Department of Commerce presentation

North Carolina’s Southeast TAG Meeting

North Carolina Dept. of CommerceMarketing Strategy and ProgramsFebruary 8, 2012

Lynn MingesAssistant Secretary of Tourism, Marketing & Global Branding

Position North Carolina as a preferred business location in order to generate inquiries and leads that will result in new business investment and jobs for the citizens of our state

Marketing Goal

• What are we trying to accomplish?• Who is our audience?• What message will move our audience?• What vehicles will best deliver the message?

• What resources do we have?• How will we measure success?

Questions

• Generate inquiries• Convert inquiries to leads•Educate prospects about North Carolina’svalue as a business location

• Leverage state resources• Engage economic development partners•Utilize research to guide marketing messaging and investments

• Benchmark best practices• Measure effectiveness/report outcomes

Our Objectives

• Phone inquiries• Web metrics• Leads/potential projects (entered in Salesforce)

• Number of Sits Selection Consultant contacts•Number of Corporate Executive contacts

Measuring Success

Who is our audience?

Site Selection ConsultantsCompany Execu-tives

20%“The Influencers”

80%“The Decision Makers”

What kinds of companies consider North Carolina?

SECTOR # of projects

# of Jobs Amount of Investment

% of Jobs % of Total Investment

Financial Services 7 1995 $37,350,000 15.6% 1.41%

Chemicals/Plastics/Rubber 27 2075 $932,963,605 16.22% 35.31%

Information and Communications (ICT)

6 1625 $421,600,000 12.71% 15.96%

Biotechnology/Pharmaceuticals/ Life Sciences

3 292 $64,050,000 2.28% 2.42%

Warehouse/Distribution 4 601 $83,850,000 4.70% 3.17%

Motor Vehicle/Heavy Equipment

10 737 $156,381,000 5.76% 5.92%

Aerospace/Aviation 5 786 $93,270,000 6.15% 3.53%

Textiles 16 1030 $162,936,287 8.05% 6.17%

Furnishings 9 966 $17,500,000 7.55% 0.66%Advanced Manufacturing 16 704 $150,495,000 5.50% 5.70%

Food/Agriculture 12 760 $158,585,497 5.94% 6.0%

Energy 8 664 $208,334,000 5.19% 7.88%

Construction/Specialty Trade/Misc

14 555 $154,845,899 4.34% 5.86%

137 12,790 $2,642,161,288

Who does our audience think?

“The Influencers”Site Selection Consultants“The Seekers”

Business Leaders

We also researched what our target audience thinks of North Carolinaby analyzing annual surveys from credible sources like

Site Selection magazine, Area Development, Forbes, CNBC, and Fortune

What message will move our audience?What message will move our audience?Corporate executives involved in site selection decisions

(DCI for NC Commerce, June 2006)

Factor Percent of RespondentsAvailability of skilled workers 53%

Access to affordable personnel 53%

Efficient transportation systems 51%

Business-friendly government 50%

Low overall costs 47%

Competitive incentives/tax exemptions 40%

Availability of managerial/professional workers 34%

Low overall tax burden 34%

Overall quality of life (cultural and rec. amenities, crime rate, etc.) 20%

Low occupancy and/or construction costs 14%

Availability of worker training programs through the local community college system 12%

Other (Proximity to customers) 9%Availability of good K-12 education 7%

Presence of research universities 3%

Proximity to funding sources/financial markets 3%

Other 3%

What message will move our audience?

• Highways• Labor Costs• Skilled Labor• Incentives• Corporate Taxes• Construction Costs• Energy

What do they need?

Every year they say these same things…

… but those are just a means to an end

They all need a

competitive advantage

Company executives believe people are their most important asset

A key insight

… And it’s their people who give themtheir competitive advantage

Our message

North Carolina gives you a competitive advantage because we

have a better climate for your business and your people

It’s believable.For business

Consistently ranked among the best business climates in the nation by Forbes, CNBC,

Chief Executive andSite Selection.

For EmployeesAffordable housing, world-

class healthcare, educational opportunities, and an

attractive lifestyle. No. 1 inS.E. USA for in-migration

The Elevator Pitch

North Carolina has the best business climate in America.

Our secret is simple.

When people thrive, business thrives.

Essence Statement

Our secret is simple: When people Thrive, business Thrives.

Additional Research Findings

Qualitative and quantitative research was conducted between November 2010 and January 2011:

1. Focus groups with Location Advisors2. Location Advisors’ Perceptions of North

Carolina online survey3. Corporate Executives’ Perceptions of North

Carolina online survey

Summary

Research

Key Findings among Location Advisors

• The North Carolina brand is strongTop 3 states for Biotechnology/Life Sciences:

35% North Carolina

33% Massachusetts

12% California

Top 3 states for Information and Communications Technology:

38% California

14% Texas

10% Georgia (tie)

10% North Carolina (tie)

Top 3 states for Financial Services:

54% New York

28% North Carolina

5% New Jersey

Research

• Highest ranking site location criteria among Advisors

Lowoverallcosts

Competitive incentives/

tax exemptions

Business-friendly

government

Low overall tax burden

Skilled workers

Efficient transport-

ation systems

Affordable personnel

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

5.3

5

5.2

5

5.1

4

5.0

2

4.9

4

4.7

8

4.6

9

4.4

6

4.3

2 4.4

9

4.2

2

4.7

8

4.3

4

4.5

9

Importance to Location Ad-visorsN.C.'s Ranking

Most important criteria, by mean score, all respondents, on a scale of 1-6


Research

• Lowest ranking site location criteria among Advisors

Low cost occupancy/

construction costs

Managerial/ professional

workers

Worker training

programs

Good K-12 education

Quality of life

Research universities

Funding sources/ financial markets

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

4.5

7

4.5

5

4.0

4

3.9

8

3.8

4

3.5

7

3.3

1

4.3

9

4.7

6

4.7

1

3.9

8

4.5

6

5.2

4

3.9

3

Importance to Location Ad-visors

N.C.'s Ranking

Less important criteria, by mean score, all respondents, on a scale of 1-6


Research

• Importance factor among Advisors vs. North Carolina’s score

Impo

rtan

ce


North Carolina’s score

Research

• Build on the momentum

78% 78%

68%

44%39%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Seen/heard ad Read a story Met with EDrepresentatives

Received a call Attended anevent

None of theabove


Exposure to North Carolina’s Marketing

Research


• On the right track with key resources

Valuable resources used in Advisors research site locations

- 57% Mapping Tools- 51% Websites- 35% Case studies- 32% Testimonials- 24% Internet Research/Web Articles- 22% Access to Economic Development

contacts

Research

Key Findings among Corporate Executives

Valuable resources used when Executives research site locations- 51% Websites- 26% Case studies- 23% Mapping Tools- 19% Testimonials- 17% Word of Mouth- 15% Web Articles

• On the right track with key resources

Research

September 2011 Survey of Corporate Executives

DCI Study“View from Corporate America”

Best State for Business

Ranked No. 2

‘Best in Class’ Economic Development Organization

Ranked No. 2North Carolina Dept. of Commerce

Key Accomplishments

ThriveNC.com (launched May 2010)

Traffic CY 2011:

• 107,130 UniqueVisitors

• 144,944 Total Visits

• 368,420 Pageviews• Avg. time spent on

site: ~ 3+ mins

13,814 Unique Visitors last month (Jan. 2012)

Key Accomplishments

Paid Media

Site Selector Magazine Inserts

NC Business Journal Ad

Online Banner Ad

SmartBrief e-News sponsorships

Direct Mail

Event Invitations to Decision Makers

Customizable Pocket Folders

Key Accomplishments

Weekly E-mail to Site Selectors

Key Accomplishments

Video Testimonials

Key Accomplishments

Red Hat: North Carolina Offers IT Companies a Competitive Advantage

Deere-Hitachi: North Carolina's Business Climate & Operating Costs in North Carolina

Sabo USA: North Carolina's Labor Force

Siemens Energy: Workforce Training in North Carolina & Support for the Energy Industry in North Carolina

Clearwater Paper: North Carolina's Pro-Business Government

Key Accomplishments

New Collateral for each industry sector

ICT BrochureGreen Energy Brochure

Life Sciences Brochure

Key Accomplishments

Client Notebook

Key Accomplishments

Tradeshows

Paris Air Show | Trade Show

BIO, Washington D.C.| Trade Show

Windpower 2011, Anaheim, CA | Trade Show

Key Accomplishments

Signature Events

Experience NC, 2011

Site Consultant Receptions

BIO Reception

Looking Ahead

AccessNC – Greater Engagement with Site Selectors

“North Carolina Economic Data and Site Information”

•New name•New logo/tagline•New mobile application•Greater marketing support

previously

Looking Ahead

AccessNC Mobile App – Launched Last Fall

Building & Site data from mobile devices

◆ iPhone, iPad, Blackberry and Android

Looking Ahead

Continue to Enhance ThriveNC.com

Looking Ahead

Site Selector Direct Mail and Promotions

Personal Invitations

Customizable Folders

Gift Baskets

Tradeshows (FY 2011-2012)

Looking Ahead

• International Air Show Exhibit, June 20-26, 2011 – Le Bourget, France• BIO 2011, June 26-29, 2011 - Washington, DC• AUSA Defense Trade Show, October 10-12, 2011 – Washington, DC• Solar Power International Trade Show, Oct. 18-20, 2011 – Dallas, TX• 10th World Drug Manufacturing Summit, Nov. 29-Dec. 1 – Berlin• RILA 2012 Retail Logistics, Feb. 19-22, 2012 – Dallas, TX• BIO 2012, Boston, MA, June 18-21, 2012 – Boston, Massachusetts• International Air Show Exhibit, July 9-15, 2012 – Farnborough, UK

Site Selection Consultant Events• Atlanta, August, 2011• New York, November 2011• Dallas, March 2012• Asheville, Experience North Carolina

Familiarization Tour, April 2012 Corporate Executive Events• Defense Industry Luncheon, June 29, 2011,

Washington, DC, • AUSA 2011 Defense Sector Reception,

October 10, 2011 – Washington, DC• Aviation Week CAM Conference, May

2012 – Charlotte, NC• BIO 2012 Reception, June 18-21, 2012 –

Boston, Massachusetts

Conferences/Seminars• COMS 2011 – Micro Nanotech

Conference, August 28-31, 2011 – Greensboro, NC

• IEDC Annual Conference, Sept. 18-21, 2011

• Main Street Conference, January 2012• North Carolina Nanotechnology

Commercialization Conference, Spring, 2012

• Go Global Road Show (Export Seminars), April 16-20, 2012

International Sales Missions:• Asian Business Development Trip, Fall

2011• European Business Development

Trip, Spring 2012

Events & Sales Missions (FY 2011-2012)

Looking Ahead

Yearly Participation Level Options

Partner Opportunities

P L A T I N U M• All Events – 4

Individuals/event

$25KD I A M O N D• 8 Events – 2

Individuals/event

$15K

G O L D• 6 Events – 1

Individual/event

$10K

S I L V E R• 4 Events – 1

Individual/event

$5K

B R O N Z E• 2 Events – 1

Individual/event

$2.5K

A La Carte option, if available - $500 1 Event – 1 Individual

Strategic Marketing Plan

Visit Partners.ThriveNC.com for more information

North Carolina’s Southeast TAG Meeting

North Carolina Dept. of CommerceMarketing Strategy and ProgramsFebruary 8, 2012

Lynn MingesAssistant Secretary of Tourism, Marketing & Global Branding