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17 Submission to the Christchurch City Council Tuesday 22 nd February 2005 Domestic Campaign Funding Event Marketing Funding Local Resident Marketing Funding Ian Bougen, Chief Executive Officer Bryn McGoldrick, Chairman Christchurch Canterbury Marketing
18 Introduction 1. Re-Cap 2. Current Advertising Campaign Activity 3. CCM s Funding Activities (income expenditure) 4. Specific Funding Requests 5. Summary
19 RE-CAP As previously reported: Independent research confirmed low appeal of Christchurch and Canterbury as a destination by North Islanders impacting on the domestic visitor market Tourism sector plays an increasingly important role in achieving both economic and social benefits for our community This low consideration also impacts negatively on North Islanders perceptions of Christchurch as a desirable place to invest, live and work
20 RE-CAP Cnt d As a City we need to work to change these perceptions the process we have needs to be continued, engineered and enhanced over a sustained period It is a key objective of CCM s to promote a Christchurch Inc approach for best returns on public and private sector investment CCM cannot, on behalf of the City, allocate sufficient funds out of its current budget without negatively impacting on our other core activities
21 Current Advertising Spend 1 January 05 February March April BRAND National Magazines North Island Sunday Newspaper Outdoor Auckland Wellington (x52 Bus Backs / x125 Bus Shelters) TOTAL BRAND ADVERTISING $202,160 January 05 February March April TACTICAL North Island Sunday Newspaper Auckland Wellington Daily Newspapers (Saturday Wednesday) Television Internet TOTAL TACTICAL ADVERTISING $161,342
22 Current Advertising Spend 2 January 05 February March April May EVENTS National Magazines JAZZ SAVOUR North Island Sunday Newspaper J S TOTAL EVENT ADVERTISING $41,368 JAZZ FESTIVAL SAVOUR NZ CAMPAIGN INVESTMENT Total Brand Advertising $202,160 Total Tactical Advertising $161,342 Total Event Advertising $41,368 Total Design Printing Costs Talent Fees $139,372 Media Trade Initiatives (including Bent Family Bus) $26,527 Consumer Research $21,600 TOTAL CAMPAIGN INVESTMENT $592,369 CCC Domestic Funding $200,000 CCC C/fwd Previous Year $40,000 CCMs General Funds (50% private sector) $290,369 Private Sector Cash Funds $62,000 TOTAL CAMPAIGN FUNDING $592,369 Note: Private Sector Contra Support an Additional $46,000
23 Activity Surrounding Mehrts Campaign Significant public relations and media coverage of Campaign launch The Bent Family touring bus National exposure Industry partner involvement 29 partners to date Early Industry partner support for 2005/06 Campaign Hanmer Springs Thermal Reserve Christchurch billboards Heritage hotels National television advertising support April Interislander direct marketing leveraging off the Campaign Industry acknowledgement from Auckland Wellington (incl TNZ) Mehrts public/media appearances reinforcing campaign
24 Core Funding Preliminary Budget F2005/06 Total Core Funding Christchurch City Council (58%) 1,390,000 District Councils 85,000 Operator Annual Fees (excl. Convention Bureau) 340,000 Contribution from Visitor Centre 390,000 Contribution from Punting 65,000 Other Income 115,000 Total Core Funding 2,385,000 (excl. Joint Venture Leveraged Funds from Private Sector)
25 Expenditure Discretionary Spend by Market Expenditure Preliminary Budget F2005/06 Domestic Market: 100,000 Campaign Event Contribution Australia Market: Joint Venture, Famils, Hosting, Trade Shows, Sales Visits etc. 85,000 Japan Market: Communications, Collateral, Famils, Hosting etc. 30,000 Rest of World Market: Communications, Collateral/Translations Market Specific, Famils, Hostings etc. 50,000 General: 174,000 Public Relations, Communications, Advertising 35,000 Printed Collateral, Promotional Film/DVD 60,000 Distribution Costs 20,000 Website, Web Marketing, On-Line Training 39,000 TRENZ Attendance Theming 20,000 Convention Bureau: Communications, Advertising, Collateral, NZ Activity, Australian Activity, 260,000 Association Activity, Website etc. (Includes $140K cash input from Convention Bureau Members)
26 Specific Funding South Island Promotional Fund (SIPF) CCHL Funded $250,000 Specific criteria include: International Markets only Wider South Island (not just Canterbury) CIAL support (securing routes shoulder season emphasis) Leveraged activity/funding Expenditure by Market: Australia $95,000 Japan $40,000 Rest of World $115,000 $250,000
27 Joint Venture Funding In addition to CCM s market expenditure figures (as shown) we obtain in excess of $2.5 million of Joint Venture activity value.
28 Specific Funding Requests CCM believes funding resources need to be in place to address three key areas: 1. Perceptual change of Christchurch and increased domestic visitation by North Islanders 2. The marketing of key events to North Islanders 3. Local resident marketing
29 Perceptual Change of Christchurch and Increased Domestic Visitation by North Islanders Why? As has already been widely reported to Council our research established the destination fails to enthuse our North Island cousins How? The process we have commenced needs to be continued, engineered and enhanced over a sustained period How Much? For both brand presence and tactical campaign we need an additional Council contribution of $1,000,000 per annum
30 Comparison of Council Funding Domestic Campaigns: Wellington Specific Funding to RTO $1,300,000 Domestic Levy $700,000 Total $2,000,000 Auckland Allocated out of their $2m core funding $200,000 Dunedin Dunedin City Council s own campaign $500,000 I am Dunedin Specific Funding to RTO $150,000 Total $650,000
31 Funding Request Perceptual Change/Domestic Visitation June 05 July August September October November December January 06 February March April May BRAND National Magazines Outdoor Auckland Wellington (Billboards Bus Backs) TOTAL BRAND Advertising $379,670 June 05 July August September October November December January 06 February March April May TACTICAL North Island Sunday Newspaper Auckland Wellington Saturday Newspapers Television Internet TOTAL TACTICAL Advertising $662,096 CAMPAIGN INVESTMENT Total Brand Advertising $379,670 Total Tactical Advertising $662,096 Total Design Printing Costs Talent Fees $185,600 Media Trade Initiatives $50,000 Consumer Research $15,000 TOTAL CAMPAIGN INVESTMENT $1,292,366 CCC Domestic Funding $1,000,000 CCMs Allocated Funds $70,055 Private Sector Cash Funds $205,237 TOTAL CAMPAIGN FUNDING $1,275,292 Note: Private Sector Contra Support an Additional $140,000
32 The Marketing of Key Events to North Islanders Why? Economic driver permeating the City Reinforces perceptual change Promotes the Christchurch lifestyle Excites and ignites the City How? In close cooperation with Council s Festival Events Team and Event Organisers incorporating the four seasons concept Using the Mehrts campaign but in relation to specific events (as per examples) How Much? $250,000
33 Comparison of Funding Event Marketing Wellington:* Specific funding to RTO $300,000 Marketing partnership fund $200,000 TOTAL $500,000 Auckland: Allocated out of their $2m core funding $150,000 ( The City Events Strategy is a mess!! ) Dunedin: Currently undergoing a full review. The Dunedin City Council Events Unit discretionary spend of over $600,000. Currently mostly on community events. No national or international events policy is in place * (Note: Wellington has a $2 million event development fund within Council to bid for and organise events)
34 Funding Request Key Event Marketing June 05 July August September October November December ARTS WINTER SHOWTIME FLORA NZ FESTIVAL FESTIVAL CANTERBURY EVENTS National Magazines Arts Festival Winter Festival Flora NZ Showtime Buskers North Island Sunday Newspaper A A W W F F SC SC B B TOTAL EVENT Media Spend $305,545 EVENT CAMPAIGN INVESTMENT January 06 February March April May BUSKERS FLOWERS JAZZ FESTIVAL SAVOUR NZ Total Event Advertising $305,545 ROMANCE Total Design Printing Costs $14,400 Flowers Romance Jazz Festival Savour NZ TOTAL CAMPAIGN INVESTMENT $319,945 FR FR J J S S CCC Domestic Funding $250,000 CCMs Allocated Funds $29,945 Event Organisers Cash Funds $40,000 TOTAL CAMPAIGN FUNDING $319,945
35 Why? Local Resident Marketing Pride and Knowledge Residents understand and appreciate what their own City has to offer Ambassadors Residents become the message carriers inviting friends and relatives (VFR) to share their City whilst enhancing visitors stay. 300,000 people informing others what there is to do! How? In close cooperation with Council s City Promotions Team Direct mail to householders A quick reference activity guide memory jogger Public relations/media activity How Much? $150,000 per annum
36 Comparison of Funding Local Resident Marketing Wellington Specific Funding $400,000 Auckland Allocated out of their $2m core funding $95,000
37 Without a Continuing Campaign - What Happens? We lose the undoubted momentum we are currently achieving We risk being seen by both the community and industry as lacking resolve and consistency We will continue to experience significant seasonal troughs which impact on the business community We risk compromising the future success of the City s icon festivals events We will negatively impact on the recent progress being made by all the City s agencies to a Christchurch Inc approach
38 General Support Our campaign is strongly supported by other agencies in the City, the Tourism Industry and the wider community Attached are support letters from: Christchurch International Airport Limited (CIAL) Air New Zealand Canterbury Chamber of Commerce (CECC)
39 Summary Campaign, although in its infancy, is achieving cut through in the key North Island markets. It is imperative that we maintain our marketing efforts in order to achieve our objectives of perceptual change and increased visitation We are very confident we have the framework to drive significant benefits to Christchurch Inc. which will go far beyond the tourism sector and impact positively on both the business and residential communities Without Council funding we will not be able to achieve these outcomes on behalf of the City We are looking for three separate funding resources: Domestic Campaign contribution $1,000,000 Event Marketing $250,000 Resident Marketing $150,000 We feel it is appropriate to request this funding initially for one year only. Whilst it is clear this funding resource would be required on an ongoing basis, we consider it only proper that Council have the opportunity to review the performance against our goals before further commitment
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