HomeMy WebLinkAbout2013/09/17 Item 12 Attachment A3 - Go to Market Strategy
Chula Vista Business Cluster Analysis
Leveraging Unique Assets to Compete Globally
Go-to-Market Report
August 2013
“This study was partially supported by the Chula Vista Local Government Partnership, which is
funded by California utility ratepayers and administered by San Diego Gas & Electric, under the
auspices of the California Public Utilities Commission.”
Chula Vista Phase III – Go-to-Market Report August 2013
Table of Contents
Introduction ..................................................................................................................... 1
1.0 Existing Business Development ................................................................................ 3
2.0 Packaging ................................................................................................................. 4
3.0 Positioning ............................................................................................................... 15
4.0 Target Audiences & Markets ................................................................................... 17
5.0 Business Attraction Tactics ..................................................................................... 21
6.0 Earned Media .......................................................................................................... 27
Go-to-Market Recommendation Overview .................................................................... 28
Estimated Go-to-Market Budget .................................................................................... 30
Chula Vista Phase III – Go-to-Market Report August 2013
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Introduction
The final task of the Chula Vista Business Cluster Analysis project, Phase III, is about
Business Retention, and Expansion and Attraction – a Go-to-Market Strategy.
Phase III assumes that the City’s first actions will be to address the weaknesses and
constraints identified in Phase I, Competitive Location Assessment. Addressing
weaknesses and removing constraints are critical from both a business retention and
business attraction stand point. Those actions alone will add to the City’s business
climate reputation – changing weakness to strengths.
The purpose of the Phase III Go-to-Market report is to:
1. Recommend Business Retention & Expansion actions focused on Chula Vista’s key
industries;
2. Recommend packaging, marketing, promoting and recruitment tactics for the
targeted Industry Clusters;
3. Provide tools to develop an initial screened list of Target Industry Businesses
(domestic and international) in each cluster to launch prospecting efforts; and
4. Provide an estimated budget for implementing business retention and attraction
marketing and prospecting.
Although Phase III is a business marketing strategy it is supplemental to the City’s
Marketing and Communications Plans. It is not intended to be an overall city branding,
marketing or communications plan. All information and recommendations are focused
on business attraction, and business retention / expansion tactics.
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Phase III Target Industry Clusters for Marketing & Prospecting
The Go-to-Market Strategy is
focused on the Industry Clusters
identified in the Phase II Best Fit
Target Clusters for Chula Vista:
1. Advanced Manufacturing
2. Education & Innovation
Centers
3. Clean Tech
4. Health, Wellness, Sports
Medicine
5. Information &
Communication Technology
6. Headquarters &
Administrative Sales Offices
Also identified were the
convergence of industries, such as,
Medical Device (advanced
manufacturing, innovation, health)
as well as industries and
businesses linked to growth sectors in Tijuana.
The Phase III Go-to-Market Strategy Recommendations are focused on a tactical
approach to business retention, expansion, attraction, and prospecting:
1.0 Existing Business Development – focus on existing industries that are aligned
with targets.
2.0 Packaging – as noted in the Competitive Location Assessment this was an area of
weakness which requires more documentation for presenting a value proposition to
a company seeking a site location.
3.0 Positioning – market the unique bi-national position with Tijuana.
4.0 Target Markets – identified in the Phase II, Best Fit Targets Clusters, initiating
marketing and prospecting.
5.0 Business Attraction Tactics – focus on direct marketing and sales with screened
business targets, collaborative marketing with Tijuana to promote the bi-national
opportunities, and relationship marketing through TeamCalifornia and with
brokerage community.
6.0 Earned Media – press releases, stories and announcements distributed to media
outlets.
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1.0 Existing Business Development
Chula Vista has some significant anchor businesses that are aligned with the target
industry clusters.
1.0 Recommendations:
These anchors should be priorities for Chula Vista to call on at least once a
year at their facilities.
Annually hold a CEO Roundtable with the anchor businesses to get input
from them as to industry trends, market opportunities, business climate,
specific needs for their growth and present to them status of
developments/services at the City. The intent of CEO Roundtables is to listen
to the CEOs and also thank them for being key stakeholders in the Chula
Vista community.
Ask CEOs to be part of the “Chula Vista Prospecting Team” to attend
meetings with prospective businesses in the same cluster. The existing
businesses are not connected to the City’s economic development efforts.
The City’s past reputation (which could be a perception) is still prevalent with
many of the long-term businesses, even though those businesses have been
stalwarts of the community. They need to be engaged in a positive manner so
they know their voice is being heard and that the City cares about the
contribution they are making. A key for new businesses looking to locate will
be meeting with the existing businesses. These appointments were difficult
for staff to set up and CEOs were reluctant to make comments.
City Economic Development staff should be focused on the City’s anchor and
target industry clusters. Staff should coordinate with other City departments
and the South County EDC to ensure that all companies are covered with a
survey and/or an outreach call.
If the City is not using a customer relations management system,
ExecutivePulse should be investigated to track and manage existing business
outreach and contact meetings as well as management of multiple lead
databases, prospect profiles, tracking and follow-up of prospect leads. This
will increase efficiency of marketing, prospecting and tracking business
development.
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2.0 Packaging
Packaging the information and data needed for a company to evaluate a potential
location site is where most communities lose their advantage. Site location decision for
even small-medium size businesses can be investments of $20-$50 million and
considerably more for large corporations. These decisions involve considerable analysis
of multiple factors to 1) minimize operating cost, 2) minimize risk, and 3) minimize one-
time costs.
For Chula Vista the existing available data sources are highly fractured and disjointed,
generating confusion and lack of awareness among potential users and clients.
As a guide for collecting the right information and data for a package it is best to use
Site Selector evaluation categories. The level of information for a Site Selector
evaluation is probably the most extensive for analyzing site location.
There are typically two levels of information needed:
Marketing Overview – for the initial screening mode, and
Site Investigation Data, for the deeper level evaluation often a Request for
Information from a consultant
2.0 Recommendations:
Marketing Overview:
Map Collateral Brochure
Working Map
Power point presentation supported by the Map Collateral
Business Cases
Labor Force
Website
Site Investigation Data Guide
Data Information sets that can be used to customize a proposal and post on
website
Following outlines the 2.1 Marketing Overview Collateral and the 2.2 Site
Investigation Data
Guide 2.1 Marketing Overview – Collateral
Chula Vista is very visionary – Bayfront, Millenia, UPID, and other developments, these
are great selling points. However, the dispersal of industrial uses throughout the various
areas of the City, without clear district identities, is a challenge for marketing.
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A solution is to use map(s) as the marketing collateral. A well-designed map or series of
maps could best tell Chula Vista’s story – bi-national location, access to markets,
transportation routes, access to higher education and research, labor shed as well as
specific development opportunities and quality of life features.
2.1.1 Map booklet/brochure – use a series of maps that tell the story by going deeper
at each level:
11” X 17” tabloid pages, bound in the middle, (est. 8-12 pages).
First map is regional bi-national location and proximity to San Diego,
showing the unique location within the context of a global market.
Overview of Chula Vista with prominent highlights.
Subset area maps (UPID, Bayfront, OTC, Eastlake, and Historic
Downtown). On each subset map around development opportunities
highlight transportation major employers, zoning and planned
developments.
Labor shed map.
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2.1.2 City-wide Street Map – In addition to the Map Collateral (brochure), we also
recommend producing a citywide street map on non-glossy, heavy stock paper, 17 x
22”, that can be folded to 8 ½ by 11 (without advertising). This map is best used on city
tour for the prospect to “visualize” the tour and make notes directly on the map for future
reference. It is also a good map for a prospect proposal.
2.1.3 Power Point Presentation – Chula Vista has a good power point presentation
but it can be taken to the next level and customized more for a Corporate Location
presentation, going in more depth on location opportunities – bi-national, transportation,
developments, sites, labor, etc.
2.1.4 Website – Update City website to focus on Chula Vista’s value proposition as a
premier location for business and industry. Consider a separate Economic Development
website that has its own URL but linked to the City website. The website should be
more robust, currently it appears to be focused on small businesses. It needs to be
updated with the information outlined in the marketing strategy and contain good
information on development opportunities, services, and incentives. If the feasible, the
website should be revamped and also be mobile accessible.
2.1.5 Business Cases – As marketing campaigns are launched, individual business
cases should be developed for each target industry cluster outlining the value
proposition of a Chula Vista site for that industry linking the industry to unique assets,
and developments that are important to that cluster (see Phase II Industry Cluster
Background).
2.1.6 Labor Force – Chula Vista has unique proximity to the UC-State system which is
one component of the workforce, typically the engineering. There needs to be a
stronger workforce training alliance/coalition to meet the other needs (vocational) of
manufacturers, particularly advanced manufacturers. There also needs to be better
documentation of the existing labor base, which may require a labor force
study/analysis if the data cannot be gathered by local agencies to meet the needs of
business.
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2.2 Site Investigation Data Guide
The following is a guide for collecting data for site selectors and Corporate Executives
to more thoroughly evaluate Chula Vista’s location attributes. There are 12 Data Sets
which can be collected and maintained as separate files to be used for customizing
proposals or presentations. Following the list of 12 Data Sets is detailed information of
what each needs to be included in the Data Set, each Data Set will be from 1- 4 pages
in length. Where appropriate use project examples to demonstrate Chula Vista’s ability
to deliver.
Data Set Files:
1) Community Overview
2) Geographic Location/Market Access
3) Business Overview
4) Labor
5) Real Estate
6) Utilities
7) Permitting Schedule/Process
8) Development Fees
9) Transportation
10) Government Services & Taxes
11) Incentives
12) Quality of Life
2.2.1 Community Overview
Provide a brief history, size of city, what city is known for and basic
demographics (keep to one page, short paragraphs, bullet points, and chart).
2.2.2 Geographic Location / Market Access
Describes the bi-location
Supports with maps (from 5.1)
Including a map showing area of influence to San Diego and Tijuana/Baja
2.2.3 Business Overview
Business Demographics
List of top 10-25 manufacturing firms
Company Name (note if headquarter)
Products or functions at the existing facility
Note if company has a co-location in Mexico
Date Located
Number of Employees (full time/seasonal)
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List of top 10-25 non-manufacturing firms
Company Name (note if headquarters)
List products at existing facility
Date located in Chula Vista
Number of Employees (full time/seasonal)
List company expansions in last 3 years (for manufacturing /
non-manufacturing)
List any that have closed/left in the last 3 year (for manufacturing /
non-manufacturing)
Provide information on Retention/Expansion Program
Include Business Case (success stories of locations, expansions)
2.2.4 Labor Market
Note: labor documentation was identified as a major weakness in Phase I. We
recommend in addition to collection of data that a Labor Survey be conducted to fully
understand the labor force in Chula Vista – existing and commuting in/out.
Labor shed map should be created (Labor shed is best defined by
Employment Development Department and/or regional planning organizations
that understand labor shed commute patterns and draws of employees by
occupational skill. The map could be a polygon.)
Tables and graphs describing the local market including commuting patterns
(in and out) and underemployment should be included (if available)
Descriptions should reflect the multiplicity of labor markets including those for
low-skilled and higher skilled workers
Current Labor Survey (information a labor survey provides)
Surveys major employers
Focus on occupations important to recruitment targets
Specific occupations classification, wage level starting – median-high
Work schedules
Benefits – hospitalized, vacation plan, sick plan, any bonuses, retirement
(401K)
Turn-over rate, average time employees with the company
Absenteeism
Seasonality in work force –swings in workforce
Percent of temporary workforce used
Education of workers, attainment
Distance they travel to the job – labor shed…where they live
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Recruitability
Use of training resources
Unionized
Local wage and benefit structure (norm)
Labor Force Participation Rate
Applicants-to-Opening Ratios
Employment Services, Training and Education
2.2.5 Real Estate – Inventory of Parks, Sites, and Buildings
The intent is not to have a full inventory of every building or site in Chula Vista, but the
featured sites & buildings that the City wants to promote – ready-to-go buildings and
sites. Data is extensive for a proposal. Sample site and building sheets are included in
Appendix D.1
Map(s) showing the location of properties in the community (see 5.1)
Maps and descriptions of services to developments i.e., Eastlake, UPID
Site Specific Data:
Plot map /aerial showing location, size, and dimensions of the property
detailing:
Surrounding uses and neighborhoods
Transportation access – road and rail
Configuration of site, site dimensions – scale of miles
Flood plains, drainage – any environmental consideration
Utility lines – energy, water, sewer, communications
Topography map – 2 inch contour intervals preferred
Data Information
Zoning and covenants – description of zoning, permitted uses not requiring a
conditional use permit; uses with conditional use permit
Utility Line Sizes serving the area and distance to the site i.e., 12 inch water /
sanitary sewer, 4+ inch natural gas serving park
Transportation access – ingress and egress to site, acceleration/
decelerations lanes, all season industrial quality, roads/routes to interstate
and/or 4 lane highways, show distance to major transportation routes
(preferably within 5 miles), avoid non-compatible use areas (i.e. school,
resident neighborhoods)
Suitable soils – soils conditions at the site, soils and foundation report (if
available) i.e., geotechnical studies, soil boring studies
1 Appendix D – Site & Building Sheets
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Environmental documentation, if available
Electric Power – Distance to sub-station(s), system capacity (reserve
capacity), condition of infrastructure serving the area, feasibility of dual feed
at site
Water Service – Looped water lines (reduces insurance rates)
Drainage – Describe drainage at site i.e., drains away from flood zone,
drainage easements, wetlands, plans for handling drainage; storm water
assessment, centralized storm water system, on-site detention ponds
Design – Landscaping, architectural standards, requirements for development
i.e., LEED requirements
Safety – Police stations, fire fighting capability and distance/routing to station,
insurance rating
Buffers – Minimize neighborhood impact (odor, dust, noise, traffic, light
pollution, litter)
List of surrounding uses and businesses
Links or information regarding average construction cost for various types of
buildings
Seller contact information
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Sample Map Overviews
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2.2.6 Utility Support Data
Electric Power & Gas
List Provider(s),
Specific contact to respond to questions,
Service history,
Quality rating of service provider,
Source(s) of power, green or alternative power options,
General average rates based on user categories (time of use, industrial rates,
peak/non-peak, etc.),
Ability to respond to usage estimates (within a designated time period), and
Incentives.
Water / Waste Water
List providers (identify business parks served)
Specify a contact who will calculate estimate bills and respond to questions
Water Quality (surface / ground source)
Water Quality Report / Chemical Analysis
System Capacity (current / future) – million gallons per day and current usage
in million gallons per day
Connection Fees – impact fees Costs, Surcharges
Service Rates (Industrial)
Water Pressure
Effluent Treatment Capacity (BOD, TSS) – what is the system equipped for,
can they accept effluent, provide enough information to determine if
pretreatment would be required
Distance to treatment plants from key business parks/districts – line size at
the sites (10-12” line preferable)
Capital improvement plans (expansions)
Communications
Provider(s)
Specific contact to respond to questions
Fiber optics at business parks
2.2.7 Permitting Schedule/Process
Overview of process for securing building permits, timing
Provide time estimates for anticipated infrastructure improvements (if
required) such as road and utility extensions
Itemize resources that will support development of site including studies that
have been completed to-date (e.g. geo-technical surveys environmental
studies, traffic surveys, archeological assessments)
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2.2.8 Development Fees
Describe rate & basis for fees
Identify one-time and annual fees
2.2.9 Transportation
Map all major highway and Interstates, Ports of Entry
Airports
Rail Service (if intermodal, or if rail is serving a business park/sites)
Ports
Public Transportation
2.2.10 Government Services & Taxes
General Overview of the Local Government
Protective Services – Police & Fire
Sustainability Initiatives
Local Taxes & Licenses
State Taxes
2.2.11 Incentives
Hiring Assistance
Work Force Training
Local Property Tax Abatement
Alternative Financing
Low Interest Loans
Infrastructure Improvements
Site Development
Free Land
Fast track permitting process
2.2.12 Quality of Life (this can be a separate brochure, used for other marketing)
Climate
Housing Availability
Housing Costs
Healthcare Facilities
Rating of Public Schools
Cultural Opportunities
Recreational Opportunities
Colleges and Universities (in the area)
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3.0 Positioning
Chula Vista’s bi-national location is an under-utilized, unique, and rare asset. Locating
companies in California is a challenge at best given the state’s reputation, regulatory
climate, and tax structure and puts Chula Vista in direct competition with other
southwestern states which, on a comparative basis, have a lower cost structure. Chula
Vista can distinguish itself by its unique efforts to overcome all or most of these
deficiencies.
Even with deficiencies, what is distinctly unique that differentiates Chula Vista is the
proximity to Tijuana, the connectivity to San Diego’s resources and a multinational
residential base. Chula Vista offers a quality location for headquarters, sales,
research/development and high tech testing with the cross-border manufacturing
opportunity.
Chula Vista and Tijuana share industry clusters, particularly in the advanced
manufacturing fields. This synergistic relationship creates a unique selling proposition.
Near-shoring and reshoring in the target clusters have already started. Chula Vista and
Tijuana could be in the path of that new trend, capturing significant opportunities of
company expansions and relocations back to the Americas.
From a marketing standpoint, there are unique assets and strengths that offer two key
messages supported by proof points:
Message: Our Location, Your Success
Proof Points
Chula Vista’s proximity to Mexico and their growing industry clusters; a bi-
national location and international gateway;
Availability of affordable land and buildings in combination with lifestyle
amenities;
Heavily traveled goods movement along Interstate 5 Corridor;
Central proximity to major educational and regional advanced training
centers provides access to graduates from UCSD, SDSU, USD, Point Loma
Nazarene and Baja Schools;
Presence of a multinational residence base.
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Message: Quality Location, Unique Development Opportunities
Proof Points:
Vision-oriented and sophisticated Leadership with the ability to navigate state
and federal regulatory agencies (Coastal Commission) to achieve change
and results;
United Technologies Aerostructures, a leading aerospace company and
foundation for advanced manufacturing cluster;
Largest planned University Park & Innovation District in the region;
The Olympic Training Center (only one of three in the nation) provides
anchor to the convergence of health, wellness, tourism, recreation and sports
cluster;
Continued creation and enhancement of “24/7” environments for
“live/work/play”.
3.0 Recommendation
For recruitment purposes, the bi-national location should be the key positioning point.
Bi-National Location
A competitive advantage – an asset that is
valuable, rare, and hard to duplicate.
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4.0 Target Audiences & Markets
For the business attraction and prospecting strategy, audiences include all those who
are either decision-makers within a targeted business market or have the opportunity to
influence the decision-makers. Detailed industry intelligence is included in Phase II,
Best Fit Target Clusters.
4.1 Corporate Location Executives & Influencers
Target audiences include:
Domestic and International Businesses and Organizations
C-suite Management of Corporations – CEO, COO, CFO
Board of Directors
Corporate Location Executives
Facility Managers
Site Selection Consultants – Domestic and International
Real Estate Brokers – national and local firms
4.2 Target Clusters
Phase I identified six industry clusters:
1. Advanced Manufacturing
2. Education & Innovation Centers
3. Clean Tech
4. Health, Wellness Sports Medicine (convergent
sectors)
5. Information & Communication
Technology
6. Headquarters, Administration, Sales
Offices
The Phase I report contains detailed
information on each industry cluster
including industry trends, key location
factors, occupational needs, and source
location areas.
The following pages provide an overview of each
clusters’ value proposition (see Phase I – Business
Cluster Analysis for more detailed information).
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Target Industry Cluster Overview
1. Advanced Precision Manufacturing
Advanced Manufacturing, both in Precision Manufacturing and the Aerospace,
Navigation & Maritime Technologies are Chula Vista’s strongest niche in the Region.
This niche is also closely tied to the sectors in Tijuana.
The federal / state discussions around advanced manufacturing and the growing trend
for “reshoring” and “near-shoring” bring special opportunities to this sector.
This sector can be closely tied to Chula Vista’s Education & Innovation Cluster to attract
institutions and technology centers, federal or private, to position Chula Vista as the bi-
national location for Advanced Manufacturing.
ASSETS DISTRICTS
Semi-skilled and skilled labor pool
Access to Tijuana industries and engineers
Southwestern College
Proposed university
Brown Field Municipal Airport (corporate
aviation)
Heavier industrial uses:
Bay Blvd / Industrial Blvd
Main Street
Auto Parkway / Landfill Buffer
Lighter industrial uses:
Eastlake Business Center
UPID
2. Aerospace, Navigation & Maritime Technologies (subset of Advanced
Manufacturing)
This cluster represents Chula Vista’s largest employers and is also closely tied with
Tijuana clusters. Opportunities in this cluster will be with expansions of the existing
base, new research, and development in the field, component suppliers and potential
technical training.
As this cluster grows in the US, and in Tijuana, Chula Vista should be an opportunity
location for expansions (for example UTC is a Tier 1 Supplier to Airbus’s new facility in
Mobile).
ASSETS DISTRICTS
Goodrich Aerostructures Group
Maritime theme of Tidelands uses (Bayfront)
Access to Tijuana industries and engineers
Southwestern College
Proposed university
Brown Field Municipal Airport (corporate
aviation)
Bayfront Master Plan
Bay Blvd / Industrial Blvd
Main Street
Auto Parkway / Landfill Buffer
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3. CleanTech
Chula Vista’s clean tech reputation can help drive this industry cluster development.
This is an emerging field that crosses over industry sectors. Environmental instrument
manufacturing and industrial design services could be unique opportunities.
Industrial design services may bring an element of innovation to this cluster. Within
manufacturing, there may be niche opportunities for small to medium sized companies
in industries such as instrument manufacturing to support energy monitoring and
efficiency.
ASSETS DISTRICTS
Maritime theme of Tidelands uses (Bayfront)
City government initiatives
Proposed university
Natural amenities (open space, trails, bay, lakes)
New mixed-use districts (attractive to younger
employees)
Bayfront Master Plan
UPID
Eastlake Business Center
Millenia
4. Education & Innovation Centers
Closely tied to Chula Vista’s Advanced Manufacturing niche and opportunity to leverage
the manufacturing economy in Tijuana, Chula Vista could create technology and
innovation centers specific to advanced manufacturing – automotive, aerospace and
electronics industries, as well as becoming a provider of technical education for skilled
manufacturing employees in these sectors.
ASSETS DISTRICTS
Proposed university
Semi-skilled and skilled labor pool
Access to Tijuana industries and engineers
Maritime theme of Tidelands uses (Bayfront)
UPID
Bayfront Master Plan
Bay Blvd / Industrial Blvd
5. Information & Communications Technologies
This cluster is a niche and a match to the other industry clusters, i.e. opportunity to
leverage with the manufacturing industries in Tijuana by having companies developing
better information tracking systems to help manage manufacturing processes.
ASSETS DISTRICTS
New mixed-use districts (attractive to younger
employees)
Natural amenities (open space, trails, bay, lakes)
Proposed university
Brown Field Municipal Airport (corporate
aviation)
UPID
Eastlake Business Center
Millenia
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6. Health & Wellness Services (Sports Medicine)
Given the strong industry presence in other areas of the region, Chula Vista is not
generally competitive for the bio-tech component of health services. However, there
may be demand for additional health service providers in the city and opportunity for
“health tourism” as health services is typically population-driven and Chula Vista draws
not only labor force from Mexico but consumers.
A unique niche and a growing niche in San Diego is the Sports Innovation Cluster.
Tying Chula Vista’s Olympic Training Center (OTC) to a “Sports Innovation” or “Sports
Medicine” field has a convergence of tourism, health, wellness, fitness, and
manufacturing industries supporting sports and sports athletes and could be a unique
position for Chula Vista given the OTC anchor.
ASSETS DISTRICTS
Sharp Chula Vista Medical Center
Scripps Mercy Hospital
Natural amenities (open space, trails, bay, lakes)
Olympic Training Center
REI store
Medical tourism to Tijuana
UPID
Eastlake Business Center
Landfill Buffer
Auto Parkway / Landfill Buffer
4.0 Recommendation
Recommend selecting one to two target clusters for priority prospecting campaigns,
building a pipeline of prospects. Identify priority cluster with best opportunities to be
matched to a near term project development.
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5.0 Business Attraction Tactics
As noted in Phase I, “shovel-ready” sites and / or buildings is a weakness in Chula
Vista’s portfolio. However, because Chula Vista has significant project/property
opportunity with UPID and many location decisions could take 18-36 months, this is the
time to be creating awareness of these development opportunities (“get in on the
ground floor”) and building a “prospect” pipeline.
Recommended tactics include:
1. Direct Marketing
2. Bi-National Collaborative Marketing
3. TeamCalifornia Venue Marketing
4. Relationship Marketing – Site Selector and Broker Community
5. Linked In Group Marketing
5.1 Direct Marketing
Direct marketing is focused on potential prospects – companies that have been
researched to identify characters that indicate the company may be searching for a new
or expansion location within the next 1-5 years. This is the most effective business
attraction model, face-to-face marketing with prospects. This tactic requires obtaining
good quality, screened lead lists. Steps for direct marketing and prospecting:
Working from a screened list and prospect profile:
Letter of Introduction with Chula Vista overview
Add company to email marketing
Schedule appointment
Call for further screening, specific needs for facility, timeline (if needed)
Business call and presentation
Continuous follow-up – lead to full proposal
Prospect list and profile development process:
Use the Target Industry Cluster criteria to identify universe of businesses;
Identify key decision maker(s) within each prospect company;
Identify if company is in expansion mode;
Identify reasons for potential investment; timeframe and key drivers;
From the research prospect are further ranked by personal calls to the
decision-makers, ranking prospect leads:
A – Immediate with interest;
B – Longer-term with interest; and
C – Potential, based on factors coming together.
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Direct marketing is labor intensive; in addition to a screened, quality lead list it will
require prospecting trips to meet with qualified companies, continuous follow-up, and
tracking. Direct marketing/prospecting though has the greatest potential to identify
qualified prospects to consider Chula Vista as a viable location for their company.
5.1 Recommendations
Retain a third party to generate high quality, screened leads, company
profiles and appointment setting.
Focus on “A” / “B” leads, 1-5 year time horizons, move “C/D” leads to
messaging and annual calls.
If needed, retain a recruitment team for managing the prospecting,
presentation, tracking, and proposal development.
5.2 Bi-National Marketing Collaborative
As indicated in the Phase I & Phase II reports, developing a closer working relationship
with Tijuana EDC could be very beneficial to both Chula Vista and Tijuana. Both Chula
Vista and Tijuana are in excellent positions for attracting businesses in the Advanced
Manufacturing field to create an international Advanced Manufacturing Hub.
Collaborative planning and marketing, particularly to international businesses, offers a
strong proposition for businesses looking to near-shore/reshore to the Americas. A
collaborative package would offer the best of both worlds to a prospective client.
Tijuana has significant businesses in clusters similar to Chula Vista – Aerospace,
Automotive, and Electronics and Medical Device and is well known in the international
market place. They are well positioned for businesses near-shoring from China.
Tijuana also recognizes the advantage Chula Vista offers them as a neighbor – many of
the companies they wish to attract are looking for cross-border presence and
connections to training, and education and research.
During Phase I, the Consultant Team interviewed the Tijuana EDC. Tijuana EDC is
planning an aggressive marketing and business attraction effort, particularly for foreign
direct investment. Partnering as a bi-national location coalition would make a strong
“location case” for dual investment leveraging the assets of both Chula Vista and
Tijuana.
Chula Vista Phase III – Go-to-Market Report August 2013
Page 23
5.2 Recommendation:
Given the anticipated near-shoring to be happening in key industries, a first step in
collaboration may be joint calls (direct business visits, missions) and presentations
promoting the bi-national value proposition. Begin meetings with Tijuana EDC to identify
areas of collaboration and opportunities for joint sales calls.
5.3 TeamCalifornia Venue Marketing
TeamCalifornia’s purpose is to 1) create synergy
among diverse public-private groups focused on
business attraction, retention and job creation, 2)
provide key industry intelligence and effective marketing
venues, and 3) add value to its investors by leveraging
limited resources and seizing opportunities to promote
California.
TeamCalifornia create venues to connect with
Corporate Real Estate Executives and Site Selectors.
Key relationship building events2 include:
Annual Meet the Consultant conference
International Asset Management Council (IAMC)
Society of Industrial & Office Realtors (SIOR)
International Council of Shopping Centers
(ICSC)
International Tradeshows & Missions
2 Appendix B – TeamCalifornia Schedule
Chula Vista Phase III – Go-to-Market Report August 2013
Page 24
As an example of the Corporate connections possible, at a recent event the following
Corporate Executives attended an event to meet with a select California contingent:
Mr. Russell Burton, PepsiCo
Mr. Gig Codiga, Genetech
Mr. Ron Grossman, Novartis
Mr. Marc Mouisseau, Dal-Tile Corp
Mr. Mert Livingstone, Johnson & Johnson
Mr. James Ciarletta, Novartis
Mr. Nick Carmichael, Tactus Asia
Mr. Joseph Curro, USS
Mr. Douglas Zywan, USS
Ms. Susan Reber, Air Products
Mr. Richard Hamilton, Prologis
Mr. Paul Newman, Site Selection Magazine
Chula Vista can pick and choose the venues to attend. It is an opportunity for exposure,
at lower costs, and an opportunity to build relationships with site selectors, corporate
real estate executives, and site selection media.
5.3 Recommendations:
Join TeamCalifornia
With TeamCalifornia, schedule meeting with Tijuana EDC who has been
interested in some type of participation with TeamCalifornia (Chula Vista
could host Tijuana as part of collaboration)
Have TeamCalifornia organize meetings with Site Selectors and GoBIZ for
presentations
Attend at least two marketing events: IAMC and an international show
5.4 Relationship Marketing – Site Selector & Brokers
Site selectors and brokers are both key influencers to the decision process. It is
important to keep them informed on Chula Vista’s project development progress.
Chula Vista Phase III – Go-to-Market Report August 2013
Page 25
5.4 Recommendations:
Email updates on project development progress and other news:
3x per year
Brief – focus on one-two updates
Send additional emails with special announcements
National Site Selector/Broker database3
Local Broker database
Build prospect database from screened lists and attendance at events
The local San Diego Brokerage community is critical to success. In addition to
keeping them informed through email updates, recommend:
Scheduled roundtable lunches with local brokers to update and answer
questions on development progress and also hold listening sessions with
brokers to understand current market trends and opportunities
Shared with brokers marketing and targeting efforts and collaborations with
Tijuana
Collaborate on broker caravans
Submit articles/become speakers, invite co-presenters, to present all major
development projects, particularly Bayfront, UPID, Millenia to NAIOP, BOMA,
ULI, BIA, UCSD Connect and site selection magazines
5.5 LinkedIn Group Marketing
LinkedIn is an easy, no cost (only time) tactic to reach a broader industry audience with
messages.
5.5 Recommendation:
Join industry LinkedIn Groups, such as:
Medical Devices Group
Foreign Direct Investment Professionals
Foreign Direct Investment – FDIexecutive
International Business
EU/US Economic Development Networkers
Manufacturing Executive
Mexico Business and Sales
Mexico Business Network
Mexican Entrepreneurs – Emprendedores Mexicanos
3 National Database of Site Selectors and Brokers provided separately
Chula Vista Phase III – Go-to-Market Report August 2013
Page 26
Post discussions and/or ask specific questions that would intrigue LinkedIn members to
participate in responding and learning more about Chula Vista or the bi-national
opportunities.
Chula Vista Phase III – Go-to-Market Report August 2013
Page 27
6.0 Earned Media
Communications, messaging and media are handled by the Office of Communications.
The following media outlets are aligned with target clusters and could be targeted for
earned media (news, announcements, and stories):
Industry Trade Publications Website
Aerospace Engineering & Manufacturing http://www.sae.org/mags/aem/
Aerospace Industries Association http://www.aia-aerospace.org/
Aerospace Manufacturing and Design http://www.onlineamd.com/
Assembly Magazine http://www.assemblymag.com/
Automotive Engineering International http://www.sae.org/mags/aei/
CleanTech http://fis.dowjones.com/products/cleanTech.html
Energy Biz http://www.energycentral.com/
Green Tech Media http://www.greentechmedia.com/
Industrial Laser Solutions http://www.industrial-lasers.com/index.html
Manufacturing Business Technology http://www.mbtmag.com/
MD&DI (Medical Device & Diagnostic Industry) http://www.devicelink.com/mddi/
Medical Design (resource) http://medicaldesign.com/
Medical Device Daily Online www.medicaldevicedaily.com
Medical Device Technology http://www.devicelink.com/mx/
Medical Devices Today www.medicaldevicestoday.com
Medical Electronic Manufacturing http://www.devicelink.com/mem/
Medical Electronic Manufacturing http://www.devicelink.com/mem/
Medical Product Manufacturing News http://www.devicelink.com/mpmn/
Metal Finishing http://www.metalfinishing.com/
Modern Plastics Worldwide http://mpw.plasticstoday.com/mpw
Tooling & Production http://www.toolingandproduction.com/
Quick Manufacturing News (digital) http://www.sae.org/events/sales/Magazines/09SOHE_
Banner_Advertising.pdf
NEMA Website/Newsletter Advertising http://www.nema.org/media/upload/NEMA_MediaGui
de_2007.pdf
Chula Vista Phase III – Go-to-Market Report August 2013
Page 28
Go-to-Market Recommendation Overview
The following chart provides an overview of the Phase II Go-to-Market
Recommendations related to marketing and prospecting tactics. Five tactics drive the
marketing for the business attraction:
Messaging – relates to the positioning of Chula Vista in the minds of
prospects, key selling points (supported by data) and creating top of mind
awareness.
Prospecting – also referred to as direct marketing, process of research,
screening, and generating quality leads which are personally contacted and
worked to “present” Chula Vista as a future location for the corporation. This
process builds the potential prospect pipeline while also identifying “A”
prospects that are ready to make decisions within the next 1-3 years.
Outbound – outbound marketing venues, such as meetings outside the area
with site selector, foreign direct investment missions.
Inbound – visits to Chula Vista (aka Familiarization (FAM) Tours) or the
region by brokers, site selectors, companies, media.
Earned Media – Economic Development staff working with the Office of
Communications can schedule or periodically send stories and
announcements to various media outlets (list provided in 6.0) when updating
council, website and select target audiences.
Chula Vista Phase III – Go-to-Market Report August 2013
Page 29
Overview of Recommendations
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1.0 Existing Business Development
Existing business CEOs aligned with target industries -personal
business visit once a year.
Hold annual CEO Roundtable.
Invite CEOs to “Chula Vista’s Prospecting Team”.
Coordinate additional retention/expansion calls Use a customer
relation management system (CRM) (if not available now).
2.0 Packaging
Marketing Overview Collateral
o Map Brochure (series of maps)
o Working Map
o Power Point presentation (update)
o Business Case
o Website
o Labor Force
Data Information Sets (12) for proposals and website
3.0 Key Positioning Point
Bi-National Location, International Gateway, Advanced Mfg Hub
4.0 Target Markets
Site Selector Database
Screened Business Leads to initiate marketing and prospecting.
5.0 Business Attraction Tactics
Prospecting (Direct Marketing) –
Retain 3rd party to generate high quality leads/profiles and set
appointments for prospecting visit/presentation.
Focus on “A/B” leads, move “C/D” to messaging/annual call.
If needed, retain recruitment team to work/manage
prospecting and preparing proposals for “A/B” Leads.
Bi-National Marketing Collaborative
Work with Tijuana EDC to develop an agreement, MOU, for joint
marketing, prospecting calls and company visitations. Initially
focus on joint calls / presentations to attract prospects and
possibly close deals beneficial to both.
TeamCalifornia Venue Marketing
Become a TeamCalifornia Member.
Attend two TeamCalifornia Marketing Events where Corporate
Executive and Site Selectors are being hosted.
Relationship Marketing – Site Selectors & Brokers
Email updates, 3 x per year.
Announcement Emails.
Local Brokers – Roundtable Lunches (s).
Submit articles/speakers on key project developments.
6.0 Earned Media
Press releases, stories, and announcements distributed to
media outlets.
Chula Vista Phase III – Go-to-Market Report August 2013
Page 30
Estimated Go-to-Market Budget
Following provides an estimated budget “range” for the recommended Go-to-Market
strategies:
Estimate Budget Range by
Recommendation $ $ Notes
1.0 Existing Business Development
Hold annual CEO Roundtable3,500 5,000
CEO “Chula Vista Prospecting Team”
Coordinate retention/expansion calls 3,500 5,000
CRM system (if not available now)
2.0 Packaging – Design
2.1 Marketing Overview Collateral 8,500 16,500 Design, est. 10 maps
Map Brochure 12,500 25,000 Print (depends on quantity)
Working Map
Power Point presentation (update)
Business Cases
Website
3,000
5,000
5,000
25,000
2.2 Data Information Sets (12) 5,000 7,500 Could be done in-house
3.0 Key Positioning Point
Bi-National Location 25,000 50,000 Collaborative Marketing
Budget
4.0 Target Markets 0 0 Develop Target Cluster Leads
5.0 Business Attraction Tactics
5.1 Prospecting (Direct Marketing) –
Retain 3rd party prospect
leads/appointments
40,000 50,000 Assumes 3rd party
If needed, retain recruitment team to
manage prospecting
Travel
60,000
25,000
100,000
35,000
Assumes 3rd party to handle
prospecting on a monthly
basis.
5.2 Bi-National Marketing Collaborative
Work with Tijuana EDC to development an
agreement, MOU, for joint prospecting.
Determine after agreement
5.3 TeamCalifornia Venue Marketing
Become a TeamCalifornia Member5,000 10,000
Two TeamCalifornia Marketing Events 7,500 18,000
5.4 Relationship Marketing – Site Selectors &
Brokers
Email updates, 3x per year3,000 4,500
Announcement Emails
Local Brokers – Roundtable Lunches (2)2,500 4,500
Submit articles/speakers on key project
developments
6 Earned Media 5,000 10,000 In-house / Outsourced
Assistance
Press release, stories, and
announcements distributed to media
outlets.
Estimated Go-to-Market, Prospecting-
Recruitment Budget
$214,000 $371,000
Chula Vista Phase III – Go-to-Market Report August 2013
3.2 Chula Vista Business Cluster Analysis – Project Team
Audrey Taylor, President & CEO, Chabin Concepts
Audrey founded Chabin after 10 years in the Economic Development field. Chabin
Concepts has been advising local communities, counties, regional economic
development organizations, and even states on their economic development programs
and policies since 1988.
Chabin uses a team approach to research a community’s competitiveness (strength,
weaknesses and opportunities), and then focusing on assets identifies “best fit targets”
and delivers a customized go-to-market strategy for the community.
Sarah Murley, Co-Founding Partner, Applied Economics
Sarah is a co-founding partner of Applied Economics. Sarah has conducted economic
base analyses, business climate assessments, target industry analyses, supplier
identification strategies, occupational assessments and labor market analyses, and
community improvement plans for numerous cities, counties, and economic development
agencies.
Frank Spano, Managing Director, Austin Consulting
Frank is responsible for managing and directing all operations of Austin Consulting.
Austin Consulting is the location strategy consulting division of The Austin Company, an
industry leader in assisting corporate client in developing national and global location
strategies, relating to community and site selection, incentive negotiations and property
due diligence for manufacturing plants, distribution facilities, R&D, services centers, data
centers and offices. Austin has completed over 1,700 consulting assignments.
Paul C. Marra, Senior Principal, Keyser Marston Associates, Inc.
Paul is a senior principal with Keyser Marston Associates, Inc. in the San Diego office.
He has over 25 years experience in real estate market and financial evaluation, fiscal and
economic impact assessments, and public/private partnerships.
Daniel Silverman, V.P., Business Development, Research on Investment
ROI, Research On Investment, is a specialized market research firm that produces
validated lead generation services based on originally sourced intelligence. ROI monitors
the trajectory of corporate investment by proactively gathering and analyzing market
intelligence on areas such as industry trends, investment trends, and specific businesses
across a multitude of geographic locations and industrial sectors. The ROI service is
unique because proprietary research methodologies are directly related to a fundamental
understanding of the corporate investment and site selection process.
Chula Vista Phase III – Go-to-Market Report August 2013
CLIENT
Chabin Concepts
2515 Ceanothus Ave, Ste 100
Chico, CA 95973
(530) 345-0364
www.chabinconcepts.com
Applied Economics
11209 N. Tatum Blvd, Ste 225
Phoenix, AZ 85028
(602) 765-2400
www.appliedeconomics.net
Austin Consulting
6095 Parkland Blvd
Cleveland, Ohio 44121-4186
(440) 544-2617
www.theaustinconsulting.com
Keyser Marston Associates, Inc.
1660 Hotel Circle North, Suite 716
San Diego, CA 92108
(619) 718-9500
www.keysermarston.com
Research On Investment (ROI)
6300 Du Parc Avenue, Suite 309
Montreal, Quebec H2V 4H8
(514) 495-5231
www.roivision.com