atascadero tourism marketing plan

Atascadero Tourism Marketing Plan


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Table of Contents

Section 1: Project Overview 4

Section 2: California Trend Analysis 10

Section 3: Economic Impact of Tourism 20

Section 4: Atascadero Market Analysis 22

Section 5: Tourism Product Analysis 25

Section 6: SWOT Analysis 27

Section 7: Promotional Efforts 30

Section 8: Visitor Demographics 33

Section 9: Tourism Vision & Goals 35

Section 10: Marketing Strategy 36

Section 11: Marketing Strategy Execution 40

Section 12: Marketing Plan Tactics 44

Section 13: Budget Recommendations 55

Appendix 56


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Executive Summary • In order to stimulate tourism related economic development in Atascadero, the City of Atascadero in

conjunction with the county-wide tourism analysis developed by the Economic Vitality Corporation of San Luis Obispo County has supported the development of a comprehensive marketing plan to guide future tourism promotions efforts.

• Within Atascadero, there are approximately 402 rooms available, representing 3.7% of the total rooms available within San Luis Obispo County.

• In FY 2007/08, Transient Occupancy Tax collections (T.O.T.) in Atascadero were $407,609. Approximately 10% of T.O.T. is allocated towards tourism promotion.

• Atascadero Tourism Vision: To develop and implement tourism programs that differentiate Atascadero by promoting the authenticity of the destination and its attractions, history, and local culture; and take into consideration the interests and needs of current and potential visitors, local tourism related businesses and local governments, with respect for the environment and the values of the community.

• Primary geographic target markets are defined within a 3 to 5 hour driving time radius and include Southern

California, San Joaquin Valley and Northern California.

• In order to establish an effective long-term competitive advantage and to guide its overall marketing program, the City of Atascadero must successfully Differentiate Atascadero from the competition, and maximize the use of technology in order to efficiently reach target market segments.

• In order to integrate the core marketing strategy into every tourism promotion effort, an action plan of specific marketing tactics has been developed including the following short-term priorities: o Brand Building – Promote brand to create a unify theme and identity for Atascadero marketing program, and

that clearly differentiates Atascadero from the competition within and outside of San Luis Obispo county. o Website Development – Upgrade Atascadero website to integrate brand and positioning, promote key

tourism attractions, and improve navigation throughout to facilitate travel planning process and bookings. o Online Marketing – Develop monthly email newsletter, promotions, contests and reciprocal links to increase

user sessions and to build the email database for ongoing visitor communications and to use for a visitor profile study to identify demographics, travel spending, and visitor perceptions, behaviors and motivations.

o Advertising – Develop advertising (with value added elements to leverage ad placements) that reaches target markets and promotes the Atascadero brand and primary tourism assets.

o Sales – Continue to work with the San Luis Obispo Conference & Visitors Bureau in cooperative trade shows and sales efforts.

o Public Relations Out of Market – Develop a press kit and press releases that promote Atascadero brand and key

attractions to be sent to targeted media and the California Travel and Tourism Commission. In Market – Communicate ongoing tourism promotion efforts to city-wide tourism officials and community.

o Visitor Information – Enhance existing visitor information with Atascadero brand and local culture. o Research – Measure all marketing efforts to identify ongoing improvements and ROI.

• Funding - Identify sources for additional funding for tourism promotion efforts in order to promote and create awareness for the Atascadero destination and overnight visits.


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Section 1: Project Overview

I. Overview Atascadero is located in the Central Coast region of California in San Luis Obispo County, just 18 miles east of Morro Bay. It lies in a picturesque valley surrounded by ranches and farmland, the Santa Lucia Mountains and rolling hills covered by oak trees. Atascadero’s rural setting and lakes provide the perfect background for boating, hiking, bicycling, birding, golfing and horseback riding, as well as agricultural tours. In the spring, wildflowers dot the landscape and several events celebrate the area’s rich bounty, history and local culture. Atascadero is also home to the Charles Paddock Zoo located at the Atascadero Lake Park. It is the only zoo in the Central California coast and houses over 100 animals including a female Indochinese tiger named Sala, one of only 235 world-wide.

Atascadero has all of the amenities of an established city, yet has retained its cultural heritage and small town ambiance. Founded in 1913 by E. G. Lewis, a successful magazine publisher from the east, as a planned colony, Atascadero was finally incorporated in 1979. Two of the original buildings built between 1914 and 1929 are considered Central Coast landmarks, with the grandiose architectural style that rivals Hearst Castle to the south. The Administration Building or Rotunda Building, and the Carlton Hotel are considered the cornerstone of Atascadero’s downtown and help draw visitors to the area. Built in 1929, the Carlton Hotel is not only a beautiful historic building transformed into a luxury hotel; it is also recognized as a central coast culinary hot spot that features the wines of the celebrated San Luis Obispo region. Atascadero is situated along Highway 101 approximately 20 miles north of the city of San Luis Obispo and 18 miles east of Morro Bay via Highway 41, and

just south of Paso Robles. Its prime location and easy access offers visitors a central location to stay to enjoy the many activities found throughout San Luis Obispo County such as the Pacific Coast, Hearst Castle, Paso Robles wine country, endless recreation, and the Central Valley.

While Atascadero has several amenities of a small town rural destination it has an interesting challenge. Most of the major tourism attractions are located outside of the city. As such, Atascadero is in need of a marketing plan to help guide and promote its tourism assets and lodging properties in order to increase its economic viability as a tourism destination. As part of its participation in the county-wide tourism analysis sponsored by the Economic Vitality Corporation of San Luis Obispo County, the City of Atascadero retained the

Strategic Marketing Group to develop a long-term tourism marketing plan that will build awareness and demand for visiting Atascadero. The following plan takes into account the strategic opportunities available to the city, as well as identifies the core marketing strategy and tactics necessary to clearly differentiate the destination from the competition. While the plan is intended to leverage the county-wide tourism promotion program, it is primarily designed to assist the City of Atascadero with its long-term tourism development efforts.


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II. Project Goal & Objectives A. Project Goal

To provide the City of Atascadero and the tourism business community with a comprehensive tourism marketing plan for future tourism promotion efforts.

B. Project Objectives

1. Solicit and utilize input for the development of a marketing plan and strategy for the Atascadero tourism business community.

2. Use the plan to guide and support the positive, cooperative nature of the tourism business community. 3. Develop core marketing strategies designed to achieve the organization’s marketing goals. 4. Develop specific tactics to successfully execute the marketing strategy that take advantage of the broader

San Luis Obispo County tourism marketing program. 5. Develop an effective ongoing marketing system/process that allows the tourism community to continually

improve its marketing effectiveness. C. Study Area The area of study includes Atascadero in general, along with the surrounding areas as indicated in the map below.


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D. Project Design The project scope consisted of the following three phases:

Atascadero Project Scope

Phase I: Data/Information Collection The collection of data and information consisted of interviews with the tourism business community, as well as a review of information from the City of Atascadero, Atascadero Chamber of Commerce, Visit Atascadero website, Atascadero Main Street Association, and industry information from outside the area.

1. Local Interviews SMG conducted individual and group interviews with key community members within San Luis Obispo County and Atascadero. While these interviews were wide ranging, several important themes became apparent and are summarized below:

- There is a need to have tourism help diversify and strengthen the local economy.

- A strong recognition that Atascadero is a unique place within San Luis Obispo County with several recreational and historical opportunities.

- A need for a more aggressive tourism promotion approach that benefits the City of Atascadero.

- The marketing program should help build awareness of Atascadero.

2. Atascadero Information SMG reviewed a significant amount of information from the City of Atascadero and the tourism/hospitality industry including the following:

- Atascadero Visitor/Tourism Assessment - Information provided by Applied Development Economics - All marketing materials produced by local tourism businesses - San Luis Obispo County Visitor Guide - San Luis Obispo County related websites

3. Industry Information Travel data relevant to Atascadero was obtained from the recently completed Tourism Analysis study developed by the Economic Vitality Corporation of San Luis Obispo County.

Phase 1

Data/Information Collection

Phase 2

Data/Information Analysis

Phase 3

Final Tourism Marketing Plan


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Phase 2: Data/Information Analysis SMG conducted a thorough analysis of the collected data in order to fully understand the current marketplace and competition, and Atascadero’s strengths, weaknesses, opportunities and threats. Phase 3: Final Tourism Marketing Plan Following the comprehensive analysis, SMG developed a long-term marketing plan outlining target markets, marketing opportunities, strategies and action steps for achieving Atascadero’s tourism marketing goals.


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III. Elements of Tourism When considering tourism in general and Atascadero specifically, it is important to understand the elements that comprise the tourism experience. These elements are outlined by McIntosh, Goeldner and Ritchie1, and include the following:

Tourism Element Characteristics

1. Natural Resources Natural assets unique to the region. 2. Infrastructure Physical elements that help support the visitor’s

experience such as air access, roads, utilities, etc. 3. Hospitality Human elements that interact with and serve the visitor.

4. Visitor Services Hotels, food & beverage, and retail services designed to

assist the tourist. 5. Attractions Natural and built facilities, events and local culture that

provide visitors with authentic experiences. 6. Organizational Organization and processes that work to attract visitors to

the destination using a variety of promotional techniques. It is clear that Atascadero offers some level of these six core tourism elements, especially the significant natural resources. In addition to the above tourism elements, it is important to recognize that these elements in and of themselves are not enough. In order to truly maximize the city’s efforts, the following support is needed: • A market-focused and market-driven strategy

Too often organizations and regions can lose focus on marketing efforts and become concerned with political matters. For tourism success to occur, it is critical that communities like Atascadero develop a focused approach to defining and delivering an authentic and differentiated vacation experience, and minimize any potential political issues.

• Funding In order to realize its stated goals, an organization needs to allocate the necessary funds to achieve the identified goals. Both the public and private sectors in Atascadero have to take a realistic look at the potential available funds for marketing and what is truly needed for the area to maximize its competitiveness.

1 Tourism, Principles, Practices and Philosophies, and the Strategic Marketing Group


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• Cooperation and Unity of Purpose The tourism industry needs to foster cooperation between all of the tourism promotion agencies as well as the greater political community from a regional perspective. The current tourism promotion situation within San Luis Obispo has historically been fragmented. Locations like Atascadero and all the others within the county have an excellent opportunity to not only strengthen their own tourism efforts, but also leverage the overall effort of the entire county which, in turn, will benefit Atascadero.

• Vision The tourism industry needs to provide a vision for the greater community and develop a high “buy in” from stakeholders both in the public and private sector within Atascadero.

Community Benefits If all of these components work in unison along with the necessary resources and funding, the tourism community, local government and local residents should benefit in a number of areas including: • Enhanced quality of life

Recognition of the importance of protecting natural elements in Atascadero will both add to visitor satisfaction as well as local quality of life, satisfying the often challenging need to balance visitor and local resident needs.

• Improved infrastructure and local services Tourism generated tax dollars can play an important role in municipal and county funding for local services. As such, it is important for local residents to make a clear connection from the revenues that tourism generates to the infrastructure and municipal services that local residents enjoy.

• Jobs and business improvement Tourism often adds to the revenues that, in turn, increase employment and strengthen local business. This enhanced image has the potential to strengthen economic development value which in turn, will help to attract and retain business entities within Atascadero.

• Positive Return on Investment (ROI)

The combined benefits derived from Atascadero’s tourism promotion effort can provide a positive ROI over the long-term for the entire community and continue to strengthen the local economy.


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Section 2: California Trend Analysis

Within the travel and tourism industry, significant changes are occurring in the macro environment of California that impact tourism destinations like San Luis Obispo County and Atascadero. Following is a summary of the key tourism, economic and demographic trends that will help to provide a comprehensive context for the development of Atascadero’s strategic direction. I. California Macro Environment Trends A. Tourism in California Each year, millions of California residents and visitors travel within the state to experience its wide variety of attractions, scenic beauty and local culture.

• According to the state of California, $96.7 billion was generated by direct travel spending in 2007, a 3.6% increase over the preceding year.

• The long-term trend shows that travel spending has increased about 4% annually, unadjusted for inflation,

since 1992. Additionally, this travel spending translated into 924,000 jobs.

Figure 1 California Travel Spending

1992-2007 ($ Billions)

92 $52.193 $53.194 $54.695 $55.496 $60.297 $65.598 $67.899 $72.200 $78.001 $74.702 $74.003 $76.804 $81.905 $88.106 $93.807 $96.7

$52.1$53.1$54.6$55.4$60.2

$65.5$67.8$72.2

$78.0$74.7$74.0$76.8$81.9

$88.1$93.8$96.7

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Source: Dean Runyan Associates


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As a tax generator, tourism generated approximately $11 billion in revenues for state and local governments. Figure 2 below outlines the tax revenues generated by travel spending within the state since 1997.

Figure 2

California Tax Revenues Generated by Travel Spending 1997-2007 ($ Billions)


• It should be noted that local taxes throughout California have not had any significant growth since 1997

compared to the steady growth in state taxes over the same time period. B. Total California Travel In terms of tourism trends within the state, visitor volumes have been fairly consistent over the past several years with Californians representing the lion’s share of the state’s travel and tourism industry. In 2006, the state of California received an estimated total of 366 million “person trips” to and through the state. Of this total “person trips”, 298 million or 80% were made by California residents, 53.3 million or 15% were made by U.S. resident out-of-state visitors, and 14 million or 4% were made by international travelers.

Figure 3 2006 Total California Travel Visitor Volume (Millions)

Source: California Travel & Tourism Commission

• With regard to business and leisure travel within the state, approximately 75% of individual “person trips” are

for leisure purposes and 25% for business.

$1.4 $1.5 $1.6 $1.7 $1.6 $1.6 $1.7 $1.7 $1.9 $2.0 $2.2$2.5 $2.6 $2.8 $2.9 $2.8 $2.8 $2.9 $3.2 $3.4 $3.5 $3.6

$7.2 $7.5 $7.9$8.6 $8.5 $8.7 $8.8 $9.3

$10.0 $10.6 $11.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Local Taxes State Taxes Total Taxes

International4%

CA Resident80%

Out of State15%


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II. California Economic Trends Despite the recent slowdown, the California economy can best be characterized by its size and strength. As indicated by the following key economic indicators listed in the table below, it is estimated that total taxable sales in 2004 was $486 billion and is projected to grow to $566 billion by 2007.

Table 1 Key California Economic Indicators

2000 2001 2002 2003 2004 2005 2006 2007 2008

GDP (% Change) 1.4% 1.5% 1.2% 1.9% 2.2% 2.2% 2.5% N/A N/A

Unemployment % 4.9% 5.4% 6.7% 6.8% 6.2% 5.4% 4.9% 5.4% 6.9%

Personal Income Growth 7.8% .7% -.03% 1.4% 3.9% 3.0% 4.7% 3.1% 32.5%

Consumer Price Index 3.7% 3.9% 2.4% 2.3% 2.65 3.7% 3.9% 3.3% 3.4% Source: State of California, Department of Commerce

As can be seen in Table 1 above, the California economic picture has changed significantly over time. Most recently unemployment has risen and personal income growth has slowed while at the same time inflation pressure has seen an increase in prices. Both the national and state recessions are expected to have an impact on travel and tourism. As of this writing, at the national level the Travel Industry Association is projecting a decrease in both leisure travel by 1.3% and business related travel by 2.9% for 2009 with a soft recovery projected for 2010. It is anticipated that while San Luis Obispo County (and Atascadero) have excellent proximity to consumer markets the destination can still expect to feel some impact of the growing economic situation that currently exists within the country and the state. As such, it will become even more important for the destination to maximize its tourism promotion efforts in an effort to continually deliver needed revenues, taxes and employment.


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III. California Demographic Trends Since the late 1990s, population in the state of California has increased steadily. Table 2 outlines the projected trends in 2012, during the time between 2003 and 2012 California population and personal income levels are projected to change significantly. Change will occur in several noteworthy areas including those listed below.

Table 2 California Growth Indicators

2003-2012

2003

Projected 2012

% Change

Population (Millions) 34 40.8 20%

Households (Millions) 12 13.7 14%

Total Personal Income (Billions 1997$) $1,192 $1,746 47%

Per Capita Personal Income (1997$) $33,326 $42,700 29%

Avg. HH Income (1997$) $100,923 $126,000 25%

Source: Center for Continuing Study of the California Population

• During the 2003-2012 time period, the California population is projected to increase from 34 million to 40

million, a 20% increase. Additionally, personal income levels for Californians are projected to increase by 47% and average household incomes by 25%.

A. Household Income

Using 2003 as a base year the average household income was significant with Los Angeles and the San Francisco

Bay Area households averaging over $100,000. Income is projected to grow between 2.2% and 2.6% annually through 2012 for the three major California regions listed in the table below.

Table 3

Selected California Counties 2003-2012 & Per Capita Income Growth Rates

Average

2003 Household Income

Projected Annual Avg. Change

2003-2012 Los Angeles Basin $100,087 2.6%

San Francisco Bay Area $123,503 2.5%

Sacramento Region $88,945 2.2%

San Joaquin Valley $99,647 2.9%


• It should be noted that the anticipated growth in the San Joaquin Valley could have a positive impact on tourism within the Central Coast area in general and Atascadero specifically as those residents seek a “get away” vacation location.


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B. Population Increase In addition to the overall population increase for California by 2012, population increases are projected for each of the major regions within the state as indicated in the table below. The San Joaquin Valley and Sacramento area is projected to grow the fastest at 19% followed by San Diego at 17%. The projected growth in the San Joaquin Valley coupled with the size and proximity of Southern California markets should be a long-term opportunity to Atascadero and its proximate location to these markets.

Table 4

California Population Growth by Selected Regions 2003-2012

2003 Projected

2012 Projected Growth

2003-2012

Sacramento Area 2,100,000 2,500,000 19%

Bay Area 6,900,000 7,600,000 10%

Los Angeles Basin 17,629,000 19,910,000 13%

San Diego 2,900,000 3,400,000 17%

San Joaquin Valley 3,583,000 4,284,000 19% Source: Center for Continuing Study of the California Population

C. Aging Population Much has been written about the Baby Boomers. As a target segment it continues to offer significant opportunity.

Figure 4 below illustrates that by 2012, 50% of the California population is projected to be 35 years or older and 50% is projected to be less than 34 years.

Figure 4 Projected Population Changes: 2003-2012

(Millions)


10.6

7.8

5.5

4.8

3.2

3.8

11.3

8.8

5.6

5.5

4.5

4.8

0.0 2.0 4.0 6.0 8.0 10.0 12.0

<19

20-34

35-44

45-54

55-64

65+

2012 2003


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D. Changes in Ethnicity

Another dynamic that is also changing the demographic picture is California’s growth of various race/ethnic groups. Specifically, rapid growth is occurring within the Hispanic and Asian segments. As can be seen in Table 5 below, the Hispanic segment is projected to be the single largest ethnic segment in California by 2012.

Table 5 Projected California Population Change by Race/Ethnic Groups

2003-2012 (000’s omitted)

2003 Projected 2012 % Change

Caucasian 16,048 15,533 -3.2%

Hispanic 11,083 16,123 46%

Asian 3,700 4,900 32%

Black 2,200 2,700 23%

Multi-race/American Indian 831 1,200 44%

Pacific Islander 111 160 44%

Total 33,973 40,616 19.6%


• It should be noted that the recent increases in the Hispanic and Asian population have also changed the

composition of the California labor force. Among the Asian population, the composition of these segments may not be fully understood. For example, while the Asian category represents recent immigrants, it also represents 5th generation Japanese citizens. These segments and their relation to the travel industry need to be better understood.


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IV. Travel, Social and Cultural Trends In addition to the changing economic and demographic characteristics, several social trends are also impacting travel and tourism throughout the country, as identified by the Travel Industry Association (TIA) below. From this list, SMG has outlined both the primary trends having the most significant strategic impact on tourism to San Luis Obispo and the City of Atascadero, and the secondary trends.

Figure 5 Primary Trends

Primary Trends: • Generational Segmentation

There are significant differences in key generational segments that are important to tourism destinations, including the following:

o Baby Boomers - People born between 1946 and 1964, who are currently between the ages of 42 and 60 years old. Baby Boomers typically generate the highest travel volume.

o Gen X - Those born between 1965 and 1978, who are currently between the ages of 28 and 41 years old. o Millennial Generation - Those born between 1979 and 1994 who are currently between the ages of 12 and

27 years old.

• The Internet and Travel o Travelers tend to be quite computer savvy. Two thirds (65%) of the 98.3 million travelers who are online

(63.8 million) used the Internet to make travel plans. Use of the Internet to actually book travel continues to increase, with 45% of all travelers now online having made travel reservations on the Internet during the past year. That translates to 44.6 million online travel bookers.

o The majority (83%) of online bookers are using the Internet to do at least half of all their travel booking. The number of online bookers doing all of their travel booking online continues to grow, with 40% doing so in 2004, versus 29% in 2003.

o 82 percent of online travel bookers say they bought airline tickets for a trip taken in the past year, 67 percent booked overnight lodging accommodations, and 40 percent made rental car reservations.

• Environmental Issues are Priority

o Americans are increasingly more interested in environmental issues. This issue impacts the selection of destinations as well as the selection of activities while on vacation. Those destinations that place a strong emphasis on the environment will have a competitive advantage over those that do not.


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Correspondingly, the rural atmosphere has taken on more significance as travelers become more directly involved in rural activities.

• Hectic Lives Equal Shorter Trips

o As people become increasingly pressed for time due to the hectic nature of their lives, the impact is seen on vacation and travel. As has been written many times, vacation trips have become significantly shorter in duration. Additionally, consumers are looking for hassle free vacations placing greater importance on ways of booking, and travel to and from destinations.

Secondary Trends

• Children as Travel Companions

o One in four household trips in the U.S. (26%) include children under 18, or 170.1 million trips in total. Most (91%) trips with children are for leisure, nearly half of which are taken to visit friends or relatives. Four in ten (44%) overnight trips with children include a stay in a hotel, motel or bed and breakfast establishment. Popular activities on trips with children include shopping (32%), attending a social/family event (31%), engaging in an outdoor activity (14%), going to the beach (12%), and going to a theme/amusement park (12%). More than half (55%) of trips with children are taken by households headed by Baby Boomers (age 35-54).

• Family Reunions

o Thirty four percent of U.S. adults have traveled to a family reunion in the past three years. This translates into nearly 72 million U.S. adults. In fact, one in five (22%) U.S. adults say they took a trip to attend a family reunion in just the past year. Keeping with the family theme, more than half of reunions are held in someone's home (52%). City or town parks (12%) and national/state parks or forests (6%) are also popular. And family reunions occur with some frequency-at least once a year for half of family reunion travelers.

• Fitness While Traveling

o More than one-fourth of U.S. travelers—24.7 million adults—tried to keep those extra pounds at bay by using a fitness center or gym while traveling in the past three years. These travelers are more likely than total U.S. travelers to be male (55%), younger (39 years, average age), a college graduate (56%), have a professional or managerial occupation (36%), have children in the household (55%) and have a higher annual household income ($87,000 average (mean) annual household income).

• Weekend Travel

o Half of all U.S. adults--nearly 103 million—take at least one weekend trip per year. Almost 30 percent of Americans have taken five or more weekend trips in the past year and 35 percent of all weekend travelers say they've taken their children with them on at least one weekend trip. Compared to five years ago, day trips and weekend trips appear to be more popular today than trips lasting about one week or longer. In fact, forty percent of weekend travelers report they are taking more day trips and/or weekend trips (38%) today than five years ago. Interest in longer trips lasting more than one week seems to be declining-43 percent of weekend travelers claim they are taking fewer long trips than they did five years ago. Most weekend travelers (42%) make last-minute plans and select their destination within two weeks of their trip. Thirty percent of weekend travelers say they took advantage of discounts, coupons, or special offers while planning or while on their most recent weekend trip. Visiting cities (33%) and small towns (26%) are favored destinations for weekend travelers, followed by beaches (16%), mountain areas (10%), lake areas (4%), state or national parks (3%) and theme or amusement parks (3%).


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• Beach Vacations o One in ten person-trips (10%) includes going to a beach, equating to 109.5 million domestic person-

trips taken in the U.S. in 2003. Long trips are popular with beach-goers as 36 percent of beach person-trips last a week or longer. Among household trips including beaches, 41 percent include children.

• Educational Travel

o The learning aspect of travel is important to U.S. travelers, with about one-fifth —30.2 million adults— having taken an educational trip to learn or improve a skill, sport or hobby in the past three years. Eighteen percent of travelers in the past year said that taking such a trip was the main purpose of their travel. Overall, educational travelers are more likely than total U.S. travelers to be male (56%), younger (39 years, average age), a college graduate (49%), have a professional or managerial occupation (38%), have children in the household (51%), and have a higher annual household income ($75,000 average (mean) annual household income). They are less likely to be married.

• Historical Places/Museums

o A majority (58%) of U.S. adult travelers included an historic activity or event on a trip during the past year. This translates to an estimated 84.7 million U.S. adults. Their households generated 143.5 million person-trips including a visit to historical places or museums in 2002. In fact, 41 percent of past-year travelers say they visited a designated historic site, such as a building, landmark, home, or monument (41%) during their trip. Three in ten (28%) visited a designated historic community or town.

• Cultural Events/Festivals

o Most (75%) U.S. adult travelers attended a cultural activity or event while on a trip in the past year. This translates to an estimated 109.8 million U.S. adults. Their households generated 97.7 million person-trips including a cultural event or festival in 2002. Examining the variety of cultural activities to do on trips shows that past-year travelers most often attend performing arts events (48%) and/or visit art museums or antique establishments (47%).

• Increased Value

o Today, people are constantly looking for increased value, no matter what the purchase. Destinations must continually look for ways to provide additional value and benefits to increase visitation.


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The identified travel and social trends have several positive implications for Atascadero tourism promotion efforts as outlined below:

• Generational Segmentation

With a number of activities and events that are attractive to a broad audience, Atascadero has an opportunity to target its marketing efforts to multiple segments including 55+, Baby Boomers and Gen X.

• Internet and Online Travel With the majority of consumers using the Internet for travel planning, it is imperative that Atascadero continually update and improve its website and online marketing efforts in order to compete effectively and to reach target audiences more efficiently.

• Environmental Issues The overwhelmingly growing concern for the environment allows Atascadero to promote its natural tourism assets such as agriculture tours, and low impact recreation such as hiking, bicycling and birding.

• Shorter Trips/Weekend Travel Atascadero’s prime location in central California and its easy access along Highway 101 can help it to communicate its convenience to the large potential visitors residing in northern and southern California and the San Joaquin Valley.

• Children as Travel Companions The Charlie Paddock Zoo, Sunken Gardens, recreational lakes, hiking, biking, birding and horseback riding, agricultural tours, cultural events, and rich California colony history allows compelling reasons for families to travel and stay in Atascadero.

• Historical Places Atascadero’s interesting history as the first master planned community or the Atascadero Colony, as well as its historic buildings such as the Carlton Hotel and Rotunda Building, and cultural events like Colony Days allow it to promote this unique aspect of California history that is not found in any other destination.

• Cultural Events/Festivals Atascadero’s wide variety of seasonal, natural and cultural events such as the Wine Festival and Colony Days allows it to promote the destination’s authenticity, local culture and distinctiveness. Live re-enactments, Tent City and historical events also help to tell the story of the creation of the Atascadero Colony in a compelling and genuine manner.

• Increased Value With a number of brand name lodging properties that have desirable price points and amenities, Atascadero can effectively compete on price and value to reach price point conscious travelers.


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Spending Earnings Empl oyment($ Million) ($ Million) (Jobs) Local State

2001 896.7 299.3 16,639 21.0 34.22002 902.3 308.8 16,253 21.5 35.32003 926.4 322.0 16,342 21.3 36.3

2004 970.0 333.8 16,218 21.3 38.2

2005 1,025.3 346.2 16,458 22.3 40.3

2006 1,084.5 369.1 16,612 24.3 42.0

2007p 1,121.2 383.3 16,824 25.5 43.1

Annual Percenta ge Change

06-07p 3.4 3.8 1.3 4.9 2.6

01-07p 3.8 4.2 0.2 3.3 4.0

Tax Receipts ($ Million)

Section 3: Economic Impact of Tourism Travel spending in San Luis Obispo County in 2007 was $1.121 billion. This represents a 3.4 percent increase from 2006. Since the economic slowdown in 2001-02, travel spending in San Luis Obispo County has increased by 3.8 percent on an average annual basis. While a substantial share of this spending growth has been due to increased gasoline prices and room rates, travel-generated earnings and employment have also grown during this period.

Table 6 San Luis Obispo County Direct Travel Impacts, 1991-2007p

Source: Dean Runyan Associates. Estimates for 2007 are preliminary. These estimates supersede all previous reports. Within this context, SMG developed a sub-county tourism spending analysis that identifies travel spending in the 15 distinct regions or towns located throughout San Luis Obispo County. In 2007, the North Inland region of San Luis Obispo County which includes Atascadero and Paso Robles generated $195 m in travel spending. The North Inland region ranks third in generating travel spending within the county, following the South Coast and city of San Luis Obispo.

Figure 5 San Luis Obispo County Regional Travel Impacts

(Millions)


North Coast, $151

North Inland, $195

Mid Coast, $160SLO, $254

South Coast, $359


21

Table 7 below identifies the impact of travel spending on earnings, employment, local taxes and state taxes in the North Inland region.

Table 7 Travel Impacts within North Inland Region SLO County 2001-2007p

2001 2002 2003 2004 2005 2006 2007

North Inland (Paso Robles & Atascadero)Travel Spending ($M) 141.0 142.7 150.1 158.8 170.7 182.0 195.7Earnings ($M) 45.9 47.9 51.2 54.0 57.1 61.5 66.7Employment (jobs) 2,640 2,600 2,680 2,700 2,800 2,850 3,010Local Taxes ($M) 2.5 2.6 2.7 2.7 3.0 3.3 3.8State Taxes ($M) 5.8 6.1 6.4 6.8 7.3 7.6 8.1


• In 2007, earnings generated within the North Inland region (Paso Robles and Atascadero) was approximately $66.7 million.

• In 2007, travel spending generated approximately 3,010 jobs within the region.

• Travel spending in 2007 generated approximately $3.8 million in local taxes, and $8.1 million in state taxes. It is interesting to note that while the North Inland region (Paso Robles and Atascadero) is the third largest region within San Luis Obispo County for generating travel spending, it is the fastest growing area (in terms of travel spending) within San Luis Obispo County.

Table 8

San Luis Obispo County Travel Spending 2001-2007P

2001 2007p 6 y ear 2001 Rev 2007p Rev Share $m $m grow th rate Share Share Change

North Coast $112.5 $150.6 33.87% 12.55% 13.43% 7.06%North Inland $141.0 $195.7 38.79% 15.72% 17.45% 11.00%Mid Coast $140.8 $160.1 13.71% 15.70% 14.28% -9.06%South Inland $211.4 $254.9 20.58% 23.58% 22.73% -3.57%South Coast $291.0 $359.9 23.68% 32.45% 32.10% -1.09%

Total $896.7 $1,121.2 25.04% Source: Dean Runyan Associates/SMG


22

Section 4: Atascadero Market Analysis

Currently, Atascadero has approximately 402 hotel and motel rooms as indicated below. As was mentioned previously in this report, these hotel and motel rooms account for approximately 3.7% of the total available rooms within San Luis Obispo County.

Table 9 Atascadero Lodging

Property # Rooms

Motel 6 117Holiday Inn Ex press 82BW Colony Inn 75Super 8 27Casa Del Sol 11Rancho Tee 27San Paulo 11The Carlton Hotel 52Total 402

Source: San Luis Obispo County Visitors and Conference Bureau In terms of overall performance, Atascadero Transient Occupancy Tax collections (T.O.T.) peaked in 2005/06 at $479,546. In 2007/08, T.O.T. collections decreased by 15% since 2005/06 at $407,609.

Figure 6 Atascadero T.O.T. Trend

2003-2008

Source: City of Atascadero

$321,008

$386,164

$479,546 $478,592

$407,609

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2003/04 2004/05 2005/06 2006/07 2007/08


23

In terms of fair share, while Atascadero has 3.76% of the room inventory within San Luis Obispo County, it only generates 2% of the lodging revenue within the county. This situation suggests that Atascadero is not able to keep pace with overall demand for lodging which in turn generates tourism revenue.

Figure 7 San Luis Obispo County Intra Regional Fair Share Analysis

Rooms vs. Revenue

% of Rooms % of Revenue

San Luis Obispo 22.72% 21%

Paso Robles 11.15% 7%

Morro Bay 10.24% 10%

Atascadero 3.76% 2%

Arroyo Grande 3.60% 2%

Grover Beach 1.83% 1%

Pismo Beach 22.82% 26%

County of SLO 23.88% 29%

100.00%

22.72%

11.15%

10.24%

3.76%

3.60%

1.83%

22.82%

23.88%

21%

7%

10%

2%

2%

1%

26%

29%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

San Luis Obispo

Paso Robles

Morro Bay

Atascadero

Arroyo Grande

Grover Beach

Pismo Beach

County of SLO

% of Revenue % of Rooms Source: Strategic Marketing Group If in fact Atascadero could generate lodging revenues equal to its share of available rooms, it is estimated that Atascadero could generate an additional $3 million in lodging revenues on an annual basis.

Figure 8 Potential Lodging Revenues at Fair Share % Total Rooms = %Total Room Revenue

Source: Strategic Marketing Group

$4,076,090

$407,609

$7,663,049

$766,304

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000

Lodging Revenue T.O.T.

Current Potential


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In terms of lodging mix, Atascadero’s mix of branded versus unbranded rooms is much more favorable when compared to the county lodging inventory as a whole.

Table 10 Atascadero Lodging Sector

Branded Chain vs. Independent

Total Branded IndependentRooms Chain

Atascadero 402 301 101mix 74.88% 25.12%

Total County 8518 2722 579631.96% 68.04%


As can be seen above, Atascadero has a significantly larger percentage of branded chain lodging inventories than the entire county. This is significant since branded chains typically have distribution systems that allow them to access a much greater customer base and give them a competitive advantage. The composition of the Atascadero lodging properties in terms of propety size is also favorable when compared to the county as a whole, as illustrated below.

Table 11 Atascadero

# of Rooms in Lodging Segments

100 Rooms 50 to 99 Under Total& More Rooms 50 Rooms Rooms

Atascadero 117 209 76 402mix 29.10% 51.99% 18.91%

Total County 2496 2968 3054 851829.30% 34.84% 35.85%


Thirty percent of all properties within the county are in the 100 Rooms & More segment. Typically, properties with smaller room counts can present a major marketing weakness as these properties usually have limited marketing funds and, in some cases, limited expertise. Additionally, more often than not, properties this size have no direct selling personnel, leaving marketing and sales functions to the owners. In the case of Atascadero, 29% of the room inventory is in the 100 Rooms & More segment, and 52% of the room inventory in the 50-99 room segment which is still a favorable situation when compared to the county as a whole.


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Section 5: Tourism Product Analysis Atascadero is the third largest city in San Luis Obispo County. It is centrally located with excellent proximity to Northern and Southern California markets as well as the growing San Joaquin Valley. Atascadero is located within 30 minutes of a number of recreational lakes, wineries and the Pacific Ocean and Hearst Castle. Atascadero has the only Central Coast zoo, and offers a small community experience with plentiful recreation opportunities and rich agriculture. Within the city of Atascadero itself, there are only a few major trip generators. As such, Atascadero often serves as an overnight option to its notable wine producing neighbor Paso Robles. In order to develop a sustainable tourism marketing program and strategy for Atascadero, it is important to understand the key elements that define the tourism destination. The following product/experience matrix provides a visual overview of the key elements of the tourism experience in Atascadero.

Atascadero Product/Experience Matrix

The Atascadero product/experience mix is built around its core assets and activities, which motivate people to visit the area. The Paso Robles wineries, Charles Paddock Zoo and proximity to Hearst Castle are the most significant revenue drivers for Atascadero. In addition to these primary attractions, Atascadero has a growing agricultural tourism component as well as a revitalized downtown experience with historic buildings and year-round special events that are listed in the table below.

Table 12 Atascadero Product/Experiences

Agricultural Culture & Outdoor/ DowntownTourism Attractions Wine Country History Recreation Experience Special Events

Farmers Markets Hearst Castle 170 Wineries Performing arts Bike Riding Shopping Colony Day sAg Tours Charles Paddock Zoo 40 Varietals Museums Hiking Trails Dining Hot El Camino Nights

Lav ender Farm De Anza Trail Wine Tasting Historic Society Horseback Riding Arts Winter WonderlandWine Tours Missions Chalk Mountain Golf Art Show s

Carlton Hotel Sporting Ev entsRotunda Building Historic/Cultural Ev ents

Wine Festiv al Source: Strategic Marketing Group

Small Community

ExperienceSpecial Events

Agriculture/Wine Recreation/Zoo

Atascadero

Product/Experience Matrix


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While Atascadero offers several tourism activities and experiences for visitors in its jurisdiction, its major demand drivers are located outside of the city which does not motivate people to stay at the lodging properties in Atascadero. For example, the North Inland region’s wineries are located in Paso Robles, and Hearst Castle is located on the South Coast of San Luis Obispo County. As such, it is important for Atascadero to develop and promote more tangible reasons for people to stay within the city such as special events, art and culture, dining, shopping, etc. using a branded identity that provides a unifying theme for all of its tourism activities and assets and gives the destination an authentic distinction.

Figure 9 Regional Demand Drivers

Atascadero

Regional Demand Drivers

Area Wineries

Area Attractions

Recreation

Special Events


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Section 6: SWOT Analysis In order to understand the current situation and to develop strategies designed to build a sustainable competitive advantage, it is important to review the strengths and weaknesses of Atascadero as well as the opportunities and threats that will impact its future success.

Atascadero SWOT Analysis

Strengths Atascadero has several strengths that provide make it a desirable tourism destination, including the following: • Location - Atascadero is strategically located in the center of the county, which offers visitors a central location to

stay to enjoy the many activities found throughout San Luis Obispo County. It is located just 15 minutes from the beach, 6 minutes from Paso Robles wine country and 20 minutes from the city of San Luis Obispo and major attractions. Additionally, its location along Highway 101 provides easy access from Northern, Southern and Central California geographic markets.

• Special Events – Atascadero hosts a wide variety of special events that highlight its interesting history, local culture and natural assets such as the Atascadero Wine Festival, Hot El Camino Cruise Nite and Colony Days.

• Tourism Promotion Infrastructure – Currently, Atascadero has a basic tourism promotion infrastructure that is implemented by the Tourism Promotion Committee that has representation from the community and the City of Atascadero. The Atascadero Chamber of Commerce and the Main Street Association are also involved in tourism promotion efforts designed to benefit its members.

Strengths

1.Proximity to county attractions and major population areas

2. Special events

3. Tourism promotion infrastructure

4. History

5. Proximity to Wine Country

6. Value

Weaknesses

1. Limited tourism attractions within the city

2. Limited downtown experience

3. Limited tourism funding

4. Limited brand identity

Opportunities

1. Develop downtown to provide a fun/authentic experience

2. Potential development to create unique branded niche destination

3. Eagle Ranch

4. Equestrian Connection

5. Supportive City Council

Threats

1. Competition from other destinations

2. National & State Economy


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• History – Without a doubt it is Atascadero’s fascinating history that sets it apart. Atascadero was founded in 1913 by developer Edward Gardner Lewis, who wanted to create a planned community that combined the best of agrarian and city life. He called it the Atascadero Colony and envisioned a utopian agrarian paradise where people could live on small ranches with farm animals and have automobile access to the ocean by an 18-mile road he built, which later became Highway 46 to Morro Bay. He also worked with noted institutional architect William D. Bliss of San Francisco who built the Atascadero Colony Adminstration Building that is clearly one of the most ornate and beautiful buildings in the county following Hearst Castle. Atascadero’s status as the original master planned community, or colony, in California offers visitors a glimpse into a remarkable historical feat and an early visionary’s dream that helps to tell the story of central California.

• Proximity to Wine Country - While there are no wineries within the city of Atascadero, it is within close proximity

to 40 wineries in the award-winning appellation of Paso Robles that rivals many Napa and Sonoma wines. • Value – Atascadero’s leading brand name lodging properties with their consistently good service, amenities and

pricing makes it an excellent “price point destination” as compared to other areas within the North County. Weaknesses While Atascadero has several strengths, it is not without its weaknesses that need to be considered, including: • Limited Attractions – Since the city has no major attractions within its jurisdiction, it plays a support role to other

parts of the county that do have major attractions. Given this dynamic, Atascadero often serves as an overflow for people destined for other parts of the county with limited or no available lodging.

• Downtown – Currently, the downtown suffers from a lack of tourist oriented activities, prominent art and culture, and a branded identity that could help to create a strong sense of place and excitement for locals and visitors.

• Tourism Funding - While the city allocates approximately $50,000 annually for tourism promotion, comparatively speaking significant additional investment will be needed to increase awareness and demand for Atascadero. As compared with other areas within the county, Atascadero’s funding per available room is below Pismo Beach, the city of San Luis Obispo and Paso Robles, but above Morro Bay and Arroyo Grande.

Figure 10

Tourism Promotional Funds/Per Available Room

• Limited Brand Identity - While Atascadero has an existing brand, the Colony of Atascadero, it has not been adequately promoted throughout the destination to provide an overall destination identity or unifying theme for Atascadero’s tourism assets like other cities within San Luis Obispo county such as Paso Robles and Pismo Beach.

$26

$131

$156

$200

$270

$270

$0 $50 $100 $150 $200 $250 $300

Arroyo Grande

Morro Bay

Atascadero

Paso Robles

City of SLO

Pismo Beach


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Opportunities Atascadero has a number of key opportunities that can provide the foundation for a long-term tourism promotion effort, including the following: • Downtown Area – The continued revitalization of the historic downtown area with infrastructure improvements as

well as more activities, events, shopping and dining organized with a unifying destination brand will provide an entertaining and authentic experience for travelers.

• Branded Niche Destination – There is a significant long-term opportunity to position Atascadero as a niche destination within the broader county-wide tourism industry in order to capture overnight visitations from visitors already in the County.

• Equestrian Connection – To further differentiate Atascadero over the long-term, the city may want to pursue the development or expansion of existing regional horse events and activities. This would serve to effectively differentiate the destination from other areas within the central coast, and possibly help stimulate the development of additional lodging properties.

• Eagle Ranch – Once developed, the trails, parks, equestrian center and ‘green” facilities in the proposed Eagle Ranch project could provide a new visitor attraction.

• City Council - The community of Atascadero recently elected a pro-tourism city council that is committed to pursuing programs that can increase tourism to the area.

Threats

• Competition – A primary threat to Atascadero is competition from both within the county as well as from outside that have major tourism attractions. As such, it is critical for Atascadero to develop a defendable niche position as a viable tourism destination.

• Economy – The global recession and climate of economic uncertainty are clearly the greatest threat to

Atascadero tourism levels as potential visitors forgo travel plans based upon diminished income and new priorities. The rebound in the economic situation may not be apparent for several years. As such, it will force destinations like Atascadero to communicate a clear message of value to a very targeted market.

SWOT Discussion In order to carve out a defendable competitive advantage, Atascadero needs to leverage its strengths and maximize its potential opportunities. Specifically, Atascadero should continue to emphasize its colorful history and prime location to San Luis Obispo’s major attractions as well as its easy access from major population centers. The promotion of a unified destination brand that positions Atascadero as a defined niche within the San Luis Obispo tourism industry, and sets the theme for the overall tourism marketing program is an immediate priority. Also, with the risk of becoming known as a lodging overflow destination for other areas with the county, Atascadero should work to improve the downtown experience with a greater emphasis on history, arts and culture, an expanded roster of events, and infrastructure enhancements that will help to support the brand and motivate overnight stays in the city. Finally, while the city is to be commended for supporting tourism with its existing budget, it is critical for the lodging community to develop other tourism funding mechanisms such as a BID in an effort to increase the marketing budget over the long-term and to pursue other opportunities such as major equestrian events, facilities and trails.


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Section 7: Promotional Efforts

Currently, the Atascadero tourism promotion effort is managed by the Tourism Promotion Committee which serves as an advisory committee to the City. The City of Atascadero invests approximately 10% of the T.O.T. collections or $50,000 on tourism promotions as outlined below.

Figure 11 Atascadero Tourism Promotion Budget

Source: City of Atascadero

In addition to the city’s Tourism Promotion Committee, the Atascadero Chamber of Commerce and Atascadero Main Street Downtown Association also provide tourism related activities for the community. An overview of the organizations that support tourism related activities can be found on the following pages. .

$5,000 $3,000

$2,500 $1,000

$4,500 $12,000

$5,000 $360

$5,000 $2,000

$150 $3,785

$5,000

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000

CA Visitors GuideSunset Magazine

Website DesignOnline Newspaper Coops

SLO Magazine AdCertified Rack Services

Radio AdvertisingE-Specials

Fair SponsorshipsTrade Show Travel

WebstatChamber services

Contingency


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Atascadero Tourism Promotion Organizations

Atascadero Chamber of Commerce

The Atascadero Chamber of Commerce provides tourism related services through its member website - www.atascaderochamber.org, the production and distribution of the Atascadero Visitor Guide, and as the city’s Visitor Information Center. The www.visitatascadero.com “Dining” and “Shopping” pages link to the chamber’s shopping and dining members to provide visitors with details.

Atascadero Main Street Downtown Association

The Atascadero Main Street Downtown Association is primarily responsible for developing and supporting events that are designed to attract people to the downtown area using printed materials and their website – www.atascaderomainstreet.org. Their mission is “To transform downtown into the historical, cultural, social and economic center of Atascadero.” The Association positions downtown as the Colony District.

Atascadero

Tourism

Atascdero Chamber of Commerce

1. Visitor Center

2. Website

3. Visitor Guide

Atacadero Main Street

Association

1. Special Events

2.Visitor Information

3. Website

Atascadero Promotion

(Advisory)

Committee

1. Website

2. Advertising

3. Marketing


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Atascadero Tourism Promotion Committee The Atascadero Tourism Promotion Committee is an advisory committee for the City of Atascadero. It includes representatives from the local tourism community and advises City staff on the development and implementation of the current marketing program which is funded with 10% of the City’s Transient Occupancy Taxes. The City’s overall marketing efforts include advertising, trade shows, out-of-market Visitor Guide distribution, and management of the primary tourism website – www.visitatascadero.com.

Additional Organization Promotional Efforts

The City of Atascadero has provided furnding to the San Luis Obispo County Visitors & Conference Bureau in exchange for exposure in its county-wide tourism programs. Atascadero is featured in the VCB promotional materials and visitors guide, cooperative ads in the California Visitors Guide, public relations efforts, and the VCB website – www.sanluisobispocounty.com.


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Section 8: Visitor Demographics As part of the County Tourism Analysis project, SMG surveyed the County CVB consumer database to understand their perceptions, attitudes and behavior. SMG also collected demographic information from those who stayed in San Luis Obispo County. The data that follows is from those who indicated they stayed in Atascadero during their last trip. 1. Geographic Point of Origin

A. California vs. Out of State Overall, 78% of those surveyed who indicated they stayed in Atascadero were from California, while 32% were from outside of California.

Figure 12 Geographic Point of Origin

Source: SMG SLOEVC Study; Note: Sample size is small.

B. The California Market

Within the California market, approximately 10% of visitors were from Central California, 63% were from Southern California, and 27% from Northern California.

Figure 13

California Geographic Point of Origin


78%

32%

California Outside California

27.0%

10.0%63.0%

Northern California Central California Southern California


34

2. Demographic Profile

A. Age

As can be seen below, visitors to Atascadero tended to be older than those who visited the county as a whole.

Figure 14 Atascadero Visitor Age


B. Income Visitors to Atascadero tended to have a higher concentration of income in the under $70,000 category.

Figure 15

Atascadero Visitor Income


0.0% 10.0% 20.0% 30.0% 40.0%

Under 25

25-30

31-40

41-50

51-60

61+

Total CountyAtascadero

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

$0-$49,999

$50,-$59,000

$60-$69,999

$70-$99,999

$100-$249,000

$250,000+

Total CountyAtascadero


35

Section 9: Tourism Vision & Goals In an effort to assist the tourism promotion organizations and the City of Atascadero with its long-term strategic direction, SMG has developed the following vision statement and overall strategic goals. A. Atascadero Tourism Vision

To develop and implement tourism programs that differentiate Atascadero by promoting the authenticity of the

destination and its attractions, history, and local culture; and take into consideration the interests and needs of

current and potential visitors, local tourism related businesses and local governments, with respect for the

environment and the values of the community.

B. Overall Strategic Goals

1. Economic Effectively promote tourism in a way that generates increased travel spending, taxes and employment within the city of Atascadero. As was identified previously in this report, by increasing travel spending to 3.7% (a percentage equal to Atascadero share of rooms within the county) from the current 2%, it would translate to an additional $3 million in annual travel spending.

2. Consumers Position Atascadero as a unique niche price point destination in San Luis Obispo County in an effort to attract visitors by communicating an appreciation of the history, recreation, attractions, geography, and ambiance, i.e., the key benefits and attributes the community offers.

3. Environment and Natural Resources Educate traveling public about the area’s environment and natural resources in a way that calls attention to these assets and at the same time serves to protect and preserve the aesthetic, agricultural and cultural foundation of the Atascadero community.

4. Local Community

Preserve the Atascadero community’s values and lifestyle through the communication of its key tourism assets in an authentic manner that maintains the integrity and pride of the local culture, and motivates the community, businesses and various tourism promotion organizations to participate in and support the city’s tourism marketing program to help increase taxes and employment.


36

Section 10: Marketing Strategy A. Core Strategy In order to achieve its stated goals and to develop a sustainable tourism marketing program, Atascadero must successfully differentiate the destination and optimize technology. 1. Differentiate the destination.

First and foremost, Atascadero must clearly differentiate itself from the competition to make it relevant in the mind of consumers. Most destinations differentiate themselves based upon physical attractions in their jurisdictions. However, Atascadero has a unique challenge since its primary tourism revenue drivers are based upon attractions located outside of the city. As such, the most effective approach to truly differentiate Atascadero is to promote its authenticity based upon its history and local culture. Differentiation will be supported by the development of the destination brand that will be integrated into every marketing effort and leveraged by the tourism promotion organizations and community.

2. Utilize the Internet and technology to the fullest.

One of the most efficient and effective marketing distribution channels for destinations to reach travelers is the Internet. With over 80% of all travel planning taking place on the Internet, it is imperative that Atascadero upgrade its website – www.visitatascadero.com – and implement a comprehensive online marketing program.

Executed correctly, this marketing strategy and approach allows the tourism program to naturally unfold and yield long-term positive results. I. Differentiate the Destination There is a significant strategic opportunity to differentiate Atascadero and to give the destination life and distinction by more fully integrating authenticity and the local culture into the tourism marketing efforts. The key is not to duplicate other San Luis Obispo County destinations, but to reach deep into the local culture to differentiate Atascadero. Today, more and more travelers want to experience the real side of a destination; the side that gives a destination life and distinction. They want to visit locally owned and operated businesses and get a taste of the real local culture. As such, authenticity as a core strategy for differentiating a destination can be a very valuable marketing platform as illustrated in a recent statewide study. The California Traveler© marketing research study conducted by SMG in 2007 quantifies this new travel trend with some surprising results.

• 44% indicated that vacation destinations are becoming similar in their restaurant and retail offerings. • 88% indicated that while on vacation, they tend to seek out locally-owned shops and restaurants rather

than national brands. • 52% indicated that while on vacation, they are very likely/definitely likely to pay more for locally produced

and locally grown products than those offered by national brands/chains. While this is true, many destinations fail to execute the promotion of the authentic experience including the right images and messages. Instead, many destinations list attractions without providing a compelling emotional


37

connection to the experience for the target audience. (For more discussion about the economic and social benefits of authenticity, please see the Appendix.) To successfully build awareness for Atascadero, marketing efforts must differentiate the destination through an emphasis of its key assets and strengths as outlined in the SWOT section of this plan, translating them into believable and meaningful benefits for its target market segments. Following are the key points of differentiation that the marketing program will emphasize. Atascadero Key Points of Differentiation Asset Consumer Benefits • History A nostalgic step back in time; authentic local culture

Atascadero’s colorful history as the Colony of California along with its historic buildings and cultural events provides a unique visitor experience for all segments and promotes the authentic local culture and heritage.

• Location Easy access

Atascadero is centrally located in close proximity to the wine industry, major county attractions and the ocean. Its geographic location along Highway 101 and near Highways 41 and 46 provide easy access from Northern, Southern and Central California geographic visitor markets.

• Affordable Superior price and value Atascadero’s quality branded lodging properties with full amenities, customer service and competitive room rates make it an excellent “price point destination” as compared to other lodging properties within the North County.


38

C. Branding/Positioning To effectively differentiate and to give the marketing program structure, Atascadero must promote a brand identity that unifies its tourism assets. A brand is the way in which consumers perceive or distinguish a destination. To be effective, a brand should unify all of the destination’s functional (recreation and events) and emotional benefits (culture and solitude) under one all-inclusive identity (image and positioning statement) to create an indelible impression in the mind of the consumer. A brand not only serves to unify all of the assets/attributes of a destination under one identity. It also works to unify the community and to encourage it to provide the highest quality standards and customer service that will strengthen the brand and customer loyalty over the long-term. I. Brand Awareness and Customer Loyalty As time becomes increasingly scarce, consumers will often turn to highly visible brand names when planning a purchase decision. Consumers want the assurance of quality when they don’t have the time, opportunity or ability to inspect alternatives. This behavior is reinforced by the constant visibility of a brand using mediums and communication efforts that reach the target segment. A brand representing leadership, success, quality and excitement can create a genuine connection with the consumer. These positive associations can motivate a buying decision that is both emotionally and functionally driven and is positively reinforced when the experience meets the expectation. As such, Atascadero lodging properties, attractions and all tourism related businesses should strive to consistently offer exceptional customer service beginning with the information gathering process to the actual visitor experience. The continual and dedicated commitment by each community member, tourism agency and business to provide a positive overall experience will help to build brand awareness, reinforce positive brand associations, and generate customer (brand) loyalty among target segments. Above all, a highly loyal customer base can be expected to generate repeat visitations and revenue flow.

Atascadero Brand Identity

History • Culture • Environment • Recreation

Target Market Segments

Brand Awareness: Educate Target Segments

Brand Recognition: Familiarity of the Atascadero brand

leads to Recall & Preference

Brand/Customer Loyalty: Increased Visitations to Atascadero


39

II. Atascadero Destination Brand E.G. Lewis was not only a visionary developer. He was a futurist marketer. His master planned community that he named the Atascadero Colony should remain the destination brand because of its historical uniqueness.

The current “Colony of Atascadero” logo featuring the historic Administration Building clearly differentiates Atascadero from the competition within San Luis Obispo County and outside of the county. No large or small rural or cosmopolitan destination in California or the nation can claim this brand identity or positioning statement. Or the unique story behind it. It is authentic and distinctive and gives Atascadero a long-term defendable position and

theme to base its marketing program and even infrastructure enhancements on in both the short and long-term. Above all, it has a timeless appeal and emotional connection with locals – Atascadero’s most valuable marketing vehicle. While the historic Administration Building, also known adoringly as the Rotunda Building, was damaged in the 2003 San Simeon earthquake, the city stands committed to carry out the $21 million in repairs scheduled to commence in 2009. The building is the physical anchor of Atascadero and the sense of pride for its residents. It is also considered one of the San Luis Obispo County’s most elaborate and beautiful buildings following Hearst Castle. The city, businesses, and entire community recognize the importance of this landmark as a physical community center and unifying symbol. The introductory copy on the Colony Days website included below eloquently captures the essence of life in Atascadero and the local connection to the Colony of Atascadero:

“The brainchild of mega-entrepreneur E.G. Lewis, Atascadero CA is the result of nearly a century of organic community evolution. It is an amalgamation of rolling hills studded with majestic oaks and other mesmerizing flora; historic buildings; quaint lake park and zoo; dynamic enclaves of artists, musicians and writers; fiery politics, all surrounded by the most colorful visitor vistas and finest wineries in the state. Atascadero is the hub, the very center of California’s Central coast. “

The Atascadero Colony brand is also a natural extension of the San Luis Obispo County VCB brand of “California’s Natural Escape” which will help to leverage cooperative marketing efforts with the VCB. A colony has very positive connotations such as creativity, community, culture, heritage and nature. It conjures positive emotions, and can position Atascadero as a physical and emotional place to get a break from the busy city and experience a simpler way of life. Atascadero’s downtown attractions, lush countryside, recreation, and special events can deliver this authentic experience. It can also help to introduce the “free” recreational opportunities such as hiking, biking, birding and horseback riding as well as introduce the unique history of the area, downtown, retailers and lodging properties. The Atascadero Colony brand provides a cohesive thematic umbrella to unite existing events (Colony Days), programs (Downtown Association), and infrastructure (Colony District) that already use the colony distinction to give the overall tourism marketing program better structure and leverage limited resources. The brand serves to identify the downtown area as the Historic Colony district and sets the theme for more signage, events, lodging packages, ads, website and public relations program. It ties Atascadero together; from the infrastructure to marketing, and sets the foundation to tell the story about Atascadero and its continuing evolution as a unique tourism destination.


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Section 11: Marketing Strategy Execution The Atascadero Colony brand has to be translated into specific marketing tactics that will differentiate the destination from the competition and include participation from all the tourism promotion organizations, businesses and local community to create a sustainable long-term program. As mentioned earlier, the core marketing strategy is the integration of the local perspective and lifestyle in order to create a genuine connection with the consumer that effectively motivates their behavior to plan a visit to Atascadero.

Using history and locals to introduce the city’s tourism assets as the cornerstone for the entire marketing program will help build a long-term niche position within and outside of San Luis Obispo County. A. Creative Development & Execution

To ensure the strategy is integrated into every marketing tactic, specific messages and images that support the brand and speak to target audiences must be creatively crafted. Featuring a local’s insight about recreation, historic site, event or hot spot along with compelling photography should be used to introduce Atascadero’s tourism assets and invite visitors to experience it on their own. The creative platform should be used in every marketing execution to leverage efforts and to create continuity for the entire program. B. Visitor Data Collection/Visitor Database The collection of visitor data (specifically emails) and the creation of a visitor database will be the lifeline for the Atascadero marketing program and the basis for establishing a visitor relationship program that can help foster loyal, repeat visitors over time. It is not cost effective to invest in visitor contact activities (trade shows, advertising, etc.) without obtaining visitor data to keep that costly visitor contact informed year-round. Collected emails will be added to the email newsletter database so new and repeat visitors can be continually educated about year-round activities and events that will encourage overnight visits. The primary mechanisms for collecting visitor data should include:

• Atascadero Website – www.visitatascadero.com o Email capture system o Visitor Guide online order form o Contests and promotions

• Email newsletter with “forward newsletter” mechanism to encourage new readers • Advertising

o Direct leads generated by print ads o Banner ads on websites that generate traffic to the Atascadero website and email registrations

• Trade Shows o Promotions/Trip giveaways o Attendee surveys o Atascadero newsletter sign up form

• Special Events o Newsletter sign up form o Attendee surveys

• Atascadero tourism partners and community o Website links from lodging properties, chamber of commerce, downtown association, attractions,

businesses, event proponents, historic society, etc. o Atascadero banner ads on partner websites

Authenticity and Local Culture will be the strategic platform to reach Atascadero’s target market segments, and to guide the creative execution of all marketing tactics.


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C. Strategic Implementation The following Atascadero Business Model is a systematic approach to illustrate how the tourism marketing program works, and how it is measured. Driven by the authenticity strategy, the business model integrates all of the marketing efforts in order to build awareness of Atascadero among its target markets and to build a visitor database for future marketing efforts. It also outlines how potential visitors are driven to the lodging properties in order to generate overnight bookings and visitations. The focal point of the business model and marketing program is the Atascadero website. The Atascadero Business Model has two basic principles:

• The best organization to create awareness and brand positioning is the City of Atascadero. • The best organization to book a room is a lodging property or make a sale is an attraction or business.

Atascadero Business Model

How the Business Model Works: 1. Marketing efforts are used to attract the target market segments and to build a database for future promotion

efforts. Target markets either show interest (go to the Atascadero website) or not. 2. Once they go to the Atascadero website, at some point they link to a lodging property. At that time, it becomes

the responsibility of the lodging property to make the sale. 3. Based upon their experience, new visitors either become repeat visitors going back to the lodging property

directly, or back to the Atascadero website to choose another lodging property or they fall out of the entire system.

4. The City of Atascadero can measure its effectiveness and accountability at several points. First, it can measure how many user sessions; page views, etc. are generated overall by its marketing efforts. Second, it can measure how many users (leads) are sent to its lodging properties, attractions and businesses.

Throughout the system, visitor data (emails) are collected to be used for visitor relationship programs such as the email newsletter and seasonal promotions. It also builds the database to implement an online visitor survey to determine how people got to the website and to gauge their behavior, motivations and perceptions about the destination.

Positive Experience

Advertising Events Online Efforts Public Relations

Target Market Segments: Lifestyle & Geographic

Book Vacation

- Collect Information - Measure Programs - Make Adjustments

and Refinements

www.visitatascadero.com

Visitor Center

Visit

or D

ata (E

mails

)

Sales

Core Strategy: Authenticity and Local Culture

Link to Lodging Property


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D. Target Markets To make the authenticity strategy work it has to be communicated to the right audiences. To do so successfully, target markets should be segmented by geographic markets and lifestyle preferences such as hiking, bicycling, bird watching, horseback riding, golfing, foodies, etc. in addition to geography and drive times. Merging psychographics with demographics will help to identify the most lucrative advertising mediums for targeting efforts and messages. This segmented approach also allows for more creative marketing tactics and messages that will be designed to keep giving visitors new reasons to return. Primary target markets include in-county travelers and out of county geographic markets including the Los Angeles area, San Francisco Bay Area and the San Joaquin Valley. These geographic target markets are within about a four hour driving radius. International and out of state visitors will learn about Atascadero while they are traveling in California and San Luis Obispo through marketing efforts with the California Travel and Tourism Commission and the SLOCCVB.

Summary market characteristics for a number of potential target markets can be found in the following table.


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Table 13 Summary Primary Target Markets

Average Household Income $74,936 $90,553 $55,382 Per capita income $24,737 $33,210 $18,249 Population (2002) 9,613,763 4,437,275 577,974Population by Sex 9,613,763 % base 4,437,275 % base 577,974 % baseMale 4,746,169 49% 2,218,577 50% 288,574 50%Female 4,867,594 51% 2,218,698 50% 289,400 50%Current Year Population 18 years and over 6,861,562 % base 3,399,366 % base 395,072Participate in:

Bicycling-Mountain 275,574 4.02% 168,091 4.94% 14,764 3.74%Bicycling-Road 666,832 9.72% 388,048 11.42% 38,856 9.84%Fishing-salt water/participate 400,962 5.84% 183,978 5.41% 19,275 4.88%Golf 690,946 10.07% 408,991 12.03% 41,197 10.43%Walking for exercise 2,196,924 32.02% 1,248,728 36.73% 131,945 33.40%

Own Desktop Personal Computer 2,862,806 41.72% 1,784,605 52.50% 173,580 43.94%Attend music performances in last year 1,483,728 21.62% 883,625 25.99% 82,286 20.83%Belong to an Auto Club 2,233,695 32.55% 1,252,247 36.84% 111,766 28.29%

Domestic Travel last 12 months::Any 3,556,583 51.83% 2,031,594 59.76% 215,814 54.63%North East 776,783 11.32% 519,242 15.27% 37,706 9.54%South 1,577,973 23.00% 955,678 28.11% 108,913 27.57%North Central 666,216 9.71% 421,075 12.39% 54,155 13.71%West 1,725,098 25.14% 915,055 26.92% 90,092 22.80%

Stayed at last year:Best Western 358,321 5.22% 215,459 6.34% 23,972 6.07%Comfort Inns 221,352 3.23% 125,024 3.68% 16,462 4.17%Courtyard 69,744 1.02% 43,618 1.28% 4,690 1.19%Days Inn 218,765 3.19% 126,371 3.72% 16,084 4.07%Hampton Inn 110,807 1.61% 73,638 2.17% 8,205 2.08%Holiday Inn 330,360 4.81% 200,435 5.90% 24,903 6.30%Marriott 185,644 2.71% 101,074 2.97% 8,295 2.10%Motel 6 148,994 2.17% 73,295 2.16% 10,406 2.63%Ramada Inn 107,733 1.57% 62,329 1.83% 7,252 1.84%

Los Angeles County, CA Bay Area San Joaquin County, CA

Atascadero should focus on the following target markets:

• Geographic Markets: Southern California, San Joaquin Valley and Northern California • Age: Adults 40 + • Families • Household Income: $70,000+ • Psychographics:

o Outdoor enthusiasts including hikers, bicyclists, birders and equestrians o Foodies


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Section 12: Marketing Plan Tactics The following short-term (2009) and long-term (2010 and beyond) marketing tactics are necessary to launch the outlined competitive strategy in order to increase awareness of Atascadero and to achieve the stated goals. The short-term marketing tactics are based upon the current $50,000 tourism budget and are intended to evolve in subsequent years in order to create a long-term sustainable tourism program based upon future budget allocations and organizational structure. The priority tactics include:

• Brand Building • Website Enhancements • Online Marketing/Visitor Newsletter • Advertising • Sales • Public Relations • Visitor Information • Research

A. Brand Building Short-Term Tactics: 2009 1. Use the existing Atascadero Colony logo (or refine the image) and positioning statement in every communication

piece including city signage, printed materials, advertisements, Visitor Guide and website. NOTE: If tourism officials and the community would like to upgrade the current logo, one option is to hold a local art contest. The contest could generate press coverage in the county and out of market and help build awareness for the destination by telling the story behind the Colony. Allocate funds to new logo creative development.

2. To leverage the exposure and brand awareness, encourage every business and tourism promotion organization to integrate the Atascadero brand and positioning statement into their individual marketing efforts including their websites, printed materials and promotional items such as stickers and other logo items.

3. To ensure consistency with the destination brand in every medium, follow these creative guidelines:

Include Atascadero Colony logo and positioning statement. Use photography that captures people “in the moment” in order to portray the experience such as bicycling,

hiking, riding horses, historic re-enactments, etc. or area icons such as the Rotunda Building or wineries. Develop specific message points that promote the Atascadero lifestyle and local culture targeted at specific

market segments. The Atascadero website – www.visitatascadero.com should be the primary call to action for trip planning.

Long-Term Tactics: 2010 and beyond 4. Implement a comprehensive marketing survey to visitor database in order to understand visitor perceptions

about the Atascadero brand and its impact on their travel behavior. 5. As identified in the 2005 Tourism Assessment, the city should continue to develop an area-wide way finding

signage program that helps the visitor locate the tourism related assets within the region. All signage, including event banners produced by the Downtown Association or chamber of commerce, must include the Atascadero brand and supporting color and type elements.

AtascaderoBrand

HearstCastle

Wine Country

Recreation

Activities

Special Events

Price/Value


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B. Website Development/Online Marketing I. Atascadero Website Enhancements - www.visitatascadero.com Short-Term Tactics: 2009 1. On the Home Page:

a. Include introductory copy about the destination weaving historic references to the Atascadero Colony brand. Emphasize central coast location and proximity to county-wide tourism attractions. Incorporate historic black and white photos throughout the site and in the main header.

b. Feature a seasonal Lodging Package such as a “Colony Days Lodging Package” or at least a link to the Lodging section on the Home Page. Include a link to the Lodging section on every page.

c. Feature one or two signature events on the Home Page only with a link to the Events Section.

d. Add “Free Atascadero Visitor Guide” on the Subject line of the automatic email that goes to the chamber of commerce to order a Visitor Guide in the mail.

e. Replace the existing Send us Your Photos and Videos sections on the Home Page with user-friendly social media tools that will pull in user-generated content and images that will help increase Atascadero’s position on search engines and encourage users to check back since it will automatically be updated with new content. Specifically:

o Consider replacing the “Send us Your Photos” button with user generated photos pulled from Flickr (using keywords ‘Atascadero’, ‘California’, ‘Central Coast’). This reduces the work of chamber staff as all new photos are automatically updated on such a link. Atascadero could also create a free account and feature its own images as a Flickr badge on its site. Using Flickr for user generated images (and drawing attention to it in email newsletters and on the home page) will allow additional content to be pulled to the site with little additional work (or cost) to Atascadero.

o In addition to hosting video on the Atascadero website, it should also consider setting up a free account and adding videos to Youtube. This would serve as a large distribution channel that would ideally draw additional traffic to Atascadero’s website.

2. Expand the Footer to include the following new pages with links:

a. Contact Page to include brief info about the Atascadero Tourism Promotion Committee (ATPC), physical

address of the City of Atascadero and an email link to [email protected]

b. Privacy Policy Page for legal purposes and to explain how the ATPC does not sell visitor information or emails to third parties.

c. Media Page to post press releases, photos and public relations contact for media access. 3. Improve organic positioning on search engines (Google and Yahoo) with SEO tactics such as adding page titles

and key words in the descriptive copy of every page to ensure the website includes the most popular words used by visitors to search for Atascadero.

4. Include an email registration field on every page in order to build an audience of repeat and new website users

interested in receiving year-round information about Atascadero.


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5. Include a link to Lodging and Plan Your Visit in the navigation side bar to encourage overnight visits. 6. Add “History” menu header and section to explain the Atascadero Colony story, along with vintage photos,

information about the Carlton Hotel, Rotunda Building, Colony Days event, and the historic downtown Colony District.

7. Remove the “Plan Your Event” menu header. Relocate it under “Plan Your Visit”. 8. Remove “Maps” menu header. Relocate the Dining, Shopping and Lodging map under each of those sections

and the “Plan Your Visit” section. 9. Upgrade “Plan Your Visit” header and section with the following:

a. Include a link to the Lodging section and brief copy about the lodging selection. b. Include the downloadable Visitor Guide. c. Include sample itineraries. d. While the existing destination map is good, include a Google API so people can plot their trip to

Atascadero. e. Move “Plan Your Event” copy and link to this page. f. Move the Shopping, Dining & Lodging map to this page.

10. Create a dedicated Media Center to include public relations representative contact information, a downloadable

media kit and press releases, and an image library. 11. Enhance copy and photos on every primary and sub-page of each section to include travel information that

reflects and integrates the local culture to support the Atascadero Colony brand. 12. Check the website for typographical and link errors. Change the error on the Shopping page that says, “Please

visit www.atascaderochambe.org for names and locations or dining opportunities.” Fix chamber URL and change “dining” to “shopping” opportunities.

13. Use free website measurement software – Google Analytics – to measure website performance and ROI by

tracking monthly user sessions, click-through rates (links) to specific pages and partner websites such as the lodging properties, attractions, chamber of commerce, downtown association and county VCB in order to continually improve the website’s usefulness and efficiency.

Long-Term Tactics: 2010 and beyond 14. Based upon available budget, continue to upgrade the look and usability of the website with social media tools

and a Content Management System so ongoing enhancements can be made in-house.

15. Continue to add new social media tools to increase content relevancy and search engine positioning.

16. Continue to measure the performance of every page on the website to identify improvements to assist travelers.


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II. Online Marketing/Visitor Newsletter 1. Write new copy and supply new photos for the SLOCVCB Atascadero page highlighting the destination’s Colony

brand and key points of differentiation, specifically access to all county attractions and lodging. Provide a link to the www.visitatascadero.com website. Contact SLOCVCB webmaster for all free exposure on the website and supply copy, photos, history facts, links to lodging, etc.

2. Develop and distribute a monthly visitor email newsletter to promote year-round reasons to visit Atascadero in

order to encourage repeat visits. Promote monthly special events, recreational activities, lodging packages, a historic site or historic story, local’s perspective piece called, “did you know”, and ongoing travel promotions and specials. The newsletter will be distributed to a database of email addresses collected via the overall Atascadero marketing program.

3. Gather emails for the newsletter via opt-in initiatives such as promotions and contests featured on the website

Home Page like, “Win a trip to Atascadero. Enter your email here.” Contest registration should link to a page with contest details and a legal opt-in section to register for the newsletter.

4. As a reciprocal exchange, develop a specific banner ad using the Atascadero Colony brand and give to each

business and tourism promotion organization to put on their website along with a link to the Atascadero website in order to leverage efforts and to create a strong brand association for the entire region.

5. Track Visitor Guide online orders and email registrations on a monthly basis.

6. Measure email newsletter and email efforts by the subscriber base, readership and click-throughs to the featured story, businesses or event promoters.

Long-term Tactics: (2009 and beyond)

7. Organize captured email lists into targeted segments based upon interest, i.e., visitor indicates only wants to be contacted about special events that happen in the fall or summer recreation conditions.

8. Develop an online media plan to leverage print ad placements that include banner ads and editorial on websites and newsletters that reach target market segments.

9. Continue to measure website statistics to identify usage and areas of improvement.


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C. Advertising Short-Term Tactics: 2009 1. Review all of the leads generated by Sunset Magazine, California Visitors Guide and other current ad

placements to determine cost per lead and return on investment (ROI). 2. Continue to place a print ad in the San Luis Obispo County VCB Visitor Guide. Upgrade the Atascadero ad to

include the brand positioning and key points of differentiation. 3. Continue to participate in the county coop ad in the California Visitors Guide. Upgrade the Atascadero ad to

include the brand positioning and key points of differentiation. 4. Evaluate the ROI of the radio ad campaign, and upgrade the message to include the Atascadero brand and key

message points such as location, value and history.

5. Continue to place an outdoor ad at the Paso Robles Fair integrating the Atascadero brand. 6. Develop a print media plan that reaches lifestyle segments in key geographic markets such as Sierra Club

newsletters, Cycle California!, etc. as well as the travel sections in the Orange County Register and Los Angeles Times. If possible, print ad placements should be at a minimum of 3 per publication in order to increase frequency.

7. Negotiate value added components such as free banner ads and online newsletter editorial as part of the print

ad buys. 8. Leverage the Atascadero media plan with cooperative advertising with the SLOCVCB. 9. Create advertisements using messages and photos that effectively promote the Atascadero brand and key

points of differentiation, and people in the moment or area icons such as the Rotunda Building, Hearst Castle and wineries to use as hooks to increase awareness of the area.

10. As the main travel planning tool, drive potential visitors to the Atascadero website by making it the primary call to action in every ad and communication piece.

11. Develop measurement system for all advertising including 888# phone calls, generated addresses and email

leads, website user sessions, etc. to determine if efforts are increasing awareness and interest in Atascadero and creating positive brand associations.

Long-term Tactics: (2009 and beyond) 12. Create a larger presence for Atascadero by developing cooperative ad opportunities in specific publications that

would invite attractions and lodging properties to participate at more affordable rates than on their own. The co-op ads would create a much larger presence for all participants and unify the destination message under the Atascadero brand.

13. Research banner advertising and email newsletter sponsorships on activity-specific websites such as hiking,

birding, etc. in order to reach specific target markets and to build the visitor database.


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D. Sales 1. Continue to work with the county SLOCVCB to attend and participate in cooperative sales and trade show

opportunities such as Cal Expo. 2. For trade shows, develop and promote a trip giveaway to Atascadero to use as an incentive to increase

awareness of the destination and to gather email registrations. Create an email registration form to legally collect emails for the monthly email newsletter and ongoing visitor relationship programs.

3. Continue to distribute the Atascadero Visitor Guide at trade shows. 4. Create trade show give away items that promote the Atascadero brand. 5. In conjunction with other trade show partners, develop a trade show evaluation form in order to identify areas of

improvement and to gauge the overall effectiveness and ROI of each show for future planning. 6. Establish measurements for trade shows such as number of attendees, visitor leads/emails generated, and

information distribution. 7. Obtain VCB visitor database and send information about staying in Atascadero. 8. Purchase an advertorial in the VCB newsletter to promote visiting Atascadero. 9. Encourage the Atascadero lodging properties to develop year-round packages to promote cultural events. Post

ongoing lodging packages of the Atascadero website.


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E. Public Relations The power of public relations cannot be understated. Most people will believe a story written by a journalist rather than an advertisement. As such, public relations is integral to building a credible Atascadero brand through third-party media endorsements. Public relations is also a very cost effective and efficient communications tool to tell the “Atascadero colony story” and to assist with visitor planning information. I. Out of Market Public Relations Short-Term Tactics: 2009 1. Develop a basic public relations program that includes press releases and photography. 2. Create a Media section on the Atascadero website that features the releases, images and contact information to

assist media with their travel stories.

3. Send an email invitation to targeted media to visit the Media section for story ideas. Give media option to either receive ongoing releases and updates via email or by USPS.

4. Develop press releases about:

a. Atascadero colony brand and the unique history of Atascadero. b. Key attractions such as wine country, Hearst Castle etc. that position Atascadero as a lodging hub with

which to access the rest of the county. c. Local characters with interesting stories – shopkeepers, artists, historians d. Art tours and art colony e. Special events f. Agricultural tours g. Recreation h. Seasonal lodging packages i. New business developments and infrastructure enhancements j. Historic Downtown, a.k.a. Colony District

5. Press releases should include a brand positioning statement at the end of every release along with the

Atascadero website address as the call to action for visitor information. 6. Work with and coordinate public relations efforts with the County VCB to present a unified destination to media,

and to leverage efforts and budgets. 7. Send press releases and images to the California Travel and Tourism Commission (CTTC) and encourage them

post on the CTTC website and include in their quarterly What’s New publication and public relations efforts. 8. Invite individual travel writers from print and online media to visit Atascadero in order to gather content to write

articles year round.

9. Leverage ad buys by sending press releases or specific stories that fit editorial calendar to publications that feature Atascadero print ads.

10. Measure public relations efforts by generated coverage, ad equivalency and media visits.

It should be noted that in conjunction with advertising and other marketing activities, public relations is vital for building brand awareness which is often hard to measure and attribute to specific public relations efforts.


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Long-term Tactics: (20009 and beyond) 11. Continue to create proactive story ideas that clearly differentiate Atascadero from the competition and support

the brand. 12. Host an annual Atascadero familiarization trip (FAM trip) for travel writers from targeted publications and

websites in order to visit the key attractions and to experience Atascadero first-hand to assist with story development.

13. Investigate attending the CTTC Media Reception and Marketplace in San Francisco to meet media in person

and distribute information about Atascadero. 14. Continue to measure public relations efforts based upon generated coverage, ad equivalency and media visits. II. In-Market Public Relations Short-Term Tactics: 2009 1. Develop an ongoing communication program with the local tourism officials in order to keep them informed about

tourism efforts. 2. Educate local community about how tourism can help preserve their quality of life while generating revenues for

city/community services through stories in local newspapers or town hall meetings. Long-term Tactics: (2009 and beyond) 3. Develop an annual tourism luncheon inviting the Atascadero community to inform and educate them about the

continued importance of tourism to both the economy and the environment.

4. Continue to gather story ideas and FAM participation from the local community in order to include local businesses in the overall public relations efforts and to bolster long-term community support.


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F. Visitor Information Visitor information consists of two primary components. The first is information that is used to attract potential visitors to Atascadero. The second component is information used to assist visitors once they arrive. Both information components are critical in defining the visitor experience, and have the potential to impact both first-time and repeat visitations. Short-Term Tactics: 2009 1. Work with the chamber of commerce to continue to improve content and usability of the existing Atascadero

Visitor Guide. Continue to integrate the Atascadero brand and key message points throughout the guide to clearly differentiate the destination from the competition. Serve on a committee to review the content of the guide and provide input.

2. Continue to distribute the Visitor Guide in the regional California Welcome Centers. 3. Distribute the Visitor Guide at trade shows and throughout the Atascadero region.

4. Continue to promote the Visitor Guide on the Atascadero website and in all advertising, space permitting.

5. Promote the new Atascadero website as the primary visitor information tool. Advertise the website address in every marketing initiative and encourage county-wide tourism related businesses and tourism officials to include it in their marketing materials.

Long-term Tactics: (2009 and beyond) 6. Continue to make ongoing improvements to the website and guide based upon visitor and community input. 7. As identified in the 2005 Tourism Assessment, the city should continue to develop an area-wide way finding signage

program that helps the visitor locate the tourism related assets within the region. All signage, including event banners produced by the Downtown Association or chamber of commerce, must include the Atascadero brand and supporting color and type elements.


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G. Research One of the most significant needs indicated in the community interviews is a lack of one definitive source for all-inclusive, visitor research data in order to base decisions and strategies. A comprehensive research program is necessary so every entity can develop a perspective for their individual property, attraction etc. In addition to developing a city-wide perspective based on quantifiable data, research is necessary to determine if the Atascadero brand and marketing strategy is achieving the identified long-term goals and objectives. Additionally, to ensure the marketing initiatives are on target, it is critical that visitor research is conducted in order to understand the Atascadero visitor and to identify lucrative new segments. A final and essential complementary measurement tool is community research. In order to identify and understand the tourism community’s needs and support of the new unified tourism promotion effort, it is imperative that locals are involved in the entire process and are able to provide feedback. Together, all of these measurement tools will assist Atascadero in the further refinement of its unified marketing efforts to increase travel spending as well as to build consensus and support for the new long-term direction. It should be noted that not all of the marketing efforts can have a designated return on investment such as ads and public relations that are designed to build brand awareness. Building brand awareness is just as critical to long-term success as specific marketing efforts designed to drive a particular response that can be tracked. Brand building can be measured, however, through the monthly user sessions on the Atascadero website in which all Atascadero marketing efforts are designed to feed into. Short-term Tactics: (2009) 1. Measure the effectiveness and return on investment of all marketing programs in order to improve marketing

efficiencies and to maximize limited resources. Use comprehensive research to determine if efforts are increasing awareness and interest in Atascadero and creating positive brand associations.

a. Use free website measurement software – Google Analytics – to measure website performance and ROI by

tracking monthly user sessions, click-through rates (links) to specific pages and partner websites such as the lodging properties, attractions, chamber of commerce, downtown association and county CVB in order to continually improve the website’s usefulness and efficiency.

b. Measure ad placements based upon Visitor Guide orders, 888# calls, generated physical addresses and emails, website user sessions, etc.

c. Measure monthly email newsletter performance based upon subscriber database growth, open rates and number of click-throughs to featured stories.

d. Measure trade shows based upon collected emails, number of attendees, promotional sign ups for trip giveaways, distribution of Visitor Guides.

e. Measure public relations efforts by generated coverage, ad equivalency and media visits. 2. Develop a monthly marketing report that includes all marketing activity performance data to use as a baseline for

measuring against future year’s results. Monthly report should include measurements for the website, monthly email newsletter, generated leads from advertisements, 888# calls, Visitor Guide orders, emails collected at trade shows and events, and visitor information distribution.


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3. Distribute monthly marketing reports to primary tourism officials and businesses as a method of stimulating change and innovation for long-term tourism efforts.

4. Gather ongoing feedback from the local business community about marketing strategy and specific efforts in

order to assess future program participation.

Long-term Tactics: (2009 and beyond) 5. Once the visitor database has reached a critical mass, implement an online visitor survey in order to develop a

visitor profile that identifies demographics, travel spending impacts, and visitor perceptions, behaviors and motivations. Include questions about specific marketing activities in order to understand influence on behavior and decision making process.

6. Use the study findings to refine marketing messages and tactics, and to better target marketing efforts to more efficiently reach the most lucrative visitor segments.

7. Encourage each lodging property and attraction to collect demographic and marketing data in order to provide

more information and insight to the organization about the Atascadero visitor. 8. Collect year-round visitor data with a brief survey located at the Visitor Center. 9. Work with the City of Atascadero to publish ongoing T.O.T. lodging reports that would include the following data:

• Total rooms available

• Total rooms sold

• Average room rate

• Total room revenue

• Total T.O.T. collected

• Room availability by property size (# of units)

• Rooms sold by property size (# of units)

• Average room rate by property size (# of units) 11. Distribute comprehensive marketing activities report and survey results to tourism officials and tourism related

businesses in order to gauge success of county-wide tourism efforts and identify areas of improvement.


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Section 13: Budget Recommendation The following budget outline is based upon the current tourism promotion budget of $50,000 and the recommended short-term marketing tactics. SMG has also provided budget guideline recommendations for consideration assuming increased tourism promotion funding is available in the future.

Amount Pct Amount Pct Amount Pct$50,000 $100,000 $150,000

Webs i te $5,000 10.0% $10,000 10.0% $7,500 5.0%Onl ine Marketing/Vis i tor Newsletter $3,000 6.0% $15,000 15.0% $25,000 16.7%Adverti s ing $17,000 34.0% $36,500 36.5% $60,000 40.0%Publ ic Relations $6,000 12.0% $15,000 15.0% $20,000 13.3%Vis i tor Guide Distribution $12,000 24.0% $12,000 12.0% $12,000 8.0%Trade Shows $2,500 5.0% $2,500 2.5% $2,500 1.7%Research $500 1.0% $5,000 5.0% $10,000 6.7%Chamber of Commerce $4,000 8.0% $4,000 40.0% $4,000 26.7%

It is important to note that in order to implement the Atascadero strategy it is critical to increase funding in key areas including Website/Online Marketing, Advertising and Public Relations. It should be noted that these recommendations are in no way and final and should be viewed a general direction for marketing investment in an effort to support the Atascadero marketing strategy.


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Appendix I. Economic and Social Benefits of Authenticity Additionally, differentiating a destination based upon authenticity and the local perspective has been proven successful to garner community involvement in a destination’s long-term tourism promotion effort. When the marketing program relies on local characters and local businesses to help bring the destination to life authentically, locals begin to have a better understanding of the economic impact of tourism. The Atascadero Tourism Marketing Plan can be used as a unifying point for the community, leading to the overall support of the program and participation. The sense of community pride that is cultivated by this marketing approach and philosophy can also directly enhance customer service at all levels for visitors and locals alike. SMG has found that when the local community is included, they are more inclined to participate in the branding campaign and support the overall marketing program. For example, Atascadero businesses and event operators can include the logo and positioning statement on their marketing materials, promotional products, event calendars and websites. This will help to cross-promote the tourism assets in the city, and provide continuity in presentation at all levels from retail to lodging to all of the tourism promotion organizations. Economic and Social Benefits:

• Leverages city, chamber, event proponents, and local business marketing budgets and efforts.

• Effectively unites and promotes the city’s businesses and tourism promotion organizations.

• Builds support of the long-term Atascadero tourism program and expands the promotion of specific marketing activities.

• Creates community pride that can directly improve customer service for visitors and locals.

• Builds confidence in and support of the City of Atascadero as a leader in the tourism industry.

• Bolsters the importance of tourism as an economic generator for Atascadero.

• Creates a long-term, sustainable marketing platform dependent upon community involvement helping to alleviate pressure on the City and to provide a level playing field for all businesses to participate.

Authentically helps to educate the traveling public about the importance of preserving Atascadero’s natural, historical, artistic, cultural and recreational assets during their visit in order to maintain its distinctive culture – a critical and important social tenet for local residents and a long-term point of contention.


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The Strategic Marketing Group

(SMG), a California Limited Liability Corporation, is located at 2048 Dunlap Drive, Suite 11, South Lake Tahoe, CA and is a marketing advisory firm specializing in providing marketing research, strategic planning and strategy development services for the travel, tourism and recreation industries. www.smgonline.net

atascadero tourism marketing plan

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