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San Diego Tourism Marketing District FY 2015 Application for Tourism Marketing District Funds Presented San Diego Tourism Marketing District FY 2015 Application for Tourism Marketing District Funds Presented February 14, 2014

The San Diego Brewers Guild • Mission: To promote awareness and increase the visibility The San Diego Brewers Guild • Mission: To promote awareness and increase the visibility of fresh, locally brewed beer through education and participation in community events. Founded in 1997 as a 501(c)(6) One of America’s most acclaimed brewing associations One of the world’s most active brewing communities 65 Brewing Company Members 80 Allied Pub Retail Members 65 Affiliate Members

San Diego Beer Week 2014 Friday, November 7 th through Sunday, November 16 th. San Diego Beer Week 2014 Friday, November 7 th through Sunday, November 16 th. The Mission: To promote San Diego’s thriving craft beer culture by sponsoring a ten-day countywide festival that attracts beer tourism, fosters knowledge of our regional brewing heritage, and serves as a showcase for San Diego’s breweries, restaurants, pubs, hotels and other businesses with ties to the craft beer community.

San Diego Brewers Guild Success = Success for San Diego Tourism! Ø “San Diego San Diego Brewers Guild Success = Success for San Diego Tourism! Ø “San Diego has burst onto the international beer scene, emerging as America’s craft brew capital. ” Time Magazine, December 2012 • “San Diego County in recent years has emerged as a top craft beer destination with more than 70 breweries. ” USA Today, September 2013 Ø “Local brewers take 20 medals at GABF” – “San Diego County breweries won a record 20 medals at Denver’s Great American Beer Festival on Saturday. This was the 30 th annual festival, which has become the nation’s largest and most prestigious showcase for brewers and beers. ” Peter Rowe, SD Union Tribune Ø “San Diego rules the World (Beer Cup)!” – “San Diego Cleaned up. Eleven local breweries won 21 international medals…” Pete Rowe, SD Union Tribune

San Diego Beer Week 2013 • Friday, November 1 st through Sunday, November 10 San Diego Beer Week 2013 • Friday, November 1 st through Sunday, November 10 th. • Over 600 events over the 10 -day period: • 60+ participating breweries – – – – Beer Dinners Festivals Rare Bottle Tastings Cheese Pairings Brewery Tours Classes Cask Nights Meet-the-Brewers

SDBW Kick-Off: 2013 Brewers Guild Festival • • 2 nd year “On the Waterfront” SDBW Kick-Off: 2013 Brewers Guild Festival • • 2 nd year “On the Waterfront” at Broadway Pier – nearer downtown SDTMD hotels. 3000+ in attendance Partnership with FM 94. 9 to promote the Guild Fest Influential restaurateur Scot Blair tapped the opening cask Promoted San Diego’s brewing scene, culture, and community spirit More than 60 San Diego Breweries with all Beers made in San Diego County Attendees got to meet the Brewers who make the beers, try food pairings, and listen to music “San Diego beer has become one of the city’s focal points, ” Mayor Sanders said

SDBW 2013 Closing Event: Beer Garden at the Lodge at Torrey Pines • • SDBW 2013 Closing Event: Beer Garden at the Lodge at Torrey Pines • • • Sold-out crowd of 600 attendees The Premiere beer and food pairing event in San Diego 12 local chefs paired with 24 San Diego Breweries to create unique, beer and gourmet food tastings Room/Event packages sold Opportunity for attendees to engage with local brewers and chefs Supporting culinary scholarship funds through Chef Celebration “This was no ordinary beer festival — this was class all the way!”

Added Hotels Page Added Hotels Page

2012 SDBW Media Impressions Ø TMD funds have enabled us to generate millions of 2012 SDBW Media Impressions Ø TMD funds have enabled us to generate millions of media impressions over a six month campaign. Ø The Guild ran an aggressive print, online, radio and social media campaign targeting craft beer enthusiasts and beer tourists in Southern and Northern California, Arizona, Oregon, New York, Colorado, and Midwestern States Publications included: Celebrator Beer Magazine Ale Street News The New Brewer Magazine Draft Magazine Beer Advocate Magazine Southwest Brewing News All About Beer Magazine Mutineer Magazine OC Weekly (increased presence) LA Weekly (increased presence) SF Weekly (increased presence) City. Beat Riverside The. Full. Pint. com Rate. Beer. com Facebook. com ads Banners at Great American Beer Festival 4 email blasts to thousands of fans Mailings to over 300 craft breweries, independent liquor stores, and beer bars across CA/AZ 3 press releases to 400+ media contacts Convis out-of-market releases Ø We hired a professional PR firm (J PR) to focus on aggressive media relations campaign to generate additional press

2012 SDBW Media Pick-up • TV Spots – KUSI, NBC, Fox, CW • Radio 2012 SDBW Media Pick-up • TV Spots – KUSI, NBC, Fox, CW • Radio Interviews – FM 94. 9, NPR, 91 X • Print Features – Time Magazine, NY Times, Draft Magazine, Celebrator Beer Magazine, Pacific San Diego Magazine, Union Tribune • 100+ Online Features/Mentions – Sandiego. com, foodandwine. com, mensjournal. com, beeradvocate. com, draftmag. com • 45+ Blog Features/Mentions – By prominent beer bloggers

Proposed 2014 Campaign Target Market Craft Beer Drinkers & Beer Tourists: • Craft beer Proposed 2014 Campaign Target Market Craft Beer Drinkers & Beer Tourists: • Craft beer enthusiasts represent a highly desirable demographic of relatively young, educated, affluent, mobile beer drinkers willing to travel for unique beer events. The nature of beer tourists is such that they will travel at any time of year to the events that are important to them – (e. g. GABF, Oktoberfest, SDBW, etc. ) • Hosting Beer Week In early November, an “off Peak” season for San Diego Tourism, has proven to bring the Beer Enthusiast to San Diego in increasing numbers.

SDBW 2014 Campaign • Website: Due to 2012’s 54% increase in mobile visits to SDBW 2014 Campaign • Website: Due to 2012’s 54% increase in mobile visits to sdbw. org – – • Hotel Partnerships – – – • Increase the number of hotel partnerships, creating packages to induce more visitors to book hotel rooms through SDBW website Optimized ARES to better handle and track online travel bookings Collaborate with Hotel Event and group marketing teams. Additional Marketing Focus – – – • Create i. Phone and Android Application leading Beer Enthusiasts to the Website and TMD Hotel Options Improved search engine for Event listings included ability to sort events by type, neighborhood, and brewery Expand HOTEL page to include partner TMD Hotel packages for the anchor Beer Week events Link Hotel Tab to Convis/TMD run site with more hotel listings Expanded social media interactions and opportunities driving users to The SDBW website and TMD Hotel options One quarter of 2012 marketing was “on line” banners and internet presence. Increase by 10% in 2014 with links to SDBW website Build on success of previous years PR campaigns introducing a group Sales component targeting The Beer Hobbyist audience Having a marketing presence at major out-of-market beer Events to provide Event, travel and accommodations material Marketing to include website links and offers of Room/event packages to drive interest to the website. ROI Measurement – Continued partnership with Vision Quest/SDSU School of Hospitality to assess effectiveness of marketing and enhance ROI tracking

Budget Overview • With $74, 900 in FY 2015 SDTMD funding, SDBW 2014 will Budget Overview • With $74, 900 in FY 2015 SDTMD funding, SDBW 2014 will launch a targeted marketing campaign including a focused “call to action” in all media types, and a concentrated outreach to industry-related, out-of-market groups. • BUDGET - SDTMD funds will be allocated among the following budget items: – $20 k Print Advertising • Includes beer and industry specific magazines, regional publications, travel publications, cards and out of market SDBW promotion materials – $10 k On-line Advertising • Includes banners, and ads on influential beer, social media and travel websites – $10 k Radio Advertising – $15 k Public Relations & Professional Management in Marketing Campaign • Fund PR firm to generate regional and national media buzz, coordinate media opportunities. Fund a dedicated Beer Media professional to oversee plan and vision in executing media buys, placement, timing and administration. Partially fund Administrator to liaison with PR firm, Media Professional and Brewers Guild members throughout 600+ events and oversee the SDBW plan and vision. To execute reimbursements, oversee Festival coordinators, PR efforts and web design initiatives, and to act as liaison to the Board of Directors. – $10, 900 Technology Support to create Android, i. Pad, i. Phone website and social networking application, to build a faster search engine and a broader “Hotel” Tab connection with second option capability links – $9 k Operations/Admin to oversee the SDBW plan, Vision Quest ROI assessment, execute reimbursements, place media buys, act as PR & web designer liaison, communicate to SDBG members.

2013 Beer Week Added 1, 600+ Facebook Fans (8, 330 to 10, 027) Fan 2013 Beer Week Added 1, 600+ Facebook Fans (8, 330 to 10, 027) Fan Breakdown: Over 2, 500 from outside San Diego

Twitter Followers : 6, 090 in 2011 8, 043 in 2012 10. 9 K Twitter Followers : 6, 090 in 2011 8, 043 in 2012 10. 9 K in 2013

Projected TMD ROI of 9. 3: 1* Assumptions: Friday (11/7) – 700 room nights Projected TMD ROI of 9. 3: 1* Assumptions: Friday (11/7) – 700 room nights Saturday (11/8) – 700 room nights Sunday (11/9) – 400 room nights Monday (11/10 – 340 room nights Tuesday (11/11) – 270 room nights Wednesday (11/12) – 260 room nights Thursday (11/13) – 400 room nights Friday (11/14) – 700 room nights Saturday (11/15) – 700 room nights Sunday (11/16) – 400 room nights • A conservative projection supported by prior years’ successful results. • Assumes a total of 4, 870 room nights x a $143. 66 average nightly room rate = $699, 624 in revenue. • $699, 624 in revenue / $74, 900 fund grant = 9. 3: 1 ROI • The San Diego Beer Week total ROI of 9. 3: 1 surpasses the minimum threshold of 3: 1 for “Off Peak Periods”.

ROI: 2012 San Diego Beer Week Room Night Analysis • Results were generated using ROI: 2012 San Diego Beer Week Room Night Analysis • Results were generated using intercept interviews conducted at 17 events of varying sizes during Beer Week. – It is important to note that only those attendees staying in a TMD area hotel, who came specifically for Beer Week events were included in the analysis. • The results indicate that an estimated 5, 943 room nights were generated as a result of Beer Week events.

Partnering to Promote San Diego as a Craft Beer Destination VISION QUEST: SDBW has Partnering to Promote San Diego as a Craft Beer Destination VISION QUEST: SDBW has yielded INCREASING ROI’s 2010… 1, 435 room nights /$179, 734 generated. => ROI 3. 59: 1 2011… 3, 612 room nights /$469, 307 generated. => ROI 6. 26: 1

Vision & Timing! Five Years Ago… SDTMD and Con. Vis were responsible for convincing Vision & Timing! Five Years Ago… SDTMD and Con. Vis were responsible for convincing the San Diego Brewers Guild to move SD Beer Week from its planned timeframe in August 2009 (already a peak tourist time) to early November (an Off-Peak tourism period) when it could benefit the entire local tourism and hospitality industry.

Nov. 2009 – Nov. 2012 • • 2009 – TMD invested $22, 320 in Nov. 2009 – Nov. 2012 • • 2009 – TMD invested $22, 320 in first-time event: San Diego Beer Week. Due to the spread-out nature of the event, lack of standardized reporting procedures, and the short lead time (2 months) between TMD investment funding and SDBW 2009, no ROI report was possible. 300+ events were held during our first SDBW. 2010 – TMD invested $50, 000 in second year event: 477 posted events in 10 days. Using the TMD standard ADR of $125. 25, this yielded a total of $179, 734. 00 in incremental hotel revenue for TMD area properties. Using the TMD investment of $50, 000, the ROI was approximately 3. 59: 1 2011 – TMD invested $74, 900 in third-year event: 524 posted events in 10 days. Using the TMD standard ADR of $129. 93, this yielded a total of $469, 307 in additional hotel revenue during the Beer Week period. Using the TMD investment of $74, 999. 00 the ROI was approximately 6. 26: 1. 2012 -TMD invested $74, 900 in fourth year event: 535 posted events in 10 Days Using TMD standard ADR $132. 89, this yielded a total $789, 794 in hotel revenue. The ROI is approximately 11. 56: 1

Thinking Tactically • How can San Diego grow tourism customers and TMD Hotel Occupancy, Thinking Tactically • How can San Diego grow tourism customers and TMD Hotel Occupancy, other than just promoting its beaches, bays, and attractions? ? ? – Give tourists another COMPELLING, UNIQUE reason to come to San Diego in a FOCUSED event that provides multiple “insider” experience opportunities. – Maximize the use of Social Media as the preferred communication and information platform of our target audience – Strive to Create a “call to action” with every marketing dollar – Meet the Beer Enthusiast where he/she is … promote SD Beer Week at other major Beer Events. . – Hosting our 10 day Festival when the city can fully engage in and maximally benefit from a signature, citywide event. – Do it in an AUTHENTIC WAY that leverages an existing sustainable differentiated competitive advantage and creates ancillary benefits year-round. “San Diego isn’t just surfing and La. Dainian Tomlinson anymore it’s the new beer capital of the U. S…. The sheer number of breweries blows us away. Visit almost any of them and you’ll find the brewmaster on hand, happy to chat over a pint. ” Men’s Journal, October 2009

NEW YORK TIMES ARTICLE January 6, 2012 “…few American regions have more brewing momentum NEW YORK TIMES ARTICLE January 6, 2012 “…few American regions have more brewing momentum than San Diego County. ” “Those looking for full immersion can pack a stein for the fourth annual San Diego Beer Week in November. ”

“Forget the zoo, Sea. World and beaches galore. San Diego’s allure, at least for “Forget the zoo, Sea. World and beaches galore. San Diego’s allure, at least for tourists, is all about the beer, so says The New York Times. ” Lori Weisberg UT ARTICLE January 9, 2012 “That’s the type of travel press you simply can’t buy and exactly what our San Diego Brewers Guild has been working to accomplish with the use of our (marketing) funding to promote San Diego Beer Week. ” Chris Cramer

Year-Round Hotel-Visit Driver Year-Round Hotel-Visit Driver

BEACH BAY + BREWERIES + BEER + = America’s Finest Beer Week and Beer BEACH BAY + BREWERIES + BEER + = America’s Finest Beer Week and Beer Tourism year-round!

We look forward to working with the San Diego Tourism Promotion Corporation to bring We look forward to working with the San Diego Tourism Promotion Corporation to bring visitors to town for the Sixth annual SAN DIEGO BEER WEEK Thank you for your consideration!