Hampshire County Council

Recreation and Heritage Policy Review Committee Item 7

13 May 2004

Milestones Progress Report

Report by the Director of Recreation and Heritage

Contact: Sara McPartland Tel 01256 403900

1. Introduction

1.1 This report presents an update on Milestones financial and business performance to 31 March 2004 and gives an outlook for 2004/5.

Following the review by sector specialist management consultants in Oct. 2002, and the appointment of a new business manager in Nov.2002, the business plan for April 2003 - March 2004 set out a short term recovery programme that would stabilise Milestones visitor numbers, cut costs, improve efficiencies and keep within the agreed financial framework.

1.2 In Spring 2003 the accumulated deficit on the revenue budget of £465,000 for 2002/3 was paid off by Hampshire County Council and Basingstoke & Deane Borough Council in a manner which reflected the 50:50 arrangement of the partners.

2. Background : performance to 31 March 2002

2.1 Visitor numbers for the first 5 months after opening (November 2000 to 31 March 2001) were 58,845. Initial forecasts for the year ending 31 March 2002 were 150,000 and the actual out-turn for that year was 133,004. Visitor figures for the year ending 31 March 2003 were 92,364, a decline of 30%.

2.2 The key objectives for 2003/04 were therefore to stabilize the decline in visitor numbers and establish a realistic forecast for paying visitor numbers as the foundation for a sustainable business plan within agreed levels of subsidy. Improving business knowledge about Milestones is an essential on-going process.

3. The 2003/04 business plan and growth strategy

3.1 The strategy for 2003/04 was to increase market penetration by targeting those segments of the existing visitor profile with the most critical mass, and to enhance the appeal of Milestones to these visitors. Visitor reaction to Milestones has consistently demonstrated the appeal of the `living history' approach, coupled with the request for this to be more actively demonstrated in the main museum arena.

3.2 The promotional strategy strengthened the appeal of Milestones and its status as an attraction. The growth strategy concentrated on replacing annual bi-annual and tri-annual visitors with new visitors to maintain the total visitor numbers.

3.3 In line with the recommendations of the consultants, an events and activities programme was launched to stimulate first time and repeat visiting. A programme of family learning activities for the year was established with children's holiday activities every school and half term holiday and new investment in children's activities for 3-5 year olds. A major exhibition, Life in the Fast Lane opened on 6 April. A visiting exhibition and two outdoor shows added to the programme for 2002/3.

3.4 Marketing spend was only 5% of the revenue budget for 2003/4. This was modest, with no dedicated marketing department, other than the business manager, but pending the improvements to the visitor experience and the clarity of the product/market fit which was being investigated, the level of spend was reasonable for the year.

3.5 The promotional strategy was tightly targeted to identified higher volume customer profiles within a one hour drive time of Milestones and high density constituencies of local people (e.g. HCC/B&DBC employees, employees of sponsors). Key messages were developed and implemented through a suite of connected media campaigns.

4. Performance in 2003/4

The results up to 31 March 2004 have achieved:

_ A balanced budget

_ Cost cutting and improvements in efficiencies through organisational re-structuring, and a review of systems and processes

_ Yearly decline in visitor numbers significantly reduced from -30% to

-10%. Visitor numbers in 2003/4 were 83,056

_ The marketing campaign is working - up to 90% independent visitors are new

_ 5 new gallery spaces were opened in the museum in 2003/4

5. Outlook for 2004/5

5.1 The business knowledge gained this year tells us that Milestones has a broad appeal to a wide socio-economic class of people within about one hour's drive.

5.2 Milestones is the choice of south, southeast and London based coach tour operators for the days out market for the active retired. Milestones is recognised as a visitor attraction, and a leisure option. It offers a visit that is well differentiated from other attractions at a reasonable price.

5.3 The programme for schools is well established and repeat take-up is strong for Hampshire and neighbouring county LEA schools.10,000 children per annum.

5.4 An independent visitor survey commissioned by the Council for Museums Libraries and Archives Council, as part of the `Renaissance in the Regions' programme, established that Milestones attracted the highest level of use by people in social class C2DE, than any other museum in the South East Museum Hub (x%). Continued audience development at Milestones will make an important contribution to meeting DCMS targets for increasing museum use by non-traditional users.

Conclusion

There is much work to be done at Milestones to draw out the potential strength of this visitor site. It competes in a very demanding market which is crowded and investment rich. Through sustained refreshment of the attraction and a very real commitment to marketing Milestones has the potential to become a distinctive and progressive flagship for Hampshire County Council.

Section 100 D - Local Government Act 1972 - Background Documents

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the act.

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