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HomeMy WebLinkAbout15- TRA Strategic and tactical economic development marketing plan 0 Technical Proposal City Clerk agenda@bozeman.net (406) 582‐2320 Chris Kukulski, City Manager City of Bozeman PO Box 1230 Bozeman, MT 59771 (406) 582‐2306 Proposal Due Date: Tuesday, December 1, 2015 / 4:00 PM Technical Proposal Prepared By: The Research Associates (TRA) 165 Broadway, Suite 2301 New York, NY 10006 Primary Contact Sung Lee Dir. 212.868.5178 Main. 212.868.5100 Email. swlee@Theresearch.com Fax. 212-202-3669 1 Table of Contents Brief Summary ............................................................................................................ 2 Background ................................................................................................................ 2 Project Understanding and Relevance Experience ......................................................... 3 Unique Selling Proposition .............................................................................................. 6 Outline of Proposed Process for the Development of the Strategic Plan....................... 8 Phase 1: Orientation ....................................................................................................... 8 Phase 2: Gather and Review Strategic Background Information ................................... 8 Phase 3: Strategy Briefing ............................................................................................... 9 Phase 4: COB Strategic Planning Workshop ................................................................. 10 Phase 5: Strategy Report .............................................................................................. 10 Phase 6: Strategy Performance Review Support .......................................................... 13 Management ............................................................................................................ 15 References ................................................................................................................ 17 ATTACHMENT A: NON‐DISCRIMINATION AFFIRMATION FORM .................................. 18 2 Brief Summary The Research Associates, subsequently referred to as “TRA”, is a New York City based marketing research and strategic consulting firm. TRA is one of the leaders in the field of market research and strategic planning services. Since the 1990’s, TRA consultants have been engaged in several significant strategic planning projects including The City of New York, U.S. Department of Commerce, U.S. Department of Defense – Biometrics, Walt Disney Parks and Resorts, LG, Universal Studios Parks and Resorts to name a few. Our experience has allowed us to develop and master methodologies that would uniquely position and enable us to update and prioritize The City of Bozeman’s (“COB”) strategic programs and objectives and produce a strategic plan. Background Guiding Principles TRA’s company mission is to offer relevant and actionable deliverables by 1) using language/terms our clients understand, 2) reflecting our clients’ needs, and 3) providing actionable stakeholder insights, not just stakeholder data. TRA’s Strategic Framework Tourist Research Strategic Analysis Key Marketing Success Factors Marketing Advertising Business Development Policies Constant Communications and Monitoring Phase II Analysis Phase I Review Phase III Strategy Research Strategic Analysis Key Success Factors Plan Initiatives Monitoring Policies Process Optimization Phase II Analysis Phase I Phase III Strategy 3 TRA Unique Capabilities Integration among Strategy, Quantitative Analytics and Change Management To optimize the development of appropriate, value added strategic plans for our clients. TRA exploits the benefits of integrating traditional business strategy with change management. We believe this approach delivers a holistic view of our clients’ stakeholders as well as to convey unique benefits not available through other research and consulting firms.  Strategy Development Capabilities. TRA incorporates the concepts of knowledge based business strategy to help our clients build long-term relationships with their stakeholders. The coupling of market research with knowledge based business strategy generates insights that foster the development of strategies and initiatives that will enable COB to interact with the right stakeholders, provide the right services, and communicate through the right channels.  Change Management. TRA’s change management specialists help clients plan, manage, and sustain the "people" and "process" transformation that necessarily must occur with any successful conversion of a "product centric" to "stakeholder centric" organization when performing activities. Project Understanding and Relevance Experience TRA has experienced rapid growth since its inception in 2000. The main reason for our growth is the fact that we employ experienced consultants and provide results-driven recommendations. The team, that will be dedicated to COB, will have years of experience in strategic planning and management consulting. TRA consultants have expertise in planning and conducting market research and strategic planning initiatives for numerous states, destinations and cities. Our familiarity with the landscape and its unique marketing objectives/strategies enable us to provide a more efficient and effective service to COB. States and cities have distinct marketing implementation program needs that are different from the program needs of typical clients. Our experience will enable us to understand and act upon those key success factors for COB’s strategic and tactical economic development plan. Relevant Experience As mentioned above, we have performed projects with numerous states/destinations/cities and travel related companies. Specifically, we have provided 4 1) analyses and evaluations, 2) strategic plan, and 3) recommendations for strategies and tactics, 4) monitoring plan involving the following leading organizations: Notable Organizations (Tourism and Government)  Walt Disney Parks and Resorts  Universal Orlando  US Department of Commerce  South Korea Tourism  Royal Caribbean Cruise  US Department of Commerce  City of New York  International Trade Administration: Commercial Service  GSA  Orange County Convention and Visitors Bureau (Orlando, FL)  New York Racing Association Case Studies Positioning Analysis and Plan – Walt Disney World Situation: The Walt Disney World Resort (WDW) had no consistent strategy despite its leadership position in brand awareness. Its guests normally equated the Magic Kingdom as Walt Disney World and did not understand the brand propositions of other major parks such as Epcot, Studios and Animal Kingdom. Service Modules: TRA consultants helped establish requirements for the brand building initiative, ensuring that they would be specific, measurable, agreed-upon, realistic, and consistent/integrated. Our deliverables included brand assessment (strategic audit, SWOT analysis and primary stakeholder research), and brand strategy and platform development. Results: We helped WDW to 1) effectively identify and prioritize key brand attributes, 2) target its messaging and look and feel to key market segments and stakeholders; 3) create and align its brand essence and mission for all WDW parks, as well as products and services, in the most effective manner; and 4) increase the value of the WDW brand so that its guests recognize the benefits of WDW (umbrella brand) and each sub brand (Magic Kingdom Park, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom Theme Park). Universal Orlando Resort Summary of Scope and Services Provided: 5 We assessed Universal Orlando’s current research, resources and processes, identified key gaps, and suggested ways to strategically improve Universal Orlando’s strategic planning and marketing efforts. Market Attractiveness: Defined those variables that drive market attractiveness. Market attractiveness was evaluated not only with respect to geographic location but also by customer demographics, vacation behaviors and psychographics. Market Prioritization: Leveraged the data obtained in the market attractiveness analysis to develop a profile and map of Universal Orlando Resort customers, based not only on the current state but also on market potential. Through this process, current markets were examined and new markets were identified. Markets were prioritized based on customer indices. Key Branding Drivers and Tools for High Priority Markets: Within each of the high priority markets, both current and those with future potential, we uncovered specific areas where targets are likely to be receptive. The information allowed for targeted branding messaging that have greatly enhanced product/brand development and marketing efforts. Brand/Product Mapping and Positioning: Mapped how Universal Orlando Resort’s products are positioned against select partners(s)/competitor(s) by analyzing key branding drivers and tools. Strategic Marketing Study – Walt Disney World Performed “the cause” of guest changes in theme park and convention/conference attendance based on household/business profiling, key visitation metrics, visitation by parks, spending and economic impact. Key Initiatives  Walt Disney World Guest Profiling by Households  Walt Disney World Guest Attitudes and Perceptions  Walt Disney World Guest Geographical Research and Analysis  Walt Disney World Guest Segmentation based on Demographics and Psychographics  Walt Disney World Guest Price Sensitivity Analysis  New Attractions and Resorts’ Impact on Guest Visitation and Satisfaction  Walt Disney World Key Visitation Metrics Development, Monitoring and Analysis  Key Guest Visitation Factors and Metrics  Optimal Visitation Performance Scenario Given the Capacity and Revenue  Walt Disney World Visitation by Parks  Visitation Data Tabulation and Analysis by Each Park  Visitation Forecast by Theme Park 6  Walt Disney World Marketing Media Mix and Effectiveness  By each key region  By each strategic guest segment  Lifetime value of segments  Vacation planning cycle  Planning behavior by segments  Geography LG Global Research and Positioning Strategy Project Objective: The objective of this study is to develop an overall strategic direction for the LG brand and redesign positioning programs for the 6 individual international markets including USA, Russia, China, India, Vietnam and Korea. This required the reshaping of the company mission and development of positioning strategy that can properly address the changes in the market environment. Furthermore, an action plan was also established to communicate the right messages to the markets. Project Scope: Country Analysis  Korea, U.S., China, Russia, Vietnam, India.  Develop and implement a research plan to be used for strategy formulation.  Analysis of the macro-economic environment, LG’s presence and stakeholders’ perception of the LG brand in terms of awareness, preference, satisfaction, and image.  Evaluation of LG’s current brand communication activities in each country. Positioning: For each country, develop unique and differentiated value propositions or positioning statements that will best reflect the value or the benefit that the LG brand (product/services) will offer its stakeholders. Performance Measurement: Develop tools and methods for quantifiably measuring the effectiveness of the new plan. Use for providing feedback when updating programs. Unique Selling Proposition. How We Are Different TRA Ensures Project Effectiveness and Cost Efficiency As a boutique firm with low overhead, TRA provides services cost efficiently, and with flexibility in pricing. Our size and select client base of prestigious companies and organizations allows us to be extremely responsive. TRA Brings in the Most Advanced Planning Methodologies 7 TRA is a boutique firm comprised of consultants who have worked with and provided marketing strategy services to a broad range of leading non government brands such as, but not limited to LG, Nike, Coca-Cola, Samsung, and Microsoft. TRA Guarantees Personal Service and Client Satisfaction TRA values the relationships that it builds with its clients. This manifests itself through constant client communication, regular client visits, and by having the client actively involved in every phase of the project. TRA provides a high level of personal service to clients throughout the U.S. – we work closely with all clients, no matter their location. This personal service for the COB team would include (but not be limited to): in-person meetings set up at the convenience; daily and weekly written status reports; daily communication with the project lead at COB. Finally, TRA would like to assure COB that the services outlined in this proposal will not be jeopardized by previously established commitments or potential commitments that TRA may engage in the future. In addition, TRA would like to assure COB that we have a full understanding of COB’ project objective and familiarity with applicable law, rules, etc. 8 Outline of Proposed Process for the Development of the Strategic Plan: Overall Project Framework TRA understands that COB is seeking vendors that can facilitate a process to update and prioritize the program and objectives. TRA proposes to use the following approach to achieving the goals of this project: Phase 1: Orientation Key Stakeholder Interviews TRA will conduct face-to-face interviews with internal stakeholders such as COB management and staff in order to understand and define various viewpoints, knowledge & uncertainties. These interviews will be scheduled at a time determined by COB. We will explore issues such as vision, mission, positioning, strengths, weaknesses, opportunities, threats, future directions, etc. In addition to stake holder interviews, TRA will:  Facilitate a COB orientation briefing for all senior leadership  Provide additional follow-up training for senior leadership and support staff who request additional background information to assist them. Production of Written Report At the completion of Phase 1 of this project, TRA will present to COB a written summary report, in paper and electronic formats, containing an analysis of the interview information and an overview of the findings from the sessions. Phase 2: Gather and Review Strategic Background Information For this phase, TRA will gather information that will enable us to develop an optimal plan for designing and conducting initiatives that will enable us to deliver a strategic plan. The following activities will be performed under: In order to fully understand COB’s goals and objectives beyond what is stated in the RFP and from key stakeholder interviews, TRA will conduct a strategic audit that will include the following activities:  Visit COB to determine any specific site dynamic that may be in play.  Review any existing research data and previous strategic documents.  Review key issues and concerns (SWOT) based on initial reviews. o Strategic opportunities and organizational strengths. o Operational obstacles/risks and organizational weaknesses o Operational expectations of primary customers / stakeholders o Core internal operational services, processes, and activities to meet customers' / stakeholders' expectations. 9 o Opportunities based on organizational strengths and weaknesses.  Identify the issue/problem o Mission o Critical issues facing the organization o Short-term and long-term goals Phase 3: Strategy Briefing TRA will meet with COB stakeholders to provide an overview of our findings and to address any questions that maybe outstanding. An oral presentation of the report will be conducted at the convenience of COB. Strategy Map TRA will use the information gathered from Phases 1 and 2 of this project to develop a series of strategic options and a Strategy Map draft that can be used by COB to fulfill its purpose. The methodology that TRA will go through to evaluate the appropriateness of various strategic options would be as follows:  Define/review strategic objectives  Review external factors such as research and analysis  Create multiple strategic options  Evaluate each action item based on: Strategic objectives, External factors, Strategic positioning, Key success factors - Is the strategic option meeting our strategic objective? - Is the strategic option aligned with stakeholder needs and taking an advantage of current landscape? - Is the strategic option aligned with strategic positioning? - Does the strategic option reflecting key success factors?  Pick the right combination of action items based on 1) strategic objectives 2) external factors and 3) strategic positioning 4) key success factors  Design a timeline, detailed budget and staffing plans, an organizational structure, information and knowledge implementation plan to be discussed during the workshop. Direct and In-Direct Driver Analysis TRA will present to COB a final executive summary, containing a complete data. Results from the data collection and analysis will be communicated in a clear and concise manner. Specifically, we will explore the following drivers:  Key Economic and Social Driver Analysis 10  Direct and In-Direct Driver Analysis By using the data obtained from the survey, TRA will identify various direct and indirect benefits COB and its programs generate. Furthermore, these direct and indirect factors will be analyzed by: 1. Business Size 2. Number of employees 3. Region 4. Industry 5. Project Type 6. Project Size/Investment 7. Others Phase 4: COB Strategic Planning Workshop TRA will plan and facilitate strategy sessions that will be comprised on senior TRA strategists and key stakeholders within COB. The purpose of this initiative would be to brainstorm strategies that could be used to enable COB to fulfill its mission and purpose. These strategy sessions will be scheduled at a time determined by COB. During COB Workshop, TRA will perform the following tasks:  Prepare COB Workshop supporting documents to support the Strategy Map draft.  Develop workshop agenda.  Facilitate an COB Workshop to achieve the following outcomes: • Discuss Strategy Map components which includes a mission statement, target customers and stakeholders, priority statements, end states, goals, objectives, metrics, and tasks. Phase 5: Strategy Report After the workshop is completed, TRA will develop a strategic planning document by performing the following:  Complete Strategy Map (including, but not limited to) a mission statement, key stakeholders, priority statements, end states, goals, objectives, metrics, and tasks.  Establish Strategy Performance Review governance process (frequency, scope, and outcomes) which includes guidelines in utilizing Objective Status Reports, Scorecard Report, and Metric Worksheets. 11  Define way ahead action plans, assignments, and timelines to execute strategy management processes.  Review lessons learned in developing strategy cascading and communication throughout the organization.  Identify Objective Champions and their roles and responsibilities. Determination of Tactics and Strategies Overview –Optimization Strategy TRA’s optimization strategy modeling methodology is built around the premise that “all customer segments are unique.” For example, each consumer segment has unique needs, unique behaviors, and different responses to various forms of media and advertising. Knowing this, it would be optimal for COB to track marketing and branding factors based on the identifiable needs and characteristics of specific data. TRA has devised a proprietary system of Marketing and Branding ROI that can be used improve the client’s marketing performances among key customer segments.” The steps that we typically follow when applying Marketing and Branding ROI are listed below. Step 1: Define the State– insights from research To get to these insights, TRA will help the client define and understand who and why customers (do and do not) come to/set up business in/invest in COB. Step 2: Create Segment Profiles Once the client/TRA team defines and understands these customers, TRA can begin to segment the market and create “Segment Profiles” that will define the wants and characteristics (demographics and psychographics) of the different the customer types. Step 3: Calculate Lifetime Value The next step is to calculate the “lifetime value” for each segment, by discounting the expected future benefit generated by stakeholders within each segment. In making this calculation, it is important to consider how other variables might affect the lifetime value of each segment. For example, we will consider how each segment may influence others to interact with the client. Naturally, a segment that has “influencer” potential should be valued higher than one that is not. Step 4*: Prioritize Based on Lifetime Value and Strategic Importance We will then direct COB to target audience segments that provide the highest return for marketing communications dollars as well as those that rate high in strategic importance. 12 Step 5*: Invest Marketing Budget Suitably and Optimize Key Segments / Programs / Messages At this stage, COB should first target “high lifetime value” segments for its initiatives and second, customize its programs to fit the characteristics of the “typical” type within each segment. We will use our audience insights to develop a complete and integrated initiative. The goal should be to integrate and customize 1) products and segments AND 2) communication messages across various communication channels (i.e. Internet, Social Media, print, video, events, etc.) to provide the most relevant guidance and to optimize ROI across the entire campaign. Strategy Roadmap Furthermore, during Step 4* and Step 5* of our optimization module (see above), TRA will develop a series of strategic options and a Strategy Roadmap draft that can be used by COB to fulfill its purpose and develop a 3-year economic development marketing plan. The methodology that TRA will go through to evaluate the appropriateness of various strategic options would be as follows:  Define/review strategic objectives  Review external factors such as research and analysis  Create multiple strategic options  Evaluate each action item based on: “Overall Potential Impact,” “Immediacy of Impact,” “Size of Markets” and “Investment and Programming Required for Market Penetration and Conversion.”  Pick the right combination of action items based on 4 criteria above  Design a timeline, detailed budget and staffing plans, an organizational structure, information and knowledge implementation plan. 13 Phase 6: Strategy Performance Review Support TRA specializes in developing effective strategy execution, operational change, continuous process improvement and internal momentum. In other words, we are able to show “how” and “why” strategic programs are (and are not) adding value by focusing on:  “What is working well and why”, by discovering areas for celebration such as new capabilities, key metrics, and new initiative implementation. We will also recommend ways in which we can continue and improve upon our success.  “What is not working well and why”, by discovering areas for improvement such as capabilities, key metrics, knowledge gaps and initiative implementation. We will also recommend ways to improve these lagging areas in the future. Quality Assurance TRA uses Project Management Six Sigma (our proprietary internal review procedures) to sustain a high quality standard in our organization and projects as well as achieve productivity enhancement and cost reductions. In addition, we enforce Six Sigma to sub-contractors we use for the highest quality project outcomes for our clients. 1. Project Implementation  We manage project by applying key quality control components via tools such as process mapping and Gantt chart in order to:  Continuously implement project purpose  Maintain focus  Manage tasks and sub-tasks  Manage project team members  Manage time and $  We manage and implement project quality by:  Schedule management, which is the responsibility of not only the leaders, but also the team members. Plans and tasks in progress should be co- owned  Responding swiftly to delays/allocation of resources, removal of obstacles and delays  Remembering the time constraints and limited resources as wells as to stay focused  Applying new learning in the next phase 2. Project Monitoring and Improvement  Project Monitoring and Tracking System o Capture actual data vs. planned data o Analyze the disparity between actual vs. plan to understand the cause behind the gap o Recommend ways to narrow/remove the gap  Post Project Review System 14 o Capture actual project results o Identify successes and failures o Celebrate successes o Study failures o Define key success metrics and factors o Recommend subsequent project(s) based on learning gained from the project to IMPROVE organization’s performances 15 Management Sung W. Lee - CEO/Principal Sung Lee is the CEO and a Principal at The Research Associates. Sung is viewed as one of the leading tourism and destination marketing strategists. At TRA, he has provided strategic marketing consulting advice to leading organizations, such as: Leading Brands: Walt Disney Parks and Resorts, Universal Studios Orlando, Universal Parks and Resorts, Universal Studios Hollywood, City of New York, New York Racing Association – Belmont Park, Sesame Street, State of California, and Royal Caribbean Cruise. Government: U.S. Census Bureau, U.S. Department of Justice, U.S. Department of Defense, U.S. Department of Commerce, Marines Special Operations Command (MARSOC), and New York State Department of Health; As a senior level marketing/brand strategist at Walt Disney Parks and Resorts, he designed and led a number of marketing plans and campaigns including: - Guest Awareness, Perception and Satisfaction Measurement - “New Marketing Framework” for Walt Disney World based on a customer-centric marketing model - Market development strategies by developing proprietary customer valuation metrics. Prior to Walt Disney, Sung worked on marketing and brand strategy projects with McKinsey. Sung received a Masters in Business Administration from Columbia Business School and his Engineering degree from Carnegie Mellon University. Amy Lee – Managing Director Amy is responsible for developing marketing organization strategies for the customer centric age: “Customer Centric Company: 3Cs.” At TRA, Amy has worked with Disney, University at Buffalo, Southeast Missouri State, LG, U.S. Department of Commerce to name a few. She is responsible for creating various training programs related to marketing and branding. In addition, Amy works closely with various wine organizations/trades and destinations in the US, Europe, South America and Asia. Her market research background and wine expertise (Advanced Sommelier) will bring unique perspectives to COB project. Amy received a Masters in Organizational Psychology from Columbia University and a B.A. in Economics from Columbia College in New York City. 16 David Gechijian – Planning Director David has extensive experience in planning and conducting consumer research initiatives as well as developing business and branding strategies. A few of the recent research projects that David has worked on at TRA include Walt Disney World Parks Resorts, Universal Orlando, Universal Studios Hollywood, University at Buffalo, LG Global Brand Strategy, Stony Brook University, and Ten Broeck Healthcare. Before TRA, as a research consultant at Siegel+Gale, David was responsible for conducting research programs that were used to inform the development of clients’ brand strategy. Specific research deliverables included brand equity studies, naming validation studies, segmentation/target audience profiling, employee alignment surveys, consumer/b2b focus groups and IDI's, touch-point analysis, visual identity system evaluations and brand performance benchmarking and tracking studies. A partial list of clients include breastcancer.org, Enterprise Rent a Car, Sony PlayStation, American Express, Florida State University, Yahoo!, AARP, Environmental Defense Fund and Vanguard. David received his Master of Business Administration Degree from the M.I.T. Sloan School of Management. At the Sloan School, David concentrated his studies in Information Technology with particular emphasis on Strategic Planning and Statistics. David graduated cum laude from the N.Y.U. Stern School of Business with a B.S. in Accounting. 17 References: REFERENCE 1 COMPANY: University of South Carolina CONTACT NAME: John Valentine PHONE NUMBER: (803) 777-5039 E-MAIL: johnv@mailbox.sc.edu REFERENCE 2 COMPANY: University at Buffalo and Lemoyne College CONTACT NAME: Peter Killian PHONE NUMBER: (315) 415-8684 E-MAIL: killiaps@lemoyne.edu REFERENCE 3 COMPANY: Walt Disney Company CONTACT NAME: Joe Norsworthy, Former VP E-MAIL: joe@joenorsworthy.com 18 ATTACHMENT A: NON‐DISCRIMINATION AFFIRMATION FORM The Research Associates, Inc. hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity, or disability in the performance of work performed for the City of Bozeman, if a contract is awarded to it, and also recognizes the eventual contract, if awarded, will contain a provision prohibiting discrimination as described above and that this prohibition shall apply to the hiring and treatment of the Research Associates, Inc. employees and to all subcontracts it enters into in the performance of the agreement with the City of Bozeman. Signature of Proposer: ___________________________________________________________ Sung Lee, CEO