Rob SmithRob SmithPresident, Focalpoint, Inc.President, Focalpoint, Inc.

Connecting Connecting with the Game of Golfthe Game of Golf

ContextContext

• This plan builds upon the work that comes before it – This plan builds upon the work that comes before it – 20/20 interviews, 20/20 interviews, last year’s round-tableslast year’s round-tables, McKinsey , McKinsey study, pilot programs. study, pilot programs.

• As smarter marketers we can reverse the decline and As smarter marketers we can reverse the decline and grow againgrow again – perhaps 3-4%. – perhaps 3-4%.

• But substantial growth will require a greater push in But substantial growth will require a greater push in new marketsnew markets – particularly women. – particularly women.

• A logical, integrated approach to growing the game A logical, integrated approach to growing the game involves: involves: Player DevelopmentPlayer Development……Player Player AccommodationAccommodation……Marketing IntegrationMarketing Integration. .

Three EssentialsThree Essentials

• Player DevelopmentPlayer Development – – Play Golf AmericaPlay Golf America – – the critical elements of instruction, clinics and the critical elements of instruction, clinics and leagues.leagues.

• Player Accommodation Player Accommodation – – Golf FacilitiesGolf Facilities – – make golf inviting and relevant to new make golf inviting and relevant to new consumers with changing needs. consumers with changing needs.

• Marketing Integration Marketing Integration – – Golf 20/20Golf 20/20 – industry – industry focus and orchestration, new marketing focus and orchestration, new marketing strategies and tactics.strategies and tactics.

Strategic AssumptionsStrategic Assumptions

1.1. The traditional core golf market of The traditional core golf market of middle-aged white men is mature middle-aged white men is mature and unlikely to produce much more and unlikely to produce much more than incremental growth. than incremental growth.

We need to turn our best customers into missionaries and develop new markets.

Strategic AssumptionsStrategic Assumptions

2.2. Time-crunched American society has Time-crunched American society has placed golf at a competitive placed golf at a competitive disadvantage against the explosion of disadvantage against the explosion of new flex-time, leisure and work new flex-time, leisure and work alternatives. alternatives.

We must extend the brand of golf -- We must extend the brand of golf -- provide alternative formats. provide alternative formats.

Strategic AssumptionsStrategic Assumptions

3.3. Making golf less Making golf less exclusiveexclusive and more and more welcomingwelcoming is essential to attracting and is essential to attracting and retaining the fastest growth segments of retaining the fastest growth segments of the market – women, kids and the market – women, kids and minorities.minorities.

We must examine how we do things We must examine how we do things and work together to make golf more and work together to make golf more inviting to the uninitiated.inviting to the uninitiated.

StrategyStrategy

Deepen each target golfer’s Deepen each target golfer’s connection to the gameconnection to the game – –

from introduction to loyalty.from introduction to loyalty.

Step #1: Identify High Value Market Segments

Step # 3: Target Tailored Messages and Offers

Strategy

Deepen each target golfer’s connection to the game.

Step #2: Understand Customer Barriers

Time

Partner

Welcome

Cost

Format

Instruction

At Every Point Of ContactAt Every Point Of Contact

1.1. Word of Mouth Word of Mouth 2.2. Golf Professionals Golf Professionals 3.3. Facility Employees Facility Employees 4.4. The Web/e-mailThe Web/e-mail5.5. Golfer DatabasesGolfer Databases6.6. Events Events 7.7. Earned Media Earned Media 8.8. Retailer Program Retailer Program 9.9. PSA’sPSA’s

Retail

In-store video – Web-links - Equipment

Play Golf America PSAs

Website

• Link Up 2 Golf

• Back in the Swing

• EWGA

• First Tee

• Golf in Schools

• Early birds

• Women’s time

• Playing the back 9

• Player get a player

• Feeling included

Cultivation - Database - Customer-focused - Research - Oversight

Player Development Player Accommodation

Golf Facilities

• Formats

• Yield Management

• Employee Training

Play Golf America

• Introduction

• Instruction

• Play

Golf 20/20

• Strategy • Communication• Integration

Marketing

IntegratedApproach

In Summary In Summary

• As smarter marketers we can reverse the decline As smarter marketers we can reverse the decline and and grow againgrow again..

• We must focus on both We must focus on both retentionretention of current of current players and developing players and developing new marketsnew markets – – particularly among women.particularly among women.

• We must encourage best customers to play more We must encourage best customers to play more and become and become missionariesmissionaries..

• Three key elements: Three key elements: Player DevelopmentPlayer Development… … Player AccommodationPlayer Accommodation……Marketing IntegrationMarketing Integration. .