PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.       5d 
ACTION ITEM            Date of Meeting     June 5, 2012 

DATE:    May 25, 2012 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
Deanna Zachrisson, Manager, Aviation Concessions Business 
SUBJECT:  Procurement for Aviation Concessions Marketing Program 

ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to authorize all work, execute
indefinite delivery, indefinite quantity (IDIQ) contracts and all service directives and
amendments for personal services to support the concession tenant-funded joint concession
marketing program. The total combined value of all of these procurements is estimated at
$1.75 million for contracts whose terms range from three to five years in duration. 
SYNOPSIS: 
The Port and its concessionaires established a marketing program in 2005 funded by the tenants
and administered by the Port that has proven to be remarkably successful in increasing sales for
concessionaires. This authorization request focuses on hiring consulting firms necessary to
support the joint marketing efforts of the Port and its Airport concession tenants. 
The specific procurements cover needs related to strategic planning, graphic design for signage
and other uses, in-terminal promotions, customer service programs, website management for
www.seatacshops.com, and development of new technological innovations to drive sales in the
terminal. These contracts will enable the Airport to rapidly retain consultation and services
during peak travel periods, for seasonal or holiday offerings, and for other special initiatives and
advertising as determined by the concessionaires and Airport staff. 
Authority to spend marketing funds is already contained both in the approval of concessionaire
leases and in the annual Airport operating budget, which is reviewed and authorized annually by
the Commission. The concessions marketing program is paid for by the concessions tenants, and
funds collected may be used only for the joint marketing program.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 2 of 4 

BACKGROUND: 
The Airport has approximately 84 concession locations (including restaurants, retail shops, and
passenger services) operating within the terminal buildings. With the creation of the new
concessions program in 2005, the Port and its concessions tenants established a marketing
program for the purpose of promoting the quality and variety of products and services available
from Airport merchants at reasonable street prices. Joint marketing programs have been standard
practice in shopping malls for decades, and airports began creating such programs as most
moved away from the master concessionaire business model, in which one concessionaire
operated all categories of concessions. Airport concessions marketing programs are now the
norm at airports across the country. A portion of lease payments is earmarked for joint
marketing, advertising, and promotions that are determined in consultation with the
concessionaries. The funds collected for joint marketing can only be spent on this purpose. 
The concessions marketing program is a mutual lease obligation between the Port and its
concessionaire tenants. All tenants are required to contribute to the joint marketing effort, and
the Port is obligated to work collaboratively to execute the program and use contributed funds
specifically to support tenant marketing only. The Port is required to develop a new marketing
plan for the concessions marketing program every year. The program is overseen by a tenant
Marketing Advisory Group, which meets at least quarterly and represents all categories of
concessions businesses. The concessions staff manages this program with the help of in-house
and external staffing resources. 
In the first few years of the new concessions program, it was important to market broadly to the
Puget Sound region about all that was new at the Airport. For decades, resident travelers had
grown accustomed to the same concessions, and the same high prices. The marketing program
focused on changing these perceptions and building an expectation among travelers of great
offerings and street prices at the Airport. Now, as the program is in its eighth year, and
continues to improve, the marketing strategy has shifted more emphasis to marketing and
promotional activities in the terminal, with the purpose of influencing impulse purchases among
travelers on-site. For example, extensive concessions wayfinding has been added to the terminal
over the last 18 months (Exhibit B). 
The tenants are specifically interested in more promotions in the terminal that are tied to an
increased presence on the web. This could include such things as promotions directed to
passengers who use either mobile phones or laptops to access flight and airport information
while in the Airport. In-terminal promotions such as contests, employee specials, and seasonal
special events also will continue to drive sales. 
PROCUREMENT PROCESS: 
Since its inception, staff has managed this program with the support of outside marketing support
and expertise. All of the firms contracted for the work previously have been local small

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 3 of 4 

businesses. There exists ample supply of such expertise in the local community, so staff
anticipates continued participation by such businesses. Due to the time needed to conduct each
procurement, staff will stagger procurement processes for these contracts. The most pressing
needs are for graphic design and web/technology support. Each of the procurements is
anticipated to be completed during 2012. The Concessions tenants support this procurement 
process as a means of keeping the program vibrant and working in their interests. A tenant
representative from the Marketing Advisory Group will participate in the procurement process
reviews/interviews and help make selections. With Commission authorization, the first request
for qualifications would be advertised in late June 2012 and awarded in August 2012. 
Category III IDIQ Contract Summary 
Contract Name    Scope Summary       Anticipated  Length       Timeline 
$ 
Graphic Design &  Develop graphic identity  $400,000    3 years       June-
Marketing        for terminal signage,     (approx.                August
printed advertising and    $133,000                 2012 
other materials.         annually) 
Coordinate with other
vendors for consistent
brand. Includes spot
production for radio,
television, copy services
as needed. 
Website        Day-to-day web       $500,000    5 years       June-
Management,    management functions,   (approx.               August
Technology      site hosting, software &   $165,000              2012 
Innovations,      database development,    annually) 
Social Media      develop interactivity and
other technology tools to
drive business to
concessions locations. 
In-Terminal       Develop in-terminal     $300,000     3 years        Sept-Nov
Programs        holiday program       (approx.               2012 
including other seasonal   $100,000
events               annually) 

SOURCE OF FUNDS: 
The concessions marketing program is paid for by the concessions tenants. Each tenant
contributes 0.5% of gross monthly sales per unit, but no more than $24,000 annually. Compared 
to off-airport retail, this marketing investment is low due to the Airport's unique position as a
transportation hub. Off-airport restaurants and retail typically re-invest 3-7% of gross sales into
marketing. The marketing program revenues and expenditures are managed by the Concessions
staff within Aviation Business Development.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 4 of 4 

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Exhibit A: Proposed Concessions Marketing Procurements. 
Exhibit B: Sample Concessions Wayfinding Signage 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
June 23, 2009 - Commission Action: Approval of the previous Concessions Marketing
Procurements.