See, Universal Studios Hollywood Jeff Senior, Fairmont Hotels & Resorts Don Skeoch, California Academy of Sciences Matt Stiker, San Francisco Travel Association Joe Terzi, San Diego Convention and Visitors Bureau John Wagnon, Heavenly Valley Limited Partnership Bob Warren, Redding Convention & Visitors Bureau SuBCOMMITTEES TECHNOLOGY & PARTNERSHIP Chair: Mike Gallagher Jeff Senior Julie Maurer Howard Pickett RESEARCH Chair: Sheldon Duncan Raza Azmi Susan Buinzeel DOMESTIC BRAND COMMuNICATIONS Chair: Julie Maurer Cody Plott Diane Mandeville Joe Terzi John Wagnon Kathy Janega-Dykes Kerri Verbeke Kapich Kimberly Adams Matt Stiker Patti MacJennett Scott Schneider Steve Bone Tom Klein international marketing Chair: Howard Pickett Andy Chapman Bob Warren Jon Handlery Kerri Verbeke Kapich Marilyn Hannes Thomas See California is a place like no other, a land of abundance and opportunity—where residents and visitors alike can experience life to the fullest. This is what distinguishes California from other destinations, and it is these qualities that capture the spirit of CTTC’s Five-Year Strategic Marketing Plan—our Brand Enrichment Plan. The best and the brightest industry leaders provided invaluable assistance in creating a marketing plan that will fortify the California brand and capitalize on emerging opportunities.
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Contents 1. Executive Summary 2 2. Introduction 3 3. Research Findings 3 4. External & Internal Analysis 4 External - Market segmentation & Definition 4 External - Market Analysis 6 External - Competitor Analysis 10 Internal - Analysis of Organizational Competencies 13 SWOT Analysis 14 5. Strategic Objectives and Issues 15 Financial Objective 15 Marketing Objective 16 6.Competitive ...
California’s travel and tourism industry is operating in a new landscape—driven by sustained economic challenges, evolving demographics, emerging technology and shifts in consumer travel patterns. We see this as an opportunity to strategically market California in a way that is responsive, creative and forward-thinking. The 2011– 2016 Strategic Marketing Plan is our roadmap for getting there. With the time and creativity invested by the Commission’s Strategic Planning Task Force in this plan, California’s travel and tourism industry is well positioned to ensure that the Golden State remains the premier travel destination—generating revenues that will contribute to the vitality of California. Join us as we continue the tradition of excellence and nnovation that truly is the spirit of our industry and of California. Contents 1. PurposeofthePlan………………………………………. 2 2. ExecutiveSummary……………………………………… 6 . StrategicPlanDevelopmentProcess……… 14 . 3. AboutCTTC…………………………………………………… 16 4. Research&Analysis…………………………………… 28 . 5. MarketingOverview…………………………………… 66 . 6. TheInternationalMarket…………………………… 84 7. RoadMap………………………………………………………. 94 8. Appendix……………………………………………………… 106
CAROLINE BETETA President & CEO, California Travel & Tourism Commission Deputy Secretary for Tourism, California Business, Transportation & Housing Agency 1 1 Purpose of the Plan 2011 2012 2013 2014 2015 2016 PuRPOSE Purpose of the Plan The 2011–2016 Strategic Marketing Plan (the Brand Enrichment Plan) is a comprehensive plan developed to guide CTTC’s marketing programs over the next five years, aimed at boosting California tourism brand awareness and visitation revenues. It is strategically responsive to the “new normal” post-recession travel environment and changes in demographics, technology and consumer travel trends, and is in alignment with the overall mission of the new Corporation for Travel Promotion (CTP) to promote increased international travel to the U. S.
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Marketing Plan for INTERNET CAF " ES IN Indictable Of Contents 1 Executive Summary 22 Situation Analysis 32. 1 Market Summary 42. 1. 1 Market Demographics 52. 1. 2 Market Needs 62.1. 3 Market Trends 72. 1. 4 Market Growth 92. 2 SWOT Analysis 102. 3 Competition 142.4 Services 142. 5 Keys to Success 162. 6 Critical Issues 162. 7 Macro Environment 173. 0 Marketing Strategy 173. 1 Mission 183.2 ...
The Strategic Marketing Plan is a key component of CTTC’s overall Business Plan and serves as a roadmap for annually developed work plans that detail the specific tactics designed to advance CTTC’s key marketing mission and objective: Marketing Mission: Develop and maintain marketing programs—in partnership with the state’s travel industry—that keep California topof-mind as a premier travel destination. Marketing Objective: Maintain and increase non-resident leisure travel to and spending in California. 1) Capacity-building: Secure global resources and develop an infrastructure to support the plan. This included building in-house expertise, vendor relationships and inmarket representation to integrate new and traditional media. In addition, CTTC began to build an international resource pool and has since acquired global brand intelligence. 2) Media expansion and innovation: Integrate traditional media programs with new media, based on consumer consumption habits. Although CTTC kept some traditional offline media programs (e. g. engaging print and broadcast brand advertising), the plan integrated new online media strategies into these campaigns that were cost-effective and engaged consumers on a deeper level with layered messaging tactics. This innovation through integrated online and offline programs increased brand impact and secured brand success, particularly in the domestic market. 3) Targeting the high-value global market: Expand our international brand profile to reach new consumers who spend the most and stay the longest. CTTC decentralized to optimize global reach by opening numerous offices in key global markets, with market representation in 12 countries, including the U. K. , Japan, Germany, Australia, Mexico, South Korea, China, India, Italy, France, Brazil and Scandinavia, with additional dedicated efforts in Canada.
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CTTC also has 14 international Web sites, and produces a suite of 11 international visitor’s guides. By building this international resource pool, CTTC acquired critical global brand intelligence to better design targeted international programs to attract consumers. THE 2011–2016 BRAND ENRICHMENT PLAN WILL GuIDE CTTC’S EFFORTS IN OPTIMIZING ITS BuDGET IN THE NEW OPERATING ENVIRONMENT, WHILE PROVIDING THE NECESSARY RESEARCH AND CONTEXT TO DECIDE BuDGET ALLOCATION TO SPECIFIC MARKETING PROGRAMS AND INTERNATIONAL MARKETS. EXECUTIVE SUMMARY ABOUT CTTC RESEARCH & ANALYSIS MARKETING OVERVIEW OBJECTIVE 1: PLATFORM OBJECTIVE 2: BRAND Background In 2006, a new rental car assessment, AB 2592, passed in California.
The assessment expanded CTTC’s annual budget to $50 million and gave California—the nation’s leading tourism state—the resources necessary to compete with spending by other top U. S. destinations. To maximize these resources, CTTC developed its first Strategic Marketing Plan in 2007 (the Foundational Plan) to build a marketing infrastructure that could support the creation of sophisticated, results-driven marketing programs. The Foundational Plan focused on three main objectives: OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 1 | PURPOSE OF PLAN 3 Figure 1 California Travel and Tourism Commission Planning Framework CTTC Business Plan Public Affairs Industry Positioning Industry Relations Marketing
Plan Corporate Identity Government Relations Audience Government Labor Force Press Residents Assessed Businesses Destinations Travel Industry Consumer Travel Trade Press METRICS POLITICAL INFLuENCE & RELEVANCE INDuSTRY SATISFACTION/ PARTICIPATION REFERENDuM VISITATION TOuRISM REVENuE PROGRAM ROI QuICK LOOK THE FIVE-YEAR STRATEGIC MARKETING PLAN FALLS uNDER THE uMBRELLA OF THE CTTC BuSINESS PLAN. 4 CTTC STRATEGIC MARKETING PLAN PuRPOSE CTTC has accomplished all three of these ambitious objectives with unprecedented success, positioning California as a global leader in the travel and tourism industry in terms of approach, reach and impact. Between 008 and 2010, CTTC’s global advertising reached 42 million consumers globally, generating 3. 3 million visits and an incremental $3. 9 billion in annual additional visitation spending—a $221 return on investment (ROI).
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The Five-Year Strategic Marketing Plan will guide CTTC staff and committees as they develop tactical annual work plans for specific marketing programs and international efforts with precise budgets and metrics. With a static budget, CTTC will establish annual spending priorities and make course adjustments, based on the overall ROI of each of these programs and in the context of the current environment. Additionally, CTTC sees the Brand Enrichment Plan as an important resource for partners at home and abroad.
The Research & Analysis section includes an extensive amount of valuable information on economic, demographic and trend data specific to the travel and tourism industry. Each of the objective and strategy sections conveys the priorities for CTTC’s work in the coming five years, much of which will engage and involve California’s tourism industry partners. Building on the Foundation The Brand Enrichment Plan builds on the momentum of the 2007–2013 Foundational Plan, taking what CTTC has learned and leveraging it into objectives and strategies that optimize marketing spend domestically and internationally, while providing the necessary research and context to maximize efficiency and integration within the constraints of a fixed budget.
The overarching goal of the 2011–2016 plan is to enrich the California brand by both broadening the reach to new markets and customers, but also deepening the connection with travelers to foster return visits and to inspire them to be brand ambassadors to friends and family. BETWEEN 2008 AND 2010, CTTC’S ADVERTISING REACHED 42 MILLION CONSuMERS GLOBALLY, GENERATING 3. 3 MILLION VISITS AND AN INCREMENTAL $3. 9 BILLION IN ANNuAL ADDITIONAL VISITATION SPENDING, AN ROI OF $221. (SOuRCE: SMARI) EXECUTIVE SUMMARY ABOUT CTTC RESEARCH & ANALYSIS MARKETING OVERVIEW OBJECTIVE 1: PLATFORM OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 1 | PURPOSE OF PLAN 5 2 Executive Summary 2011 2012 2013 2014 2015 2016 PURPOSE Executive Summary
CTTC’s Five-Year Strategic Marketing Plan (the Brand Enrichment Plan) is a comprehensive framework designed to guide the organization’s efforts to maintain and increase travel and tourism in California, in a way that optimizes its budget, builds on experience, leverages partnerships and is responsive to the dynamic post-recession travel environment. MOVING FORWARD The 2011–2016 Brand Enrichment Plan builds on this success, using the latest research and key learnings to create more efficiencies and integration. It reflects market changes such as the “new normal” travel environment, which has caused dramatic shifts in consumer patterns. It also factors in new mobile and tablet technologies, which are changing the media landscape and affecting the way travelers access and use information to make their decisions.
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And it anticipates a strategic partnership with the newly formed Corporation for Travel Promotion, the United States’ national travel marketing program, to maximize global opportunities for California and the nation as a whole. The central focus of the 2011–2016 Strategic Marketing Plan is brand enrichment—building on the success of California’s brand platform, fortifying the brand (brand vitality) and deepening the relationship with consumers throughout the travel lifecycle. These core consumers will continue to be out-of-state visitors—the travelers who stay the longest and spend the most. More specifically, CTTC identifies its core strategic target as the digitally savvy consumers who see travel as an experience that enriches their life—with value tied to perceived worth, rather than price.
In the coming years, CTTC will seek to elevate the California brand to a position in the minds of consumers that transcends travel and becomes relevant to their daily lives—a California state of mind. INTERNATIONAL FOCuS The vital importance and value of the international market is reflected in the strong emphasis on CTTC’s international program in the Brand Enrichment Plan. CTTC’s approach will be to maintain a stable presence internationally through its 12 global offices and to align with WHY TRAVEL MATTERS: TRAVEL IS BIG BuSINESS IN CALIFORNIA, WHICH ATTRACTS APPROXIMATELY 200 MILLION VISITORS WHO SPEND $95. 1 BILLION, DIRECTLY SuPPORTING 873,000 JOBS AND GENERATING $6. BILLION IN DIRECT STATE AND LOCAL TAX REVENuES. (SOuRCE: DEAN RuNYAN ASSOCIATES, TOuRISM ECONOMICS, 2010 PROJECTIONS) EXECuTIVE SuMMARY ABOUT CTTC Background California is the premier travel destination in the U. S. , attracting approximately 200 million visitors each year who spend $95. 1 billion, directly supporting jobs for 873,000 Californians and generating over $6 billion in state and local tax revenues. Despite this success, California was hampered, for years, by a fluctuating and vulnerable travel and tourism marketing budget. Fierce global competition for travelers made it imperative that California have a stable and robust budget to keep pace with other destinations worldwide.
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With a population of 75 million, a dynamic economy, a relatively large geographical area (780,000 sq km) and increasing disposable income among its population,Turkey’s air travel demand continues to grow, at a time when the majority of Europe is experiencing sharp reductions. 1. 2 Strategic geographic position: The country is attractively geographically positioned, located only three hours flight ...
In 2006, the passage of a mandated rental car assessment —AB 2592—gave California the secure, competitive marketing budget it needed— increasing the budget from $10 million in 2006 to the current $50 million level in 2007. CTTC created the 2007–2013 Foundational Plan to strategically manage these resources. The plan created an infrastructure for CTTC to build global resources and expand its research program and international brand profile. The strategies established in the Foundational Plan, coupled with the necessary resources for implementation, proved to be tremendously effective. SMARI research shows that since 2007, CTTC’s advertising has been seen each year by 42 million consumers globally, generating 3. 3 million visits and $3. 9 billion in additional annual visitation and spending— a remarkable $221 to $1 ROI.
RESEARCH & ANALYSIS MARKETING OVERVIEW OBJECTIVE 1: PLATFORM the national organization for tourism, the Corporation for Travel Promotion, to attract more international visitors to California and the U. S. Modeled after CTTC’s successful publicprivate partnership, CTP will create a platform for marketing the USA brand globally and provide new national leadership in addressing barriers to travel. CTTC works in close partnership with CTP to leverage resources and maximize opportunities, with CTTC President & CEO Caroline Beteta serving as CTP Vice Chair. The 2011–2016 Brand Enrichment Plan is infused with opportunities to reach greater, yet very targeted audiences.
Although a fixed budget means there may be tough marketing choices ahead as global destinations outspend California, CTTC is confident that by enhancing effectiveness and building partnerships, it can help keep California the number one destination in the U. S. and help tourism remain a key economic driver for the state. OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 2 | EXECUTIVE SUMMARY 7 Strategic Framework The strategic framework used to create the 2011-2016 Strategic Marketing Plan, a five-year road map for tactical annual work plans, is based on CTTC’s overall mission and objective. Figure 2 Marketing FY 11-16 Strategic Planning Process O PT IM IZ I AT GuIDING PRINCIPLES RESEARCH & ANALYTICS LEARNINGS INDuSTRY FEEDBACK OBJECTIVES STRATEGY & ROAD MAP A IN ST R ST
TACTICAL PLANS MEASuREMENT EXECuTION (AS PRESENTED IN YEARLY WORK PLANS) TRENDS & IMPLICATIONS O N AG Y EG AT INPuT & PLANNING STRATEGIC PLANNING EXECuTION MISSION TO DEVELOP AND MAINTAIN PROGRAMS— IN PARTNERSHIP WITH THE STATE’S TRAVEL INDuSTRY—THAT KEEP CALIFORNIA TOP-OF MIND AS A PREMIER TRAVEL DESTINATION. KEY OBJECTIVE MAINTAIN AND INCREASE NON-RESIDENT LEISuRE TRAVEL TO AND SPENDING IN CALIFORNIA QuICK LOOK THE FRAMEWORK FOR THE PLAN INCLuDES uPDATED GuIDING PRINCIPLES, RESEARCH AND ANALYSIS, KEY LEARNINGS FROM THE LAST FIVE YEARS, INDuSTRY FEEDBACK AND FOuR CORE OBJECTIVES, WHICH ARE OuTLINED ON PAGES 14–15. 8 CTTC STRATEGIC MARKETING PLAN PURPOSE Guiding Principles EXECuTIVE SuMMARY
With this new Five-Year Strategic Marketing Plan (Brand Enrichment), CTTC has slightly adjusted its guiding principles below to include consistent and potent brand mentions, especially when focusing on out-of-state resources, as well as accelerating our Web leadership. It also incorporates core international program strategies from the u. S. Travel Association and the new Corporation for Travel Promotion. ABOUT CTTC RESEARCH & ANALYSIS 1. Do what the industry cannot do for itself. CTTC will provide a statewide marketing platform to promote the California brand. 2. Leverage existing assets and alliances; focus on international and emerging market development.
CTTC will introduce the California brand to far-reaching audiences and establish strategic alliances with trusted in-market brands. 3. Evaluate program measures and return on investment (ROI) for major programs. CTTC will track and evaluate market penetration and program impact on attracting leisure travelers. 4. Focus on out-of-state and international audiences to build and refine the California brand. CTTC marketing programs will serve to attract new consumers to California through the power of the California brand, while providing industry partners with opportunities to reach new markets that are otherwise cost-prohibitive. 5. Support assessed businesses.
CTTC will be a resource to assessed tourism businesses by providing marketing opportunities, Web leadership and tourism research material vital to the success of their operations. 6. Accelerate Web leadership. CTTC will increase its status as a leader in the Web and interactive world by creating innovative programs to reach consumers with targeted, timely and costeffective brand messages. 7. Align with CVBs, DMOs and u. S. Travel leadership. CTTC will coordinate resources with local destination marketing organizations (DMOs), while aligning with efforts on the national level. MARKETING OVERVIEW OBJECTIVE 1: PLATFORM OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 2 | EXECUTIVE SUMMARY 9 Trends and Implications
When creating the strategic framework for the Brand Enrichment Plan, CTTC factored in what has been termed the “new normal,” a term used to describe new consumer travel patterns that remain after one of the longest recessions in history. The trends associated with the new normal are covered in detail in the plan and summarized here: • Economy: Declining unemployment, increases in personal disposable income, and relatively stable consumer prices are projected as we move into 2012—all important factors in travel demand. Despite gradual improvements in the economy, consumers are still very costconscious when making decisions, so value is an important part of messaging. Repeat Visitation: Surprisingly, recent research shows that frequent travelers are primarily motivated by visiting friends and relatives (VFR), using their own experiences with family to plan travel. It’s important to engage these travelers, resident friends and family members (who act as reliable and trusted sources for other travelers) to become brand advocates. • Demographics: In the next five years, the baby boomers will move out of the luxury age and will not be replaced in the same numbers by the next generations.
With these shifts, all generations will contribute to economic recovery over the next five years. Therefore, CTTC will need to focus programming on each distinct generation. Technology: Rapidly evolving technologies are changing the way consumers access information and make their decisions. Global Internet penetration is reaching critical mass in many markets. At the same time, how consumers are accessing the Internet is changing, with mobile Internet users projected to surpass desktop users by 2012. Given these trends, it’s critical to continue developing accessible and diverse content that can engage consumers in multiple ways. “New Normal”: Trends And Implications Understanding the “new normal” post recessionary travel environment was vital to mapping out the strategies that help guide the development of tactical annual work plans.
Through research, CTTC identified the latest trends and implications to drive the strategies for the Brand Enrichment Plan. These strategies are discussed in greater detail in the Research & Analysis section. TREND IMPLICATION ECONOMICS/DEMOGRAPHICS 1 2 The U. S. economy is recovering at a gradual pace, and consumers will continue to travel but with heightened attention to costs. CTTC will incorporate value in messaging. CTTC will also target primary Western markets in programs as they tend to take short-haul trips that cost less. Consumers continue to seek luxury, but experience and value are now required components as well. CTTC will communicate to consumers with messaging that resonates with core values.
We will show them that California offers the most and best of everything, presenting great value. 3 All generations will contribute to the recovery in travel over the next 5 years. CTTC will continue pushing brand efforts that have worked well to date. We will deliver our message to an expanded audience, using new media to speak to a tech-savvy Generation Y audience. 10 CTTC STRATEGIC MARKETING PLAN PURPOSE TREND IMPLICATION EXECuTIVE SuMMARY 4 TECHNOLOGY Global Internet proliferation is on the rise— as is access to diverse content types. CTTC will engage consumers in the California brand by developing and expanding deep, diverse online content. ABOUT CTTC 5 6
Internet consumption is going portable— and will continue to fragment. CTTC will make visitcalifornia. com’s rich content accessible across a range of devices, and live in a range of places, so it can be relevant to users when and where they need it. RESEARCH & ANALYSIS Social media is driving Internet growth, engagement and preference—via its push and pull of content generation and consumption. CTTC will identify ways to engage social media users in the California brand, encouraging user feedback and content-generation to grow the brand. MARKETING OVERVIEW 7 8 44% of non-resident U. S. travel to California— and 31% from primary Western markets—is by first-time or infrequent travelers.
CTTC will develop programs to increase travel frequency in existing customers from long-haul U. S. and Western markets. OBJECTIVE 1: PLATFORM REPEAT VISITATION Frequent travelers are predominantly motivated by visiting friends & relatives, and use their own experiences most often for travel planning. CTTC will engage frequent “friends and relatives” travelers in a variety of ways to become brand advocates—utilizing their knowledge not only for their own travel but also as a reliable source for others planning travel. OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT 9 Visiting beaches/coastline and shopping are top activities across geographies and frequency spectrum.
CTTC will continue to emphasize coastal imagery and shopping-related messaging in brand communications. OBJECTIVE 4: INTERNATIONAL 10 Theme park visits are most popular among first-time and infrequent visitors from Western markets; urban sightseeing is more popular among first and infrequent long-haul visitors. CTTC will tailor marketing messaging and content to traveler origin. ROAD MAP CHAPTER 2 | EXECUTIVE SUMMARY 11 Core Objectives National The plan’s new strategic framework builds on Visibility of Travel the guiding principles and travel environment, The travel industry has gained unprecedented focusing efforts on four key objectives and national visibility.
In March 2010, President corresponding strategies: Obama created the country’s first national 1) Expand statewide marketing platform tourism marketing program with the signing of the Travel Promotion Act (TPA).
The act 2) Enrich the brand globally authorized the formation of the Corporation 3) Deepen consumer (CTP), whose mission for Travel Promotion engagement is to market the U. S. as a tourism destination 4) Grow international visitation and spend abroad. Modeled after California’s successful These objectives form the CTP will direct a public-private partnership,backbone of the Brand Enrichment Plan. The with intentions $200 million marketing plan strategies were developed by integrating refinements from the previous plan with industry feedback.
CTTC and industry contributors used the latest research to track trends and implications that would help optimize strategy development. The framework and strategies in this new plan take advantage of rapidly emerging new media technologies and aim to help maintain or amplify CTTC’s marketing effectiveness without additional dollars. This involves continuing to measure ROI and using it to streamline efforts, keeping high-return programs and replacing underperforming ones. of restoring some of the nation’s lost share of global travel. Furthermore, CTTC President and CEO Caroline Beteta was appointed to Take advantage of CTTC’s position at the the Corporation’s Board of Directors by the state level to promote all of California U. S.
Commerce Department to help steer the and create a platform that drives and new national program, also serving as Vice supports DMO and industry marketing Chair. California, already host to over 18% of investments. overseas travelers to the U. S. , is well suited to benefit from these new national marketing and communications efforts at both statewide and local levels. Attracting international travelers STRATEGIES and penetrating new global markets is critical for1. Advertising and Brand: Build a global California, as international visitors tend to stay longer and spend more on beyond brand platform that goes each trip. Objective 1: Platform Program History California gateways and icons and showcases the regional abundance of the state. Directed by the 2007–2013 Strategic Marketing 2.
Cooperative Marketing: Create Plan, CTTC has focused its marketing program programs that generate economies in three main directions: of scale, both domestically and internationally, that allow industry to Secure global resources and develop an provide to support the plan. This infrastructureproduct messaging and retail calls to action. included the adoption of a dedicated creative agency that would assistaffordable research 3. Research: Provide in the integration of media and print buys, as well asCalifornia products, including ongoing online support. In addition, CTTC began to build an tourism industry analysis, to help international resource pool and have its direct and support CTTC’s and since acquired globalplans. intelligence. artners’ brand Integrated traditional and new media programming to reach consumers on a deeper METRICS: level. These programs were innovated through • B2B Web site (tourism. visitcalifornia. com) traffic • Number of industry participants Strategic California’s worldwide Marketing 2. Partnerships: Framework through brand will be expanded the integration of online and offline programs, involving new media and layered messaging tactics. Expand the California travel brand to Expand ourits connection brand profile to increase international to consumers reach new consumers. CTTC has opened worldwide and to inspire the desire to numerous offices in key global markets, travel to California. with market representation in 12 countries, including the U. K. Japan, Germany, Australia, Mexico, South Korea, China, India, Italy, France, Brazil and Scandinavia, with additional dedicated efforts in Canada. CTTC also has 14 STRATEGIES international Web sites, and produces a suite of 1. Media: California’s domestic brand will 11 international visitor’s guides. continue to focus on proven programs such as brand advertising (online, offline) that utilize layered messaging and media (traditional and new).
Objective 2: Brand consumer advertising in key global While CTTC’s mission has not changed from markets and alliances with non-travel the first iteration of the Strategic Plan, an brands to broaden association with overarching key objective—to maintain and the California lifestyle. ncrease non-resident leisure travel to and spending in California from targeted domestic 3. Earned Media: Utilize online and and international origins—hasetc. ) to carry a offline press (bloggers, been adopted as CTTC’s strategic marketing to a broader credible brand message intent. This key aobjective will be accomplished through the audience. following four core objectives that support CTTC’s strategic marketing intent while METRICS: outlining strategies to achieve each objective. • Advertising awareness • Incremental travel • Incremental spending & ROI • Leisure visits to California • Brand vitality metrics • CTTC Web site traffic 12 CTTC STRATEGIC MARKETING PLAN PURPOSE
Objective 3: Engagement Objective 1: Deepen relationship with consumers Marketing Platform to move beyond providing inspiration to engage potential California the state Take advantage of our position atvisitors during every all of California and create level to promotestage of the travel cycle. a platform that supports DMO and industry marketing investments. Objective 4: International Objective 2: Welcome Brand inbound visitors fromawareness international markets, creating of California and existing the desire to Develop California’s inspiring travel brand experience our travel products. worldwide to increase its connection to consumers and create desire to travel to California. Metrics CTTC places great importance on research and evaluation. Research and program evaluation was essential in developing a credible strategic marketing plan. To measure the success of its brand advertising campaigns and the visitcalifornia. om Web site, CTTC contracts with third-partyconsumers to move Deepen relationship with vendors to evaluate the awareness of each campaign, engage beyond providing inspiration and how each influences consumers’ perceptions of potential California travelers during every stage California as cycle. of the travel a vacation destination, how each impacts eventual travel to and spending in the state, and campaign ROI. EXECuTIVE SuMMARY Objective 3: Engagement ABOUT CTTC RESEARCH & ANALYSIS STRATEGIES STRATEGIES Bring the California brand 1. Content: to life online through the use of Global Brands compelling content and video assets. Build global brand platform that goes beyond 2.
Distribution: Distribute and showcases California gateways and iconscontent through multiple channels the regional abundance of the state. Cooperative Marketing site, e-mail, (publications, Web mobile, social media and face-to-face Create programs that generate economies of communication) in order to reach scale both domestically and internationally that consumers when and how they want allow industry to provide product messaging across the travel cycle. and retail calls to action. 3. Social Media: Develop programs to Research Platform inspire frequent visitors to share their California experience to influence Provide affordable California research product others to visit. to support the internal plans and analysis of the California tourism industry.
METRICS: • CTTC Web site traffic • Social media followers & interactions • Social buzz & sentiment • CWC foot traffic STRATEGIES STRATEGIES Marketing: Align international 1. National strategies with those of the national Integrated Media tourism marketing organization, the California’s domestic brand will continue to Corporation for Travel Promotion, to focus maximize efficiency of the as brand on proven programs such California advertising (online,program. international offline) that utilize layered messaging and media (traditional and new).
2. Advertising: In high-volume/highPartnership yield markets (lead markets), conduct brand advertising to protect California’s California’s worldwide brand will be xpanded visitation. through consumer advertising in key global markets and alliances with non-travel brands to 3. PR/Travel Trade: Maintain California broaden association of California lifestyle. presence through B2B relationships (travel trade, airlines and PR) across all Earned Media target markets, with particular emphasis Utilize online and offline press (bloggers, etc. ) in emerging markets where advertising to carry a credible brand messageavailable. resources are limited or not to a broader audience. 4. Consumer: Create inspiration and desire with consumers in international mature markets to increase demand for California travel products.
METRICS: • Advertising awareness • Incremental travel, spending and ROI • Leisure visits and market share • CTTC Web site traffic Annual Work Plans The Brand Enrichment Plan creates a “road map” for CTTC’s annual work plans over the next five years, which take these objectives and strategies and attach tactics and budgets. Annual domestic and international work plans will give staff and industry tactical guidelines on programs and metrics, incorporating refinements from the previous year. Annual work plans address specific programs and precise budget line items, from brand advertising, interactive brand, cooperative promotions and publications to communications, travel trade, research, rural tourism and California Welcome Centers (CWC).
They include metrics to measure ROI and evaluate effectiveness to determine program viability year to year. Additionally, annual work plans provide an opportunity for CTTC to be responsive to changing market conditions, such as crises that impact travel (e. g. U. S. entry challenges), and list resources for program execution. Each year, work plans are distributed at the spring Commission meeting and posted on CTTC’s B2B site, tourism. visitcalifornia. com, so partners can incorporate relevant information into their own plans. CHAPTER 2 | EXECUTIVE SUMMARY MARKETING OVERVIEW OBJECTIVE 1: PLATFORM OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP 13
Strategic Plan Development Process To create the strategic plan, the Strategic Plan Task Force launched a kick-off meeting on March 11, 2010, to identify the four core marketing focus areas for the plan—research, technology, international marketing and domestic brand communications—and elect subcommittee chairs for these areas. The subcommittees met with corresponding CTTC staff to brainstorm strategies and provide feedback to the Strategic Plan Task Force Meeting on October 4, 2010. The draft plan content was approved by the Commission October 14, 2010, with feedback. The final draft was distributed at the February 3, 2011, Commission Meeting for approval.
INPuT IN PLANNING— WORK WITH THE INDuSTRY To create the Strategic Marketing Plan, the Commission created a task force with key industry stakeholders to develop a timeline and work with CTTC’s key marketing committees to outline strategies. 14 CTTC STRATEGIC MARKETING PLAN Strategic Plan Task Force Key Meeting Dates: JuNE 9, 2010 Research Committee Meeting JuLY 20, 2010 Domestic Brand Communications Committee Meeting OCTOBER 4, 2010 Task Force Meeting FEBRuARY 3, 2011 Final Draft Plan Distributed to the Full Commission MARCH 11, 2010 Task Force Kick-off Meeting JuLY 11, 2010 Technology Committee Meeting JuLY 15, 2010 International Marketing Committee Meeting OCTOBER 14, 2010 Draft Plan Content Presented to the Full Commission APRIL 26, 2011 Final Plan Distributed to the Full Commission 15 3 About CTTC 2011 2012 2013 2014 2015 2016 PURPOSE About CTTC
The California Travel & Tourism Commission is the only public/private nonprofit marketing organization that provides a statewide platform to promote California as the premier travel destination in the United States. CTTC works with the State of California Division of Tourism to promote California as a leading travel destination. While CTTC conducts marketing programs that drive visitation, the Division of Tourism oversees the assessment program to help fund these initiatives. CTTC serves as the industry leader for more than 100 statewide destination marketing organizations and more than 50 tourism business districts. CTTC creates marketing programs in partnership with these DMOs to leverage resources, unify messaging and increase the impact of the California brand in the marketplace. Economic Impact of CTTC’s Marketing Efforts
CTTC supports the state economy by attracting domestic and international visitors, who in turn generate revenues and boost jobs. Tourism Is More Stable than Other Industries Research shows that the tourism industry weathers economic recessions better than most. While total non-farm employment in California was down 7. 3% between September 2008 and September 2010, employment in the leisure and hospitality sector was down a much more moderate 4. 9%. And, among the state’s 13 major industry categories, leisure and hospitality is one of only four to have posted gains in employment between September 2009 and September 2010 (California Employment Development Department).
EXECUTIVE SUMMARY ABOuT CTTC Tourism Generates Needed State Revenues
Over one quarter of all spending in the state comes from non-resident travelers, so CTTC’s mission is important to supporting state services and infrastructure while lessening the burden on resident taxpayers. Remarkably, the $15. 6 billion spent in California in 2009 by international travelers alone was greater than the combined value of the state’s top five product exports: civilian aircraft, electronic circuits, computer parts and accessories, non-industrial diamonds, and voice/image/ data transmission equipment (Dean Runyan Associates; U. S. Census Bureau).
Traveler spending impacts more than 52,000 state businesses, from accommodations, transportation and attractions to restaurants and retail. RESEARCH & ANALYSIS MARKETING OVERVIEW Mission
The mission of CTTC, in partnership with the state and travel industry, is to develop and maintain marketing programs that keep California top-of-mind as a premier travel destination. Vision CTTC will be the recognized source for statewide marketing planning and implementation, and information and support to California’s vast travel and tourism industry, thereby maintaining California’s position as one of the world’s preeminent travel and tourism destinations. Tourism Creates Jobs One in every nine jobs in the U. S. is affected either directly or indirectly by tourism, and 4. 4% of all employment in California is directly supported by traveler spending (U. S. Travel Association; Dean Runyan Associates).
THE $15. BILLION SPENT IN CALIFORNIA IN 2009 BY INTERNATIONAL TRAVELERS ALONE WAS GREATER THAN THE COMBINED VALuE OF THE STATE’S TOP FIVE PRODuCT EXPORTS: CIVILIAN AIRCRAFT, ELECTRONIC CIRCuITS, COMPuTER PARTS AND ACCESSORIES, NONINDuSTRIAL DIAMONDS, AND VOICE/IMAGE/DATA TRANSMISSION EQuIPMENT. (SOuRCE: DEAN RuNYAN ASSOCIATES, u. S. CENSuS BuREAu) OBJECTIVE 1: PLATFORM OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 3 | ABOUT CTTC 17 Figure 3 CTTC History 1ST INDuSTRY REFERENDuM 69% APPROVAL 2ND INDuSTRY REFERENDuM 84% APPROVAL 3RD INDuSTRY REFERENDuM 91% APPROVAL CALIFORNIA TOuRISM MARKETING ACT FIRST ASSESSMENT INITIATED RENTAL CAR ASSESSMENT LEGISLATION 1995 1996 1997 1998 1999 2001 2006 2007 QuICK LOOK
THROuGH A SERIES OF REFERENDuMS, CTTC HAS CREATED A MORE STABLE FuNDING STRuCTuRE OuTSIDE THE STATE’S GENERAL FuND, ENABLING IT TO MORE EFFECTIVELY CREATE MARKETING PROGRAMS THAT SuPPORT THE ECONOMY. Budget CTTC’s current marketing plan could not have happened without creating a more stable funding structure. Until the early 1990s, California Tourism was sporadically funded, and the budget fluctuated from year to year, resulting in the state steadily losing market share. With only a $7. 2 million state-funded budget in 1992, California could not compete with destinations boasting larger tourism marketing budgets. But in 1995, SB 256—the California Tourism Marketing Act—was signed into law, which led to the industry-wide vote in 1997 that gave the California Travel and Tourism Commission legal standing.
With this new program, a “matchmatch” system was established whereby the State of California and businesses that benefited from tourism would all contribute to a “tourism marketing pot. ” This decision gave CTTC the ability to respond quickly after the 9/11 attacks hampered travel, demonstrating the continued need to have one agency overseeing tourism promotion, allowing industry partners to build on their initiatives and enhancing economic impact. Just weeks after 9/11, the industry voted by 84 percent to renew CTTC and let the organization move the industry toward recovery with special funding. Although by this time tourism funding had grown to just over $12 million, the state cut CTTC’s budget to $7 million in 2003–04, which quickly resulted in market share losses.
Concerned about this development, the industry again voted in 2006 to keep CTTC as the voice of the state tourism industry, and ratified the AB2592 mandated rental car assessment. This created the more competitive $50 million budget CTTC now utilizes. Over 98 percent of this funding comes from approximately 5,400 private industry assessed businesses. These assessments require regular referendum approval by the travel industry, and have created much-needed funding stability. They also show that the industry recognizes the importance of long-term investment in restoring tourism revenue to the California economy—and CTTC’s critical role in supporting revenue growth. 18 CTTC STRATEGIC MARKETING PLAN PURPOSE Figure 4 Budget History $60
EXECUTIVE SUMMARY ABOuT CTTC $50 STATE $40 INDuSTRY RENTAL CAR FIRST YEAR OF FuLL FuNDING $50 MILLION RESEARCH & ANALYSIS MILLION $30 9/11 SPECIAL FuNDING $8 MILLION RENTAL CAR FuNDING BEGINS $25 MILLION MARKETING OVERVIEW $20 FIRST INDuSTRY FuNDING $12. 3 MILLION STATE FuNDING ELIMINATED $7 MILLION OBJECTIVE 1: PLATFORM $10 OBJECTIVE 2: BRAND $0 99–00 04–05 03–04 05–06 08–09 06–07 02–03 07–08 98–99 95–96 00–01 96–97 97–98 09–10 01–02 10–11 OBJECTIVE 3: ENGAGEMENT YEARS QuICK LOOK PRIOR TO THE 2006 RENTAL CAR ASSESSMENT, CTTC’S FuNDING FLuCTuATED GREATLY. THE STABLE $50 MILLION BuDGET HAS ALLOWED CTTC TO MAINTAIN CONSISTENT PROGRAMMING IN THE u. S.
AND ABROAD, BRINGING BRAND FAMILIARITY TO CONSuMERS AND DEMONSTRATING A COMMITTED MARKETING PRESENCE TO THOSE IN THE TRAVEL TRADE. OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 3 | ABOUT CTTC 19 Although California is still outspent by major global competitors, more robust and stable funding has allowed CTTC to create a difference more than ever before, providing a more consistent and visible presence overseas. In recent years CTTC has strengthened the international marketing efforts of five overseas trade offices and opened three new overseas public relations offices. CTTC also launched the revolutionary Adventures in Wild California IMAX film—the first of its kind from a state tourism office.
CTTC seed funding, combined with industry partnership, helped mobilize the IMAX film into a $35 million marketing endeavor that would eventually play in 65 theaters on five continents and generate 10 billion worldwide gross impressions on California. Such programs spoke to the power of partnership, and extended the California brand to a global audience. Increased funding has also allowed CTTC to reach niche markets with volume/revenue potential, expand seasonal coverage to drive year-round visitation, and invest in technology to reach global mass markets. Figure 5 Foundational Plan Global Spending Averages* 3% 2% DESKTOP uSERS WITHIN 5 YEARS 800 100 0 2007E 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E YEAR SOURCE: MORGAN STANLEY RESEARCH QuICK LOOK
GLOBALLY, MOBILE INTERNET uSERS WILL SuRPASS DESKTOP INTERNET uSERS BY 2014. ALREADY IN 2010, OVER ONETHIRD OF VISITCALIFORNIA. COM uSERS VISITING THE STATE ACCESSED THE WEB WITH HAND-HELD DEVICES DuRING TRAVEL. 56 CTTC STRATEGIC MARKETING PLAN PURPOSE Figure 34 Internet usage Beyond PC Is Broadening…and Fragmenting EXECUTIVE SUMMARY 1,000,000 MOBILE uSERS > DESKTOP uSERS WITHIN 5 YEARS ABOUT CTTC 100,000 MOBILE INTERNET DEVICES/uSERS (MM IN LOG SCALE) 10,000 1,000 IN CR IN AS E G T IN E TI RA G ON DESKTOP INTERNET iPAD Smartphone RESEARCH & ANALYSIS Kindle Tablet MP3 MARKETING OVERVIEW PC 10B+ uNITS??? Cell Phone/PDA Car Electronics GPS, ABS, A/V Mobile Video 100 MINICOMPuTER 100MM+ uNITS 1B+ uNITS/uSERS
OBJECTIVE 1: PLATFORM 10 MAINFRAME 10MM+ uNITS Home Entertainment Games Wireless Home Appliances 1 1MM+ uNITS OBJECTIVE 2: BRAND 0 1960 1970 1980 1990 2000 2010 2020 OBJECTIVE 3: ENGAGEMENT YEAR SOURCE: MORGAN STANLEY RESEARCH OBJECTIVE 4: INTERNATIONAL QuICK LOOK OVER THE NEXT DECADE, A NEW AND GLOBAL GENERATION OF uSAGE—TABLETS, GEO-LOCATION, HOME ENTERTAINMENT, WIRELESS APPLIANCES—WILL DEFINE THE INTERNET. ROAD MAP CHAPTER 4 | RESEARCH & ANALYSIS 57 Figure 35 Internet Social-Driven Engagement Is Growing Fast 50% 45% CHINA BRAZIL, RuSSIA, INDIA AND CHINA ARE AMONG THE LARGEST MARKETS FOR BLOGGING AND SOCIAL NETWORKING 40% WRITTEN OWN BLOG 35% SOuTH KOREA INDIA 0% 25% 20% 15% 10% 5% 0% 0% 10% 20% 30% 40% MEXICO BRAZIL JAPAN SPAIN ITALY RuSSIA MALASIA u. S. AuSTRALIA SIZE OF BuBBLE = uSE OF MICROBLOGGING SERVICES GERMANY CANADA NETHERLANDS u. K. POLAND 50% 60% 70 % 80% 90% MORGAN STANLEY MOBILE INTERNET REPORT—DEC 2009 MANAGE SOCIAL NETWORK PROFILE QuICK LOOK SOCIAL MEDIA uSAGE IS GROWING FAST ACROSS THE GLOBE, PROMPTING CTTC TO CREATE TARGETED SOCIAL MEDIA PROGRAMS TO ENGAGE CONSuMERS AND GROW THE CALIFORNIA BRAND. 58 CTTC STRATEGIC MARKETING PLAN PURPOSE Technology: Trends & Implications EXECUTIVE SUMMARY TREND IMPLICATION 1 Global Internet proliferation is on the rise—as is access to diverse content types.
Marketers should consider international Internet usage, based on population density and online users, when designing online strategies. Developing content specific to audience is key to inspiring usage and engaging consumers with the California brand. ABOUT CTTC RESEARCH & ANALYSIS 2 Internet consumption is going portable and will continue to fragment. visitcalifornia. com’s rich content needs to be accessible across a range of devices, but more importantly, live in a range of places so it can be relevant to users wherever and whenever they want to access content. MARKETING OVERVIEW 3 Social media is driving Internet growth, engagement and preference—via its push and pull of content generation and consumption. California’s brand is one that inspires.
By finding ways to tap into this inspiration and encourage feedback and content-generation, CTTC will grow the brand. Travel content is poised to become a dominant content category in the social media space. Consumers enjoy sharing their experiences via photo uploads, destination posts and blogs—all of which create word of mouth desire among the visitor’s Internet community. OBJECTIVE 1: PLATFORM OBJECTIVE 2: BRAND Figure 36 OBJECTIVE 3: ENGAGEMENT Travel Cycle OBJECTIVE 4: INTERNATIONAL DISCOVER PLAN BOOK PREPARE TRAVEL RELIVE & REPEAT ROAD MAP QuICK LOOK THE NEW PLAN MOVES BEYOND INSPIRATION AND ENGAGES CONSuMERS AT EVERY STEP, FROM BRAND DISCOVERY TO TRAVEL AND REPEAT VISITATION. CHAPTER 4 | RESEARCH & ANALYSIS 59 Segmentation Strategies
CTTC has targeted domestic marketing programs to a national audience in recent years. In future years, CTTC plans to expand impact by tailoring messaging to specific subgroups. By providing relevant messages to smaller, niche audiences, CTTC aims to better engage consumers and increase brand satisfaction and response rates. To do this, CTTC will use segmentation methodologies to organize consumers into various types that behave in fairly predictable ways, making it easier to design programming and messaging. The principles behind the structure of the segmentation model are illustrated in figure 37. Detailed programming will be developed in each year’s annual work plans. Repeat Visitation
One aspect of the segmentation that will be explained in some detail here relates to repeat visitation. Using the TNS TravelsAmerica domestic visitor database for FY 2009–10, CTTC identified distinct planning and travel behaviors. More than two-thirds of visitors from primary Western markets visit California three times or more in five years—categorized in the chart as “frequent travel. ” Nearly half of U. S. long-haul visitors also are frequent visitors, inspired in part by California’s diversity of activities and landscapes. The state’s population base is an attraction for these travelers, as the majority of frequent travelers from all markets list “visiting friends and relatives” as their primary trip motivator.
First-time travelers from primary markets skewed toward spring and summer months, while frequent travelers from long-haul markets skewed toward holiday travel (October through December).
Theme parks were visited more often by first-time and infrequent travelers from primary Western markets, while urban sightseeing was more popular among firsttime and infrequent travelers from long-haul markets. Beaches and shopping were popular across nearly all segments. While visitors from all frequency categories and geographies used friends and relatives as a key information source, first-time and infrequent travelers from both geographies relied more on Web sites for data. Figure 37 Four Segmentation Strategies 1.
Target Type Geography Preferred trip activities Travel consideration phase Frequency of CA travel Socio-Economic 2. Goal Attract first time visitor Increase frequency of visits Increase length of stay Increase number of activities Increase certain type of activity 3. Method E-mail SEM Banner Ads Social Media Print 4. Message What’s New Deals Regional interests Request User-Generated Content Sweepstakes QuICK LOOK CTTC WILL uSE SEGMENTATION STRATEGIES TO TAILOR MESSAGES FOR MAXIMuM IMPACT. uSING SEGMENTATION STRATEGIES, CTTC CAN BETTER uNDERSTAND DIFFERENT CONSuMER TYPES AND DESIGN TAILORED PROGRAMS THAT ENHANCE BRAND SATISFACTION AND CONSuMER RESPONSE. 60 CTTC STRATEGIC MARKETING PLAN PURPOSE Figure 38 Repeat Visitation: Primary Purpose of Trip
PRIMARY WESTERN MARKETS* 100% 90% 30% 24% 14% EXECUTIVE SUMMARY LONG HAuL MARKETS** 100% 90% 80% 23% 6% 19% 14% 11% 8% 18% 4% RESEARCH & ANALYSIS ABOUT CTTC 80% PERCENTAGE RATE 60% 27% PERCENTAGE RATE 70% 32% 70% 60% 50% 40% 30% 20% 33% 77% 9% 39% 6% MARKETING OVERVIEW 50% 40% 30% 20% 10% 0% First Visit Infrequent Frequent 36% 39% 7% 5% 63% OBJECTIVE 1: PLATFORM 57% 10% OBJECTIVE 2: BRAND 0% First Visit Infrequent Frequent VISITOR FREQuENCY OTHER * PRIMARY WESTERN MARKETS ARE: Az, CO, NV, OR, UT, WA ** U. S. LONG-HAUL ARE ALL OTHER STATES OUTSIDE OF CALIFORNIA VISITOR FREQuENCY OBJECTIVE 3: ENGAGEMENT ENTERTAINMENT OuTDOOR RECREATION VFR OBJECTIVE 4: INTERNATIONAL
SOURCE: TNS TRAVELSAMERICA, 09-10 QuICK LOOK FREQuENT VISITORS REPRESENT THE LARGEST GROuP OF VISITORS FOR BOTH PRIMARY WESTERN MARKETS AND LONG-HAuL MARKETS. THIS CHART SHOWS THAT A MAJORITY OF LONG-HAuL VISITORS COME TO VISIT FRIENDS AND RELATIVES. ONCE THEY VISIT, THEY CAN BE ENGAGED TO SHARE THEIR KNOWLEDGE OF THE STATE WITH OTHER TRAVELERS. ROAD MAP CHAPTER 4 | RESEARCH & ANALYSIS 61 Figure 39 Repeat Visitation: California Non-Resident Leisure Travelers CA TRIP TOTAL NON-RESIDENT PRIMARY WESTERN MARKETS LONG-HAUL MARKETS FIRST TIME VISITOR 16% 7% 22% INFREQUENT VISITOR (1–2 VISITS IN 5 YEARS) 28% 23% 32% FREQUENT VISITOR (3+ VISITS IN 5 YEARS) 56% 71% 46% Figure 40
Repeat Visitation: Trip Activities PRIMARY WESTERN MARKETS* FIRST TIME BEACH (49%) THEME PARK (43%) VISITING RELATIVES (23%) RURAL SIGHTSEEING (19%) SHOPPING (16%) INFREQuENT BEACH (35%) SHOPPING (32%) THEME PARK (27%) FINE DINING (24%) URBAN SIGHTSEEING (24%) FREQuENT VISIT RELATIVES (57%) BEACH (29%) SHOPPING (27%) VISITING FRIENDS (25%) THEME PARK (18%) u. S. LONG-HAuL** FIRST TIME BEACH (49%) URBAN SIGHTSEEING (42%) SHOPPING (35%) RURAL SIGHTSEEING (31%) FINE DINING (28%) INFREQuENT VISIT RELATIVES (38%) FINE DINING (38%) URBAN SIGHTSEEING (37%) SHOPPING (37%) BEACH (36%) FREQuENT VISIT RELATIVES (60%) VISITING FRIENDS (37%) SHOPPING (33%) FINE DINING (28%) BEACH (28%) PRIMARY WESTERN MARKETS ARE: Az, CO, NV, OR, UT, WA SOURCE: TNS TRAVELSAMERICA, 09-10 ** U. S. LONG-HAUL ARE ALL OTHER STATES OUTSIDE OF CALIFORNIA QuICK LOOK DESTINATION DRIVERS AND TRAVEL INFORMATION SOuRCES VARY ACCORDING TO REGION OF ORIGIN AND FREQuENCY OF TRAVEL. CTTC uSES THESE DISTINCTIONS TO TAILOR MESSAGING AND BuILD BRAND LOYALTY AND RESPONSE. 62 CTTC STRATEGIC MARKETING PLAN PURPOSE Figure 41 Repeat Visitation: Top Travel Planning Resources PRIMARY WESTERN MARKETS FIRST TIME FRIENDS/RELATIVES (42%) INFREQUENT FRIENDS/RELATIVES (30%) FREQUENT OWN EXPERIENCE (30%) LONG-HAUL MARKETS FIRST TIME FRIENDS/RELATIVES (34%) DESTINATION WEBSITE (23%) OWN EXPERIENCE 18%) ONLINE TRAVEL AGENCY (19%) TRAVEL PROVIDER WEBSITE (17%) NO PLANS WERE MADE (15%) TRAVEL PROVIDER SITES (18%) DESTINATION WEBSITE (19%) NO PLANS WERE MADE (21%) TRAVEL PROVIDER WEBSITE (19%) ONLINE TRAVEL AGENCY (13%) NO PLANS WERE MADE (15%) OWN EXPERIENCE (29%) FRIENDS/RELATIVES (24%) ONLINE FULL-SERVICE TRAVEL SITE (31%) TRAVEL PROVIDER WEBSITE (20%) DESTINATION WEBSITE (19%) INFREQUENT FRIENDS/RELATIVES (39%) OWN EXPERIENCE (38%) ONLINE TRAVEL AGENCY (35%) TRAVEL PROVIDER WEBSITE (33%) TRAVEL PROVIDER WEBSITE (18%) ONLINE TRAVEL AGENCY (26%) FREQUENT OWN EXPERIENCE (40%) TRAVEL PROVIDER WEBSITE (37%) EXECUTIVE SUMMARY ABOUT CTTC RESEARCH & ANALYSIS FRIENDS/RELATIVES (34%) MARKETING OVERVIEW ONLINE TRAVEL AGENCY (13%) SOURCE: TNS TRAVELSAMERICA, 09-10 OBJECTIVE 1: PLATFORM QuICK LOOK DESTINATION WEB SITES ARE MOST OFTEN uSED BY FIRST-TIME VISITORS TO THE STATE, IMPLYING THAT CONTENT AND SITE FORMATTING OF VISITCALIFORNIA. COM SHOuLD BE ORIENTED TO THESE VISITORS.
BECAuSE ALL TRAVELERS RELY HEAVILY ON FRIENDS AND FAMILY FOR TRIP INFORMATION, BOTH FREQuENT TRAVELERS AND THOSE THEY VISIT CAN BE ENCOuRAGED TO SHARE TRIP IDEAS AND TRAVEL INFORMATION WITH LESS FREQuENT TRAVELERS. OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 4 | RESEARCH & ANALYSIS 63 Beyond the Gateways Much of the research described here has implications for rural California—those areas outside major urban centers. With 49% of all non-resident leisure trips coming from the six primary market states outlined in figure 13 (page 30), and 70% of visitors from these markets traveling by auto or RV in FY 09–10, the opportunities for promoting areas of California most easily reached by private vehicle are considerable.
And, changes in trip behaviors in this new normal economy will only favor more drive travel from these markets. As shown in figure 26 on page 47, domestic visitors are more often choosing to take shorter trips to closer destinations, with travel by car replacing travel by air in over a quarter of people surveyed last year. Furthermore, California’s beyond-thegateways product resonates well with today’s consumers. Given the current valuation of “real and meaningful” experiences by consumers globally, the highly personalized activities to be found in rural California—wine tasting, visiting a farm or historic site—will be at a premium over the next five years.
Currently, rural sightseeing is listed as a top-five activity among first-time visitors from both primary western markets and U. S. long-haul markets, but falls from the list for more frequent visitors. The opportunity therefore exists to target these frequent visitors with messaging that highlights the many and varied experiences available in rural California. Technological trends, too, have great relevance to rural California. With the explosion of usergenerated content, even the most remote offerings can be communicated to a wide audience. An example is National Geographic’s geotourism project, an online repository of unique and sustainable places and attractions that currently features offerings in California’s North Coast and Shasta Cascade regions.
Additionally, the availability of mobile GPS applications on smart phones will ease travel throughout California’s outdoors, either through navigational uses or for applications like geocaching, the high-tech treasure hunting game played throughout the world by adventure seekers equipped with GPS devices. CTTC is undertaking extensive research in spring 2011 to fully explore how the opportunities outlined above can best be addressed. The research conducted with both U. S. and international consumers will determine: • How consumers view California’s geography, beyond the labels of Northern and Southern California. • What they call or how they describe the areas beyond the gateways. How consumers understand areas within the state: by geography or type of activity offered. • What type of content/information they would like regarding the lesser-known areas in the state, what would be most compelling to them, and how they would like that information presented. The spring research will also help CTTC reorganize the structure of its current rural marketing program, through best practices gained from other rural marketing programs as well as moderator-led discussions among current recipients of CTTC rural funds. CTTC will develop a system that best meets today’s business and marketing environments. The specific objectives for this industry research are to:
CALIFORNIA’S BEYOND-THEGATEWAYS PRODuCT WILL BE ESPECIALLY RELEVANT OVER THE NEXT FIVE YEARS. TRAVEL BY AuTOMOBILES IS ON THE RISE, AND THE PERSONALIZED NATuRE OF MOST INSIDER EXPERIENCES WILL APPEAL TO TODAY’S MEANING-DRIVEN CONSuMER. • Understand organizational and funding practices from other states’ rural marketing programs. • Understand what existing rural associations need from CTTC to best market their regions. • Obtain industry perspectives on how they want to be perceived by consumers, and what labels they think are most appropriate for their regions. • Obtain organized input from entities within the state that represent rural regions but that are not currently a part of CTTC’s rural program. 64
CTTC STRATEGIC MARKETING PLAN PURPOSE Repeat Visitation: Trends & Implications EXECUTIVE SUMMARY Using the previously mentioned economic and demographic data surrounding repeat visitation, CTTC determined key trends and implications: TREND IMPLICATION ABOUT CTTC 1 44 percent of non-resident travel to California—and 31 percent from primary Western markets—is by first-time or infrequent travelers. There is an opportunity to increase travel frequency in a significant proportion of California’s existing travel customers, even from Western markets, by reaching out with secondary offers and direct contact with visitors to encourage repeat visitation. RESEARCH & ANALYSIS 2
Frequent travelers are predominantly motivated by visiting friends and relatives, and use their own experiences most often for travel planning. CTTC can engage frequent travelers and their in-state friends and relatives to become brand advocates, utilizing their knowledge not only for their own travel, but also as a reliable source for others planning travel. MARKETING OVERVIEW OBJECTIVE 1: PLATFORM 3 Visiting beaches/coastline and shopping are top activities across geographies and frequency spectrum, although they are important to different degrees and for different reasons. Beaches are iconic to California, acting as a destination driver, reinforcing the importance of using coastal imagery in brand communications to inspire desire to travel to California.
It also suggests including shopping content on the Web and other marketing mediums where travel planning occurs after the destination is selected. OBJECTIVE 2: BRAND OBJECTIVE 3: ENGAGEMENT 4 Theme park visits are most popular among first-time and infrequent visitors from Western markets; urban sightseeing is more popular among first and infrequent long-haul visitors. These trends suggest matching content to vacation desires of visitors, depending on their origin. CTTC will incorporate theme park messaging and images into programs targeting less frequent Western markets, while iconic city attractions should be included in programs aimed at less frequent long-haul visitors. OBJECTIVE 4: INTERNATIONAL ROAD MAP CHAPTER 4 | RESEARCH & ANALYSIS 65 5 Marketing Overview 011 2012 2013 2014 2015 2016 PURPOSE Marketing Program History & Success To understand how CTTC’s marketing program has evolved into the tremendous success it is today, and why it is developing specific programs, it’s important to do a quick review of where CTTC’s program has been. Through careful stewardship and creativity, CTTC has built its renowned advertising program steadily over time. Although CTTC now has a respectable budget that can make a difference for California, it’s still modest compared to many of California’s competitors overseas, so CTTC has had to be disciplined and make strategic choices through the years to make the most impact.
With the Foundational Plan, CTTC laid down a powerful strategic foundation, applying hard data and industry insights to craft a roadmap that would drive California farthest. A key part of that road map was finding out, through qualitative research, how California differentiated itself from its competitive set. Roughly 10 years ago, CTTC discovered that the California lifestyle is what truly made the Golden State unique among global destinations. The “California Attitude”— Californians’ unique approach to life (putting pleasure first and living life to the fullest)—is what drove the mystique of, and desire for, a California vacation. This message resonated strongly with consumers, particularly when the embodiment of the lifestyle included Hollywood celebrities.
The quantitative tracking results were powerful and consistently positive. By capitalizing on these brand assets in CTTC’s advertising program strategy, and integrating them into tourism sales and public relations efforts, CTTC was quickly able to demonstrate positive results. By consistently driving home the new strategic brand platform into all programs in key markets, CTTC helped California capitalize on the good times and weather the storms better than the state’s competitors. The following historic key results support this: • The declining share trend of the mid nineties reversed, with domestic share growing from roughly 9. 8 percent in 1997 to 11. 5 percent in 2001. In the post 9/11 downturn, California shifted both media and message strategies to better fit with consumer travel patterns, and became the only destination in its competitive set to significantly grow volume and share for 2001. • During the “great recession” of 2009, CTTC maintained its domestic marketing investment. As a result, the California tourism industry realized 3. 4 million incremental trips and $4. 2 billion in spending. The $305 to $1 return on investment far exceeded advertising ROI seen for competing destinations, even during better economic times. Currently: • California’s share of the U. S. market is nearly double that of its closest competitor (11. 27% vs. 6. 5%).
• Return on investment reached a historical high of $305 in 2009. CTTC has achieved national advertising awareness at extraordinarily high levels that are difficult and expensive to increase (70–75 percent in the previous two years).
OVER THE NEXT FIVE YEARS, THE CALIFORNIA INSIDER PROGRAM WILL AIM AT INCREASING AWARENESS OF CALIFORNIA’S TRAVEL PRODuCT BEYOND EXECUTIVE SUMMARY ABOUT CTTC THE GATEWAYS, LEVERAGING THE uNIQuE ATTRIBuTES AND APPEAL OF CALIFORNIA’S EIGHT ESTABLISHED RuRAL REGIONS. RESEARCH & ANALYSIS This research showed that the “California Attitude” was as relevant as ever. In fact, CTTC discovered an aspirational quality where consumers wanted to experience the California lifestyle—or at least see it for themselves. CTTC also discovered that the idea of “Abundance,” the best of everything in one place, solidified California’s value proposition.
When combining the “California Attitude” with “Abundance,” California becomes a “Superlative” destination—a place where consumers can live like a Californian, essentially becoming a Californian themselves during their visit. CTTC used this important research and additional funding in 2007 to broaden its message platform. In addition to the core umbrella campaign (California Attitude), CTTC introduced three additional, distinct efforts: • California Wine & Food. The 2007 qualitative research had indicated that wine and food was now a driver for destination choice, which represented a significant opportunity for California to have strong appeal with affluent travelers. • California Insider. As the nation’s number one destination, numerous travelers have been to California multiple times, making CHAPTER 5 | MARKETING OVERVIEW
