MARKETING, BUSINESS DEVELOPMENT Agenda Item 5.3 AND MAJOR EVENTS COMMITTEE REPORT COVER SHEET 17 August 2004 MELBOURNE MARKETING STRATEGY ANNUAL REVIEW 2003/2004 Division Marketing & Communications Presenter Mary Hennessy, Manager Melbourne Marketing Purpose To present a review of the Melbourne Marketing Strategy 2003 – 2006 for the 2003/2004 financial year. Time Frame This report covers the period 1 July 2003 – 30 June 2004. Finance The initiatives outlined in the report are managed primarily within the Melbourne Marketing and Major Events annual budget with some additional funds from partners in the City Campaign. Legal The report is for noting only and there are no legal issues that arise from the recommendation. Legal advice has and will continue to be provided as required in respect to events and issues that arise in the implementation of the strategy. Sustainability There are no adverse sustainability factors arising from the Melbourne Marketing Program as this is a review only. Connected and Accessible City There is no significant sustainability impact. Inclusive and Engaging City There is no significant sustainability impact. Innovative and Vital Business City There is no significant sustainability impact. Environmentally Responsible City There is no significant sustainability impact. Recommendation That the Marketing, Business Development and Major Events Committee note the review of the Melbourne Marketing Strategy 2003 – 2006. Attachment: 1. Melbourne Marketing Strategy Annual Review 2003/2004 2 MARKETING, BUSINESS DEVELOPMENT Agenda Item 5.3 AND MAJOR EVENTS COMMITTEE REPORT 17 August 2004 MELBOURNE MARKETING STRATEGY ANNUAL REVIEW 2003/2004 Division Marketing & Corporate Affairs Presenter Mary Hennessy, Manager Melbourne Marketing & Major Events Purpose 1. To present a review of the Melbourne Marketing Strategy 2003 – 2006 for the 2003/2004 financial year. Background 2. The Melbourne Marketing Strategy 2003-2006 was approved by Council in 2003. The overall vision of the Strategy is as follows: “In 2006, Melbourne will be world-renowned as a compelling and dynamic destination, with an unrivalled package of diverse attributes. The city will be flourishing from the benefit of the myriad of business, cultural and sporting events being staged in Melbourne, culminating in the 2006 Melbourne Commonwealth Games”. 3. To realise this vision, the Strategy outlines 5 key strategic objectives: 3.1. to increase visitation to the City of Melbourne, contributing to the cultural, social and economic well-being of Melbourne and Victoria; 3.2. to celebrate, enhance and promote the attributes and experiences that make the City of Melbourne a world-class city in which to live, work and visit; 3.3. to increase and strengthen the local and global recognition and reputation of Melbourne through the Melbourne brand; 3.4. to improve stakeholder satisfaction with the marketing of Melbourne as a destination to local Melburnians; and 3.5. to form strategic partnerships with key stakeholders for successful Melbourne Marketing initiatives. 4. This report presents a review of the Melbourne Marketing Strategy for 2003/2004 under the following consumer strengths for Melbourne: 4.1. bars, entertainment and nightlife; 4.2. dining; 3 4.3. events; 4.4. parks and gardens; 4.5. waterfront city; 4.6. precincts, laneways and city ambience; 4.7. shopping and fashion; 4.8. culture and arts; and 4.9. sport. 5. Attachment 1 provides a comprehensive summary of all marketing activity undertaken by City of Melbourne in the 2003/2004 financial year. 6. Major New Marketing Initiatives Delivered in 2003/2004 included: 6.1. Rugby World Cup Celebrations and Spring Fever Campaign; 6.1.1. in October and November 2003, City of Melbourne delivered a significant city festivities program and marketing campaign including the city presentation program, Opening Night Party and Live Site program, city bar and pub promotions, city restaurant promotion, city retail promotion, and precinct celebrations. These programs were delivered as part of the ‘Spring Fever’ campaign. City of Melbourne was joined in delivering this campaign by partners including the State Government, Australian Rugby Union, Victorian Rugby Union, Visa, GEO, Heineken, Bundaberg Rum (Diageo), Coca Cola, and Jacob’s Creek (Orlando Wyndham); 6.2. New Year’s Eve Live Telecast; 6.2.1. for the first time in 2003, the Nine Network telecast live a 35-minute telecast of New Year’s Eve in Melbourne. Hosted by Livinia Nixon, the telecast was seen by close to 800,000 people in Metropolitan Melbourne, making it one of the highest- rating Special Events Telecasts on any network for the year. In addition, via the WIN Network, it was telecast throughout regional Victoria and Tasmania ; 6.3. 2004 AFL Season Launch; 6.3.1. the 2004 AFL Season was kicked off with a free public event at Federation Square on 18 March. This first time event was proudly supported by the City of Melbourne and involved a presentation of all 16 Club Captains and Coaches, the Team Mascots and Cheer Squads in action, video highlights, a rock concert and spectacular fireworks finale; 6.4. Melbourne Cup Eve Party; 6.4.1. Melbourne’s first-ever Cup Eve Party was held on 3 November 2003 at Federation Square with over 5000 people enjoying a free party featuring entertainment from live bands, a Melbourne Cup Review and competitions to win prizes including Melbourne Cup tickets; 4 6.5. Celebrating Melbourne Awards; 6.5.1. the inaugural Celebrating Melbourne Awards was established by City of Melbourne and was held in 2003. Leading up to the Awards, ten stakeholder roundtables were conducted and widely attended by business, retail, community and government sectors. Eight categories of awards were established with the winners being announced at the Gala Dinner at Melbourne Town Hall on Saturday, 30 August 2003. The 2004 Awards will build on this success with the continuation of roundtable luncheons and enhanced award categories; 6.6. Christmas; 6.6.1. the Christmas decorations in 2003 marked stage 2 of the celebrate me!bourne program. The decorations launched in 2002 were extended to include precinct- specific decorations for Carlton, the Greek Precinct and Chinatown. The year also saw the introduction of the brand new Christmas Tree in the City Square – the definite highlight of the decorations. The success of the Christmas Tram was built on and in 2003, two free Christmas trams were running on the City Circle Tram route; 6.7. Bar Secrets; 6.7.1. Bar Secrets is a slick deck of cards profiling 52 of the city’s hippest and newest bars and pubs. Photos, detailed descriptions and a detailed map provide the who, what, when and where of each venue. City of Melbourne is the major sponsor of this successful project, which has had excellent media coverage and first-rate reviews both locally and internationally. Two additional sets of cards have recently been released – Dining Secrets and Shopping Secrets – both sponsored by the City of Melbourne; 6.8. Melbourne Magazine; 6.8.1. City of Melbourne became a major sponsor of the Melbourne Magazine in 2003/2004. The sponsorship delivers and constant, high level corporate and destination profile through this up-market glossy publication; 6.9. Live Sites Program; 6.9.1. a three-year program of Live Sites was launched in 2003. A Live Site is a free entertainment precinct for the public to experience a sporting or cultural event through live broadcast and associated consumer and interactive elements. The Live Site program was launched with the delivery of seven Live Sites staged around the 2003 Rugby World Cup. Then, in March 2004, the program continued with the four day Vodafone Live – The Grand Prix Live Site’ held at Federation Square. Over 30,000 people attended over the 4 days. Over the next three years, proposed Live Sites include the Athens Olympics, AFL Grand Final, Foster’s Australian Grand Prix, Ashes Series and Melbourne Cup; 6.10. Television Campaign; 6.10.1. new television advertising, featuring Livinia Nixon promoting the strengths of the city (dining, arts, shopping, laneways and website), was produced and premiered in March 2004. Market research undertaken on this campaign indicates universal support and recall. Through City of Melbourne’s partnership with the Nine Network, this campaign received enormous exposure; and 5 6.11. Market Research; 6.11.1. further to the details outlined in attachment 1, the Marketing Branch undertook significant market research in 03/04 into the effectiveness of the City Marketing campaign, identifying new market segments for promoting the city as a destination. 7. New segments identified are: 7.1. Family Focus; 7.2. City Dwellers; 7.3. Mature Professionals; 7.4. Empty Nesters; 7.5. Young Starters; and 7.6. It Crowd. 8. While all six segments visit the city from time to time, the segments are, as a whole, very different to each other. 9. The research found that the original brand TV commercials were well-received, with seven out of ten people aware of the advertisements. 10. The ‘that’s me!bourne the city the centre logo’ was, likewise, well-recognised with people responding that the logo reflected their feelings of a positive, emotional bond with the city. 11. Findings on perceptions of the city were overwhelmingly positive with many Melburnians describing the city as: 11.1. vibrant – yet laid back; 11.2. eclectic ; 11.3. multicultural; 11.4. stylish; and 11.5. a city of opportunities. 12. Statistics relating to the overall destination campaign effectives revealed the following: 12.1. tele vision (June – December) 20003 overall; 12.1.1. reached 98.9% of all people (3,964,000); 12.1.1.1. average frequency 41; and 12.1.1.2. 10+ reach 81.4%; 12.1.2. reached 100% of grocery buyers with children (455,000); 12.1.2.1. average frequency 48;and 6 12.1.2.2.