2006 Marketing Plan

1

Agenda

• • Situation (pgs. 4-24) – Environment: economy, trends, opportunities/challenges – Targets: demographics, visitor data, markets – Seasonality: summer, winter – Competitive landscape • Objectives (26-28) • Strategy (29-32) • Tactics (33-53) – Key Messages/Relationships/Evaluation • Budget (54-62) • Recommendation (63-65)

Appendix (66-103)

– –

Department “deep dives” RRC visitor snapshot

Note: Appendix focuses on department level detail, and any notes to the plan 2

Procedure

• The BRC’s marketing plan procedure included several meetings inviting key and interested members of the marketing community to participate, and offer input or feedback.

– Marketing Vision Plan group invited, with a few attendees participating – Working plan shared at Retail and Sales/Marketing forums – BRC Board of Directors involved on a continued basis, and approved the plan 3

Situation:

What main factors impact the marketing plan?

– Environment – Targets – Seasonality – Competitive landscape 4

Situation: Environment

• Economy • Indicators of upswing (since 2001) • Relatively strong exchange rate, trending upward* – USD to EUR (Euro) = $1.23 (8/10/05) – USD to GBP (British Pound) = $1.79 (8/10/05) • Lower Inflation, job growth, rising consumer confidence – Travel spending habits “healthy” currently – Regard with caution due to potential inflationary pressures • High oil/gasoline prices – impacts air & car travel • Domestic/International leisure travel on rise • Terrorism remains a threat (Iraq, London Bombings) *Since July low (Source: x-rates.com) 5

Situation: Environment

• Trends – Travel & Tourism • Colorado’s third largest industry is tourism • Colorado ranks 38th of 50 states in tourism funding • 2006 election year (gubernatorial) • Internet remains strong – 79% search online – 39% book online • 50% search/ book by phone • Time poverty – shorter booking window, more frequent trips, shorter visits • Consumers are still searching for the “deal” (comparison shopping) • Packaging remains popular • Heritage and cultural travel is gaining popularity • Fierce competition within tourism sectors (i.e. beaches, cruises, casinos, national parks, etc…) Source: RRC Survey Data, 2004-05 2005 Mt Travel Symposium (and Overture) Yahoo Search Marketing 6

Situation: Environment

• Trends - Travel & Tourism – Guests want experiences (i.e. renting a luxury car) – Consumers looking for value and more personalization – Guests want to “reconnect” with families & friends – More to a ski vacation than skiing – guests seeking variety of activities – Events and festivals big draw for travelers Source:

Travelocity

Post 9/11 Survey

(

published on About.com

,

8/23/05

)

7

Situation: Environment

• Trends - Travel & Tourism – Group travel has increased; continues to rise – Group meeting budgets for training increasing – Destination weddings 15% of total market (up 3x in 5yrs.) – Fly Market vs. Drive Market: • Mixed feelings about flying remain* • Summer drive market was steady given record high gas prices (although 69% of consumers perceived prices “a hardship” in fall poll) • Trend: car rentals to offset gas-guzzling SUV travel • Closer-to-home travel expected over next six months • Keep watch on hurricane scenario(s)/impacts Sources:

Travelocity

Post 9/11 Survey

(

published on About.com

,

8/23/05

) Market Watch

, Gas Prices Cause Financial Worry, 8/12/05; USA TODAY/Gallup/CNN poll, 9/2/05 8

Denver Post

, The New I Do, 8/21/05

Situation: Environment

• Trends - Travel & Tourism – 2004/2005 Ski Industry • 56.4MM total skier visits (compared to 57.1MM in 2003/2004) • Colorado’s third best season on record • 11.8MM Colorado skier visits, or a 4% lift (compared to 11.3MM Colorado skier visits in 2003/2004) – 3.6MM visited Colorado Destination Resorts – 6.9MM visited Front Range Destination Resorts – 1.25MM visited Gems/Front Range Resorts • 1.47MM skier visits to Breckenridge • 11,329 season passes sold in Rockies – flat to prior year • International visitation during the 2004/2005 ski season up to 6.1% from 5.5% 9 Source: RRC Survey Data, 2004-05

Situation: Environment

• Trends - Media • Media (esp. internet ), circulation and printing costs on rise – 2006 media rate inflation = 8% (projection) • Tourism marketers are shifting budgets from traditional media, buying more “new” media*: – Experiential (events), video-on-demand, satellite radio on rise • The BRC actively markets via experiential (events), internet, and direct marketing channels.

*Spot and broadcast tv migration largely attributable to DVR (TiVo) usage. (Sources:

Adage.com,

Broadcast Networks Rattled by DVR Inroads, 4/12; also

Media Week

, Radio Under Siege , 4/11) 10

Situation: Environment

• Opportunities and Challenges – Hold and Expand Market Share • Remain competitive with other destinations given effective/efficient budget allocation • Maintain strong brand positioning in qualified, productive markets • Continue to market Breckenridge’s unique attributes to qualified niche markets – Communication and Education • Continue to communicate and educate community on marketing efforts of the BRC • Done through: marketing open houses, Town Council, Retail & Lodging Forums, Newsletters, Annual Report, SDN columns, Mixers, etc… – Community Partnerships • Cooperation between the town, ski area, non-profits, sponsors, mountain bike groups, etc.

• BRC keeps abreast of and supports community-wide efforts 11

Situation: Targets and Seasonality

• BRC targeting foremost considers: – Demographics, geography, and seasonality – Behavior: • Spending and travel: i.e., the Core Leisure Traveler remains the “overarching” target • Activity desires/interests – Niche markets: • Emphasis on aligning Breckenridge attributes (like mountain biking, cross country skiing) with “niche markets” for effective reach – i.e. Mountain Biking Magazine story (to hit in 2006) 12

Situation: Targets and Seasonality Demographics

Winter

Age M/F 55/45% HH Income - $119,400

OOS -

Int’l. 37

70%

9% (62% UK)

Summer

40 45/55% $98,200

76%

5% (40% UK) Single w/o Kids Couple w/o Kids 28% 22% Couple/Single w/ Kids - 39% Empty Nesters 11% Family Status 27% 26% 33% 14% Source: RRC Survey Data, 2004-05 (Summer and Winter surveys) 13

Breckenridge Visitor Demographics

:

Family Status Seasonal Comparison

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Winter Summer Singles w/o Kids Couples w/o Kids Cpls./Sgls.

w/Kids Empty Nesters

Key Insights:

People with kids visit Breckenridge year round 5 >10% more than other groups, favoring winter, while singles (without kids) tend to favor Breckenridge in the winter

.

14 Source: RRC Survey Data, 2004-05 (Summer and Winter surveys)

Situation: Targets and Seasonality

• Core Visitor Stats (avg. Summer/Winter) – Repeat visitation – 71% – Rent unit – 66% – # Persons - 4 – Nights – 5 • Seasonal marketing split: – 50/50% Summer/Winter, given that • BSR markets most aggressively in winter • BRC Summer efforts ensure overall marketing support of a year-round sustainable economy • BRC markets Winter as strongly to capitalize on ski season Source: RRC Survey Data, 2004-05 (Summer and Winter surveys; see appendix for combined seasonal survey stats) Note: Based upon Summer/Winter averages 15

Situation: Targets and Seasonality • Visitation by geographic area*

–

72% Out of State

– 11% Colorado Overnight – 5% Day – 4% Local Resident/2 nd Homeowner Note: *Average Summer/Winter Source: RRC Survey Data, 2004-05 (Appendix: Visitor Snapshot) 16

Market Selection

• Primary markets: • Colorado • Texas • Florida • Illinois • Georgia • Missouri/Kansas • Secondary markets

:

• California • New York/New Jersey • Louisiana • Oklahoma Note: *Market selection/Database profiling is pulled from the Breckenridge Central Reservation database from 2001-2005. 17

Performance Based Media Selection (within target markets) • The majority of spending is allocated to

media

which is

–

Adjustable during schedule

– Performance based, tracked by call volume – Monitored continually – Supportive of not only call volume, but conversion 18

Market Selection • Rationale for market selection:

– Strong visitation from OOS markets (72%) • Markets are

highly qualified

* • Defined as

top ranking BCR revenue visitor sources over past five years

• Brand is

well established within markets

– Building out “success stories” is efficient and effective – Selecting established markets supports and perpetuates repeat visitation (71%).

Source: *Market selection/Database profiling is pulled from the Breckenridge Central Reservation database from 2001-2005 and RRC survey results. RRC Survey Results, Summer/Winter 2004-05 19

Market Approach

Primary Markets • Focus media placement and promotions in primary markets (in addition to integrated efforts such as trade shows, PR, etc.): • Colorado • Texas • Florida • Illinois • Georgia • Missouri/Kansas Secondary Markets • 1) Bulk of exposure is non-advertising (such as trade shows, PR exposure, etc.) • 2) Also consider media and promo investments • California • New York/New Jersey • Louisiana • Oklahoma Note: *Market selection/Database profiling is pulled from the Breckenridge Central Reservation database from 2001-2005. 20

Incremental Marketing Exposure •

National and international

exposure rounds out selected markets, obtained through:

• Sales shows • National and international media • Internet marketing • Co-ops with Colorado Tourism Office

• National efforts strive to reach travel influencers (media, travel agents, meeting planners)

21

Market Selection: Alternatives considered

• Alternative option: Market only to highest per capita income markets • Rationale for option: High disposable income, therefore higher travel budget • Why “pass” on the option?

– Focusing $ and efforts on brand developed, qualified areas is more targeted and cost efficient, while less exploratory/risky, given budgets 22

Competitive Landscape •Competitive Sets:

–I-70 Corridor/ Western Slope/ Northern Colorado: Winter Park, Keystone, Copper Mountain, Vail, Aspen / Snowmass, Steamboat Springs –Southern Colorado: Durango, Telluride, Gunnison / Crested Butte –Out of State Mountain Destinations: Jackson Hole, Whistler, Ski Salt Lake, Lake Tahoe, Mammoth, Taos –Additional Competitors: Cruise lines, Disney, Beach Resorts, State Parks 23

Competitive Landscape Competitive Set Shared Attributes

: •Destination •Events •Activities •Shopping •Dining •Après Ski •Services

Unique Breckenridge Attributes* : What sets us apart?

A Real Town with a world class resort Historical uniqueness Dynamic visitor base/unique demos Town and resort proximity Accessibility Convenience (public transportation) Value Friendly environment Year-round events/activities BCR Relationship – One Stop Shopping/Booking Nightlife World Class events

*”

Unique” attributes may exist at other resorts, but are maximized in Breckenridge and aligned with brand essence

.

24

Objectives, Strategies and Tactics

25

•

Objectives

Promote Breckenridge

– Maintain visitation during “peaks”/build during “valleys” • Thereby, drive business/support local economy • As Breckenridge Resort Chamber Marketers, support local economy by… – Preserving historic character and staying “in tune” with our attributes – Maintaining community character so that we and our visitors might: • Live, work and play in a cohesive, diverse, safe, friendly and peaceful community – Supporting economic vitality 26

Objectives, continued

• Help sustain and grow Breckenridge Central Reservations – Guest focus:  Provide best service to guest through credibility, objectivity, guest service, one-stop shopping, personalized service – Local business representation via BCR :  Direct bookings ($4.9MM, 2004-05)  Offer lodging partners opportunities to obtain fair market share in Breckenridge 27

Again, what’s the right amount of marketing exposure?

•

Maintenance levels in proven markets, focusing efforts to build up valley visitation periods

– “Peak” and “Valley” visitation awareness – Key objective driving strategy and tactics 28

Strategic Approach • Marketing the Experience

– 60% of integrated BRC efforts are focused on bringing guests to Breckenridge. • Supported by each department Note: Examples of banner ad creative 29

Strategic Approach • Managing the Experience

– Efforts to enhance the guest experience (once visitors are brought to Breckenridge) are 30% of the BRC combined focus.

• Supported by each department 30

Strategic Approach • Community Partnerships

– 10% of BRC efforts and resources are focused on harmonizing local efforts in the business community, and working with partner organizations.

• Supported by each department 31

Integrated Strategic Approach

Market the Experience STRATEGY

:  Market the Experience  Manage the Experience  Build Community Partnerships

Manage the Experience Build Community Partnerships Advertising and Promotions PR Events Sales Internet Advertising and Promotions PR Events Sales Internet Advertising and Promotions PR Events Sales Internet

32

Tactical Approach • Blended Branding and Call to Action marketing

–

Branding

conveys and builds Essence of Breckenridge:

A historic, friendly real town boasting world class events and activities

–

Call to Action

supports Breckenridge Central Reservation goals • Majority of $ allocation is toward measurable media, adjustable for performance 33

Tactics: Blended Branding/Call to Action

•

Message

and

placement

tactics maximize $ –

Messages

focus on Branding priorities (Historic Town; Real Town, Friends Welcome; Events; Activities) – Branding incorporated where possible – In all marketing materials, brand is reflected via… » Logo:

A Real Town, Friends Welcome

» Color (blue – represents sky, used year-round) » Copy writing » Font » Images -

Placement*

focuses on utilizing media Call to Action environments - Packages - 800# ads in targeted media (travel) stimulate BCR bookings - GoBreck.com promoted in every marketing effort Note: In marketing departments where media placement doesn’t apply, other communications focus on Call to Action .

34

Integrated Strategic Approach:

Tactical Support

STRATEGY:



Market the Experience



Manage the Experience



Build Community Partnerships

Blended Communication

: Call to Action

Blended Communication

: Branding tactic Advertising and Promotions Public Relations Events Sales tactic Interactive

35

Competitive Tactics:

•How does the BRC market competitively? –Targeted newspaper: travel section advertising –Creative conveys unique brand message –Event marketing –Electronic advertising –Direct mail / email blasts –Tradeshow participation –Hosting groups and conferences –Familiarization tours – travel agents, media, meeting planners –Coop advertising –Press releases –Leveraging PR relationships –Promotions –Vacation Planner –Website –Consumer database growth 36

Integrated efforts support strategy: How?

Marketing the Experience

 Investing $ in key market advertising   Add links to GoBreck.com on prominent tourism sites Search engine marketing    Trade show marketing promotes Breckenridge to qualified audiences Increasing exposure of the Breckenridge brand assets (mountain biking, events, history) Events publicized in ad and PR messages Department  Ad/Promo  Internet  Sales  Public Relations  Events 37

Integrated efforts support strategy: How?

Managing the Experience

 Local promotions stimulate business   Events enhance the visitor experience Weekly “Scoop” (calendar of events) markets events effectively  Provide vacation planners, meeting planner guides, personal group welcomes, photos, maps, activity info and restaurant guides to planners for their groups  Provide information on activities and events Department  Ad/Promo  Events and PR  Sales  Internet 38

Integrated efforts support strategy: How?

Community Partnerships

 Enhance the visitor experience, build local camaraderie/community pride  Maintain the BRC communications pieces online (Weekly Benefit Update, Newsletter)  Way to Go Breck cards and co-op advertising  Group report, Way to Go card for Group Sales, Sales and Marketing meetings, FAM tours Department  Events  Internet  Ad/Promo  Sales Note: All departments support all strategy points (see Appendix Deep Dives for detail) 39

Integrated message support:

Call to Action

 Place “call to action” 800# ads in key markets  Metrics: Allow for ad tracking/call volume/BCR results

Department Capability

 Ad/Promo bookings leads the charge by running trackable ads in targeted markets, driving BCR  GoBreck.com on collateral   Metrics: Web provides measurable media and traffic opportunities Provides critical online booking mechanism  Internet is a critical call to action partner, driving online bookings.

40

Integrated message support:

Call to action

 One-to one “face time” marketing connections are made at industry trade shows (as BCVB)

Department Capability

 Sales specializes in qualified lead generation  One-to-one marketing connections occur on the event site to drive repeat visitation/word of mouth  Sponsor partners are activated to connect directly with the community and its guests  Events connect Breckenridge and its visitors in the experiential marketing channel 41

Integrated message support:

Branding

 Promotions convey the brand (ex. trade booths) 

New York Times

readers made aware of Breckenridge assets (i.e., mountain biking culture) Department Capability  Ad/Promo leverages $ for merchandising and brand building opportunities  PR raises communicating Breckenridge’s brand assets to an evangelistic level  Also, tailors diverse Breckenridge assets to different audiences/media outlets 42

Integrated message support:

Branding

 Conveys brand meaning and generates “buzz” within industry  Communicates brand assets and essence in a festive, fun, relaxed setting

Department Capability

 Sales custom positions brand to key audiences  Events deliver brand assets in a multitude of engaging, experiential and emotional channels 43

Department Goals

• Maintain market share with core leisure travelers • Continue to develop niche markets and marketing channels: – Weddings, groups, event aficionados, reunions, unique story ideas, promotion presence in front of general audiences (opportunity to “sell” ourselves), heritage tourism, mountain biking, cross-country skiing • Continue to secure added value 44

Effort = Effect: Exposure volume matters • Based upon 2005 results,

> 317MM marketing exposures

(via impressions, web sessions, database) helped generate

$4.9MM BCR revenue

.

– A strong correlation exists between marketing exposure and revenue.

– “Casting a wider net” catches more fish!

45

Qualitative Evaluation Criteria: Experiences!

46

Qualitative Evaluation Criteria: Feedback!

• Feedback from the Meeting Planner FAM (familiarization trip) for Sales:  Would You Use the BCVB for Your Future Meeting Planning Needs? Yes

(10)

No (0)  Why:  “Very Professional”,  “This was a wonderful experience and overall information”,  “Great attitude and sincerity from people here- you can’t buy that!” 47

Qualitative Evaluation Criteria: Testimonials!

• All in one services…And the services they didn't offer, they pointed me to the best places to find the service requested. –

Customer survey from Central Reservations

•

“Breckenridge is a town drenched in color. Purple ski shops, yellow pubs, pink restaurants and blue houses line Main Street, lending a cheerful air to a community that’s already giddy with vacationing visitors.”

–

Ski Magazine

48

Qualitative Evaluation Criteria:

• •

Testimonials!

“Several years ago we started a family tradition....winter vacation in Breckenridge Colorado...great skiing, fun shopping and fantastic dining! It's a great place to gather with friends and family. It's a fun town with real people we love it!”

– Will & Adriana Gray - Kansas City

“We have received many compliments from cyclists about the warm welcome and hospitality they received in Breckenridge.”

– Ride the Rockies Organizers 49

Our Uniqueness:

Real People

Marketing an

Authentic Message…Our love of Breckenridge !

• Both the

product

and the

experience

are enhanced by the BRC’s integrated efforts: –

Meaningful connections

between the visitor or influencer are made by the BRC with both the product and experience.

–

Personal relevance

of the product is communicated to the visitor.

– We LIVE the EXPERIENCE we market: • BRC Marketing “makes it real” (Real people, real experiences, real recommendations, real connections… Live it, love it, share it!) 50

Recommendation :

• Integrated marketing efforts should support the objective of “peak”

maintenance

and “valley”

build

, given visitation.

• Strategic support of

marketing and managing the experience

, and how

community partnerships

are built and utilized, should consider key environment, target, seasonality and competitive insights.

– Tactically, the three strategy tenets should focus on blended “branding” and “call to action” methods to effective utilize budgets.

51

Recommendation :

• BRC marketing serves the community in penetrating markets to create the exposure (including out of state and international) required for healthy tourism.

• BRC marketing “makes it real” for potential visitors by reaching into markets, creating economically supportive exposure and visitation that is typically cost-prohibitive to the area businesses.

• “A real town. Friends welcome.” works, and is the basis of BRC marketing successes driving results like $4.9MM reservations revenues, and overwhelmingly positive guest experiences.* 52 *Note: RRC survey data reports high friendliness ratings in Breckenridge.