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City of Willcox – Senior Project 1

Arizona Promoters: Business Plan for the City of Willcox

RNCV 498

April 12, 2012

Crystal Hadfield

Alicia Wilson

Krystal Hitchins

Tracy Freeman

Tonja Martin

William Wolff

Amaris Hopkins


Executive Summary

The City of Willcox is a community rich in agriculture, history, and cowboy legend.

Willcox is located in Southeastern Arizona, 70 miles east of Tucson. The Willcox city limits

stretch for an eight-mile section on Interstate 10 (I-10) from exits 336-344. Willcox was

incorporated in 1915, although the town has been established since 1880. Wilcox’s mild

temperatures have made the area a great place to hike, bird-watch, camp, visit, and reside in.

Wilcox’s Mission Statement is:

The City of Wilcox’s mission is to provide a healthy, positive environment for

living, education, and employment; supply safe, pure water, dependable sewer

and natural gas, quality fire and police protection, well maintained streets, refuse

collection, recreational facilities and other citizen requested services in an

economical and professional manner.

Willcox, established as a mining camp prior to incorporation, is now an “interstate town”

that has a lot of amenities and history. However, is often overlooked due to its lack of promotion.

Willcox is rich in agriculture and offers several wineries and wine tasting facilities. Willcox has

several museums including the famous Rex Allen Museum that tells the story of Rex Allen and

his family. Willcox also has several historical buildings in the downtown area to include the

Willcox Commercial Co., the oldest store in Arizona. There are many annual events such as Rex

Allen Days, “Wings Over Willcox”, Warren Earp Days, and wine festivals. There are also many

areas of interest just outside of the city limits such as Apple Annie’s U-pick Farms, the

Chiricahua Mountains, the Dos Cabezas Mountains, and the Stronghold. When we market

Willcox and the surrounding areas as points of interest then Willcox will receive more visitors

which will lead to more revenue, growth, and economic development.


Currently, there is very little marketing and/or advertising to promote tourism to the City

of Willcox and its current events. The city’s website is also dated and lacking in ways to attract

visitors to events in the city limits and surrounding areas. With a very minimal budget and with

Arizona Promoter’s assistance we would like to offer guidance to the city as to how to better

market tourism in Willcox. Our company would also like to create a website that offers

information about Willcox and current, future, and promotional events. This site can be linked to

the City of Willcox, the Willcox Regional Economic Development Alliance, and the Willcox

Chamber of Commerce websites. The site would also be marketed through social media, i.e.

Facebook to attract those who search “Willcox”. We would also like to market to surrounding

communities as well as Tucson to generate more tourism and economic development. Finally we

will show Willcox how with increased advertising they can generate more tourism, growth, and

economic development.

Company Description

Arizona Promoters has been in business for about six months with its office located in

Tucson, Arizona. We are a marketing company that focuses on helping cities promote their

tourism industry. We focus on getting the community and local businesses involved to bring in

tourism dollars. Arizona Promoters also focuses on promoting an image that represents the heart

of the each individualized city. Our strategy with each city involves sitting down with the city

officials and local business owners to find out what they would like to see changed to better

promote their city. We usually encourage cities to add a tourism website, social media pages and

if they are not already doing so to advertise online and in print.

Arizona Promoters currently has seven employees that perform various tasks at different

points throughout the marketing period. The staff of highly-trained individuals meets the needs


of each project. Crystal Hadfield and Alicia Wilson are the project managers for the project and

will contribute to the business plan and budget analysis respectfully. Krystal Hitchins is in

charge of marketing the city. Amy Hopkins will do all necessary research for each department

throughout the project. Tracy Freeman and William Wolff will design and build the websites for

transfer to the city. Finally, Tonja Martin will design all social media sites and the discount card.

At Arizona Promoters we pride ourselves on presenting thorough budgets and meeting

with our clients monthly to track all expenditures. After the first month of work, Arizona

Promoters will meet with city officials to present their findings on the revenues and expenses and

to make necessary adjustments.

Arizona Promoters works as an outside contractor and will handle all human resource

aspects of the project internally as well as intermediate and long-term loans, if needed. We bill

each city on a monthly basis for the duration of each contract. At the end of the contract period

each city will meet with Arizona Promoters to decide if they are ready to take over all marketing

aspects internally or extend the contract so that marketing can continue to be handled externally.

Rates and fees are discussed when the initial contract is set up. As revenues start being generated

by the new marketing the new income could be used to supplement other expenses if needed and

agreed upon.

Organization & Management

Coordination: Arizona Promoters involves each employee doing his or her own part and then

getting together to make the best possible project. This is done through email and face-to-face

communication efforts. When meeting in person, employees and city officials get their questions

answered by our two leaders, Crystal Hadfield and Alicia Wilson.


Supervision: Crystal Hadfield and Alicia Wilson are in charge of supervising this organization.

Arizona Promoters was formed by the University of Arizona South. However, since working

with the City of Willcox, they also have a vested stake in our organization.

Ownership: Arizona Promoters is currently working pro-bono with ambitions of becoming a

for-profit organization. Arizona Promoters is owned by Crystal Hadfield, Alicia Wilson, Tracy

Freeman, Krystal Hitchins, Tonja Martin, William Wolff, and Amaris Hopkins.

Management: Arizona Promoters is managed by Crystal Hadfield and Alicia Wilson.

Board of Directors: The Arizona Promoters Board of Directors is made up of Crystal Hadfield,

Alicia Wilson, Tracy Freeman, Tonja Martin, Krystal Hitchins, William Wolff, and Amaris

Hopkins.

Arizona Promoters Board of Directors qualifications are as follows:

Crystal Hadfield-owner/manager: Crystal has been in corporate business for over ten

years. Crystal has management experience along with highly specialized skills in

accounting and grant writing. Crystal is organized yet flexible in her leadership style. Her

education, Bachelors of Science in Commerce along with her leadership, accounting,

business and management skills make her an efficient and effective owner/manager for

Arizona Promoters.

Alicia Wilson-owner/manager: Alicia humbly possesses the qualifications to

own/manage the company of Arizona Promoters due to the knowledge and experience

that she brings forth with her. She has acquired her Bachelors of Science in Commerce as

well as several years of experience in the business/accounting field. Alicia has over 14

years of experience in financial bookkeeping and office management and 7 years


experience in retail sales. With her education and experience combined she is an effective

leader with the ability to organize and direct projects of varying scope.

Tracy Freeman-owner: Tracy is one of the owners of Arizona Promoters and has worked

in the business field for the past 20 years. She has experience with marketing, website

development, sales, data administrative, accounting, purchasing, receiving, and some

computer programming. She will complete her Bachelor’s degree in Commerce in May

2012. With her experience and education she felt the next logical step in her career was to

form a business with other like-minded goal-oriented individuals and use that

combination of skills to help others and make Arizona cities stronger and more tourist-

friendly!

Tonja Martin-owner: Tonja has worked in the travel industry for 20 years, and brings a

diversified background in tourism ranging from family and couples travel to a current

focus on corporate and government travel to her position as an owner of Arizona

Promoters. Being a third generation Arizona native, and having traveled extensively

within the state and the Southwest she is exceptionally qualified to advise on destinations

in Southern Arizona. This experience coupled with the knowledge gained in the logistics,

marketing, and management fields while studying at the University of Arizona make her

qualified to be a business owner.

Krystal Hitchins-owner: Krystal is qualified to be another great owner of Arizona

Promoters because of her extensive knowledge and experience working in business


environments, as well as the education she’s received through Cochise College and the

University of Arizona. She has background knowledge in budgeting, accounting, human

resources, and management; all critical areas of business management. She is a detail

oriented, challenge driven individual, who is able to take and give constructive criticism.

She has the ability to work on team, alongside the other owners/managers of Arizona

Promoters, but also can be trusted to lead alone. She is fully aware of the time, attention,

and responsibility that are required to co-operate a business.

William Wolff-owner: William has a background in customer service and marketing

research. His college education has allowed him to acquire knowledge in the fields of

accounting, finance, and marketing. In May 2012 he will be receiving a Bachelor’s

degree in Commerce. He believes his education and experience will allow him to form a

business with other group members to market cities like Willcox!

Amaris Hopkins-owner: Amaris has worked in the field of business for the last 15 years.

She has experience in management, human resources, and computers. She will finish her

Bachelor in Commerce in May 2012. With her experience and education, she will qualify

to own a business.

Service or Product Line Description

In order for the City of Willcox to gain the biggest bang for their buck by having an

online presence. Arizona Promoters has developed a website (http://willcoxaz.wordpress.com/)

to promote the historical, agricultural, and local attractions Willcox has to offer. In addition to

the dedicated web site Arizona Promoters has created a social media Community/Government


page using Facebook as the platform (https://www.facebook.com/WillcoxAz). This page, in

accordance to the terms and conditions of Facebook, includes prominent links directing visitors

to visit the official web sites of the City of Willcox, the Willcox Chamber of Commerce and

Agriculture. Other vital web sites specified by the City of Willcox can be added as identified. In

addition to having these links available on the social media page for the City of Willcox, Arizona

Promoters stresses the importance of maintaining these linked web sites with frequent updates

and fresh content, which optimizes search engine results for visitors searching for information on

Willcox and upcoming events in the area. The web site developed by Arizona Promoters will

serve as an example of the type of content, graphics, and links necessary to enable the City of

Willcox to find success on the web.

By using Facebook Willcox will be

engaging their potential visitors, and

even future residents via the most

popular web platform currently

available. Facebook provides a potential audience of over 800 million users across the globe

(Fact Sheet). The key to a positive Facebook presence is adding content frequently, weekly at a

minimum. The goal is to give your audience a reason to check in and see what is new. The

content of the status updates is as important as the frequency of updating. Visitors should be

informed and engaged but not pitched too. Posts should promote local businesses, upcoming

event, notable days in history, news, awards and other items of community interest that will

appeal to a variety of demographics and encourage users to “share” on their own Facebook pages

allowing their friends and associates to be directed to “like” the Willcox Facebook page as well.


Basic use of Facebook does not incur any cost except the cost labor of the staff member

or members responsible for updating content. Updating Facebook is quick and convenient; the

site can be updated via mobile web as well allowing the site to be updated when employees are

away from the office.

The Willcox, AZ Facebook page can be used as a platform for contests. An example of

this would be The Fort Huachuca Facebook page administrator runs a weekly contest for their

followers to identify the location of a new photograph uploaded once a week. The first person

leaving a comment correctly identifying the location of the photo wins a Fort Huachuca lapel

pin. A lapel pin is not much, but it is enough to get page visitors excited and bring traffic to the

site.

Other communities in Southern Arizona, such as Tombstone have been promoting

themselves online via Facebook. A visit to the Tombstone Facebook page shows they have

6,944 visitors who have “liked” their page. Local to Willcox both Coronado Vineyards Winery

and the Willcox Chamber of Commerce & Agriculture have been successful promoting

themselves via social networking, specifically Facebook. Using Facebook to reach an unlimited

market is a chance for Willcox to magnify with minimal investment and zero risk.

Market Analysis

Market: The City of Willcox is experiencing a decrease in business in all sectors of the

economy. If this is compared to the rest of the United States, the city of Willcox is experiencing

a lower business growth proportionally. While other areas in the county and state are

experiencing growth and development, the city has remained stagnant, even stagnant; the city

has the potential to develop further. The City of Willcox has great potential as a city in the

markets of tourism and agriculture. Tourism is a small but important part of Willcox that is

https://www.facebook.com/pages/Willcox-Chamber-of-Commerce-Agriculture/140873195989483


undergoing significant changes. Agriculture is the largest and most influential market historically

and still is today. According to the US Commerce Department tourism is forecasted to grow by 6

to 8 percent in the next 5 years ("New report forecasts," 2011). The most important part of

Wilcox’s market is composed of the following industries and their sub industries:

Agriculture to include the wine industry, u-pick orchards, and local farming

Tourism to include museums, annual festivities, bird watching, and national monuments

Agriculture is a major part of the Willcox economy and will be very pertinent to the

economic development of Willcox. The most important component of Wilcox’s agricultural

industry is the wine industry. The wine industry is projected to experience significant growth in

the future. The tourism industry in Willcox is experiencing a change in relation to consumers and

their business needs.

Industry Description: At the moment the tourist industry is dominated by the older age

demographic. The “Rex Allen Days” average participant is 65 and older and of the middle to

high income demographic. This demographic is predominately drawn from the fans of the 50’s

actor/musician Rex Allen. This demographic is quickly aging to the point where they are can no

longer sufficiently travel to this destination resulting in a declining participation. Over the years,

this event has become second to Wings over Willcox, the annual birding festival. Due to this lack

of participation, Willcox needs to revitalize the Rex Allen Days festivities and focus on cowboy

heritage, not just Rex Allen. With Wings over Willcox being such a huge festivity for the

community, Willcox should also concentrate on how to keep the current market interested in this

festivity and how to attract a newer, younger market.

The tourism industry is changing more towards suiting the 33.5-year-old middle to high

income-with-family demographic. This demographic is not likely to be within the age range of


knowing who Rex Allen was, or their children for that matter. This demographic will be more

suited towards businesses that suit the physical activities while attracting youth and children’s

attentions. Businesses that reflect these qualities would be Apple Annies “U pick orchards”,

national parks, and wine tourism. Apple Annies allows children to pick their own produce and

encourages parents to purchase agricultural products from the Apple Annie’s store. Lastly, there

are several national parks in close proximity to Willcox such as The Chiricahua National

Monument, the Stronghold, and Kartchner Caverns. These activities are family friendly and

inviting to tourists. Lastly, an activity that will be appealing to the 33.5-year-old demographic

would be the wine tourism industry. The wine industry is the largest industry in the United States

that employs the most people with the largest profit turnout.

Targeted Demographic

Client/Customer base:

Two major demographics

Age: 33.5

Gender: Male/Female

Location: Texas/Midwest

Income bracket: Middle to upper class

Age: 64

Gender: Male/Female

Location: Texas/Midwest

Income bracket: Upper middle class

Media

The methods used to reach the market of 33.5 year old families are as follow:


Internet

Marketing Website

Physical material

Television

Advertising magazines

SWOT Analysis

The SWOT analysis consists of strengths, weaknesses/limitations, opportunities and

threats to a project or venture. The specification of the objective for the project or venture is

identified through internal and external factors. These factors are found to be either favorable or

unfavorable in nature, and will be used to improve the odds for objective of the project/venture.

Internal factors include the strengths and weaknesses of the organization. The external factors are

the opportunities and threats that come from the external environment that can affect the

organization.

As a soon-to-be profit seeking organization, Arizona Promoters will use their SWOT

analysis comprised for the City of Willcox to aid in their decision making when a desired

objective is defined. They will also take advantage of this tool for future recommendations for

the City of Willcox.

The City of Willcox will have competition coming from local towns and agricultural

destinations. The main destination that poses a competitive risk to Willcox is Tombstone. AZ.

Tombstone is already established as an effective tourist destination with a well-known history.

Willcox also has a good history but it is not well known to tourists. The advantage that Willcox

possesses is its strong agriculture and proximity to populated areas such as Tucson (for shopping

and entertainment), the Chiricahua National Monument (for hiking and camping) and the local


vineyards. The weaknesses that Willcox possesses are low monetary circulation from population

and tourism and the lack of current appeal in some areas of town.

The opportunities that can be exploited by Willcox would be its diverse economy with

various age ranges and cultural preferences. The town has the capability to grow in population

and tourism with the rich history and agriculture that it possesses. (See table 1, Appendix A)

Table 1

Strengths Opportunities

Deep rooted historical l egacy and rich history Diverse economy with a variety of age and

preference

Strong ag riculture Museums an d historical artifacts for tourism

Logistical friendly geographic location Wine vineyards and orchards for tasting events

and revenue circulation

Weaknesses Threats

Low tourism and population results in low

monetary c irculation through the community

Competition from the town of Tombstone - rich

in history and more known to tourists

Dilapidation in areas of town Competition from the town of Sonoita which is

k nown for their vineyards and wine tasting

Porter’s Five Forces

“Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies

in a business situation. This is useful, because it helps you understand both the strength of


your current competitive position, and the strength of a position you’re considering moving

into. With a clear understanding of where power lies, you can take fair advantage of a

situation of strength, improve a situation of weakness, and avoid taking wrong steps. This

makes it an important part of your planning toolkit” (Mindtools).

1. Threat of New Entrants – Arizona Promoters is well aware that new entrants can emerge

in our market at any time. Those entrants could have more experience. As of right now,

our services and labor are based on a pro-bono scale; therefore until the City of Willcox

makes money, we are working for free. It is doubtful that another entrant into the market

would be willing to make that sacrifice; however the possibility does exist.

2. Bargaining Power of Buyers – Our buyers, the City of Willcox, could decide once we

finish the product that they no longer need our services which could mean that all of our

hard work and sacrifices were done free of charge. In order to sustain the relationship it is

essential that we show them why it is worthwhile to hire us on a paid basis contract.

3. Threat of Substitute Products or Services – Our service is setting up a new website and

Smartphone applications as well as providing marketing online and in print. As

technology changes at a rapid rate, new products and services could replace our existing

ideas. Therefore we need to stay abreast of current technological changes.

4. Bargaining Power of Suppliers – We are the suppliers; therefore this threat does not apply

to us.

5. Rivalry Among Existing Competitors – As of now, there are no competitors, however;

that could change at any moment. We need to be aware that any competitor may enter our

market at any time. We need to concentrate on our marketing efforts to ensure that we are


well known to the communities in which we serve to protect our status and maintain our

good name.

Marketing & Sales Strategies

The City of Willcox has much to offer, as found in the marketing analysis. The

challenging part will be to effectively market each attraction. When residents of Sierra Vista

want to enjoy a weekend of excellent food and wine, they often find themselves on the road to

Sonoita. When relatives are visiting from out of state, they wish to visit Tombstone to see and

experience the cowboy history Arizona is known for. The City of Willcox has the same

offerings, in one town, a unique niche not many towns in Arizona have. Advertising on local

events can communicate to an untapped market, in turn bringing the city some revenue as well as

strengthening their reputation.

Few people know of the excellent wine and vineyard tours the city has to offer. By

promoting these events and businesses on the website and social media page we can generate

some discussion and traffic to the city. Willcox has many vineyards that offer tours and wine

tasting opportunities, Carlson Creek Vineyards, an 80 acre family vineyard is just one. The

owners of this vineyard also opened up a tasting room on the corner of Maely and Railview Ave,

a prime location in old town Willcox. The actual vineyard is located on the “Willcox Wine

Trail”, a trail composed of 6 different vineyards in southeast Arizona, all in or relatively near the

Willcox area. According to a famous winemaker that moved part of his business to the Willcox

area, Dick Erath, the area gives advantage over choosing Sonoita for vineyard growth because

the soil and temperatures of Willcox give the grapes better flavors. Not only will marketing

Willcox vineyards help the local businesses, but it may encourage wine producing enthusiasts to

open a tasting room or vineyard of their own. The Willcox website and Facebook page created


by Arizona Promoters can take all the existing news of wine and vineyard tourism

announcements from other pages, and give consumers a central location to view all the local

offerings.

Posting the events of Willcox in magazines, newspapers, and businesses in nearby cities

can also generate traffic to the city which is a lower cost option for the city. Utilizing the newly

established website, created by Arizona Promoters, will offer a central location for those

interested in the city to obtain news and current happenings, while also providing links to other

sites that may expand on information being sought. By tapping into all of the advertising outlets

(paper, websites, and social media pages) the word of what Willcox has to offer is going to

spread. One option that encourages Willcox businesses to get involved in marketing for the town

would be to have them donate sample items (like wine bottles or books of Willcox) to be

distributed by businesses in surrounding towns. For instance, if a local restaurant in Sierra Vista

agreed to promote wine from Willcox to its customers, it will potentially encourage the

customers to do research on Willcox and visit the town.

Rex Allen Days of Willcox is a popular event to commemorate the famous

movie/country star from Willcox. The event is family oriented and includes carnival attractions,

tractor pulls, and rodeos. The festival, held annually the first weekend in October, draws in locals

for the rodeos, parades, food, and comedy shows, a collection known to be some of Rex Allen’s

favorites. Festivals promote family togetherness and memory-making opportunities. By

expanding the advertising for the city’s biggest event through these outlets local businesses will

gain revenue. Marketing this event in towns like Sonoita and Tombstone will target the right

audience, cowboy enthusiasts that enjoy traditional western activities. Mailing flyers and leaving

brochures in local businesses is another low cost initiative for the local Willcox businesses to


generate more tourism to the event. Not only does the event include the previously mentioned,

but it also holds a car show. Classic cars are very popular in southern Arizona and car enthusiasts

are always looking for opportunities to show their automobiles off. This is another untapped

market. We will contact car clubs of surrounding areas (Tucson, Bisbee, and Sierra Vista) and

promote the event to those individuals by contacting the leads of the clubs and requesting

member contact information. Members of car clubs often use word of mouth by telling their

friends and family members of events they’re going to.

Two additional avenues for promotion for Willcox are the event, “Wings over Willcox”

and the popular local business, Apple Annie’s Orchard. “Wings over Willcox” is a birding event

that drew in over 450 registrants in January 2012. The annual event gives opportunity to bird

enthusiasts to observe over 100 species of birds as them make their way across the area for

winter migration. Promoting this event on the Facebook webpage will allow the news to spread

to amateur birders or to those just interested in experiencing something different for a weekend.

Apple Annie’s Orchard is a very popular destination for individuals who enjoy fresh

fruits and vegetables, and is also a field trip destination for many schools. This market is mostly

tapped out but additional promotion of other locals businesses during this event and in businesses

stores will encourage those already in Willcox to visit and experience what the town has to offer.

Social media sites like Facebook have been the most popular form of marketing for the

past few years. Users can “check-in” to a city, showing all their friends where they’re at and

what they’re doing. By having a Willcox page, the city can track the users that are utilizing this

functionality and watching to see which attractions they’re going to the most. The creators of

Arizona Promoters will “like” the page, hopefully drawing the attention of their Facebook

friends to click on the site and read up on the city.


Selling the ideas collected and implemented by Arizona Promoters to the City of Willcox

may be difficult. The initiatives started include:

Willcox Website (hub of city tourism information)

Social media page

Smartphone applications

Some or all of the initiatives started by the Arizona Promoters has been done for other

cities to promote growth and a sense of community. With members of the City of Willcox

divided on whether or not they want to see expansion for the city, all can agree that promoting

tourism not only benefits local businesses but it also spreads the word of what is offered.

Executing the strategies above will allow Arizona Promoters to reach their goal, helping a city

experiencing the hardships of the current economy. The initiatives will also generate revenue for

the city, bringing in new, fresh ideas in order to keep current with the competition.

Funding Identification

Arizona Promoters is a newly developed company with City of Willcox as its first client.

The team that comprises Arizona Promoters has invested their own time and effort for their first

project. For this reason they stand to lose more than the publicity with their outcome. The

Willcox project has a beginning budget of $4,400.00 funded by Arizona Promoters. It was

necessary for the company to take out an intermediate-term loan. This was especially necessary

to acquire the funds that would be used to promote Willcox, their first client. They were able to

acquire a fixed interest intermediate loan for 10%. The contract to repay the term-loan is in five

equal year-end installments. The total loan amount is $150,000. The amortization payment each

year is as follows:

Amortization = 150,000 = 39,569.48


3.7908ª

Arizona Promoters has decided to lease their equipment needed for the job under an

operating lease. This allows them the flexibility to return the leased property after the job is

completed without penalty (Shim & Siegel, 2007). Another factor in this decision is the

possibility to purchase a product if they decide that it is beneficial to future jobs as well. Arizona

Promoters is leasing equipment for 6 months at a cost of $550.00. We agree to make equal

monthly payments of $91.67. The interest rate associated with this lease agreement is as follows:

550.00 = 6.0

91.67

Money is authorized for each portion of the project. As presented below there are certain

percentages of the budget that are allocated to each expense. The graph shows those percentages

as a whole. This helps those who view your budget to see a breakdown of the costs. (See table 2,

Appendix B)

Table 2

The budget for Arizona Promoters was critiqued by with the owners after careful review

of the work plan, to include the projected final outcome. Review of spending blackouts assisted


in determining that the money should be allocated and spent immediately, in order to get the

project underway. Only the team leaders have the authority to spend the dollars on what was

agreed upon in the budget. Budget authority is a large responsibility; the individuals chosen are

given directions on what they can spend, where, how, and on what. The authority given is put

into writing, for audit trail and review purposes. (See table 3, Appendix C)

Table 3

The budget for the website will be done over a three year period. The predictions over

what the budget will be is an estimation of an increase in profit by 35% first year and 45% the

second year. The income and costs are numbers based on the expected sales. The labor for the

first year will be done by Arizona Promoters. After the project has been set up and transferred to

the city of Willcox, it will be the city’s responsibility to maintain the site. (See table 4 below,

Appendix D)


Table-4

The City of Willcox will be evaluating the project based on risk and return. Are city

officials willing to add the maintenance and upkeep of an additional website and social media

page to their books and designate the responsibilities to an existing employee? This and other

questions are what local officials will be asking themselves and their staff and the answers are

dependent on the information presented to them. Our job is to prove that the return will be

beneficial so long as they are willing to take the risk. The budget for the City of Willcox Project

is minimal, in terms of dollars; it is the man hours and volunteer time that can deem it expensive.

The City of Willcox officials will be looking at the project, and what type of opportunity cost it

has to offer or the net revenue lost by rejecting an alternative action. If rejected, the city could be

losing out on residents from local cities coming to visit the rich history and products, like wine, it

has to offer. Arizona Promoters is their work free to the city, by doing the research and

website/social media development for them, saving them resources and also providing them with

an end product and service. Based on their reaction to the project, they will decide whether or not

to extend their contract with Arizona Promoters and hire us based on our fees for service.


Financials

Since this marketing project is new and vibrant the promotional period should be set and

accepted for one year. After the first year the city of Willcox will have the opportunity to

negotiate a paid contract with Arizona Promoters or decline further services. Table 5 below

(Appendix E) shows the expense and income budget for Arizona Promoters year one.

May-12 June-12 July-12 Aug.-12 Sep.-12 Oct.-12 Nov.-12 Dec.-12 Jan.-12 Feb.-12 March-12 April-12

Discount Cards $1,000 $1,000 $1,000 $1,000 $1,000 $1,500 $1,500 $1,500 $1,500 $1,000 $1,000 $1,000

Website Ads $100 $100 $100 $100 $100 $250 $250 $250 $250 $250 $250 $250Total Revenue $1,100 $1,100 $1,100 $1,100 $1,100 $1,750 $1,750 $1,750 $1,750 $1,250 $1,250 $1,250

Marketing Revenue May 2012-April 2013


Copies of

Brochures made$100 $100 $100 $100 $100 $100 $100 $100 $100 $50 $50 $50

Discount Cards $500 $500 $500 $500 $500 $500 $500 $500 $500 $200 $200 $200

Magazine & News

Paper Adv.$200 $200 $200 $200 $200 $200 $200 $200 $200 $100 $100 $100

Social Media $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275

Website

maintnance$25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25

Total Expenses $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $650 $650 $650

Marketing Expenses May 2012-April 2013

During the first nine months the expense/income ratio will provide no profit until it gets

closer to the holiday season (1100/1100=0%). At that time the sales of web and other social

advertisements will increase creating a marketing income of nearly 63% (1100/1750= .628).

After the first nine months the expense/income ratio should stabilize at 52% (650/1250= .52).

A positive working capital means that we will have the ability to pay off our short-term

liabilities. (Please see revised budget below, Table 6, Appendix F)


Table 6

The current working capital is the current assets, $7,800 minus the current liabilities, $4,090.

$7,800 - $4,090 = $3,710

Therefore the working capital budget ratio would be the current assets, $7,800 divided by the

current liabilities, $4,090.

7,800/4,090 = 1.9

Our current ratio shows that we have too much available cash. This is okay as we can use

the extra funds to improve and maintain our website, social media applications, and Smartphone

applications. Since this is not a traditional venture, but a city project, Arizona Promoters will

adjust this working capital to include revenues and expenses for the project as well as the

traditional figures. Not only will the City of Willcox reap the revenues of the marketing project

but the purpose of the project to increase tourism will highly benefit the city’s monetary

circulation.

As purchases are made it is important to keep a running total to show remaining available

funds. As shown in table 3 below the beginning budgeted amount of $4,400.00 is reduced by the

spent funds of $2,675.00 and the committed funds of $1,415.00 leaving a remainder of $410.00.

0$4,400.00-$4,990.00 (2675+1415) = $410.00. (See table 7 below, Appendix G)


Table 7

Budgeted Spent Committed Available Note

4,400$ Allocated for Year 1

100$ Site/Domain

500$ 790$ Website Setup

800$ Smart Phone Setup

800$ Social Media Setup

350$ 200$ Supplies

125$ 425$ Travel

310$ Budgeted Less Spent & Commited

In Table 8 (Appendix H) we can see the comparison between our estimated budget and our

actual results.

Table 8

Expenses Proj. % Proj. Amt Act. Spent Act. Spent % Varience %

Site/Domain 2% 88$ 100$ 2% 0%

Website Setup 32% 1,408$ 1,290$ 29% 3%

Smart Phone Setup 20% 880$ 800$ 18% 2%

Social Media Setup 20% 880$ 800$ 18% 2%

Supplies 13% 572$ 550$ 13% 1%

Travel 13% 572$ 550$ 13% 1%

Totals 100% 4,400$ 4,090$ 93% 7%

Conclusion

As one can see, Arizona Promoters has spent a large amount of time researching the

Willcox area and dedicating their time to ensuring the satisfaction of the end result. Willcox is an

area of great history, agriculture, and tourism. It is the hope of Arizona Promoters to continue to

promote the traditions and history of Willcox and to increase the revenues for the City of

Willcox. We are promoting Willcox as an experience, not just a town with many amenities. The

experience of Willcox is sure to entice new visitors and keep those who are familiar with it

coming back.


References

City of Willcox Budget Book FY 11-12. (2011). City of Willcox. Retrieved from

http://www.cityofwillcox.org/html/budget_fy_11-12.html.

"Fact Sheet." Newsroom. Facebook, (2012). Retrieved from

http://newsroom.fb.com/content/default.aspx?NewsAreaId=22.

Porter’s Five Forces. (n.d.). Mind Tools. Retrieved from

http://www.mindtools.com/pages/article/newTMC_08.htm.

Shim, J. & Siegel, J. (2007) Schaum’s Outlines. Financial Management (3rd

ed.). McGraw-Hill

Companies, Inc. New York, New York.

New report forecasts strong u.s. travel and tourism growth during next five years. (2011, May

23). Retrieved from http://www.commerce.gov/news/press-

http://www.cityofwillcox.org/html/budget_fy_11-12.html

http://www.mindtools.com/pages/article/newTMC_08.htm


Appendix A

The following table is the SWOT analysis for the project of Willcox. It lists the strengths,

weaknesses, opportunities and threats that the City of Willcox currently faces. This information

will act as an aid to improve the odds for success with the project.

Strengths Opportunities

Deep rooted historical l egacy and rich history Diverse economy with a variety of age and

preference

Strong ag riculture Museums an d historical artifacts for tourism

Logistical friendly geographic location Wine vineyards and orchards for tasting events

and revenue circulation

Weaknesses Threats

Low tourism and population results in low

monetary c irculation through the community

Competition from the town of Tombstone - rich

in history and more known to tourists

Dilapidation in areas of town Competition from the town of Sonoita which is

k nown for their vineyards and wine tasting


Appendix B

The following entry is a percentage budget breakout of expected expenses for the

Willcox project. The expenses include the setup and functioning for the first year of service. The

planned project will include the website and social media expenses as well as salary, travel and

maintenance expenses.


Appendix C

The following table is a breakout of budget authority delegations. Only the team leads

have the authority to spend the dollars on what was agreed upon in the budget. Since, budget

authority is a large responsibility; the authorized individuals are given directions on what they

can spend, where, how, and on what. The authority given is put into writing, for audit trail and

review purposes.


Appendix D

The following table reflects the project portion of the budget that will be distributed

among the two major costs, the website and other social media. The budget described is a three

year period. The predictions over what the budget will be is an estimation of an increase in profit

by 35% first year and 45% the second year. The income and costs are numbers based on

expected sales.


Appendix E

The following table shows the expected expense and income budget for Arizona

Promoters during the first year. During the first nine months the expense/income ratio will

provide no profit until it gets closer to the holiday season. At that time the sales of web and other

social advertisements will increase creating a marketing income of nearly 63%. After the first

nine months the expense/income ratio should stabilize at 52%.


Discount Cards $1,000 $1,000 $1,000 $1,000 $1,000 $1,500 $1,500 $1,500 $1,500 $1,000 $1,000 $1,000

Website Ads $100 $100 $100 $100 $100 $250 $250 $250 $250 $250 $250 $250Total Revenue $1,100 $1,100 $1,100 $1,100 $1,100 $1,750 $1,750 $1,750 $1,750 $1,250 $1,250 $1,250

Marketing Revenue May 2012-April 2013


Copies of

Brochures made$100 $100 $100 $100 $100 $100 $100 $100 $100 $50 $50 $50

Discount Cards $500 $500 $500 $500 $500 $500 $500 $500 $500 $200 $200 $200

Magazine & News

Paper Adv.$200 $200 $200 $200 $200 $200 $200 $200 $200 $100 $100 $100

Social Media $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275

Website

maintnance$25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25

Total Expenses $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $650 $650 $650

Marketing Expenses May 2012-April 2013


Appendix F

The following is a spreadsheet that includes the cash budget for the web design project

for the first year by quarters. These are the expected expenses for each portion of the project. The

first quarter expenses will include the initial setup, wheras the following three quarters will

include the implementation of the project.


Appendix G

The following spreadsheet is a continuation of the budget. These amounts include the

dispursment of funds during the implementation of the project. A running track of funds such as

this is necessary to keep up with the available cash funds for the continuence of the project.

Budgeted Spent Committed Available Note

4,400$ Allocated for Year 1

100$ Site/Domain

500$ 790$ Website Setup

800$ Smart Phone Setup

800$ Social Media Setup

350$ 200$ Supplies

125$ 425$ Travel

310$ Budgeted Less Spent & Commited


Appendix H

The following spreadsheet is a percentage breakout of the percentage budget shown in

Appendix A. This table ties together the amounts allocated to each task as well as the actual

spent amounts for each task. The last column shows the variance between the projected amount

and actual amounts spent.

Expenses Proj. % Proj. Amt Act. Spent Act. Spent % Varience %

Site/Domain 2% 88$ 100$ 2% 0%

Website Setup 32% 1,408$ 1,290$ 29% 3%

Smart Phone Setup 20% 880$ 800$ 18% 2%

Social Media Setup 20% 880$ 800$ 18% 2%

Supplies 13% 572$ 550$ 13% 1%

Travel 13% 572$ 550$ 13% 1%

Totals 100% 4,400$ 4,090$ 93% 7%

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