Community Economic Development - Documents

Third Report

Hazelton Natural Resource Strategy

Marketing Plan

. . . . . . . . . . . . . . . . . . . . . . .

Village of Hazelton

Prepared by:

Lions Gate Consulting Inc.

Vancouver, BC

In association with:                                

Meredith and Associates                           

Smithers, BC

Majestic Forest Management

Smithers, BC

The marketing program presented in this document is for the Kispiox region, and more specifically for a proposed lodge/resort development in the Village of Hazelton.

The program is divided into two components. The next chapter outlines a general marketing program, including suggested themes for use in advertising and promotional materials.

Two previous reports, a Current Situation Analysis and a Cluster Assessment, were prepared as part of this project. There were also two stand-alone feasibility assessments prepared, one for a lodge/resort and the other for forestry development.

2.1 Strategic Objectives

As with any strategic planning process, a marketing plan must always strive to link means to ends. If specific marketing tools are envisioned (i.e. the means) then an effective program must be able to state in a cohesive and meaningful way, what the underlying purpose of the campaign is (i.e. the ends). The following objectives form the basis of this marketing plan.

1. Create a strong and positive brand image for the Kispiox region.
2. Increase the profile and awareness of the region.
3. Position the region in the marketplace to take advantage of its uniqueness, differentiating attributes and competitive advantages.
4. Provide a focus in marketing efforts by identifying specific target markets and audiences.
5. Identify methods for building brand awareness and catalyze involvement and support in the region.
6. Identify opportunities for product development and community preparedness initiatives.

• Lifestyle advantages/Quality of life/.
• Recreational opportunities abound/outdoors (skiing, cycling, hiking, fishing, hunting, parks, etc.)
• Landscape: rivers, mountains, valleys, forests.
• Salmon.
• Small-town friendly/rural living.
• Friendly people/good attitude.
• Educated and productive labour force (good work ethic) - underemployed and easy to retain people
• Transportation axis (Hwys 16, 37, CNR, ports in Prince Rupert and Kitimat)
• Low cost to do business – land, labour, etc.
• Sense of community not found in larger cities/people kinder.
• Tranquility/quiet  = less hectic/stress
• Picturesque setting
• Ethnic diversity
• History, pre-history, culture.
• Native villages, totems, ‘Ksan.

• Available work force;
• Low cost to do business;
• Affordable real estate/land;
• Attractive lifestyle and recreational opportunities; and,
• Positive “open for business” environment and supportive business support services.

• Tourism: product development and infrastructure, cultural
• Forestry:  value-added manufacturing
•   Light manufacturing/processing (forest botanicals, salmon, agri-food)

• “Kispiox Unplugged” – plays on the fact that the region offers a relaxed lifestyle where residents and visitors can remove themselves from the stress characteristic of urban centres.
• “The Hazeltons - nature and diversity through enterprise” – this plays on the natural environment, which is still a powerful life force creating a unique and exceptional place, with abundant diversity, and attractive conditions for growth and development. There is a diversity of culture but also an understanding of the need for enterprise conditions that are necessary for community economic development.

• Diverse landscape and access to a full range of recreational features.
• Diverse mix of communities with varying lifestyle assets.
• Safe communities.
• Small town ambience and relaxed rural living.
• A wide range of cultural amenities in the region.
• Available workforce motivated to stay in the region.

• Affordable costs to do business.
• Proximity to transportation and port facilities and from there access to Asian markets.
• Positive “open for business” attitude and with support/cooperation from community leaders.

• Rich resource base with untapped potential.

1. Create a lure brochure-presentation folder package that can be used to promote business opportunities. The package will compliment and support local communities promotional efforts.
   
   
2. Create a website for economic development promotion on the Hazelton and New Hazelton web sites. These pages will be integrated with the lure brochure-presentation folder by presenting a common image and message, as well as linking with individual community economic development web sites.
   
   The initial presentation of the brand and image can be made at little or no cost by undertaking public or community relations that communities would conduct in their normal course of business.
   
   
3. Issue a press release to local media, prepare articles describing the marketing campaign for local newspapers and newsletters, and investigate options for making presentations at the appropriate conferences and meetings.
   
   To create some structure around marketing activities, an annual budget should be established.
   
   
4. Establish a minimum budget of $10,000 annually for marketing activities. We project this amount as the minimum needed to undertake the basic tasks outlined in this plan. The benefits to the community would be expected to be many times over this amount.

1. A program should be established for recording all contacts, leads and prospects as an information feedback loop. Not only will this encourage the proper response to enquiries, it will provide important information with which to make an evaluation of program effectiveness. A formal system of collecting and distributing feedback information can improve marketing efforts and general decision-making.
   
   
2. A response program should also be prepared in order to filter out potential prospects that may require further or more detailed/customized information and subsequent follow up. In order to make a program for monitoring and response work effectively an inter-community referral protocol should be established in order to maximize response effectiveness and avoid leads and prospects from falling between the cracks.

• Design a logo/crest for the Kispiox area, which every operator, community organization and municipality could incorporate into their own promotional efforts.
• Develop a “pride in our region” or “tourist in our own town” program.
• Coordinate a new highway signage program for the region that incorporates the themes.

1. A direct mail program could be undertaken using the collateral materials and targeting a specific industry, sector or client group (e.g. retirees). With direct mail, targets are usually reached to obtain an immediate response. It can be very effective where the targets are well identified and qualified, where there is a call to action, and where the organization is prepared to carry out the program over the long-term.
   
   
2. A trade show cooperative could be formed that would allow smaller communities to participate in shows they would normally be unable to afford. For example, to overcome regional disparities in economic development capacity, trade show commitments could be made on a regional basis and then “resold” to individual communities as needed. There could be a cross-subsidization of costs to allow smaller communities to engage in marketing. If private-public partnerships could be arranged, there would be even more opportunities trade show exposure.
   
   
3. Print advertising could be undertaken either in newspapers, consumer magazines or trade publications. In either case, the selection of publications should again be closely matched with the intended target audience. Print advertising has a unique ability to convey lifestyle and brand images to either a very broad non-selective audience (e.g. newspapers) or to niche audiences (e.g. trade publications). However, costs can be excessive and needless if the actual audience is not that targeted, or if the ads quickly end up at the bottom of a bird cage. Economic development offices in BC have increasingly turned to BC Business or Business in Vancouver inserts as a way of getting their messages across to a relatively broad yet also targeted audience.

This section of the document refers to the marketing of a lodge/resort/accommodation facility in Hazelton to outside investors. The development concept and accompanying market and financial feasibility assessment are contained in a separate report.

3.1 Background on the Accommodation Sector

There are many factors about why, where, and how a lodging development might choose to locate in a

specific community. Naturally, the potential of making a healthy profit is the primary reason hotel/motel investors go into business. Setting out to attract a lodging business to the community can be facilitated with some background about how the hospitality sector works. The following discussion applies mostly to the hotel/motel sector, although there are implications for lodge development as well.

Who owns hotel and motel establishments?

Chain operations are the fastest growing segment in the hotel/motel industry. Hotel chain operationsare owned by a company that has direct control of its properties. Sandmann Inns and Coast Hotels are examples of chain-operated companies. A chain operation may own or lease the building and/or the land for individual hotels/motels. In any case, the chain reaps the full benefits of profits and bears the full consequences of operating losses.

Franchise operations are companies that franchise their names to entrepreneurs or other firms.While a hotel or motel may be part of a chain, it may or may not be part of a chain operation. A franchised operation is not under direct control of chain management. The franchise owner reaps the benefits of profits and is responsible for losses. An independent firm can also own franchises in several different hospitality chains. For example, a firm may own and manage a number of Holiday Inn or Ramada franchises.

Referral associations are a third type of classification in the hotel/motel business. Referral associations are made up of independent operators who maintain their own operating procedures. Services, appearance, and prices will vary widely from one property to another. Best Western is one of the best known referral firms in North America. In a referral association, an independent owner pays a membership fee that provides him/her with services such as a nationwide reservations system, common logo, national advertising, membership directories, and in some cases, a toll-free number.

Who operates hotels and motels?

Hotels and motels can be operated by the owners or by contracted management. A management contract is an agreement between hotel owners and a company that specializes in hotel management. The agreement contains specifications about the duration of the contract, financial arrangements, and property responsibilities. Unlike chain operations, firms under management contracts usually have no legal claim to the actual physical property or any financial responsibility for profits and losses.

How are hospitality properties bought and sold?

Large chain operations such as Coast Hotels have their own real estate offices that handle acquisitions for their companies. In the US, there are numerous broker associations, such as the Hotel/Motel Brokers Association, with cooperative listings and properties across the country. These hotel/motel brokers have lists of investors who want to purchase a hotel or motel property. Many belong to the Hotel Brokers International which sometimes list Canadian Properties.[1] In BC, the top real estate companies such as ReMax and Sutton have brokers specializing in the lodging industry and who would maintain their own lists of investors. A good, professional broker can be one of the most valuable ways to get prospective firms interested in the community. A broker can give you assistance in assessing community=s needs and will know the types of individuals or companies interested in investment.

3.2  Marketing the Opportunity

Many communities need additional lodging to accommodate travellers coming to their area. However, attracting a hotel, lodge or resort is not an easy task. Hotel/lodge developers make location decisions based on a variety of factors, the most important of which is the ability to make a profit. The greatest selling point of a Hazelton Lodge is based on future potential and not on fulfilling a current market need. This will increase the perceived risk of investment among prospective developers and cause them to consider why an investment in Hazelton would be more worthwhile than a similar investment in some other community.

The main selling features of Hazelton as a lodge location include:

• An exceptional site with above-average features;
• Proximity to one of BC’s best-known cultural attractions; and
• Potential for joint development with First Nations.

1. Compile a list of prospective recipients of direct mail-out. Potential recipients and source lists include the following:
• motel and hotel companies – 
  • Choice Hotels
  • Coast Hotels and Resorts
  • 6 Continents Hotels (Formerly Holiday Inns)
  • AMF
  • Best Western
  • Travelodge
  • Motel 6
  • Journeys End
  • Accent Inns
  • Sheraton
• previous investors who have shown an interest in the community – 16/37 CFDC, Nadina CFDC, real estate companies, regional and First Nations economic development offices.
• area realtors – Telus Yellow Pages.
• regional financial institutions – Telus Yellow Pages.
• tourism associations – Northern BC Tourism Commission.[2]
• government agencies - LWBC Inc.
• business associations – BC Fishing Resorts and Outfitters Association[3], BC Lodging and Campgrounds Association[4], the BC and Yukon Hotels Association[5] and BC Motels Campgrounds Resorts Association[6].
advertising on the Hazelton web-site. This should be based on the lure piece/brochure and include links to the executive summary of the feasibility assessment and site pictures. The full feasibility should not be presented on-line – it is much better to include just the executive summary and then encourage interested parties to contact the community for further information. This will allow a relationship to be established.

Developing First Nations as a Partner.

• Establish regular, informal discussions with ‘Ksan and First Nations representatives who are interested in this project.
• Maintain communication with the Gitanmaax Band regarding their plans for a heritage park at the Hagwilget bridge IR. There could be an opportunity to coordinate infrastructure and amenities that would benefit both projects.

3.2.2 Follow-up and Response

A program should be established for recording all contacts, leads and prospects in an organized manner. This is a necessary part of any marketing, attraction or economic development initiative aimed at attracting investment or new business development. A process for creating an information feedback loop that allows an evaluation of marketing efforts will allow the community to move upon opportunities as they arise. A response program should also be prepared. Enquiries which are qualified become prospects, which, after further screening, may become attraction targets. Many enquiries are simply seeking information and/or need redirection to another agency more fitted to their immediate needs. Prospects may require more detailed information on the community and its economy and should be provided with a relocation package. A formalized program can also ensure that client confidentiality concerns are addressed, an important consideration when seeking new business for the community.  A follow-up response, usually by telephone, to all mail-outs should be employed.  Well-developed prospects, or targets, require a more personal and dedicated response, which can involve anything from personal meetings to brokering partnerships with other agencies.

Steps:

1. The community should establish a Marketing Action Team, consisting of community, industry and First Nations representatives, to discuss and establish a protocol for sharing information and dealing with enquiries.
   
   
2. A database should be maintained for recording contact information, nature of enquiry, the response made, follow-up procedures and the history of the relationship. This can be done using a standard off-the-shelf database such as Access or a contact management program such as Maximizer.
   
   
3. Prepare a response program by establishing expectations for timeliness of response to all enquiries.
   • Devise methodology for screening and qualifying enquiries.
   • Maintain a contact list of other referral agencies and organizations so as to effectively redirect enquiries.
     
     
4. Maintain community profile and other promotional information (see previous strategy) for distribution to all enquiries.
   
   
5. Provide a prompt reply to every request for a prospectus package or for specific additional information.
   
   
6. Regularly contact each prospect to find out what else you can do to assist them, and to show your community’s interest in them.

3.3 Site Selection Services

Although there is private land available for development in and around Hazelton itself, there may be occasions where crown land is a preferred site. In such cases, it will be necessary to obtain crown land tenure from the provincial government that allows a facility to be developed. The community can assist with this process, as well as identify any other regulatory impediments to the development of sites. An opportunity based on the use of crown land that is researched for potential use conflicts, regulatory problems and suitability will be much more attractive to an investor. Any work done in this area will reduce the time required for the approval process and thus the costs to the investor in time, effort and funds.

Steps:

1. Monitor changes in provincial Land Reserve Commission and be prepared to seek exclusions where the community feels it is socially and economically justifiable. Some of the best tourism/recreation potential in the Northwest is on sites that are zoned ALR, even in cases where the chances of future agricultural development are extremely remote.
   
   The LRC is being restructured to be more regionally responsive to community needs. New regional panels are being appointed. The Agricultural Land Reserve will continue to be administered through the Land Reserve Commission, which will work co-operatively with municipalities to delegate more decisions to local governments. Delegation agreements will be voluntary and consistent with the provincial interest in maintaining the ALR and the principles of the community charter.
   
   
2. Examine the feasibility of seeking approval for the rezoning of Anderson Flats from the Regional District and the LRC should this location continue to be seen as a preferred site for development.
   
   
3. Assess municipal and other incentive packages that could be offered to new business.  Incentives can come in many different forms. While the use of tax breaks is widespread in the US, in BC they are not allowed by the Municipal Act. Other incentives such as land, infrastructure and employee training can be used however. 
   
   
4. Create an inventory of tourism, recreation and commercial properties in the Kispiox region.  If an investor does make enquiries about doing business locally, the best resource for site information currently is real estate companies. Communities can be more proactive in courting investor interest by having a property inventory. This could include IRs which have been deemed suitable by First Nations for property development. A work plan could be developed in conjunction with regional realtors for preparing and maintaining the inventory and identifying key sources of information.
   
   
5. Enhance the inventory with a set of all-season photographs. A set of winter photographs of sites were taken for this project, but spring, summer and fall photos should also be inventoried.
   
   
6. Undertake further concept planning for preferred sites, which could supplement the viability and marketing materials prepared as part of this project. This could include the following:
   • Conceptual drawings of lodge/resort development on site(s).
   • For Anderson Flats, concept plans for a possible footbridge across the Bulkley River linking South Hazelton with Old Town and ‘Ksan would enhance the marketability of that site by demonstrating how unique the site and its possibilities are.