business and marketing plandc40720d-a823-4643-91cd...competitive analysis ... nd and three native...

Business andMarketing PlanThe purpose of this plan is to establish the framework necessary to aggressively generate short and long-term sales and increase building usage for The Sanford Center.

1111 Event Center Drive NE I Bemidji, MN 56601 | 218.441.4000 | www.TheSanfordCenter.net

BACKGROUND

The Sanford Center has proven to be an economic generator for the City of Bemidji and Beltrami County. It continues to be the catalyst resulting in an infusion of overnight stays. This is compounded by convention delegates and live event patrons spending additional leisure dollars on dining, sightseeing and other ancillary spending. Bemidji, where the mighty Mississippi River meets its first city, is a regional center with an up north atmosphere. Located in the north-central region of Minnesota, Bemidji is easily accessible from major urban centers (Duluth, MN, Grand Forks, ND, & Fargo, ND). By highway, the City is four hours from Minneapolis, MN and two and a half hours from Duluth, MN, Fargo, ND and Grand Forks, ND. The City of Bemidji’s population has grown since the 2010 census by a few percentage points as has the Beltrami County population. The population is trending to grow over the next decade at a faster rate than it did in the previous decade. The median income in the City of Bemidji, MN is $33,974.00 and 23.2% of Bemidji residents live below the poverty line (2012 Census). Bemidji is also a regional health center with the Sanford Hospital and Clinic and VA Clinic within the city limits. VenuWorks and the City of Bemidji continue to share a mutual vision to maximize facility usage, diversify the matrix of events and fill voids in programming. This vision is being realized through improved sales efforts and a consistent marketing program, while keeping a close watch on the management of expenses.

VenuWorks’ vision includes continuing in our role as an anchor on the South shore, branding our facilities, maintaining our reputation as the premier convention facility in our area, providing a diverse array of live spectator and entertainment events, delivering expert attention to detail and excellent service, and raising the bar of customer service throughout the hospitality industry. The Sanford Center has seen gradual success financially. The potential to see additional growth is possible with special events; however, we need the support of the community. VenuWorks must continue to prove Bemidji is a good special events market so that promoters view us as a must-stop building. On the Convention side of the business, Bemidji is highly regarded as a destination for meetings, conferences and leisure travel. VenuWorks continues to be as flexible as possible on availability of dates for inquiry, tentative hold and contracting. VenuWorks anticipates a decrease in expense categories and controlling the areas that are related to event load in the next fiscal year.

Managed and operated by VenuWorks, The Sanford Center enjoys the collaboration and expertise of one of the nation’s top public facility management companies. VenuWorks core management philosophy is centered on events, the lifeblood of a successful public assembly facility, and that philosophy is central to its mission statement:

It is the mission of VenuWorks and its subsidiaries to maximizethe presentation of successful events in client facilities for the

cultural, recreational, educational, and economic benefit of the communities we serve.

Business & Marketing Plan 2017

EXECUTIVE SUMMARY

As part of VenuWorks’ commitment to promoting and managing the venue, the attached marketing and sales plan is submitted. The focus of the plan is two-fold:

1. Create Awareness2. Generate event business with high return while providing a venue to legacy events within the community

The Business and Marketing Plan is designed to provide staff with a benchmark for development and to serve as a visual blueprint for positioning and marketing The Sanford Center. Modifications to the plan will be required throughout the upcoming fiscal year but this plan provides a solid foundation for future endeavors as VenuWorks strives to improve customer relations and improve profitability.


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COMPETITIVE ANALYSIS

Competition in the Northern Minnesota market for special events has continued to grow steadily over the past few years. VenuWorks recognizes this competition and realizes special events can play multiple accounts and multiple locations. The timing of these events depends on the event itself and whether a show can sell in multiple markets. On the special events side, VenuWorks recognizes facilities in Duluth, MN, Fargo, ND and Grand Forks, ND and three Native American Casino’s (Red Lake, Walker, Mahnomen) as competition, and as such, strives to work with promoters and agents to route shows through Bemidji. On the conference center side, VenuWorks recognizes facilities in Grand Forks, ND, Duluth, MN, St. Cloud, MN, Minneapolis, MN, other Bemidji establishments and Brainerd, MN as competition, and as such, strives to work with meeting planners, Visit Bemidji and other agencies to keep Bemidji in the forefront of new bookings.

A synopsis of a SWOT analysis (identifying the strengths, weaknesses, opportunities and threats) of the Sanford Center finds:

Strengths:

· Bemidji State University – strong partnership· Sanford Health System – one of the largest health networks has offices in Bemidji· The Sanford Center is aesthetically attractive, with True North lighting· New attached Country Inn & Suites – allowing flexibility in scheduling events· Flexible space (adapts to group needs from 35 to 5800)· Great location & ample parking for a majority of events· Quality kitchen with professional Food & Beverage staff· Ample wireless connectivity throughout facility· Staff - very dedicated and knowledgeable· The Sanford Center is a true multi-purpose facility· Airport 6 minutes away· Full multi-media amenities available· Largest meeting and banquet facility in the Greater Minnesota area· Facility is building its reputation of being cost-effective· Venue is adaptable to any style event

Weaknesses:

· Bemidji airport has two flights daily from MSP – Delta only airline servicing BJI· Hotel rooms are difficult to book in the summer months · Native American Casinos host hard ticket events· Minnesota has an abundant summer festival schedule that people attend· Median income is very low for multiple events; expendable income is low· Time, distance and weather conditions affecting driving from MSP· Distance for Meeting Planners to come from the Cities to see our facilities· Venue does not have a strong ticket selling history· Angel fund – need to increase to reach for larger shows


Opportunities:

· The Sanford Center can balance out sports and entertainment with arts · Able to open new doors in RFP responses with a new attached hotel· Create synergy between the following partners: · Chamber of Commerce · Visit Bemidji · Bemidji Inn-keepers · Sanford Center.· Develop internship with Bemidji State University with Banquet Event Operations· Continue to serve a diverse event mix of community oriented events: · Relay for Life · Suicide Prevention Walk · Bemidji Blue Ox Marathon · Bemidji Symphony Orchestra, etc.· The Sanford Center was proud to host 156 Community Events in 2016 · These events are one aspect we can grow to develop community use

Threats:

· Staff hiring and turnover: · Skilled and qualified personnel · Lack of promoters willing to risk money on shows here in Bemidji· Disconnect of stakeholders in the community · Need to engage community to help us bring events to Bemidji· Facilities in Grand Forks, ND and Fargo, ND· Casinos doing more and more entertainment

To continue our progress, it is imperative that staff personally convey, face-to-face, the level of quality associated with the facility and its services for current clients. Nothing speaks louder and more convincing than a positive, personal experience. Staff will increase face-to-face time with clients (generally from the Twin Cities). Lastly, VenuWorks will spend 2017 working with our local inn-keepers group, Visit Bemidji and the Chamber of Commerce in an effort to communicate more efficiently on economic driving events.


MEETING & CONVENTION FACILITIES

Regional Convention Centers

Sanford Center & George W. Neilson Convention Center — Bemidji, MN Exhibit Space: 30,000 Meeting Rooms: 10,000 sq. ft. ballroom 4 Breakout Rooms 1,000 sq. ft. each / 4,000 total sq. ft. Lobby/Pre-function space: 2,000 sq. ft. Arena Floor: 17,000 sq. ft.

Sawmill Inn — Grand Rapids, MN Exhibit Space: 12,350 sq. ft. Meeting Rooms: 7260 sq. ft. Executive Board Pre-function Space: 720 sq. ft. Business Center Technology: Wi-Fi throughout Building Alerus Center — Grand Forks, ND Exhibit Space: 160,000 sq. ft. Meeting Rooms: 11,000 sq. ft. including a board room Lobby/Pre- function space: 20,000 sq. ft. River’s Edge Convention Center — St. Cloud, MN

Exhibit Space: 150,000 sq. ft. Meeting Rooms: 11,058 sq. ft. Lobby/ Pre-function space: 9,090 sq. ft.

South Shore Conference Center — Bemidji, MN Exhibit Space: 3,864 sq. ft. Meeting Rooms: 720 sq. ft. Lobby/Pre-function space: 920 sq. ft.

Sport & Entertainment Facilities

· Duluth Entertainment Convention Center, Duluth, MN

· Alerus Center, Grand Forks, ND· The Ralph Engelstad Arena, Grand Forks, ND· Scheels Arena, Fargo, ND


Goal: During the 2017 fiscal year, VenuWorks will increase the facility’s operating efficiencies within each internal department for all events, while at the same time reducing internal and external expenses.

Action Plan: To maximize current operating efficiencies, it’s important to critique and question all current technical operating systems, and each administrative department to analyze how they have been functioning over the years.

Over the last six years The Sanford Center has experienced both growth of events and a systematic loss of attendance. Venu-Works has consistently explored new, returning, and competing events, and have concluded that within this economically depressed market, ticket patrons choosing between multiple similar events limits the ability to sell tickets.

With a foundation of six years of events VenuWorks better understands the limitations and need to adjust to economies of scale, including department staffing and a proper schedule of events.

To Maximize Operating Efficiencies:

VenuWorks is working to expand its current partnerships, including both NLFX and Paul Bunyan Communications, to provide better service and streamline event operations and building systems.

With NLFX, VenuWorks is exploring an all-inclusive annual service package. As NLFX is one of the industry leaders and in our backyard, VenuWorks’ partnership will push the envelope of entertainment and value to customers.

As new technologies are developed in regards to our internal network VenuWorks is looking at new opportunities with Paul Bunyan Communications to expand the current partnership to be a one-stop-shop for everything technical including: email/network server, website host provider, telephone, and more.

To increase scheduling efficiencies, VenuWorks has started utilizing Shiftboard – a new scheduling calendar allowing part-time staff and managers to schedule based upon their availability and necessity.

Lastly, and most importantly, VenuWorks will improve operative effectiveness though maintaining staff stability. VenuWorks of Bemidji has seen its fair share of staff changes over the year. However, with new staff comes new opportunities to create syner-gy within all departments to achieve common goals.

To Reduce Internal and External Expenses:

The Sanford Center Ticket Office will reduce its hours to begin operation only two hours before events. This will reduce labor expenses dramatically and will re-train the ticket buying public to purchase online, thus increasing the ticketing fee rebate revenue. Currently, when tickets are purchased directly through the box office these additional fees are waived.

In addition to increasing customer value, by operationally collaborating with NLFX we will reduce the need to upgrade existing or purchase new AV equipment.

VenuWorks continues to explore new opportunities to expand current partnerships and create new opportunities to reduce external event expenses. This can be seen on behalf of Red Lake Nation’s gift of Walleye during the 2016 Bemidjgamaag Powwow, Gladen Construction helping with the Wojo Rodeo Dirt move, and most recently with Norbord’s commitment to contribute to the upcoming BHS Rick Lee Wrestling Tournament scheduled in January.

GOALS AND ACTION PLANS

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2 Goal: During the 2017 fiscal year, VenuWorks will plan to target and secure new home-grown annual events while expanding current partnerships to nurture and grow the list of annual events.

Action Plan:

As literally the biggest thing in town VenuWorks will build the perception that the Sanford Center is the obvious choice for any event. During the 2017 year, VenuWorks will work to create new home-grown events strategically placed throughout the year. In addition, VenuWorks will focus on collaborating to expand the great annual community events currently scheduled. VenuWorks will re-tool its focus to secure all annual event for multiple years to provide consistency within our event schedule. This will allow VenuWorks to schedule additional events as they best fit within the annual event calendar. Current Home Grown Annual Events:

· Wojo Rodeo

· Homark Homes Hardwood Showcase

· BSU Hoops at the Sanford Center

· Fight the Frost

· The Blue Ox Marathoon

· The Bemidji Car Show

By pre-scheduling and securing as many annual events as possible, VenuWorks will extend our marketing resources and operational experience to create legendary events.

For larger arena events and concerts, our new focus will be “Quality Instead of Quantity”. Throughout the history of the Sanford Center, VenuWorks has seen what has worked and what has not. VenuWorks will plan to host 4 to 6 large-scale arena concert events of higher quality on an annual basis.

In an economically depleted market, the choice of entertainment is a difficult one for those with discretionary income. By strategically placing less, but better events with protection clauses VenuWorks will create a higher demand for tickets.

· To expand current partnerships and lock down multiple year contracts VenuWorks will extend its marketing resources early on to build a better foundation for the event. VenuWorks’ initial focus will be the following events and local partnerships:

· Paul Bunyan Communications + NLFX – Partnership through $300,000 Arena Sound System, and the GigaZone Gaming Championship

· RP Broadcasting – Working to expand Outdoor Show, Bridal Show, and Boomers & Beyond Blue Ox Marathon – in partnership with Sanford Health.

· Sanford Health – Committed to supporting future show with pre-ticket purchase guarantee for Employees.


Goal: During the 2017 fiscal year, VenuWorks will re-tool one of the most important asset and revenue streams: Building Sponsorships. Through expanding current partnerships and creating new opportunities for new sponsors VenuWorks’ goal is to increase sponsorship sales and solidarity.

Action Plan: As one of the most significant budgeted items, building sponsorships and naming rights are the life blood of The Sanford Center. Sponsorships allow the facility to create an overhead base on which to operate and without them, operating the facility would be almost impossible.

To increase sponsorship solidarity and expand our current partnerships, the Director of Sales & Marketing will take steps to re-harness and expand current personal relationships. Over the years, with an increase in events, sponsorship sales have remained stagnate. With the ability to deliver tickets, entertain, and bond with each sponsor, partnerships will be strengthened to ensure future continuation.

In addition to current sponsorships, VenuWorks will create new sponsorships and partners in the building. To support these efforts VenuWorks will re-explore all current suppliers, advertisers, and vendor relationships to solicit building sponsorships. The business model of sponsorship is founded in buying power and the ability to work with those whom best support the facility.

To support the Director of Sales & Marketing within these efforts, existing staff will be utilized to assist with the design and creation of sponsorship proposals.


3


Goal: During the 2017 fiscal year, VenuWorks will actively pursue economic driving events by securing longer term deals and increasing our partnerships within the community.

Action Plan:

VenuWorks will lay the ground work to launch a “Bring your Event Home” campaign focused on learning what associations and boards the residents of Bemidji are involved in and pursuing their annual events to showcase Bemidji and the various passions within our community.

The Convention Sales Manager will partner with the Director of Sales and Marketing to invest in Sanford Center and George W. Neilson sales collateral such as swag and memorabilia to bring to conventions and meetings outside of the building. This will leave a lasting reminder of Bemidji and the Sanford Center increasing our recognition within the surrounding communities.

By increasing the number of long-term deals, VenuWorks will stabilize the current business which allows for the Convention Sales Manager to focus on backfilling dates and creating new relationships with potential clients.

The Convention Sales Manager will make strategic quarterly trips to the Twin Cities meeting with event planners and association members to develop new relationships and strengthen existing ones, fostering the growth of convention related events.

VenuWorks will continue its partnership and communication with community partners such as Visit Bemidji and the Bemidji Area Chamber of Commerce to ensure the continued increase in the economic impact of the Sanford Center on the community of Bemidji and various businesses therein.

All sales efforts will be tracked against established monthly and annual sales goals and objectives through the financials to ensure the George W. Neilson Convention Center continues its trajectory to match projected growth.

Full-Time staff will increase their involvement in local civic/service and professional business organizations cultivating relationships through leadership roles, networking with current and future clients, and showcasing the overall assets the Sanford Center brings to Bemidji.


4


Summary

The Sanford Center is now entering its sixth year of operation. Having six years of data and experience in managing the facility allows VenuWorks the ability to look out to future years with better understanding of what can be accomplished. 2017 will be a great year where VenuWorks focuses heavily on increasing operating efficiencies, reducing expenses, targeting new and growing current annual events, increasing the convention sales business, and re-focusing facility and event sponsorships.

VenuWorks is fortunate to have an amazing, dedicated staff. The time and dedication that they put in week in and week out is a credit to their professionalism. Without these dedicated individuals, it would be extremely difficult to implement the goals for 2017.

In 2017, the Sanford Center will accomplish the following:

· Increase the facility’s operating efficiencies and reduce internal and external expenses.

· Expand its current partnerships overall including both NLFX and Paul Bunyan Communications to include service contracts for Audio Visual and all communication/network purposes.

· Introduce and utilize new and existing programs such as Shift Board to improve scheduling and HR Expenses.

· Improve operative effectiveness though maintaining staff stability.

· Explore new opportunities to expand current partnerships and create new opportunities to reduce external event expenses.

· Reduce ticket office hours to only two hours before events.

· Reduce staffing expenses of Ticket Office substantially

· Increase revenue from Ticketmaster fee-rebate.

· Target and secure new home-grown annual events while expanding current partnerships to nurture and grow the annual events.

· Secure and strategically place all regular annual events for multiple years to provide consistency.

· Focus arena events on “Quality Instead of Quantity”. Host 4 to 6 large scale arena concert events of higher quality.

· Strategically place fewer, better events, with protection clauses to create higher ticket demand.

· Extend marketing resources earlier to build a better foundation for growing community annual events.

· Increase sponsorship sales and solidarity through expanding current partnerships and creating new opportunities for new sponsors.

· With more quality events and less quantity, the Sales & Marketing department will have time to strengthen current relationships and ensure new future sponsorship consideration.

· Utilize the facility’s buying power of current suppliers, advertisers, and vendor relationships to solicit building sponsorships.

· Utilize current staff to create and design future sponsorship proposals.




· Pursue economic driving events by securing longer term deals and increasing our partnerships within the community.

· New marketing campaign “Bring your Event Home” focusing on local associations and boards.

· New Sales collateral such as swag and memorabilia to bring to conventions and meetings outside of the building.

· Re-focus on increasing the number of long-term deals, to stabilize the current business which allows for our Convention Sales Manager.

· Track established sales goals and objectives through the financials to ensure the George W. Neilson Convention Center is continuing its trajectory to match projected growth.

· Full-Time staff will continue to increase their involvement in local civic/service and professional business organizations cultivating relationships through leadership roles, networking with current and future clients, and highlighting the overall assets that the Sanford Center brings to Bemidji.



SANFORD CENTER FY(17) ANNUAL BUDGET VenuWorks of Bemidji, LLC

Business and Marketing Plan 2017

2017 Budget 2016 Budget 2015 Actual 2014 Actual

Ordinary Income/Expense

Income

50100 · Building Rent - Arena 103,900 191,645 124,885 106,396

50150 · Building Rent - Meeting Rooms 153,800 100,450 71,519 75,000

50200 · Facility Lease 249,557 198,236 241,760 197,877

50300 · Suite Leases 16,000 8,000 17,677 17,961

50500 · In-House Equipment 103,525 95,220 43,287 42,391

50502 · Reimbursed Event Labor 463,330 534,940 342,589 322,220

50504 · Reimbursed Expenses Other 56,720 - 105,928 125,430

50505 · Box Office Fees - - 27,234 33,208

50506 · Facility Fees 88,410 145,922 120,182 108,734

50507 · Co-Promotional Revenue - - (15,272) 14,195

50508 · Merchandise 15,400 15,400 15,416 19,908

50509 · Reimbursed Credit Card Fees 26,310 45,132 14,520 14,038

50510 · Reimbursed Event Advertising 17,000 - 39,175 46,652

50511 · Ticket Rebate Revenue 27,085 54,017 54,934 47,077

50600 · Parking Revenue 140,119 193,675 162,371 149,827

50700 · Vending & Pouring Revenues 804 804 - -

50800 · Interest Income 600 600 326 328

51000 · Signage & Sponsorships 440,004 530,993 412,683 453,970

52000 · Food & Beverage Sales 994,642 1,092,102 1,284,705 1,225,690

Total Income 2,897,206 3,207,136 3,063,919 3,000,903

Cost of Goods Sold60000 · Cost of Goods Sold 285,578 319,484 333,908 343,919

Total COGS 285,578 319,484 333,908 343,919

Gross Profit 2,611,628 2,887,652 2,730,011 2,656,984

Expense

70000 · Personnel Services 1,657,203 1,927,545 1,652,716 1,677,924

71000 · General and Administrative 32,341 67,304 27,110 35,929

72000 · Occupancy 624,251 597,043 502,816 483,151

73000 · Travel and Motor Vehicle 24,350 52,380 46,874 47,902

74000 · F&B Expenses 52,664 51,280 46,529 78,089

75000 · Services / Operations 474,708 514,588 417,793 331,584

76000 · Event Expenses 95,720 26,800 349,805 326,914

79999 · Cash Over / (Short) - - 2,204 2,725

Total Expense 2,961,237 3,236,940 3,045,846 2,984,218

Net Ordinary Income (349,609) (349,288) (315,835) (327,234)

Other Income/Expense

Other Income80000 · City Subsidy 349,609 349,288 325,631 349,304

Total Other Income 349,609 349,288 325,631 349,304

Net Other Income 349,609 349,288 325,631 349,304 Net Income - - 9,796 22,070

business and marketing plandc40720d-a823-4643-91cd...competitive analysis ... nd and three native...

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