Dude Ranchers’ Association Convention Presentation, January 22, 2015

Target Audience Insights + Key Takeaways

Staying at a contemporary, ‘rustic’ lodge or cabin, enjoying traditional ranching activities and also more luxurious offerings such as being able to visit a spa and enjoy gourmet food, good wine and top shelf cocktails.

— Joe, Online Discussion Forum Participant

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We connect brands to people who valuetravel, the outdoors and sense of place.

Our Expertise

An integrated communications agency Research + insights Brand strategy Strategic planning Converged media Content strategy

Advertising PR + social media Digital + mobile Film + video

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1. Background + Goals 2. History of Travel 3. Target Audience 4. Audience Insights

5. The Challenges 6. The Opportunities 7. Recommendations 8. Q+A

Overview

BACKGROUND + GOALS

BackgroundBetter understand the DRA’s best target audience to support its members’ future growth

• Take a closer look at their behaviors, attitudes + habits • Better understand current beliefs + perceptions (versus reality) • Identify potential threats + opportunities • Identify insights that DRA + its members can leverage

Research Goals

• Deep Dive + Secondary Research • Immersion Session • Online Discussion Forum

Project Approach

HISTORY OF TRAVEL

MERCURYcsc

Era of the Badass1.

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The Golden Era2.

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Era of Experience3.

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A push against homogeneity. A desire for authenticity.

“Experience” is:

Consumers want to have life-fulfilling experiences when they travel.

— Laura Fink, Vice President, MarketingAmerican Express Travel

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The most forward-thinking travel brands are focusing on three things above all else: inspiration, personalization and a path to self-discovery.

— The Rise of the Experiential Traveler, Skift, 2014

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TARGET AUDIENCE

• Various age groups • HHI starts at $100K • Well-educated • Living throughout the U.S. • Travel frequently

• Environmentally aware • Appreciate nature • Cultural/social preferences • Influence others • Plan/book travel online

Target Audience Profile

Participant Demographics

URBAN + SUBURBAN Higher Education Financially Secure

16 37-71ADULTS

AGES 12FAMILIES

Participant Behaviors + Attitudes

ENJOY THE OUTDOORS Environmentally Conscious

Travel Frequently Crave Uniqueness

Don’t Require Luxury

Enjoy Culture + History

Get to Know the Locals

Core Audience

REPEAT GUESTS HORSE LOVERS

Don’t alienate; don’t ignore.

Expanded Target

EXPERIENTIAL TRAVELERS Affluent travelers who

enjoy the outdoors, have a sense of adventure, and take calculated risks.

AUDIENCE INSIGHTS

The ”ranch” experience.

What interests the target audience about a dude ranch vacation?

It inspires a sense of community where families come together to enjoy the outdoors, the animals, and the activities.

— Beth, Gurnee, IL

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It’s a family friendly adventure for people looking for an authentic Western experience.

— Becca, Austin, TX

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What are their expectations?

What they expect and what they want are a little different.

I want a place that will cater to the individual families while still maintaining a sense of greater community. A place that inspires its guests to appreciate, ask questions, and learn more about the workings of the ranch.

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— Beth, Gurnee, IL

I would be least interested in horseback riding only because I just don’t find trail rides very exciting or interesting.

— Becca, Austin, TX

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For the money, I’d rather go to a national park and stay at an independent hotel or rent a condo where I have more freedom to explore or can hire a knowledgeable guide or outfitter to show me around.

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— Lara, Alexandria, VA

Why would they choosea dude ranch vacation?

They want a personalized, outdoor experience in a unique setting.

1. I love all of the activities. 2. Great vacation for the whole family. 3. Can unplug and get away from it all.“

— Mara, Atlanta, GA

1. Feel like a kid again, with my kids. 2. Another opportunity to enjoy a

quintessential western experience. 3. Flyfish, flyfish, flyfish.

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— Joe, Denver, CO

1. Location near the mountains. 2. Variety of outdoor activity. 3. Ease of vacation planning.“

— Stephen, Fishers, IN

Why would they NOT choose a dude ranch vacation?

Price and lack of flexibility.

1. Pretty expensive. 2. Requires at least 10 days of

unplugged time off. 3. Not sure if my family would want

to ride every day.

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— Mara, Atlanta, GA

1. Potential cost. 2. Length of stay.“

— Joe, Denver, CO

1. Cost. 2. Too much emphasis on horse activity. 3. Feeling of being committed to a single location.“

— Stephen, Fishers, IN

What price range are they willing to pay?

Average $1,700 per person/week.

Paying $250-$300 per person per night for an all inclusive is reasonable. You get a good value (setting, lodging, activities, food, hospitality, etc.) for that price range.

“— Michele, Raleigh, NC

A budget price would be $550 per night for two adults, two kids at the average all-inclusive dude ranch vacation with plenty of activities. That would be $175 for lodging, $175 for daily activities, and $200 for food each day.

— Becca, Austin, TX

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I would be looking for quality, safety, variety of activity, beauty, and a place where I am not ‘captive’ to a location or a group at all times…and a great exposure to ‘Western’ or ranch type of experience.

“— Susan, Underhill, VT

How do they feel about ”all-inclusive”?

It correlates to catering to the masses.

All-inclusive also means the quality may not be as good and the equipment, etc. may not be as ‘top notch.’“

— Mara, Atlanta, GA

I’d expect the food to be lower quality and cheaper to provide and for the drinks to be underwhelming.“

— Joe, Denver, CO

How do they feel about ”dude”?

Mixed interpretations and reactions.

DUDE is a definite misleading term for the attendee and sells a ranch host short. Drop the dude concept, keep a ‘guest’ concept.“

— Susan, Underhill, VT

I chose my ranch based on the fact it was called a guest ranch.“

— Sheppy, Kalamazoo, MI

I see dude ranch as a City Slickers tourist place, not a real working ranch. A ‘dude’ to me sounds like a guy who has never been on a horse who buys a new hat, new boots and goes to a ranch.

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— Mark, Issaquah, WA

I think the name still fits.“ — Becca, Austin, TX

The opportunity to experience what a dude ranch has to offer is what needs to be communicated.

— Joe, Denver, CO

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Do they appreciate the DRA accreditation?

Yes, but they wouldn’t limit themselves.

It may weigh in on my decision, but it wouldn’t be the only place I would search.

I appreciate the level of care they take to accredit a dude ranch, but I also would not rule out a dude ranch that opts not to go thru their process.

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— Kristi, Emporia, KS

Their website is very informative and helpful, and I would definitely start there. It would make the research process shorter because they have done all the work!

However, I wouldn’t count out other ranches that are not members.

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— Mara, Atlanta, GA

THE CHALLENGES

Diminishing base of core customers.

11% of horse owners in 2013 were ages 18 to 34.

— Brakke Equine Market Mega Study, January 2014

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Lack of awareness of Western heritage.

50 million new people will move to the West by 2040.

— Losing the West, 2013

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Lack of understanding.

Funny enough, the first thing that comes to mind for me when I see ‘dude ranch vacation’ is the movie City Slickers!

— Jill, Online Discussion Forum Participant

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Lack of time.

Our grandchildren will work around three hours a day—and probably only by choice.

42 percent of Americans didn’t take any vacation days in 2014.

“— John Maynard Keynes, 1930

— Skift, 2015

Lots of competition.

I think we would spend a week at a dude ranch. But with the pricing, I would likely choose other vacations. There is so much else to do and see at that price point. The less expensive ranches did not offer the diversity of activity that would interest my family.

— Stephen, Online Discussion Forum Participant

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Source: Google Trends

Lots of options.

I started my search by typing ”dude ranch vacations” into Google. There are so many and they are everywhere!

—Kim, Online Discussion Forum Participant

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THE OPPORTUNITIES

Experiential travel is on the rise.

65% annual increase in adventure tourism since 2009.

72% of travelers said they would rather spend money on experiences than things.

“ — Adventure Tourism Market Study, George Washington University, 2013

— American Express, 2014

Multi-generational travel is increasing.

36% of respondents plan to take a multi-generational vacation over the next twelve months.“

— AAA Survey, June 2014

Desire to reconnect/disconnect.

The push in our age to find the last remaining pockets of seclusion is also a suspicion that we have been wickedly tricked by civilization.

“— Paul Theroux, Conde Nast Traveler, May 2014

Truly different experiences are becoming harder and

harder to obtain.

Globalization and technology have led to the homogenization of cities, which has resulted in travelers craving locally made and authentic experiences.

“— Jamie Wong, Founder/CEO Vayable

The more unique the experience, the more unique the badge,

the better the ”bragging” rights.

Preserving uniqueness creates value. “ — MercuryCSC

You aren’t reinventing yourself.

A dude ranch shall exemplify the Western ranch ideal of personal and homelike hospitality.

“— The Dude Ranchers’ Association’s Code of Ethics

FIVE RECOMMENDATIONS

Keep your potential guests in mind.

Connecting With Potential GuestsRepeat Guests

ExperientialTravelers

Horse Lovers

Knows + Loves Low Awareness/ Low Understanding

Aware + Passion for Horses

Word-of-Mouth Opportunities

Storytelling + Product Refinement

Partnership Opportunities

Consider theimportant consistencies.

What’s Consistent?Shared ValuesRelationshipsOutdoors/

Nature

Emotional / Experiential

What Varies?

The Details

ActivitiesPrice Points/Quality”Authenticity”

Determine your details.

Diversify

Authenticitycultural, historical

traditions

Narrow

Family outdoor campsetting, accommodations

expanded activities

Each ranch can decide to….

Help eliminate confusion for your audience.

‘ Dude ranch’ conjures a very suburban image in my mind.

’ Working ranch’ conjures up the authenticity aspect that I’m looking for.

“— Doug, Online Discussion Forum Participant

— Mark, Online Discussion Forum Participant

Current Categories

Working Dude Ranch

Resort Dude Ranch

TraditionalDude Ranch

Suggested CategoriesWorking

RanchResort Ranch

Traditional Ranch

Evolve the experiential elements

of your story.

One thing I can’t do on my own as easily is recreate the dude ranch experience. I don’t have any rancher friends.I would play up the accessibility and exclusiveness of the experience as well as the authenticity.

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— Mark, Online Discussion Forum Participant

Q+A

Thank you.

CONTACTMaclaren Latta Vice President, Consumer Insights maclaren.latta@mercurycsc.com 406.922.2308 406.600.4459