jon last vice president, corporate marketing & research golf digest companies

Jon LastVice President, Corporate Marketing & ResearchVice President, Corporate Marketing & Research

Golf Digest CompaniesGolf Digest Companies

Objectives – Looking To Our Best Customers

• For detailed understanding of their attitudes, motivations & perceptions and implications for growing the game

• Encompassing, but not limited to:

– Why they play? …Benefits and Motivations

– How much they plan to play in the future

– Their potential as missionaries/influencers for future generations

– The role that golf plays in the context of their social and professional lives

– Perspectives on golf’s future

Methodology

• The largest and most comprehensive study ever done on Golf’s Best Customers

– Core Golfers; those who have played 8-24 rounds a year

– Avid Golfers; those who have played 25+ rounds a year

• 2 Phases:

– 48 hours of one-on-one depth interviews in six U.S. markets (n=96)

– Quantitative online surveys (n=13,290)

• Large sample size allows for further market segmentation (regionally, avid vs. core; men vs. women; etc – with statistical stability and projectability)

Today’s Areas of Focus

• Introduction to the Game

• Drivers of Satisfaction and Enjoyment

• Key Attitudes about the Game

• Inhibitors to More Play

• Drivers of Increased Play: Concepts

• Drivers of Increased Play: Tactics

• The Future – Golf in the Year 2150

• Implications and Take-a-ways

Introduction to the Game

Driven as Much by Friends & Business Associates as by Family

34%

40%

Friend/Work Colleague (Net)

Parents/Spouse/Other Family (Net)

Q. How were you first introduced to Golf?

Total

Best Customers


Total Core AvidBest Customers Golfers Golfers

% % %

At a public course 59 57 60

At a par 3 or short course 14 16 13

At a private club 12 9 14

At a range 9 12 6

At school 2 2 2

Where Did You First Play Golf?

23% 28% 19%


In-School Programs Are Embraced As Opportunities to Grow Participation

• School programs are 2 of the top 6 initiatives tested in terms of their effectiveness for bringing new people into the game!

6.17

6.06

5.84

5.76

5.62

5.55

Reasonably Priced Introductory Lessons at Driving Ranges

Junior HS and HS Golf In PE Programs

Free Golf Days At the Course

Adding Women’s Golf Programs by Women and for Women

Bundle New Equipment Purchases with Lessons

Elementary School GolfIn PE Programs

Mean Scores (1-7 Scale)


Total

Best Customers

If Today’s Best Customers Are Indicative of the Future,We Need to Hook Them Younger!

55-641%45-54

6%

35-4410%

Under 1844%

18-2421%

65+1%

25-3417%

Q. When did you first learn to play?


Total

Best Customers

Drivers of Satisfaction and Enjoyment

Drivers of Enjoyment – Conditions, People & Performance

TotalMean Score (1-7 Scale) Best Customers

Well maintained greens & bunkers 6.34

Well maintained fairways & tees 6.28

The people you play with 6.24

Playing well on the course 5.84

Availability of practice facilities 5.68

Beautiful surroundings and scenery 5.74

Scoring well 5.65

Challenging course 5.65

Fast pace of play 5.39

Knowledgeable marshals and starters 5.38

Drivers of Satisfaction andEnjoyment

Overall Enjoyment Is Less about Course Challenge & More about Conditioning

Forced Choice: Do you generally prefer to play a course that is…


88%

12%

Not as challenging but in very good condition

Very challenging, not top condition

Total

Best Customers

Overall Enjoyment Is Less about Course Challenge & More about Conditioning

• Golfers were twice as likely to want “better course conditioning” over “better architecture and layout” as an incentive for them to pay 25% more for greens fees!

74%

39%

Total

Best Customers

Better CourseConditioning

BetterArchitecture/Course

Layout


It’s More about Camaraderie and the People you Play With

Q. Which is more important in driving overall enjoyment derived from a round of golf?

• Those with established and reliable peer groups are playing more than those who don’t have a “consistent” game. This was especially evident among young adults in their early stages of family formation and career growth.


% % %

The people you play with 57 61 54 vs. How well you play 43 39 46

The people you play with 56 61 52 vs. The condition of the golf course 44 39 48

The people you play with 63 68 58 vs. The pace of play 37 32 42


Key Best Customer Attitudes About the Game

What Golfers are Thinking Today!

Agreement Ratings on 27 Statements Total Core AvidMean Scores (1-7 Scale) Best Customers GolfersGolfers


4. Golf is an intimidating game for beginners 5.55 5.46 5.63

3. Golfers today are more athletic than they were 20 years ago 5.61 5.50 5.70

2. More young players like Tiger Woods and Michele Wie have been instrumental in growing the game 6.14 6.10 6.18

1. There are no guarantees in golf 6.23 6.17 6.29

Golf Is More about Leisure than Competition

• For all but the best, golf was perceived as a leisure activity which has ramifications on what golf’s major competitors are for time and dollars


% % %

For me, golf is more about the competition 35 27 42

Or

For me, golf is basically a leisure activity 65 73 58


…And It’s More about Preference for Course Variety


81%

19%

I would rather play a variety of courses

I would rather play the same course on a regular basis

Total

Best Customers

Golf’s Best Customers Aren't Necessarily Willing to be Ambassadors

• Less than 20% of golfers surveyed would be willing to commit to a program that required them to introduce at least one new person a year to the game of golf

• Less than 25% of Best Customers are “willing to contribute $25 a year toward development programs that would insure the future ofthe game”

• More than 45% of Best Customers agree (25% strongly) that they are “concerned that with all of the new players coming into the game, golf courses are going to be too crowded”


Inhibitors to More Play

Bad Behavior, Course Condition & Skill Level

Q. What inhibits your enjoyment of the game of golf?

TotalMean Scores (1-7 Scale) Best Customers

Behavior of players on the course 4.81

Course conditions 4.79

Cost 4.64

Time required to play 3.95

Tee time availability 3.89

My skills/performance 3.72

Elitist perception 3.21


Cost & Time – The Two “Crutches”

Q. What inhibits your enjoyment of the game of golf?


Behavior of players on the course 4.81

Course conditions 4.79

Cost 4.64

Time required to play 3.95

Tee time availability 3.89

My skills/performance 3.72


Total Core AvidBest Customers Golfers

Golfers

So cheap that its quality wouldbe questionable? $20 $20 $21

Such A bargain that you woulddefinitely purchase it? $31 $30 $33

Starting to get expensive, but stillworth considering? $55 $52 $57

So expensive that you would notconsider it? $93 $88 $98

A Further Look At Costs


Going Beyond the Crutches

Crutch #1

Crutch #2

They Say They Mean Issues

“Golf is too expensive”

“I’m not getting value out of my experience”

“I spend on lessons & equipment but I don’t get better”

“My on-course experience doesn’t justify the time investment”

“I don’t have enough time to

play golf”

Customer service; Pace of play; Conditions

Too crowded; bad service; lack of improvement


Going Beyond the Typical Crutches

Why Not More Golf..? There are No Guarantees in Golf

#1 of 27 Attitudinal Statements


Drivers of Increased Play: Concepts

Success Breeds Interest and Increased Play

• 53% of Golf’s Best Customers agreed with the statement: “I would play more golf than I’m currently playing, if I got better at it!”

Why are you playing MORE Golf in last two years?

Why do you expect to be playing MORE Golf in the next 3 years?

TotalBest Customers

#2 – My game has improved 50%

TotalBest Customers

#1 – My game has improved 46%

Drivers of Increased Play:Concepts

Access To Playing Partners Can Also Increase Play

Why are you playing more often than you did in the past two years?

TotalBest Customers

#3 – I have more golf partners to play with 41%

#4 – My family is more involved with golf 19%


…Enhanced Service Would Also Improve the Golf Experience

Q. What would enhance your overall golf experience?


Improved pace of play 5.98

Courteous and upbeat staff 5.92

Marshals who do their job 5.14


Growing the Game is More about Adding New Golfers

Q. What do you think is more important to insure golf’s future?

• Those favoring new golfers spoke to:

– Junior golf programs

– Continuous focus on minorities and women


Total Best Customers

74%

26% Bringing In New Golfers

Getting Existing Golfers To Play More

Growing the Game is More about Adding New Golfers

Q. What do you think is more important to insure golf’s future?


Total Best Customers

• However, a significant number of respondents took on a more protectionist approach74%

26% Bringing In New Golfers

Getting Existing Golfers To Play More

Drivers of Increased Play: Tactics

6.18

6.03

5.31

4.81

4.64

Reduced Fees During Off-Peak Hours

Discounted Golf Packages

Less Expensive Golf Instruction

Joining An Organized Golf League

Family Golf Programs

Top 5 Out of 9 TestedMean Scores (1-7 Scale)

Drivers of Increased Play:Tactics

Q. How Effective Would The Following Be In Getting Golfers To Play More Frequently?

Total

Best Customers

Moving Golf Leagues to the 40% Mark

Total Core AvidCurrent Participation Best Customers Golfers Golfers

% % %

Any Leagues (Net) 35 26 44

Golf leagues not through work 26 16 36

Golf leagues through work 12 11 13


Golf Leagues – A Huge Opportunity

• Regionally test market new corporate golf leagues for workers

• Organize Sponsorship of National Golf League Championships – the Corporate Challenge Model

• Locally sponsored after school leagues in suburban middle class/affluent neighborhoods – like little league

• Local business golf leagues during off season like bowling, with banquets and trophies at the end of the season.


Innovative Memberships Programs: The Health Club Model

Martin S - Los Angeles

“Market golf like your local gym club.”


The Health Club Model: What Would It Take?

Total Core AvidExtremely interested Best Customers Golfers Golfers

Average Number of Rounds: 5.29 4.94 5.67

Median Number of Rounds: 5 5 5

Number of rounds you would prepay for in a month for unlimited golf


Another Popular Option: Consumer Loyalty Programs with REAL, Attainable Rewards

TotalExtremely interested Best Customers

Rounds to play to get one free

Average Number of Rounds: 4.14

Median Number of Rounds: 5

Discount you would require for next round

Average Percentage Off: 30%

Median Percentage Off: 25%


Putting the Guarantee in Golf

• Satisfaction guarantees on:

– Lessons

– On-Course experience

• Supervised practice, not just instruction:

– Practice where pros/better players take notice and give tips

– On the range and on the putting green

– Practice logs and formalized training programs

– Certificates of progress to measure against improving scores

– Golf practice/socials regularly scheduled


Increasing the Value Quotient!

• New stronger emphasis on marshalling for pace of play – develop certification program

• Improve and market condition of golf course, rather than challenge or slope index

• Promote heightened respect of game by new focus on obeying rules, replacing divots, ball marks and appreciation of tradition.

• Tiered pricing for effective yield management


What Do We Have To Do To Tip the Scales?

• Develop more opportunities to play

– Promote leagues at work and at the course

– Increase golf course exposure at ranges and in schools

– Get children playing younger

– More tailored promotions and frequency loyalty programs


Promoting the Golf Family

Q. What other family members play golf?

41%

51%

38%

48%44%

55%

Total Golfers Core Golfers Avid Golfers

Spouse or Significant Other Child/Children


The Future – Golf in the Year 2150

Optimism in General – But Lots of Caveats Too!

BestMean Scores (1-7 scale) Customers

1. Golf will be bigger than ever as media and grass rootsprograms are successful in bringing new players in 4.84

2. Courses will become more challenging with tighter fairways,tougher greens and bigger carries to ward off the“power game effect” of technology 4.77

3. A greater percentage of the population will be playing golf 4.65

4. Golf will become more expensive due to the increasingcost of real estate 4.61

The Future:Golf in the Year 2150

Implications

The Attrition Battle: Tipping The Scale of Critical Success Factors

Play More IfBenefits > Detractors

Play Less IfDetractors > Benefits

Implications

The Headlines

• Optimal price point for Daily Fee greens fees is$40 - $50

• Leisure is more important than competition

• Course conditioning is more important than challenge

• Time issue is more about priorities and family;more rounds will eliminate the guilt factor

• There’s a group out there who is resisting

• Youth – if you get them when they’re under 12,they might leave…but they’ll come back later

Implications

So, What Will the Game Look Like?

• There are more affordable public facilities –$50 and less

• There are lots of leagues – for families, at work and through other social organizations

• More “well-conditioned” courses – less emphasis on penal design

• More school programs

• More monitored practice sessions

• More recognition & rewards for Best Customers

Implications

jon last vice president, corporate marketing & research golf digest companies

Documents

game slide

enjoyment slide

future slide

projectability slide

future golf

game total best customers

play drivers of increased

game drivers of satisfaction