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Item 4C Approve Contract Spending with Cubic Creative Inc. in an amount over $50,000 but not to exceed $69,000 Item 4C Good evening Mayor and members of the City Council. I am presenting Item 4C . 1 Requested Action Approve Contract Spending with Cubic Creative Inc. in an amount over $50,000 but not to exceed $69,000 The purpose of this item is to seek City Council approval to expand an existing contract with Cubic Creative Inc. in the amount of $19,000 in order to create an aligned brand messaging strategy, or a branded house approach, that will begin with branding and messaging for The Marq Southlake. 2 Background Current contracts with Cubic Creative Inc. established in 2014 and 2015 Provide services for: Branding, Development and Marketing Action Plan Advertising and Strategic Media Planning and Buying Services Contract will exceed $50,000 by $19,000 Community Enhancement Development Corporation (CEDC) alignment With Phase two of The Marq opening in FY 18, creating a clear marketing message for identified target audiences staff will be able to deliver an exceptional customer experience and better engage with customers’ needs and interests which will result in increased awareness and revenues. Cubic Creative has successfully created the brand messaging for visitors coming to Southlake. Under the current contract, Cubic provides management of digital advertising targeted to the visitor audience as well as ad design and other creative services. With their expertise in these fields and their experience working within Southlake, they can deliver an evolved branded house strategy beyond the visitor context that will include deliverables necessary to successfully marketing The Marq Southlake and the City. This item aligns with the Community Enhancement Development Corporation’s (CEDC) goals to promote economic development and ensure the success of a community entertainment and recreation center. The total amount requested for this contract expansion is $19,000 . No budget increase is being requested, rather this item is a request to allow total spend with Cubic to exceed the City Manager’s expenditure authority with a cap at total spend at $69,000. 3 Branded House The City currently serves as the overarching master brand for Southlake with a number of subset brands such as economic development, public safety, visitor branding and our newest subset, The Marq Southlake. This structure sets us up as a “branded house” and requires a strategic approach to our message and marketing strategy. Apple has several products; however, the iPhone, MacBook, and iPad never differentiate from their master-brand. Apple keeps its branding running through all of its sub-brands. Note Apple’s logo located on the back of all the products. The pro’s to having a branded house approach include: It’s more efficient to communicate and manage; enables a more cost-effective way of announcing new information Streamlines (and can help drive) decision-making for structure and growth Any new addition to the City portfolio automatically gains a level of acceptance and importance because of the public’s previous identification with the master brand Simplifies messaging to employees, customers, visitors, etc Better aligns organization internally and externally A combined entity is perceived to have more staying power, suggests strength, and is just easier to remember and recognize Customers buy products and services more on attributes of company, rather than just relying on product attributes Strong corporate brands have been proven to better preempt competition/defend market share, and to also improve loyalty indicators 4 Financial Consideration FY 2017 Funding Hotel Occupancy Tax* $ 50,000 CEDC Fund** $ 19,000 TOTAL $ 69,000 * Inclusive of Digital Media Management and Marketing Creative Services ** Marq Southlake and Brand Strategy messaging 5 This Branded House approach will allow us to ensure that marketing efforts and dollars are aligned with our master brand (City of Southlake) while also communicating the unique services and offerings of the Marq Southlake. The proposed funding source is the FY 2017 Community Enhancement and Development Corporation Fund (CEDC) budget which included $19,000 for marketing services. FY 17 deliverables will immediately be incorporated into The Marq Southlake FY 2018 advertising and marketing initiatives. The Marq Southlake Brand Strategy: Creation of a defined marketing and communication brand strategy for the facility and its interests that is centered around generating membership and rental revenues for prospective targeted audiences. Creative design refinement: Facility marketing and communication design pieces such as logo and advertisement creative work will be refined based on internal and external audience interests and needs. Brand Book Guidelines: The brand book will serve as a guideline that will outline the facility’s brand messaging elements including: logo use, marketing applications, brand standards, voice, tone, profile and positioning. These elements will enable staff to change creative based on various initiatives and campaigns while keeping within the established facility brand. These tools will be essential in driving facility membership, rentals and meeting overall revenue goals approved in the facility pro forma by City Council. City of Southlake Strategy Map Critical Business Outcomes CBO1 - Continue to implement Southlake 2030 Plan by focusing on short-term initiatives. CBO2 - Become an employer of choice by developing a plan to recruit, develop and retain employees committed to excellence. CBO3 - Develop long-term strategies to address future financial uncertainties and challenges. CBO4 - Improve mobility by proactively completing traffic analysis of key areas. CBO5 -Optimize resources through collaboration and partnerships to reduce costs and add service value. The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing efficiency, fiscal responsibility, transparency, and sustainability. Deliver on Our Focus Areas Performance Management & Service Delivery C1 Achieve the highest standards of safety & security C2 Provide travel convenience within City & region C3 Provide attractive & unique spaces for enjoyment of personal interests C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment C5 Promote opportunities for partnerships & volunteer involvement Serve our Customers Manage the Business B1 Achieve best-in-class status in all City disciplines B2 Collaborate with select partners to implement service solutions B3 Enhance resident quality of life & business vitality through tourism B4 Provide high quality services through sustainable business practices B5 Enhance service delivery through continual process improvement B6 Optimize use of technology Provide Financial Stewardship Promote Learning and Growth F1 Adhere to financial management principles & budget F2 Invest to provide & maintain high quality public assets F3 Achieve fiscal wellness standards F4 Establish & maintain effective internal controls L1 Ensure our people understand the strategy & how they contribute to it L2 Enhance leadership capabilities to deliver results L3 Attract, develop & retain a skilled workforce L4 Recognize & reward high performers L5 Empower informed decision-making at all levels in the organization C6 Enhance the sense of community by providing excellent customer service and citizen engagement opportunities L6 Foster positive employee engagement This item is linked to the City’s Strategy Map related to the focus area of Performance Management & Service Delivery and meets the corporate objectives to provide attractive & unique spaces for enjoyment of personal interests (C3), enhance the sense of community by providing excellent customer service and citizen engagement opportunities (C6) and Adhere to financial management principles and budget (F1). Also aligns with the Community Enhancement Development Corporation’s (CEDC) goals to promote economic development and ensure the success of a community entertainment and recreation center. 6 Questions? Jill Lind- (817) 748-8652 I appreciate the opportunity to present this item to you. If you have any questions you may contact me at (817) 748-8652. Thank you. 7