Bus. District Recommendations

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    06-Feb-2016

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UPS Business Leadership students offer recommendations to the Ruston-Point Defiance Business District on ways to improve their district.

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  • Ruston-Point Defiance Business District

    Analysis and Recommendations

    Maya Hallstein, Dan DeRosa, and Matt Matysik May 1st, 2015

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    Table of Contents

    PURPOSE BUSINESS DISTRICT..4 CONSULTING GROUP.......5 CURRENT STATE OF THE DISTRICT LOCAL DEMOGRAPHICS.....5 Tourists to Point Defiance Park & Zoo

    Tapestry Mapping VRIO ANALYSIS..9 Community Pride Proximity to Point Defiance Zoo & Aquarium Volunteer Time Commitment Current Budget Current Mix of Businesses

    Fundraiser Events Conclusion to VRIO Analysis

    SWOT ANALYSIS..................11 Strengths Weaknesses Opportunities Threats Conclusion to SWOT Analysis STRATEGIC RECOMMENDATIONS VISION & DIRECTION.13 FILLING VACANCIES WITH COMPLEMENTARY BUSINESSES.........14 Aggressive Outreach Business Mix Recommendations

    Bakery Bike Shop Breakfast-Oriented Restaurant Dance and Yoga Studio Smoothie Shop STREETSCAPE AND STOREFRONT IMPROVEMENTS..19 Goals Grid

    Preserve Acquire Eliminate Avoid Conclusion MAXIMIZE BUDGET EFFICIENCY..21

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    FUNDRAISER EVENTS24 Existing & Past Fundraiser Events

    Car Show Pancake Breakfast Family Fair Baking Contest

    Recommended Fundraiser Events Running Races Farmers Market/ Food Fair Sunday Funday Music Festival Conclusion

    ACTION STEPS PORTRAIT OF INITIATIVES..31

    May 7 First 6 Months First Year Five Year Goal

    CONCLUSION APPENDICES

    Parks and Rec Golden Years In Style Bright Young Professionals Urban Chic ESRI Tapestry Segmentation Area Profile ESRI Demographic and Income Profile ESRI Demographic and Income Comparison Profile

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    PURPOSE

    BUSINESS DISTRICT The Ruston-Point Defiance Business District lines the entrance to the nations second largest municipal park and is unique in that it hosts both the City of Tacoma and the Town of Ruston. The business district was founded in 2004 and there are currently twenty members in the business district with a wide range of businesses. John Trueman was appointed the President in December of 2013 and he volunteers alongside the other elected leaders of the Business District Association: Vice President Joe Atkinson, Secretary Karen Pickett, Treasurer Jerry Clearley, and Board Director and former President Beth Torbet. In addition to these five members, recognition must also be given to City of Tacoma Economic Development Specialist Shari Hart for being the cross district delegate, Ruston Police Chief Victor Celis for his monthly reports on the crime within Ruston, and LILT Principals Juel Lugo and Bethany Maines for their work on developing the business district website and banners. The mission and objectives of the business district for which these members have worked to establish and provide for their community are written below. MISSION OF THE BUSINESS DISTRICT The business district mission is to promote, beautify, develop, and advocate for businesses within the District Boundaries.1 OBJECTIVES OF THE BUSINESS DISTRICT Although not explicitly stated, our team identified four business district objectives:

    1. Make the core of the business district recognizable and appealing through streetscape improvements.

    2. Foster communal pride by organizing annual events to be held within the business district.

    3. Provide a means for members to interconnect by means of monthly meetings, newsletters, emails, events, and/ or a business district website.

    4. Attract new businesses in order to fill vacancies and diversify the business mix.

    1 By-Laws of the Ruston Point Defiance Business District

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    CONSULTING GROUP Our team, consisting of Maya Hallstein, Daniel DeRosa and Matt Matysik are seniors at the University of Puget Sound enrolled in the senior research seminar titled Strategic Management and Consulting. Paired with the Ruston-Point Defiance Business District by our professor Lynnette Claire, our team was tasked with analyzing the internal and external environments of the organization, formulating resource-based strategic recommendations, and providing plans of implementation for the business district. Upon first meeting John Trueman in January, the needs of the business district were presented to us and our mission and objectives for how to best aid the business district were established and are written below. MISSION OF THE CONSULTING TEAM Our mission is to make recommendations on vision and direction that will inspire and aid the Ruston-Point Defiance Business District to establish their communitys niche of serving local residents and visitors to Point Defiance Park. OBJECTIVES OF THE CONSULTING TEAM In order to fulfill our mission for the business district, we have three objectives:

    1. Create buy-in by the residents, business owners, and property owners to a central vision and direction for the business district, empowering them to initiate a district wide revitalization.

    2. Present strategies to decrease vacancies and attract retailers consistent with the district vision that would attract additional customers, offer new jobs, increase community revenue, and diversify the retail mix of the district.

    3. Provide recommendations consistent with the available resources to be implemented in order to fulfill these strategies.

    CURRENT STATE OF THE DISTRICT

    LOCAL DEMOGRAPHICS The Environmental Systems Research Institute (ESRI) gathers buyer trend data by analyzing credit card purchases, loyalty programs, and federal census data on all US citizens. ESRI then couples this data with residencies in order to create buyer profiles based on location, income, age, buying power, and trends. By doing this, the institute provides psychographic and purchasing trends that would help the district determine which new businesses would attract the local residency. The following demographics were collected from the 98407 zip code, which encompasses the City of Ruston, Point Defiance Park, Ruston Way and the peninsula north of 26th street. The

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    total population of the region was 4,106 in 2014 and with a 1.46% growth rate; the population is estimated to grow to 4,418 by 2019.2 The median age of this population was 47.6 in 2014 and is estimated to rise to 49.2 by 2019, roughly 10 years older than the national average.

    This is a highly educated region: 24.2% of the population have bachelors degree and 14.9% have MBA or PhD degrees. This education rate helps explain the median household income of $61,032 (estimated to increase to $69,884 by 2019) as well as the white-collar employment percentage of 60.3% and the low unemployment rate of 4.1%. For comparison, the unemployment rate in Pierce County is currently 6.5%,3 5.9% in Washington and 5.5% nationwide.4 The median household income is about $10,000 higher than the national average, which allows for greater purchasing power. According to psychographic data many couples spend their money on high-end, suburban homes and families are often

    paying for education, entertainment, and retirement and insurance.5 In summary, the demographics of the region consists of an older and highly educated population with greater than average buying power. Our group recommends catering to specific demographics in the area rather than copying the themes of other business districts. Tourists to Point Defiance Zoo & Aquarium Point Defiance Park and Zoo attracts three million visitors a year, which is significant, because the Ruston-Point Defiance Business District is the final potential stop before entering the park through the North Pearl entrance. A survey conducted in August 2014 found that 69% of Point Defiance Zoo and Aquarium visitors were accompanied by children. The average age of these

    2U.S. Census Bureau, Census 2010 Summary File 1. ESRI forecasts for 2014 and 2019. 3"Map of County Unemployment Rates." Map of County Unemployment Rates. Employment Security Department, Mar. 2015. 4"Washington Unemployment." Washington State Unemployment Rate and Total Unemployed. Department of Numbers, Mar. 2015 5 U.S. Census Bureau, Census 2010 Summary File 1. ESRI Household Budget Expenditures- Spending Indexes (111, 118. 109, 108, and 110 respectively)

    The region consists of an older and highly

    educated population with greater than average buying

    power.

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    adults was roughly 40 years of age, and the average age of the children accompanying them was 6.6 years old.6 Tapestry Mapping Tapestry Mapping is a psychographic tool that portrays the buying trends of residents within a region. Data collected from credit card sales and loyalty programs allows the business district insight into the buying preferences of its residents. ESRI uses over 60 Tapestry Segments; listed below are the top five segments that make up 78.1% of the Ruston and Tacoma residency immediately surrounding the business district (within the boundaries of Vassault Street, 46th Street and the North Pearl and Ruston Way entrances to Point Defiance Park).

    Parks and Rec: 24.1% A majority of this segment is college educated with professional jobs in healthcare, retail trade and education. With a median household income of $55,000, Parks and Rec residents choose to dine at family-style restaurants and attend movies. They take advantage of local amenities like parks and recreational centers in order to remain active.7

    Golden Years: 19.7%

    This segment earns much of their median household income ($61,000) from investments, Social Security benefits and retirement income. Golden Year residents are avid readers as well as generous supporters of the arts and charitable organizations.8