Team: The BrandstormersJeremy Hollenbeck & George Imura

April 7, 2014

Brand Implement Grow

North Carolina could attract more tourists to the state by creating an appealing brand that focuses on adventure

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Implement the brand by marketing to neighboring states

Grow NC tourism with a smart ad campaign

Brand NC to encompass its natural beauty and core values

A fun, memorable slogan will appeal to NC tourists and out-of-state

tourists alike

Increase tourism #’s and $’s through the brand launch

Emphasize NC’s natural wonders and the adventures that await

Rebranding NC could lead to an 18% increase in tourism over the next 5 years, and could garner incremental revenue of $8.84B by 2018

ADVENTURE WELCOMES YOUThe New Slogan:

Brand Implement Grow

People strongly associate NC with hospitality and community, but not with inclusiveness and equality

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0

1

2

3

4

5

Core Values Rated by Agreement

“Adventure Welcomes You”

reflects the friendliness and

hospitality that NC offers

Source: Nick Didow, Team Analysis

1 = Strongly Disagree 5 = Strongly Agree

Brand Implement Grow

NC is broadly associated with its natural beauty, but also stands as a blank canvas to many

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58% 42%

NOTHING

Due to the lack of specific identifiers, “NC” should be explicitly included in

the slogan

Source: Nick Didow, Personal Analysis

Brand Implement Grow

NC stands to increase tourism revenues by emulating previous successes in other states

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StrongPoor

Higher

Tourism Ranking

SAS Brand Rating

Lower

Source: Bloom Brand Ratings

Brand Implement Grow

Crowdsourcing ideas could allow NC to have greater success with its rebranding

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-Contracted private agency-Pretested-Cumulative ROI of $4.10 per dollar spent since 2006

Source: Longwoods International, MEDC

-Abandoned successful campaign in 2012-Implemented new brand without pretesting

Creating an authentic and appealing slogan could lead to greater ROI for NC’s brand campaign

Brand Implement Grow

NC’s presence is not well-defined, but it ranks highly on different metrics

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1st most desirable state

of residence

3rd most friendly state

8th most beautiful scenery

6th favorite state of

Americans

Use advertising campaigns to define NC as a destination for adventure and differentiate it from surrounding states

Brand Implement Grow

Most overnight visitors in NC are residents; our brand could expand overnight visits for surrounding states

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States that account for overnight visitors in 2012

36%

SC8%VA 7%

GA 7% FL 7%

Average party size was 2 people

Festivals

Seasonal Ads

Social Media

Trip Packages

Source: US Travel Stats, NC Dept of Commerce

Brand Implement Grow

NC only captures a small percentage of family vacationers, but could increase in popularity with targeted ads

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Source: Simply Map, NC Dept of Commerce

Increase in 2012 tourism expenditures

of overnight visitors come by automobile84%

5.4%

Capitalize on the heavy use of automobiles and

target families in neighboring states

Brand Implement Grow

After brand launch, NC could increase revenues and increase tourism by 17.63% over 5 years

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CAGR: 3.3%5-year change: 17.63%

30

32

34

36

38

40

2013 2014 2015 2016 2017 2018

Projected room demand after brand implementation (proxy for

visitor #s) High

Moderate

Low

Source: NC Dept of Commerce, Personal Analysis

$1,500.00

$1,600.00

$1,700.00

$1,800.00

$1,900.00

$2,000.00

2014 2015 2016 2017 2018

Projected revenue from tax receipts ($M)

Brand Implement Grow

In the next 5 years, NC could get a total profit of $8.5B through continued partnership with ad agency

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Source: NC Dept of Commerce, Nick Didow

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

2014 2015 2016 2017 2018

Projected Profit ($M)using estimated ad agency budget

Assume that the state’s investment in the ad agency

will be frontloaded as the brand is

launched

Brand Implement Grow

North Carolina could attract more tourists to the state by creating an appealing brand that focuses on adventure

12

Implement the brand by marketing to neighboring states

Grow NC tourism with a smart ad campaign

Brand NC to encompass its natural beauty and core values

A fun, memorable slogan will appeal to NC tourists and out-of-state

tourists alike

Increase tourism #’s and $’s through the brand launch

Emphasize NC’s natural wonders and the adventures that await

Rebranding NC could lead to an 18% increase in tourism over the next 5 years, and could garner incremental revenue of $8.84B by 2018

ADVENTURE WELCOMES YOUThe New Slogan:

Brand Implement Grow

APPENDIX

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Main Visitor Attractions

Comparable Branding Efforts

Day Trippers vs Overnighters Data

Tourism Growth Assumptions

Revenue Analysis

Increase in Tourism #s

Future Brand Awareness

Business Appeal

Visitor Spending Data

Brand Implement Grow

Main visitor activities in NC

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Brand Implement Grow

Other comparable branding efforts

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Colorado

Kentucky

Michigan

“It’s Our Nature.”

“Unbridled Spirit”

Appendix

Brand Implement Grow

Leisure is the most common reason for visiting NC, and overnighters spend significantly more

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$446.58

$63.18

$30.24

$132

$18

$36

$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00 $500.00

Leisure

Business

Personal/Other

Average Total Spending by Daytrippers vs Overnighters

NC Daytripper

NC Overnighter

Brand Implement Grow 17

Visitor spending and taxes due to advertising

Brand Implement Grow

Assumptions regarding tourist growth estimations

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Appendix

- The official NC brand will be introduced in mid-2014

- The festival will take place after the US Open in Pinehurst

- The conservative growth estimate for room demand (tourism #s) assumes a 2.75% CAGR

- The moderate estimate assumes 3.30% CAGR- The optimistic estimate assumes 4.13% CAGR

- The conservative case leads to a 15% increase in tourism over 5 years

- The moderate case leads to a 17.6% increase in tourism over 5 years

- The optimistic case leads to a 22% increase in tourism over 5 years

Brand Implement Grow

Revenue (tax receipts) analysis for all three cases

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Appendix

Conservative Estimate (current CAGR) 2014 2015 2016 2017 2018

Assumed Growth Rate 2.66% 2.66% 2.66% 2.66% 2.66%

Yearly Revenue ($M) $ 1,621.79 $ 1,664.93 $ 1,709.22 $ 1,754.68 $ 1,801.36

Total Revenue ($M) $ 8,551.97

Moderate Estimate (+70% Decaying CAGR) 2014 2015 2016 2017 2018

Assumed Growth Rate 4.5% 3.5% 3.5% 3.5% 3%

Yearly Revenue ($M) $ 1,650.86 $ 1,708.64 $ 1,768.44 $ 1,830.34 $ 1,885.25

Total Revenue ($M) $ 8,843.51

Optimistic Estimate (+160% Decaying CAGR) 2014 2015 2016 2017 2018

Assumed Growth Rate 7% 5% 3.5% 3.5% 3.5%

Yearly Revenue ($M) $ 1,690.35 $ 1,774.87 $ 1,836.99 $ 1,901.28 $ 1,967.83

Total Revenue ($M) $ 9,171.32

The worst case assumes that NC tourism revenues will grow at 2008-2012 CAGR

Brand Implement Grow

Increase in tourism numbers for all three cases

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Appendix

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22

24

26

28

30

32

2014 2015 2016 2017 2018

High

Moderate

Conservative

Brand Implement Grow

Future Plans Around Brand Awareness

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Appendix

A strong, appealing brand that representsNC while still attracting out-of-staters

Branded merchandise will keep NC

fresh in people’s minds

More regular festivals

celebrating the brand

External advertising to increase out-

of-state interest

ADVENTURE WELCOMES YOU

Brand Implement Grow

NC room demand has accelerated quicker than overall travel spending within US

22

0

100

200

300

400

500

600

700

800

23

24

25

26

27

28

29

30

31

32

2008 2009 2010 2011 2012 2013

Room Demand (M)

Domestic Travel Spending in US($B)

Appendix

Source: Frost & Sullivan

Brand Implement Grow 23

“Adventure Welcomes You” also exhibits business appeal

NC is ranked 4th best state for business

NC is the 2nd lowest local and state tax burdened state on businesses

Source: NC Dept. of Commerce