Marketing the Calgary Stampede to Australia

Stephen EdgeKai Holloway

Andrew LaiTony Vo

Vicky Wong

IntroductionMarket the Calgary Stampede to Sydney,

Australia

Strong cultural similarities

Strong economic stability

The Calgary StampedeFounded in 1912 by Guy Weadick. Vision was to celebrate romance and

authentic culture of Old WestEvolved into the world famous 10 day

StampedeAttracts 1 million during the 10 days, and 4

million yearly2008 net income was $10.4 million

The City of CalgaryAs of April 2009, population of 1,065,450

5th largest metropolitan area in Canada

During 2007, 4.85 million visitors to Calgary and Area.

2.95 million stayed at least 1 night

Average length of stay

Visitors segmented into seasonsVisitors to Calgary and area by season

Q1: Jan-Mar Q2: Apr-Jun Q3: Jul-Sep Q4: Oct-Dec All overnight 18% 23% 34% 25% By market Alberta 22% 19% 27% 32% Other Canada 18% 24% 33% 25% United States 6% 32% 52% 10% Overseas 14% 28% 47% 11%

Economy of AlbertaEnergy is Alberta’s main source of GDP

Roughly accounts for $89.94 billion

Economy of Alberta$69.1 billion in exports. Crude oil accounts

for $30.7 billion, or roughly 44%Only province to have financial net assets

above 0 Third lowest unemployment rate at 6.6%Highest after-tax family income, median of

$75,300. Canadian average is $61,800

Growth from 1999-2009

Australia’s Environment:PoliticalConstitutional monarchy (Australia Act of

1986), with QEII as monarch, like CanadaVery stable governmentStrong contemporary Australia-Canada

relations: Gulf War (early 1990’s), East Timor (1999), Afghanistan

Common international memberships: UN, Commonwealth, WTO, APEC (Asia-Pacific Economic Co-operation)

Australia’s Environment:CulturalInterpersonal values:

+ sincerity, modesty, humility, punctuality- pretentiousness

Demographics:

Australia’s Environment:CulturalGeert-Hofstede cultural dimensions:

Very few cultural differences

Australia Canada China

PDI (Power Distance) 36 39 80IDV (Individualism) 90 80 20UAI (Uncertainty Avoidance)

51 48 60

MAS (Masculinity) 61 54 50LTO (Long-term Orientation)

31 23 118

Legal Environment

Australian Law

Federal Power

Laws on trade Taxation Commerce Defence External

affairsImmigrati

on and citizenship

State Territorial Power

Anything else

Legal EnvironmentEqual treatment of foreign firms

Excellent competition law

Excellent independent judiciary

Strict intellectual property protection

Business EnvironmentQuarter Ended

Change from previous year (%)

Inflation over previous year (%)

Unemployment rate (%)

Dec 2009 2.0 2.1 5.6

Sep 2009 1.0 1.3 5.8

Jun 2009 0.3 1.5 5.8

Mar 2009 0.3 2.5 5.4

Dec 2008 0.6 3.7 4.5

Sep 2008 2.0 5.0 4.3

Jun 2008 2.7 4.5 4.2

Mar 2008 3.7 4.2 4.0

Dec 2007 3.9 3.0 4.4

Sep 2007 4.0 1.9 4.2

Jun 2007 4.4 2.1 4.3

Mar 2007 3.5 2.4 4.5

Business EnvironmentTime zone is 10 hours ahead of GMTCorporate income tax = 30%No restrictions on trade related paymentsLow salaries for highly skilled laborEconomic operating costsComprehensive infrastructure at competitive

pricesSydney is a global city at an affordable price

Business EnvironmentPrefer win-win negotiation

style

Greetings relatively casual

Very friendly

Very matter of fact

Appointment necessary

Business EnvironmentBusiness attire conservative

Presentations fact based

Very direct

Negotiations quick

Decision making slow

SWOT ANALYSISSTRENGTHS- seasonality- excellent political relations- common language- Rodeo and Rocky Mountain getaway - few barriers to overcome to do business- Calgary Stampede celebrity appearances- Possibility of US excursion

WEAKNESSES

OPPORTUNITIES THREATS

SWOT ANALYSISSTRENGTHS- seasonality- excellent political relations- common language- Rodeo and Rocky Mountain getaway - few barriers to overcome to do business- Calgary Stampede celebrity appearances- Possibility of US excursion

WEAKNESSES- Distance- little to no prior exposure of our marketing campaign- existing Rodeo market in Australia- Canada and Australia may be too similar- High advertising costs

OPPORTUNITIES THREATS

SWOT ANALYSISSTRENGTHS- seasonality- excellent political relations- common language- Rodeo and Rocky Mountain getaway - few barriers to overcome to do business- Calgary Stampede celebrity appearances- Possibility of US excursion

WEAKNESSES- Distance- little to no prior exposure of our marketing campaign- existing Rodeo market in Australia- Canada and Australia may be too similar- High advertising costs

OPPORTUNITIES-Advertising outlets: billboards, radio, television, etc. - 46% of foreigners come to Calgary from July- Sept- partnerships- Sydney’s airport and excellent infrastructure- Australia’s strong economy

THREATS

SWOT ANALYSISSTRENGTHS- seasonality- excellent political relations- common language- Rodeo and Rocky Mountain getaway - few barriers to overcome to do business- Calgary Stampede celebrity appearances- Possibility of US excursion

WEAKNESSES- Distance- little to no prior exposure of our marketing campaign- existing Rodeo market in Australia- Canada and Australia may be too similar- High advertising costs

OPPORTUNITIES-Advertising outlets: billboards, radio, television, etc. - 46% of foreigners come to Calgary from July- Sept- partnerships- Sydney’s airport and excellent infrastructure- Australia’s strong economy

THREATS-Australia’s existing rodeo cannibalizing our marketing efforts- Australia’s strong dollar

RISKS AND MITIGATIONRISK MITIGATION

- Presence of domestic Rodeo’s which may act as substitutes

- Emphasize Calgary Stampede claim to being world’s largest outdoor rodeo- Calgary Stampede’s star power- Close proximity to many other tourist attractions

RISKS AND MITIGATIONRISK MITIGATION

- Canada and Australia may have too much in common

- July is Australia’s winter and Canada’s summer- Stampede tour package which includes Banff and Jasper as an optional excursion

RISKS AND MITIGATIONRISK MITIGATION

- Exchange rate risk

- Canadian firm can enter into foreign exchange contracts for the interim period, effectively eliminating exchange losses.