16 Staff Report - Town Marketing Plan
DATE: COUNCIL AGENDA REPORT AUGUST 31, 2004 MEETING DATE: 09-07-04 ITEM NO. Ib TO: FROM: SUBJECT: MAYOR AND TOWN COUNCIL/) . rOv<-t-ula Q.R)hJo .f..erl DEBRA 1. FIGONE, TOWN MANAGER
V -TOWN MARKETING PLAN RECOMMENDATION: Provide comments and accept staff report on Town Marketing Plan. BACKGROUND: At the 2004 Town Council Retreat, the Council requested that staffbring
back for discussion a Town Marketing Plan based on the goals and objectives stated in the staff model presented at the COlillcil Retreat. This staffreport presents a revised Town Marketing
Plan (Attachment 1) based on the staff model and on further discussions with the Town's marketing partners. The staff report also discusses the roles ofthe Town and its marketing partners
in implementing the marketing plan. Staff is seeking Council comments on the Town Marketing Plan. DISCUSSION: The purpose of the Town Marketing Plan is to provide a strategic roadmap
for focusing time and resources each fiscal year to achieve the Town's marketing goals and objectives. This focus is important, as the Town has limited staff and fiscal resources to
devote to marketing the Town. Setting priorities for allocating resources and leveraging resources by working with our marketing partners will help the Town optimize our marketing efforts.
The Town's key marketing partners include the Chamber of Commerce, hotels and restaurants, merchants, commercial and residential realtors, and event sponsors. PREPARED BY: 0.
PAMELA S. JACOBS ASSISTANT TOWN MANAGER Reviewed by: __Assistant Town Manager Attorney __Clerk te,.,Finance __Community Development Revised: 8/27/04 2:28 pm Reformatted:
5/30/02
II PAGE 2 SUBJECT: TOWN MARKETING PLAN (August 31, 2004) Role of the Town in Marketing Los Gatos The Town and each of our marketing partners have
specific goals for our respective marketing efforts, with many overlapping and/or shared goals. Given the Town's limited resources, it is important to identify the areas in which the
Town can make the most valued-added contributions to marketing the Town. These areas are primarily: acting as a catalyst and convenor for joint marketing activities, conducting town-wide
general marketing activities, marketing Town-sponsored events, and promoting economic vitality as set forth in the Town's Economic Vitality Plan. The Chamber of Commerce is a key partner
in most of these efforts, as well. The Town Marketing Plan Part I of the Town Marketing Plan covers the goals, objectives, and strengths/weaknesses/opportunities/threats that may have
an impact on the Town's marketing efforts. The goals of the marketing plan reflect the Town's key interests and role in marketing the Town: • Goal 1: Maximize tax revenues received by
the Town, including sales tax, property tax, Transient Occupancy Tax, and business license tax. These revenues provide more than 55% of the General Fund that pays for delivery of community
services including police, library and street maintenance. • Goal 2: Enhance the image of Los Gatos as a special place to live, visit and do business. The objectives of the Town Marketing
Plan speak to the specific ways that the Town will attempt to achieve the marketing goals, through marketing efforts to increase the number of shoppers, residents, visitors, businesses,
and homebuyers in Los Gatos and to increase awareness about the Town's attributes in general. Part II ofthe Marketing Plan presents the recommended strategies and tactics for achieving
the goals and objectives. These strategies and tactics are targeted toward a number of different audiences, including current and prospective residents, day visitors, overnight visitors,
current retail and nonretail businesses, prospective retail and non-retail businesses, realtors/property managers, and contractors/architects. The tactics for FY 2004/05 include many
of the Town's current marketing activities, such as the Vista Newsletter, news releases, What's New! e-mail service, the web site, and business recognition program. Some of the tactics
currently underway include the distribution of the new Los Gatos brochure, the placement of a full-page ad in the Explore Silicon Valley book placed in hotel rooms throughout the Valley,
downtown wayfinding, and downtown communication associated with the streetscape project for next summer. Other tactics, including the holiday shopping and the summer campaigns, are being
planned with our marketing partners. Several ofthe tactics will be implemented by the new Economic Vitality Manager when hired, including business and broker outreach and inventory of
businesses and office/R&D space.
PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: TOWN MARKETING PLAN (August 31, 2004) Evaluating the Success of the Town Marketing Plan It is difficult to measure directly the outcomes of marketing
efforts, due to the many factors which may influence those outcomes. However, it is informative to track certain indicators that may reflect progress in achieving the marketing goals.
The indicator associated with the first goal of the marketing plan is the tax revenues received by the Town in the areas that are economically sensitive, including sales tax, property
tax, Transient Occupancy Tax and business license tax. While many factors affect the level of tax revenue the Town receives, marketing efforts to attract shoppers, diners, businesses,
and others to Los Gatos should have a positive effect on tax revenues. Other economic indicators that the Town's marketing efforts may affect are commercial vacancy rates, residential
vacancy and time-on-market rates, hotel occupancy rates and job opportunities. Indicators ofsuccess in achieving the secondgoal ofthe marketing plan include responses to resident satisfaction
surveys, the level of participation in Town events and activities, and the frequency of positive publicity in print and electronic media. Again, other factors will influence these results,
but our marketing efforts should contribute positively to them, as well. CONCLUSION: The recommended Town Marketing Plan is comprehensive, yet focused on the areas in which the Town
can make the most value-added contributions with available staff and fiscal capacity. An emphasis is placed on working with our marketing partners, the Chamber ofCommerce in particular,
to coordinate and leverage marketing efforts. ENVIRONMENTAL ASSESSMENT: Is not a project defmed under CEQA, and no further action is required. FISCAL IMPACT: The source ofthe majority
offunds to support the Town's marketing activities is the Redevelopment Agency budget for specific projects and for the Chamber of Commerce contract. Other funds are available in the
Community Services Department budget (e.g., Vista), Town Manager's Office (e.g., web enhancements), and non-departmental budget (e.g., commission recruitment). Attachments: 1. Town Marketing
Plan
DRAFT 8-31-04 MARKETING PLAN FOR THE TOWN OF LOS GATOS -PART I PURPOSE The purpose of the marketing plan for the Town of Los Gatos is to provide a strategic roadmap for focusing time
and resources each fiscal year to achieve the Town's marketing goals and objectives. GOALS AND OBJECTIVES Goal I: Maximize tax revenues received by the Town, including sales tax, property
tax, Transient Occupancy Tax, and business license tax. These revenues provide more than 55% of the Town's General Fund that pays for delivery of community services including police,
library and street repairs. Objectives: A. Increase local residents' awareness about the importance of supporting local businesses, especially those that generate sales tax. B. Increase
the number of day visitors from the Bay Area who come to Los Gatos to shop and dine. C. Increase the number of overnight visitors from the Bay Area, throughout the state, U.S. and internationally.
D. Increase awareness among commercial realtors and commercial, R&D, and industrial businesses about assets of Los Gatos for a business location. E. Increase awareness among homebuyers
about the assets of Los Gatos that warrant higher property prices. Goal II: Enhance the image of Los Gatos as a special place to live, visit and do business. Objectives: A. Increase
the community's pride in being residents/businesses of Los Gatos. B. Increase the awareness of the unique attributes of Los Gatos among people who travel to Northern California. C. Increase
the community's knowledge of Town services and events. D. Increase participation by Town residents in supporting the community. ATTACHMENT 1
DRAFT 8-31-04 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS Following are the strengths and opportunities, and weaknesses and threats that may have an impact on the Town's marketing
efforts. These and others identified subsequently should be considered in shaping marketing messages and strategies. Strengths and Opportunities • Natural beauty of mountains that frame
Los Gatos • Reputation for high caliber schools • High property values • Demographics of population: household income, education, home ownership • Historic downtown and neighborhood
• Reputation as quaint and charming -strong "brand image" • Frequently referenced by other community as the goal to be achieved -to "be like Los Gatos" • Unsolicited media coverage due
to positive image (VIA, Sunset, Bizlnc, etc.) • Convenient freeway access (17 & 85) and 15-20 minutes from airport • Many community events that support small town image (holiday parade,
MIP, July 4th , Screen on the Green, Cinecats, Shakespeare, Jazz on the Plazz, Fiesta de Artes, etc.) • Variety of lodging -5-star to budget • Proximity of mountain wineries • Retail
mix in downtown • Well known restaurants • Chamber Marketing Committee partnership with Town Weaknesses and Threats • Economy fluctuations beyond control of Los Gatos • High prices of
housing and retail rents • Limited conference/event space and number of hotel rooms • Only business association is Chamber and it is small with limited resources • Misinformation and
rumors about process and projects • Perception that building/development process is time-consuming, costly, and overly-strict • Negative publicity about elitism/exclusivity tone of LG
• Competition from other shopping districts (Santana Row, Willow Glen) and shopping centers (Valley Fair, Stanford) • Gaps in businesses providing all goods and services needed by community
-sales tax leakage • Except for North 40, no space for growth • Community concerns about traffic • Perception that downtown parking is difficult • Small R&D/light industry square footage
• Insufficient information to analyze and monitor economic health of LG • Limited resources and staff to devote to marketing
Town of Los Gatos Strategic Marketing Plan -Part II DRAFT 8-31-04 Audience Desired Actions/Attitudes Messages Marketing Strategy Tactics forFY 04/05 Current residents • Pridel appreciation
for Los Gatos has unique • Consistent & • 2 issues of Vista living in LG charm and character continuous newsletter • Use LG businesses communication • News releases to whenever possible
Los Gatos is envied by • Gentle reminders media as appropriate • Speak well ofLG as a other communities about supporting local • What's new emails place to live and do business • Enhance
website business Sales tax generated by • MIP/Arts bamlers • Encourage visitors and residents, and sales tax and • Enhance recruitment new businesses occupancy tax generated for commission
• Participate in the by visitors pay for positions community everyday Town services to residents Prospective residents • Consider LG as a Los Gatos has unique • Use realtors as • Distribute
ofnew desirable place to live charm and character communication brochure • Understand higher channel costs valid because of Higher prices in Los Gatos • Keep relocation pkg up intangible
assets are justified to date Day visitors • Come to LG frequently Los Gatos is a fun, • Summer in Los Gatos • Downtown wayfinding to shop/dine charnling and convenient advertising campaign
improvements • well ofthe LG place to visit • Los Gatos for the • Event listings to print expenence Holidays advertising and electronic media Los Gatos welcomes you campaign
• Explore ad • Local media publicity • Holiday campaign as possible • Summer campaign for 05 Overnight visitors • Stay in LG when Los Gatos is a fun, • Use travel agents and • Place
new brochure in visiting Silicon Valley charming and convenient corporate travel/events Visitor Centers • well of the LG place to visit planners as vehicles • Event listings
to print expenence for reaching out-of-and electronic media Los Gatos welcomes you town visitors • Explore ad • Statewide and national • Holiday campaign media publicity • Summer campaign
for 05
___1 DRAFT 8-31-04 Current retail businesses • Make LG location a Los Gatos recognizes your • Encourage downtown • Downtown merchant key element of their contribution to the town businesses
to be open meetings re: 2005 individual marketing and values you in the evenings during street work eff0l1s events • Implement marketing • Fully capitalize on • Meetings with plan for
2005 street community events to merchants re: public work enhance their business works projects • Continue business • Participate in • Annual appreciation recognition program community
problem-letter from Town tied • Annual appreciation solving to bus license renewal letter • Look for opportunities • Business recognition for co-op marketing program • Speak well ofLG
Prospective retail • Consider LG for new Los Gatos is a great • Identify gaps in current • Business/broker businesses location location for unique retail retail mix outreach as possible
businesses targeted to a • Identify desirable ce11ain demographic businesses • Develop recruitment package • Work w/commercial brokers and have direct contact where possible Current
non-retail • Participate in Los Gatos recognizes your • Annual appreciation • Inventory of businesses community problem-contribution to the town letter from Town tied businesses and
solving and values you to bus license renewal office/R&D space • Speak well ofLG • Annual appreciation • Refer new businesses letter Prospective non-retail • Consider LG for new Los
Gatos has a variety of • Identify desirable • Business/broker businesses location R&D, industrial, and businesses outreach as possible commercial space • Work w/commercial brokers and
have direct contact where possible Realtors/property mgrs. • Be knowledgeable Los Gatos appreciates your • Ongoing • Attend group meetings about community role as a front-line communication
with and maintain contact • Speak well ofLG communicator about LG residential and with individual realtors commercial realtors and propeliy managers and property managers Contractors/architects
• Understand philosophy Los Gatos has tough but • Clear and consistent • Conduct surveys and behind LG guidelines fair guidelines communication on focus groups with • Speak well ofLG
guidelines these customers