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EDSR MEMORANDUM 10-11-1999 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY 411 MEMORANDUM TO: Economic Development Authority FROM: Marc Nevinski, Assistant Director of Economic Development ,dy DATE: September 11, 1999 SUBJECT: Marketing Plan Development Issue In the revisions of the economic development strategic plan this past summer, the establishment of an industrial marketing plan ranked as one of the top priorities for the department. A marketing plan is linked to the achievement of the other priorities identified in the economic development strategic plan. It's goal then is to develop measurable directives that promote industrial investment in Elk River. ak Background In preparation for the development of a marketing plan, staff researched and discussed the process with other practitioners familiar with economic development marketing techniques. The overall conclusion was that Elk River already has the networks, tools, and resources on which to build a sound marketing program. Examples include industrially zoned land, fully serviced business parks, financial incentives, trained staff, infrastructure, community networks, and so forth. Staff believes that the EDA's plan should be similar in scope and content to that of a private sector marketing plan. The plan should accurately identify Elk River's competitive advantage and determine product-client matches. Additionally, the plan should delineate the scope of the marketing activities as well as identify specific and measurable promotional tactics. Given the type of marketing plan the EDA might consider developing, it is staff's recommendation that a consultant experienced both in the areas of industrial/service marketing and economic development be sought. Staff has requested and received information from potential marketing consultants. A memo is attached describing the some of the research on this issue and is helpful in framing the overall discussion. III 13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment • Regardless of the type of consultant the EDA hires, should the EDA choose to pursue that route, a marketing committee should be formed. Ideally the committee would be comprised of approximately five-seven individuals from both the private and public sector who would work with staff and the consultant to develop the marketing plan. Based on our research, Staff has identified several marketing professionals from which it would like to request formal proposals. The proposals would be presented at the November 8, 1999 EDA meeting for review. If the EDA is comfortable making a selection at that time, the consultant would be asked to make a detailed presentation at the December 13, 1999 EDA meeting. Attachment • Department Memo • • • MEMORANDUM TO: Paul Steinman, Director of Economic Development FROM: Marc Nevinski,Assistant Director of Economic Development DATE: August 3, 1999 SUBJECT: Marketing Plan Issue As you requested, I have contacted several individuals in the marketing field to discuss the components of and costs associated with formulating an economic development marketing plan for the City of Elk River. Eric Canada - Blane/Canada Ltd. Eric Canada is considered to be the foremost expert on economic development marketing in the U.S. He teaches courses at the American Economic • Development Institute, has written several books on the subject, and has done considerable research of the topic. When I spoke with Mr. Canada regarding the possibility of assisting us in putting together a marketing plan, he described the two extremes of his firm's costs and services. At a minimum, Mr. Canada would work with staff, elected officials, and community leaders to identify Elk River's Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis). It would then be up to staff to write a marketing plan based on the analysis. He estimated the cost to be $8000. On the other end of the spectrum, Mr. Canada would spend about three months working with the city to write a business plan. In addition to the SWOT analysis, Blane/Canada would interview business owners and community leaders to learn about the city's past and present business climate. A plan would then be drafted and Mr. Canada would facilitate community input into the project. A final draft of the marketing plan would then be written. The process would take 2-3 months and cost approximately $30,000. Although Blane/Canada has several pieces of software that help communities • implement a marketing plan, the firm would NOT provide any type of implementation or support services. A separate public relations or advertising firm would have to be hired to fill that role. • Janna King- Economic Development Services, Inc. Whereas Blane/Canada would draft a community based marketing plan, Ms. King's plan would take a more market oriented approach. Economic sectors and geographic areas would be analyzed. Target audiences would be identified as well as approaches for reaching them. Additionally, community allies, such as media outlets, bankers, and developers, among others, would be identified and strategies for developing relationships with them would be outlined. Finally, Ms. King offers plan implementation and support services, which might eliminate the need to hire a public relations firm. Ms. King estimated the costs for researching and developing the plan to cost $2500-$3500. Implementation and support services would run $5000-$7000 annually. Terri Carlson - Minnegasco As you know, Ms. Carlson was formerly employed by Sable Advertising and, in her current position with Minnegasco, was instrumental in putting together a marketing plan for Energy City. Her approach to developing a marketing plan is similar to strategic planning and is a common approach to marketing by the private sector. • The basic process is to form a committee and identify the mission, position, goals, objectives, targets, tactics and timing for our marketing efforts. She recommends keeping the committee small and hiring a facilitator, perhaps from an advertising firm such as Shandwick International, who has worked with communities in the past on similar projects. The estimated cost would be $5000-$7000. Conclusions Based on my research into economic development marketing and discussions with the above mentioned individuals, it appears that the City already has in place many of the components critical to conducting an effective marketing campaign. For example: • A strong network already exists between city officials, business owners, community leaders, developers and lenders. • The EDA and HRA have undergone a SWOT analysis in the establishment of a strategic plan for economic development, which, according to Eric Canada lays the foundation for marketing activities. • A business retention and expansion survey is underway and will be completed in August. • Land is available for industrial development and a variety of financing tools exist.