHc town, the wide range of special events, the recreaHonal acHviHes, the outdoor/wilderness opportuniHes, the spectacular scenery.

While fulfilling this mission, Sun Valley MarkeHng will reflect Sun Valley's tradiHons and preserve the character of the community.


Benefits of Focused Approach

•  ExisHng markeHng is caught in a paradox and results do not meet expectaHons

•  Focus is criHcal for success –  Retail needs to be improved –  Visitor experience is most powerful driver of economic results –  More Visitors

•  Demographics •  Awareness •  DifferenHaHon

–  Second homeowners need to be involved

•  New ideas and approaches (examples include) –  Awareness will be increased from current 28% –  Sun Valley differenHaHon will be apparent –  Emphasis on AuthenHc Experience

•  What makes us what we are •  Unique

•  65%+ of money commiQed spent specific and measurable programs

•  Immediate opportunity for 75th Anniversary compels us to immediate acHon


OrganizaHon

May 18, 2010

Sun Valley Council

Sun Valley Company

Ketchum Council

SV Chamber Board of Directors

MarkeHng Board of Directors

• Visitor Center •  Events • Retail Spend •  100% Customer saHsfacHon

•  External MarkeHng •  # of Visitors • Brand Awareness

Focus

CooperaHon


Focus on Maximizing the Customer experience when they are here

Focus on Bringing the Visitor to SV

RecommendaHon #3: Focus, Clarity, Measurement and Accountability

May 18, 2010

Goals

Roles/Responsibili2es

Resources

Metrics

Results

It's simply a maQer of doing what you do best and not worrying about what the other fellow is going to do.

-‐John Adams


Examples of Goals and Metrics

May 18, 2010

Goals

Increase Visitors by 3000

Clear and measurable Set at Outset

Roles/Responsibili2es

Resources

Metrics

# of Visitors

Visitor Spend

Reported monthly and quarterly

Clear and Measurable

Measure the Results

Expected, reviewed and Communicated

Accountable No excuses management


MarkeHng to make the most of the assets we have…we have many examples of opportuniHes for Near Term Wins

Leadership •  A clear

Strategy • Community

jointly with SVC • Brand Filter for

consistency • Deliberate and

yet Full speed • Timelines • Metrics • Accountability

75th Ann

iversary • Public

Relations • Promotions • Event Planning • Advertising

Heritage revival

• 75 specials • Rooms • Passes • ¾ Century

specials • Movie (s) • 75 days in 75

ways • Ski Magazine • Co-branding

Even

ts • Alpine

events

• Nordic events

• Mountain biking

• Whitewater

• Kayaking

• Music

Prom

oHon

s • Trade for media-now

• Ski Magazine

• Leverage 3rd Parties • Audi • Burton • Etc.

PR •  Heritage and

Image • Personalize

SV • Have people

tell their stories

• Sport leadership over generations

• Authentic • Celebrity

endorsements • “Today” or

similar—comp then


Recommenda.on #4: Economy

•  Visitors –  Increase number of visitors –  Increase visitor spend –  Adopt 100% Customer SaHsfacHon-‐net promoter score to measure and

improve visitor experience

•  Full Hme residents –  Develop a more diversified and sustainable Economy

•  Specialized •  Diversified •  AuthenHc

–  Improve accessibility and infrastructure –  AQract new residents single and family (proven best way is friendship and

referral) –  Make Sun Valley more aQracHve and fun for all ages –  Increase skilled employment opportuniHes


$-‐

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Full Time Residents

Number of Vistors

Spend per visitor

Second Homeowners

Start work on Economy TONIGHT

•  Retail is the biggest segment of local economy

•  Start with the customer (full Hme, 2nd homeowner and visitors) and make their experience excepHonal

•  Near term goal is to increase spend in local economy by 5%

•  Encourage Second homeowners to spend more Hme and money in local community (5% increase)

•  AQract 3000 new visitors

•  Increase visitor spend by 5%

Combined increase in visitors and spend is

worth ~$13M


Recommenda.on #5: Improve Lodging Product

Strengthen and diversify Hotel lodging product

Sort term-‐-‐Rejuvenate exisHng hotel product

Add hotel lodging to meet market needs

(from 300-‐500 rooms)

Add 4/5 Star and ski in/out

(majority of new rooms) Condo RaHng program

Increase local bus service for condos to enhance visitor experience


Recommenda.on #6: Transport

Accessibility

Aggressively pursue

negoHaHons with mulHple

airlines for more flights/seat/desHnaHons

More of what works (add min 100 seats/day)

Try New Business Models

Nantucket has 20+ flights/day in season

Develop and implement a

plan for quality regular daily scheduled

ground transport to/from Boise

30% of visitors come through

Boise

Local residents needs

EsHmated need is 5-‐6 “Sprinter”

RT/day


Recommenda.on #7: Visitors

100% Customer Sa.sfac.on

All businesses measure Net Promoter Score

Increase 2nd homeowner spend by 5% and develop them as evangelists

Increase

new visitors by 3000

spend per visitor by $20/day


Strategic Roadmap


We are all part of the soluHon if we cooperate


A final thought—

Lead, follow or get out of the way!

-‐Thomas Paine

Sun Valley Marketing committee recommendations

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