Carefree Truth
Issue #640, April, 2018
Marketing Director Gina Kaegi presented the marketing budget. Who are we as we are transforming, with some significant changes to the town, including some businesses? If Council members were asked about the Carefree brand, probably each would describe it based on their individual experiences but would agree that there are some common threads. Our residents are very civic minded and many volunteer with the local non profit organizations. We have areas of pristine nature. Carefree is going through a maturation process. As strategies are fine tuned, the town will provide unique experiences that attract more people and generate more sales tax revenue.
Our neighboring communities all have distinct brands, mostly defined by their businesses. Cave Creek has their western culture and their bars. Paradise Valley has their luxury resorts. As more businesses come in, Carefree's brand will also be driven by those businesses. Civana is a very unique $40 million resort dedicated to health and wellness, and an active lifestyle. They do extensive marketing that can help define our brand, and Carefree is partnering with them. But right now our brand is still being driven by the marketing department and the events. Our festivals promote the arts and a sense of community.
Mayor Les Peterson added that Carefree has an unheard of level in terms of resident participation with the local non profit organizations. 20-30% are involved, a factor of 8-10% more than is found in many other comparable towns. That is one of the defining characteristics upon which to build. Mrs. Kaegi agreed.
Mrs. Kaegi said the goal is to build programs that revitalize and energize the town. Over 30 businesses and all the large non profit organizations participated in the community Block Party. Events like the Block Party create a balance with the sophisticated wine and art festivals. Contrary to what some believe, families do spend money.
Some have suggested that the Town hold events during the summer to attract people. Councilwoman Cheryl Kroyer said, "It doesn't make sense to put our resources in the summer because many of our businesses are closed. It's too hot." "It makes more sense to put our resources into the time of year when we can get the most impact for them."
Mr. Farrar thought Carefree should try to extend the shoulder season and have lots of activities planned and on the calendar well in advance. He said he asked Kevin Kelly, the owner of Civana, if Carefree's marketing benefited Civana, and was told, "Mike, that it doesn't help me at all". Kevin wants more consistent events to offer his guests. Mr. Farrar suggested that maybe Mrs. Kaegi should talk to him. Mrs. Kaegi replied, "I meet with Kevin quite regularly, actually, and with Rianna, his COO". She said Carefree and Civana are definitely in line, and coordinate their digital marketing. There is better bang for the buck when two entities that have fairly in-line strategic marketing plans work together. She said that Kevin spends a lot of time walking the streets of the downtown, looking at the businesses. Consistency of hours is important to him. People need to be open when his guests come into town, and during events.
Mayor Peterson agreed that the marketing plan was not at odds with Civana's. He met with them 1-1/2 hours before the workshop. Carefree works in concert with Civana. Carefree's marketing plan was a material factor in Kevin's decision to come here. The Mayor has looked at the numbers over the past 10 years. When there were many low level events, sales tax revenues declined, as did participation from merchants and people, so they moved away from that model. Running more Class B events was not beneficial, even if announced a year in advance. Mr. Farrar said that was the result of a massive recession. He said he spoke to Kevin Kelly 3 weeks ago, and that Kevin chose Carefree because of a very receptive Town Council, proximity of the resort to the town core, and the smallness of the town. Kevin told him that Carefree's marketing doesn't help or hurt Civana. Mr. Farrar and the Mayor agreed that the Block Party was a good event because it engaged the local businesses and provided a sense of community. Mr. Farrar added that it didn't cost a lot of time and money to produce.
Mr. Hatcher asked if Council members could get a tour of Civana. Mrs. Kaegi replied that she is over there frequently and would be happy to arrange one for any interested Council members. She felt it was a great idea. Ms. Kroyer also felt it would be good to tour Civana. Councilman Mike Krahe said he would like to have Kevin Kelly come to a Council meeting so they could all hear, as a group, what he had to say. Mayor Peterson felt it would be ideal to tour Civana first and have questions answered in context to the resort, then have Kevin come to a Council meeting. Mr. Hatcher asked if Civana guests flew into the Carefree airport. Mr. Neiss explained that the airport, while public in it's early years, has been private for many years in order to mitigate its impact on the surrounding community.
Getting back to her presentation, Ms. Kaegi repeated that the Carefree brand is still maturing. Two goals are to attract new businesses as the older businesses retire or move on, and to develop cost recovery models for all Town sponsored events. She noted that they are getting very good at that, generating numbers that exceeded the estimates.
Traditional media contacts are shifting to digital content, social media, industry influencers with huge numbers of followers, and leaders for genuine content. People trust online comments about events and businesses because they are made by real people. Digital presence is important and the algorhythems are changing daily. We need to be there. A prime example was the call the Town got from ESPN. They did a pumpkin search and Carefree came up 2nd after the Wikipedia definition of pumpkin. ESPN wanted a pumpkin carving of sportscaster John Gruden. Carefree received 25 seconds on Monday Night Football, worth at least $1 million, for free. There has been an aggressive shift from print in the last couple of years. Print now enhances digital marketing. Digital marketing is vital in order to stay relevant.
Mr. Hatcher asked if there were a way to link Civana's Health and Wellness theme to Town events. Mayor Peterson said Civana's presence at the Block Party was very well received. Mrs. Kaegi suggested partnering with Civana to put on health and wellness events in the Gardens. The Town can work with business partners who could share some of the "heavy lifting". Carefree must look at what generates critical mass for the most impact, and what stays in line with providing a unique experience. The Town may bring back sand sculptures that attract people here from May-August, and may reinstate concerts.
Mr. Farrar mentioned that he now knows how much work it is to hold a festival. His Italian Festival, held on private property, brought about in about 3000 people and raised about $1500 for charity. He asked if the Town is changing or increasing the events. Mrs. Kaegi replied that signature events bring in the most people, so her resources will go towards those. She looks for events that will reinforce the brand. Ms. Kroyer said that a level of activity is in the plan, signature events, but also other events that keep things happening throughout the year. Mrs. Kaegi added that before she can make final plans, the budget must be decided so she knows how much she has to spend. Mr. Farrar mentioned 3rd party promoter events. Mrs. Kaegi said she works with those promoters, like Thunderbird Artists, to assure quality. Thunderbird is a good partner. Mayor Peterson agreed that events must meet a high standard or they degrade the town.
Mr. Farrar felt that 1 or 2 events are not going to help with economic development. It's more about frequency. Mrs. Kaegi noted that Sights and Sounds, going on now with rotating artists and musicians in the Gardens, adds another layer to the Gardens. Artists and musicians can talk to the locals about their art and music. Some of the participants are talented local artists and musicians. It engages local people without a big festival. There are generally 6 artists and musicians at a time. There is no entry fee, but if the artists make a sale, they give 10% to the Town. The Town can pitch the artists to the media as an attraction. Vice Mayor John Crane added that this event reinforces Carefree's brand, costs next to nothing, and provides an experience. Mr. Farrar said the East Coast is moving more towards music festivals. A lady played guitar on the trolley, which people enjoyed.
Mayor Peterson said the Town is gravitating towards larger events as well as ongoing events like Sights and Sounds to provide a changing experience in the Gardens. He said the role of towns in marketing businesses is to create an environment in which successful businesses can flourish.
Dr. Krahe said the purpose of the meeting was to hear a proposed budget. He asked that Gina be allowed to finish her presentation. Marketing strategy should be a different conversation. Mayor Peterson agreed and asked Mrs. Kaegi to proceed with her presentation.
https://vimeo.com/266616413
Lyn Hitchon
Prepared by Carefree Truth
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