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HomeMy WebLinkAbout2007-03-30; Carlsbad Tourism Business Improvement District; 0307-17; Destination Analysts for Positioning StudyCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL TITLE:AB# 0307-17 MTG. 3-30-07 POSITIONING STUDY DEPT. ADMIN SERVICES SELECTION OF THE WRIGHT GROUP AND DESTINATION ANALYSTS FOR ORIGINATOR JUNSEL RECOMMENDED ACTION: Adopt Resolution No. 2007-3 authorizing the selection of the Wright Group and Destination Analysts to perform the positioning study. ITEM EXPLANATION: At its January 9, 2007 meeting, the Carlsbad Tourism Business Improvement District (CTBID) Board of Directors authorized the distribution of a request for proposal (RFP) for a positioning study. The RFP was distributed on Tuesday, January 9, 2007, and was due back to staff on January 30, 2007. The following five firms responded to the RFP: • North Star Destination Strategies • Destination Analysts • Miriello Grafico • West Third Group • The Wright Group i A subcommittee of the CTBID Board reviewed the RFPs for firm and staff qualifications, experience and expertise, responsiveness, cost and any value added services. Upon completion of the review process, the committee recommends The Wright Group to be the lead consultant on the project with Destination Analysts being recommended to perform the on-line survey portion of the project. The Wright Group is a marketing consultancy with an expertise in finding innovative solutions to marketing strategy and branding problems through the use of qualitative research and brainstorming. Destination Analysts is a marketing research firm specializing in the travel and tourism industry. The CTBID Board Subcommittee recommends that through the combination of the innovation marketing approach of The Wright Group and the expertise in tourism of Destination Analysts make the combination the best value to the City to perform the positioning analysis. ENVIRONMENTAL IMPACT: This action does not approve any projects that will have a physical adverse affect on the environment so it falls within the general rule under CEQA that this is not a project (CEQA Regulation 153789(b)). PAGE 2 OF AGENDA BILL NO. 0307-17 FISCAL IMPACT: The CTBID 2006-07 budget includes a line item for contractual services to be determined in the amount of $168,205. The cost for The Wright Group's portion of the project is $70,000 and the cost for Destination Analysts portion of the project is $25,000. Sufficient funds are available in the current budget to cover these costs. EXHIBITS: 1. Resolution No. 2007-3 2. Agreement with The Wright Group 3. Agreement with Destination Analysts DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, email cqerh@ci carlsbad.ca us EXHIBIT 1 1 RESOLUTION NO. 2007-3 2 A RESOLUTION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) BOARD OF DIRECTORS AUTHORIZING THE SELECTION OF THE WRIGHT GROUP 4 AND DESTINATION ANALYSTS TO PERFORM A POSITIONING STUDY 5 6 WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was 7 formed by the City Council of the City of Carlsbad, California on November 15, 2005; and 8 WHEREAS, the CTBID Board of Directors has all of the powers, duties and 9 responsibilities provided to it under the Parking and Business Improvement Area Law of 1989, 10 Section 36500 et seq. of the Streets and Highway Code, and Chapter 3.37 of the Carlsbad 11 Municipal Code; and 12 WHEREAS, the powers of the CTBID Board of Directors include the ability to contract 13 for services directly related to tourism promotion and marketing of the City of Carlsbad as a 14 travel destination; and 15 WHEREAS, the CTBID Board of Directors intends to undertake a marketing program 16 designed to increase tourism activities within the City of Carlsbad; and 17 WHEREAS, the CTBID Board of Directors further intends to contract for services to 18 perform a positioning study; and 19 | WHEREAS, the Wright Group and Destination Analysts have been determined to be the 20 most qualified to conduct the positioning study; and 21 WHEREAS, sufficient funds are available in the 2006-07 budget. 22 NOW, THEREFORE, BE IT RESOLVED by the Bbard of Directors of the Carlsbad 23 Tourism Business Improvement District, as follows: 24 1. That the above recitations are true and correct. 2. That the firms the Wright Group and Destination Analysts are selected to perform the positioning study. 26 3. The agreement between the Wright Group and the CTBID and Destination Analysts and the CTBID are hereby approved and the Board Chair and Clerk are hereby 27 authorized and directed to execute said agreements. 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on the3^ day of 2007, by the following vote to wit: AYES: NOES: ABSENT: APRIL SHUTE Chairperson ATTEST: Pro Tern Clerk of the Carlsbad Tourism Business Improvement District -2- EXHIBIT 2 AGREEMENT FOR POSITIONING STUDY The Wright Group THIS AGREEMENT is made and entered into as of the 30th day of March . 2007 by and between the CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, ("CTBID"), and The Wright Group, a Corporation . ("Contractor"). RECITALS A. CTBID requires the professional services of a company that is experienced in positioning. B. Contractor has the necessary experience in providing professional services and advice related to positioning C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D Contractor has submitted a proposal to CTBID and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CTBID and Contractor agree as follows: 1. SCOPE OF WORK CTBID retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of one year from the date first above written. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be Seventy Thousand dollars ($70,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement CTBID Attorney Approved Version #11 28 06 EXHIBIT 2 The CTBID reserves the right to withhold a ten percent (10%) retention until CTBID has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of CTBID. Contractor will be under control of CTBID only as to the result to be accomplished, but will consult with CTBID as necessary. The persons used by Contractor to provide services under this Agreement will not-be considered employees of CTBID for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. CTBID will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. CTBID will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify CTBID within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which CTBID may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the CTBID's election, CTBID may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of CTBID. If Contractor subcontracts any of the Services, Contractor will be fully responsible to CTBID for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and CTBID. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by CTBID. 8. OTHER CONTRACTORS The CTBID reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the CTBID and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses CTBID Attorney Approved Version #11 28.06 EXHIBIT 2 including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense CTBID incurs or makes to or on behalf of an injured employee under the CTBID's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 11. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of CTBID during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 12. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of CTBID. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to CTBID. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 13. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in CTBID and Contractor relinquishes all claims to the copyrights in favor of CTBID. < 14. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of CTBID and on behalf of Contractor under this Agreement. CTBID Attorney Approved Version #11 28 06 EXHIBIT 2 ForCTBID: Name: Cheryl Gerhardt Title: CTBID Staff Department: Administrative Services City of Carlsbad 1635 Faraday Ave. Carlsbad, CA 92008 Phone No. (760) 602-2409 For Contractor: Name_ Title Judith Wright President Address 1261 Lattie Lane Valley. CA 94961-3407 Phone No. 415-388-1515 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 15. CONFLICT OF INTEREST CTBID will evaluate Contractor's duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and CTBID's Conflict of Interest Code is required of Contractor or any of Contractor's employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor's affected employees, agents, or subcontractors will complete and file with the CTBID Clerk those schedules specified by CTBID and contained in the Statement of Economic Interests Form 700. Contractor, for Contractor and on behalf of Contractor's agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the CTBID an affidavit disclosing this interest. 16. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. CTBID Attorney Approved Version #11 28 06 EXHIBIT 2 17. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 18. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or CTBID will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the CTBID Manager. The CTBID Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the CTBID Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 19. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, CTBID may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If CTBID decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, CTBID may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by CTBID and all work in progress to CTBID address contained in this Agreement. CTBID will make a determination of fact based upon the work product delivered to CTBID and of the percentage of work that Contractor has performed which is usable and of worth to CTBID in having the Agreement completed. Based upon that finding CTBID will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of CTBID, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to CTBID. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. CTBID will make the final determination as to the portions of tasks completed and the compensation to be made. 20. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this CTBID Attorney Approved Version #11 28 06 EXHIBIT 2 Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, CTBID will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 21. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to CTBID must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to CTBID, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If CTBID seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges CTBID Attorney Approved Version #11 28 06 EXHIBIT 2 that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for CTBID to terminate this Agreement. 21. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 23 SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon CTBID and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of CTBID, which shall not be unreasonably withheld. 24. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR (sign here) C7 (sign here) t(prmt (pnnt name/title) ;— i^ hr - *-s-&c*/=- (.c^-x ,,„.., ^, J - F~ ^ *^*~ & w»«..<*fT-C><W..7 - (e-mail address)(e-mail address) CTBID Attorney Approved Version #11 28 06 '1 EXHIBIT 2 CTBID Carlsbad, California CTBID Board Chair ?AINE M. W&QD CTBID Clerk ATTEST: If required by CTBID, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, CTBID General Counsel By: City Attorney f6 CTBID Attorney Approved Version #04 01 02 EXHIBIT A abby stokes Judith wright brendan hickey January 30, 2007 Positioning Study c/o Cheryl Gerhardt Administrative Services Department City of Carlsbad '1635 Faraday Avenue Carlsbad, CA 92008 Via e-mail Dear Cheryl: Thank you for the opportunity to present this proposal. It would be a privilege to work with you on the Carlsbad Positioning Study. I have read and agree to be bound by the terms and conditions of the RFP. My only question about the contract is obtaining a City of Carlsbad Business License. I presume this is very straightforward, and as our business is registered in the state of California, we anticipate no tax issues. This study is a great project for The Wright Group, and I feel certain we can identify key insights and develop clear positioning and development recommendations for Carlsbad. Again, thank you for this opportunity to propose. I will call to follow up. Sincerely, Judith Wright " www wright-group.com judith@\vnght-group com brendan@\vnght-group com abby@\vnght-group com 1261 Lattie Lane Mill Valley, CA 94941-3407 T 4153881515 F 4153889713 Carlsbad Positioning Study Project Overview The city wishes to grow its tourism sector and wants to identify a positioning for Carlsbad that will attract tourists. In order to achieve this, we recommend the following steps: Objectives Methodology Specifications 1,Immersion To identify insights and ideas from key stakeholders Data sharing, phone briefing and m-person Work Session Stakeholders' eg General Managers of key resorts/hotels, CTBID members, local newspaper editor, etc 2A, Customer Insight Understand why Carlsbad tourists have chosen to come Understand their approach to travel and leisure in general and how this frames their choice of a trip to Carlsbad Understand what other destinations they most relate to, including the relationship they have with Carlsbad Identify key insights from which to generate positioning ideas 30 Intercept Interviews 10 In-depth Interviews Carlsbad tourists 28. Prospect Insight Understand why tourists have chosen to go to Solano Beach, Del Mar, Laguna Beach, etc , but not Carlsbad Understand their awareness and perceptions of Carlsbad Identify barriers we need to address in positioning ideas for Carlsbad 30 Intercept Interviews in surrounding towns Tourists in surroundm towns 3. Interactive Innovation Presentation The Wright Group presents conclusions and recommendations from our research including a range of Carlsbad positioning directions and development ideas • Work Session Stakeholders Methodology: 1, Immersion Prior to starting research, we will hold a phone orientation to: bring us up to date on current thinking; review any relevant previous research; discuss project goals and concerns in-depth; discuss possible Carlsbad claims of distinction; identify possible positioning ideas; discuss surrounding and competitive destinations' positionings; understand the city's plans for future development; identify ideal tourist locations for intercept research; review current customer profiles, competitive data; and discuss any other relevant information. The day before we start our customer and prospect research we will hold an in-person Work Session meeting where we work with key stakeholders to understand all perspectives. By bringing key issues to light at the start of the project, this ensures that each stakeholder feels that they have been heard and their perspectives have been addressed in the research. We would ask relevant questions, including: • What associations do you want tourists to have when they think of Carlsbad? • What is the ideal personality for Carlsbad? What do you want Carlsbad to stand for? • What types of experiences would you want tourists to have when visiting Carlsbad? We will want to stimulate positioning thinking and use techniques to encourage that. For example, "Projective Faces" would be a useful technique for developing strategically grounded positioning and development ideas. We expose stakeholders to a range of pictures of people who represent potential Carlsbad tourists. Each participant selects a picture and brings the person to life by giving them a name, occupation, approach to vacations, and so forth. Once the person has been brought to life, we explore their possible feelings about Carlsbad, what the barriers to coming to Carlsbad are, and what we could communicate that would be motivating to this person. From this we derive candid statements that can form the basis of positioning concepts. ^PF'""5"?!fr 4JL. .jsa 2. Customer Insight Prospect Intercept Interviews Intercept interviews are the optimum methodology to help us understand why tourists have chosen Carlsbad. By interviewing tourists as they are experiencing Carlsbad, we can connect with their perceptions of Carlsbad in an immediate way, and are more likely to uncover great insights into what Carlsbad offers. We can also discuss: • Why they have chosen to come to Carlsbad • Whether their expectations have been met or not • What they love about Carlsbad • How it compares to other destinations • Other destinations they consider comparable • What they have done while in Carlsbad • How they have spent their money • Whether they have purchased any mementos of their vacation • Trips outside of Carlsbad that they have taken • What surprises they have experienced in Carlsbad • What is unique about Carlsbad • What improvements they hope Carlsbad will make over the next ten years, and so forth. We can shadow and observe them as they connect with Carlsbad on the most tangible and personal levels. We will have their ear, and vice versa, as they interact with Carlsbad. Through these interviews we will understand what symbols, icons and experiences are expected, anticipated and experienced. We will also observe and analyze other tourists' behaviors to develop insights into the unique benefits of visiting Carlsbad. We should select intercept locations that are representative of Carlsbad's tourist destinations and lodging choices. This would include recruiting tourists from hotels and shadowing and interviewing them as they experience Carlsbad by doing what they plan to do. Detailed specifications and locations would be developed upon project approval. Each of these thirty intercept interviews will last approximately 20 minutes to half an hour. In-depth Interviews We will invite those intercept participants that we find most promising to an in-depth interview in a hotel suite. We will hold 10 in-depths, and they will last approximately one hour each. During these interviews, we will fully explore our tourists' relationship with Carlsbad and use projective techniques to help us unearth fresh learning and insights. These techniques help us get the most from our research participants. Examples of some techniques we might consider include: wri'p|iit croup Market Restructuring In this exercise, we ask participants to place competitive destinations along the spectrum of opposing viewpoints, to ascertain their relative positions, strengths and weaknesses. Destinations: Carlsbad Solano Beach Del Mar Laguna Beach Rancho Santa Fe San Diego Palm Springs Las Vegas Santa Barbara Place viewpoint cards on opposite ends on the table: • More Relaxing/More Exciting • More To Do/Less To Do • More Fun/Less Fun • Premium / Value or Luxury/Basic • More My Kind of Place / Less My Kind of Place • Changing in a Positive Way/Changing in a Negative Way • Unique and Distinctive/Commonplace, Unsurprising Ask respondents about each viewpoint: • What does it mean to be ? • What is required to be at this position (for the positive ones)? • What does it take to be a leader in this area? Place all competitive destination cards on table, and ask respondents to place them along a spectrum between these opposing viewpoints, probing: • Why are they placed there? • What does this say about them? • What makes one better than the other? Destination Personification: We believe consumers perceive and experience a destination on various levels: 1. The level of skills (obvious, factual attributes) 2. The level of personality (the emotional, affective aspects of a destination) 3. The level of relationship (how consumers relate to a destination, and how they feel the destination relates to them) To help us get to the second and third levels, we use Destination Personification, where participants imagine Carlsbad as a person who has just walked into the room We ask participants to think of who this person is, and to describe him/her. Probe: male/female, what wearing, how behaving, personality, occupation, where live, kinds of friends. Describe potential relationship with this person, what role might they have in your life. Repeat for competitive destinations and compare. Unfinished Stories We ask respondents to complete a story, probing the feelings and emotions of the people and experiences they are describing: Issue: Customer Image David and Jane went to Carlsbad on a long weekend break. Looking at them, you'd say they're the type of people who Issue: Emotional Connection Claire always feels something special when she visits Carlsbad. Describe what Claire feels and why she feels that way. Analysis and Interpretation We cannot impose a position on the city of Carlsbad, it needs to grow from our learning. Our positioning recommendations need to feel authentic to Carlsbad and, ideally, it needs to fit with Carlsbad more than any other destination. All of this research will enable us to identify the essence of the Carlsbad brand. We will complete this in-depth analysis of the research and develop a comprehensive Power Point presentation. The insights and positioning ideas that we identify will be presented in a worksession-type ideation meeting that we call an Interactive Innovation5"1 Presentation Session. 3, Interactive Innovation Presentation The goals of our Interactive Innovation5"1 Presentation Session are for stakeholders to: • Believe in our conclusions and recommendations • Build on our positioning ideas • Embrace the positioning recommendations and be motivated to make them a foundation of future programs • Identify how the city should evolve to better deliver on the. vision of these new positionings An Interactive Innovation5"1 Presentation generally includes approximately eight participants and two Wright Group members, and lasts about five hours. Judith Wright and Abby Stokes would act as facilitators of our presentation. We would personally manage the process and ensure that participants are comfortable and stimulated, so that they may do their best work. As well as presenting our conclusions and recommendations, we would use our insights from the research as springboards for the team to ideate from. We will also select or create techniques to stimulate creative, directed thinking. Analysis Beyond This Session The Wright Group will analyze and interpret the outcome of this session and create a document that provides a written account of the most promising positioning and development ideas that have been generated. The project output is expected to culminate with between one and three final recommended positionings. Briefing a Design Agency ' The Wright Group can team with a design agency to realize the vision. We have worked with numerous talented companies. The M-Line in San Francisco have much tourism and municipal experience, we have worked with them for over ten years. Scout Creative in Encinitas also comes highly recommended. Community Involvement (Optional) During the Immersion phase, we may wish to invite the Carlsbad community to participate in our research. We could build a survey website that allows residents to tell us: • What is distinctive about Carlsbad, as a place to live and work? • What is distinctive about Carlsbad, as a place to relax and vacation? • What do you believe makes Carlsbad great? • When guests visit you, what do they most enjoy about Carlsbad? • What are Carlsbad's must-do's? • How would you describe the quality of life in Carlsbad? • How would you describe Carlsbad's personality? This method will build community involvement and provide interesting insights from residents. Project Team Our three founding partners would run this project. Judith would be the day-to-day contact and Project Director. Judith is President of The Wright Group, a marketing consultancy with an expertise in finding innovative solutions to marketing strategy and branding problems through the use of qualitative research and brainstorming. Judith loves the challenges and stimulation of her work, and has more than 20 years' experience in positioning, communication, new product development, attitudinal segmentation and brand equity, extension, and revitalization work. She has over fifteen years' experience applying an anthropological framework to the study of consumer behavior. Judith started her career in advertising in England (Redheads Advertising), then enjoyed consulting positions in New York for eight years with Dunham & Marcus (marketing consultants) and Kane, Bortree & Associates (a positioning and new product development shop). For the past fourteen years, she has been in San Francisco: first as Vice President of Planning at Freeman Marketing (a new product and advertising agency) and then as a Partner at The B/R/S Group (marketing counsel, qualitative research). She launched The Wright Group at the turn of the new century. Judith gained her BA in Marketing (1st class Honors) from Hull Business School, England and her MA in Product Innovation from the Royal College of Art, London, England. Hickey is the Creative Director and a founding partner of The Wright Group. He brings keen insights and a very readable immediacy to our analyses. Brendan began writing concept copy some 20 years ago in New York, where he met and began working with Judith before signing on with The Wright Group at its inception. Brendan gained his BA in English and Psychobiology from Oberlin College. Abigail Stokes is a Vice President at The Wright Group and has worked with Judith for over fifteen years. Abby brings tremendous charisma and energy to all her projects. Whether moderating groups or facilitating ideation sessions, she draws on her acting and improvisational skills (Yale Drama School, National Theater Institute) to keep participants engaged and the ideas flowing. One of the fascinations of their work is the diversity of categories that The Wright Group works in. They have a wealth of experience in the automotive and retailing sectors, travel and tourism, emerging technology and applications, packaged goods and financial services. The Wright Group have worked on the positioning strategy for numerous brands, including American Express, Disney, Microsoft, Nestle and Toyota. We have a solid base in the travel category, including work with Avis, Budget, Cendant, GPTMC, Marriott Hotels, Oakland Airport, RCI and Singapore Airlines. Recent positioning projects include: For The Platinum Guild International • Develop a new positioning direction that equates platinum with today's conception of love For Budget Rent-A-Car • Identify the key values shared by Budget's best customers so that we can develop the optimum positioning for Budget Rent-A-Car For GAP • Develop positioning platforms for babyGAP and GAP Kids, including in-depth executional guidelines for translating the positioning into advertising and in-store merchandising For GPTMC • Develop a positioning for the city of Philadelphia that gives consumers a new appreciation of the city For Bally Total Fitness • Develop the positioning for a new weight loss program concept For a private investment group • Develop the positipning for a new therapeutic health spa and healing center For Yosemite National Institutes • Identify the optimum positoning for YNI in order to maximize the Institutes' fundraising potential References Deborah Diamond Director of Research, Greater Philadelphia Tourism Marketing Corporation Work: 215 599 0231 Deborah@gptmc.com The Wright Group has worked with Deborah on two projects. The first project (2004) combined intercept interviews and in-depth interviews with tourists, and brainstorming with the GPTMC team. The second was a focus group project a few months ago. Becky Alseth Sr. VP of Marketing, Avis Budget Work: 973 496 4328 Becky.Alseth@AvisBudget.com We have worked with Becky, on numerous projects, for over ten years. Carlsbad Brand Customer Study Costs 30 Carlsbad intercept interviews @ $700 = $21,000 10 in-depth interviews @ $1,500 = $15,000 30 prospect intercept interviews @$700 = $21,000 Interactive Innovation3171 Presentation Session =$ 7.000 Total $64,000 These prices include all project management; development of the screener questionnaires, writing the intercept and interview guides; preparation of stimulus for the interviews; facilitating the Immersion Work Session, all interviewing including incentives for the in-depth interviews; debriefs following the interviews; compiling detailed analysis and interpretation in a comprehensive final presentation document including writing of between 1-3 recommended positioning concepts; facilitating the Interactive Innovation5111 Presentation Session; and all other administrative expenses. All costs are +/-10%. They do not include filming fees (if used); out-of-pocket expenses for food and location rental for our worksession meetings (if incurred); fees for the community survey website (optional method); shipping, or travel expenses. This fee will be billed in two installments, 50% at the beginning of the project, due upon receipt and a final bill after the project is completed, due within 30 days. Carlsbad Positioning Timing Week 1-2 3-4 5-7 8 9-10 Major Activities Orientation, develop screener and stimulus mate'rials Conduct Immersion Work Session Interviews, 10-ln-depth Interviews, interview guide and any techniques or , 30 Carlsbad tourists Intercept 30 prospect Intercept Interviews Detailed analysis and interpretation of research, identify positioning recommendations; develop Power Point Interactive Innovation5"1 Presentation document Facilitate Interactive Innovation®"1 Presentation Session Final revision and document Cheryl, thank you for the privilege of presenting this proposal. The prospect of working with you on this study is very exciting. I'll call to follow up. Sincerely, Judith Wright 10 EXHIBITS AGREEMENT FOR POSITIONING STUDY Destination Analysts THIS AGREEMENT is made and entered into as of the 30th day of March , 2007 by and between the CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, ("CTBID"), and Destination Analysts, a Corporation . ("Contractor"). RECITALS A. CTBID requires the professional services of a company that is experienced in positioning. B. Contractor has the necessary experience in providing professional services and advice related to positioning C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to CTBID and has affirmed its willingness and ability to perform such work NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CTBID and Contractor agree as follows: 1. SCOPE OF WORK CTBID retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of one year from the date first above written. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be Twenty Five Thousand dollars ($25,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this CTBID Attorney Approved Version #11 28 06 EXHIBITS Agreement. The CTBID reserves the right to withhold a ten percent (10%) retention until CTBID has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of CTBID. Contractor will be under control of CTBID only as to the result to be accomplished, but will consult with CTBID as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of CTBID for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. CTBID will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. CTBID will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify CTBID within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which CTBID may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the CTBID's election, CTBID may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of CTBID. If Contractor subcontracts any of the Services, Contractor will be fully responsible to CTBID for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and CTBID. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by CTBID. 8. OTHER CONTRACTORS The CTBID reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the CTBID and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses CTBID Attorney Approved Version #11 28 06 EXHIBITS including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense CTBID incurs or makes to or on behalf of an injured employee under the CTBID's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 11. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of CTBID during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 12. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of CTBID. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to CTBID. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 13. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in CTBID and Contractor relinquishes all claims to the copyrights in favor of CTBID. 14. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of CTBID and on behalf of Contractor under this Agreement. CTBID Attorney Approved Version #11 28 06 EXHIBITS For Contractor: Name Dave Bratton Title President Address 1737 Union Street San Francisco, CA 94123 Phone No. 415-307-3283 ForCTBID: Name: Cheryl Gerhardt Title: CTBID Staff Department: Administrative Services City of Carlsbad 1635 Faraday Ave. Carlsbad, CA 92008 Phone No. (760) 602-2409 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 15. CONFLICT OF INTEREST CTBID will evaluate Contractor's duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and CTBID's Conflict of Interest Code is required of Contractor or any of Contractor's employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor's affected employees, agents, or subcontractors will complete and file with the CTBID Clerk those schedules specified by CTBID and contained in the Statement of Economic Interests Form 700 Contractor, for Contractor and on behalf of Contractor's agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the CTBID an affidavit disclosing this interest. 16. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement CTBID Attorney Approved Version #11 28 06 EXHIBITS 17. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 18. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or CTBID will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the CTBID Manager. The CTBID Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the CTBID Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 19. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, CTBID may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If CTBID decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, CTBID may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by CTBID and all work in progress to CTBID address contained in this Agreement. CTBID will make a determination of fact based upon the work product delivered to CTBID and of the percentage of work that Contractor has performed which is usable and of worth to CTBID in having the Agreement completed. Based upon that finding CTBID will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of CTBID, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to CTBID. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under.this Agreement. CTBID will make the final determination as to the portions of tasks completed and the compensation to be made. 20. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this CTBID Attorney Approved Version #11 28 06 EXHIBITS Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, CTB1D will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 21. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to CTBID must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to CTBID, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If CTBID seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for CTBID to terminate this Agreement. 22. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 23. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon CTBID and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of CTBID, which shall not be unreasonably withheld. 24. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. CTBID Attorney Approved Version #11 28.06 EXHIBIT 3 Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. 25. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR CTBID Carlsbad, California RRAfNE M. WOOD CTBID Clerk 7 /(sign here) 5" i n Iva 1103 (print name/title) (e-mail address) If required by CTBID, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. CTBID Attorney Approved Version #11 28.06 EXHIBITS APPROVED AS TO FORM: RONALD R BALL, CTBID General Counsel By: Deputy City Attorney CTBID Attorney Approved Version #04 01 02 8 EXHIBIT A DESTINATION ANALYSTS SCOPE OF SERVICES Destination Analysts, Inc. is a San Francisco-based marketing research firm specializing in the travel and tourism industry. Founded by Convention & Visitor Bureau veterans in 2003, the company aims to provide destination marketing organizations with affordable marketing intelligence so that they may maintain effective tourism marketing and advertising strategies. To effectively develop a positioning concept testing survey, we will need to have communication with the Wright Group (early and often in the process), to make sure that the end product appropriately tests and validates the results of their work. We already have methods and concepts in place for this type research, but expect that they would have a different approach to positioning, so we would hope to work closely with them throughout the project. We will participate in the Interactive Innovation Presentation Session where the Wright Group will present their findings and the various positioning statements. This will give us background on the work done by the Wright Group and provide us with the positioning statements to be used in the survey. Online Regional Travelers Survey: Destination Analysts will conduct a survey of frequent leisure travelers who live in the Southern California/Nevada/Arizona Region. The survey will contain approximately 25 questions, and the sample would be collected from Destination Analysts' sample provider research panel (Authentic Response, Inc.) and administered online at Destination Analysts' website (or our survey hosting provider, WebSurveyor). The Survey will test and validate several positioning statements that were previously developed by the Wright Group. Destination Analysts will draft this survey and, upon consultation with the client, make revisions. We will then implement the tool online and collect the sample. The Data will then be analyzed and integrated into a final report. Survey Sample Size: 600 fully completed surveys. Deliverables: We would provide a report and PowerPoint presentation of findings, which could be delivered in a webinar or similar environment. If you would like a set of cross-tabulations for additional analysis, we would happily provide these as well. Timing: The entire process should take under 6 weeks to complete. Cost: Regional Travel Survey $23,000 Additional Discovery Research (not to exceed) 2,000 TOTAL $25,000