GolfLogix : GolfLogix : Measuring the Game Measuring the Game

of Golfof Golf

GolfLogix : Measuring the Game of GolfGolfLogix : Measuring the Game of Golf

GolfLogix was founded in May 1999 GolfLogix was founded in May 1999

Using GPS to aid golfers in playing golfUsing GPS to aid golfers in playing golf

GolfLogix product consisted of a GolfLogix product consisted of a customized, handheld GPS receiver, customized, handheld GPS receiver, called an “xCaddie”called an “xCaddie”

GolfLogix’s system can indicate distance GolfLogix’s system can indicate distance and record a golfer’s progress around the and record a golfer’s progress around the

course. course.

At the end of the round, he could download At the end of the round, he could download this data and receive printout mapping his this data and receive printout mapping his

progressprogress

GolfLogix : Measuring the Game of GolfGolfLogix : Measuring the Game of Golf

The GolfLogix Distance Only xCaddieThe GolfLogix Distance Only xCaddie

The Game of GolfThe Game of Golf

Invented in Scotland in the 15Invented in Scotland in the 15thth century and brought to century and brought to the United States in the late 19the United States in the late 19thth century. century.

Use wooden or metal clubs to hit a small, hard ball into Use wooden or metal clubs to hit a small, hard ball into a cup on each of 18 different holes on a golf course.a cup on each of 18 different holes on a golf course.

Each swing a golfer took was called a stroke and Each swing a golfer took was called a stroke and counted toward his or her total score.counted toward his or her total score.

The number of strokes a player took through an entire The number of strokes a player took through an entire round was the player’s score, with the lowest score round was the player’s score, with the lowest score winning.winning.

The typical golfer used as many as 14 different clubs The typical golfer used as many as 14 different clubs during a single round, including several woods, a series during a single round, including several woods, a series of irons, several wedges and a putter.of irons, several wedges and a putter.

Each club was used to hit the ball a particular distance.Each club was used to hit the ball a particular distance.

The GolfLogix SolutionThe GolfLogix Solution

The concept forThe concept for GolfLogix came in 1998 during a round GolfLogix came in 1998 during a round of golf between Todd Kuta and Scott Lambrecht.of golf between Todd Kuta and Scott Lambrecht.

Lambrecht asked Kuta to estimate distance to the Lambrecht asked Kuta to estimate distance to the green and advise him on what club to hit for that green and advise him on what club to hit for that distance.distance.

Kuta noted that there ought to be a way to measure Kuta noted that there ought to be a way to measure distance to the green.distance to the green.

Lambrecht suggested that GPS can help a golfer know Lambrecht suggested that GPS can help a golfer know the distance to the green.the distance to the green.

They thought that it could do much more. It could They thought that it could do much more. It could record a golfer’s progress around the course with a record a golfer’s progress around the course with a detailed record of his round.detailed record of his round.

A Typical Three-Page Printout FollowingA Typical Three-Page Printout Following

the Use of the Complete Systemthe Use of the Complete System

TheThe CompanyCompany

Lambrecht and Kuta feel doubtful that “Under the Lambrecht and Kuta feel doubtful that “Under the rules of golf, is such a system legal?”rules of golf, is such a system legal?”

The USGA indicated that a GPS device couldn’t be The USGA indicated that a GPS device couldn’t be used during tournament play.used during tournament play.

They formally incorporated GolfLogix in May 1999.They formally incorporated GolfLogix in May 1999.

In its short existence, GolfLogix had raised about In its short existence, GolfLogix had raised about $2million and taken on moderate debt. $2million and taken on moderate debt.

The CompanyThe Company

The company expected to incur operating expenses The company expected to incur operating expenses of about $50,000 to $75,000 per month, which it of about $50,000 to $75,000 per month, which it hoped to support out of operating revenues.hoped to support out of operating revenues.

The task of selling the xCaddie systems had largely The task of selling the xCaddie systems had largely fallen to Pete Charleston, GolfLogix’s executive vice fallen to Pete Charleston, GolfLogix’s executive vice president of sales, and CEO Saltz.president of sales, and CEO Saltz.

Over time, the company planned to take on an Over time, the company planned to take on an increasing number of distributors.increasing number of distributors.

The Underlying TechnologyThe Underlying Technology

The core technology for the GolfLogix solution was The core technology for the GolfLogix solution was GPS, originally use in military.GPS, originally use in military.

GPS was gradually made available for civilian use, GPS was gradually made available for civilian use, beginning in the 1980s.beginning in the 1980s.

By 2000 roughly 1 million GPS receivers per year By 2000 roughly 1 million GPS receivers per year were being manufactured for commercial use.were being manufactured for commercial use.

The GPS receiver employed by GolfLogix was The GPS receiver employed by GolfLogix was manufactured by Garmin International.manufactured by Garmin International.

Making the Solution OperationalMaking the Solution Operational

The Distance Only SystemThe Distance Only System

The Complete SystemThe Complete System

- - ขอบเขตของขอบเขตของ tee box,fairway and tee box,fairway and green.green.

-touch screen and printer-touch screen and printer

-GolfLogix website-GolfLogix website

Playing Golf with the GolfLogix SystemsPlaying Golf with the GolfLogix Systems

The Distance Only SystemThe Distance Only SystemA golfer scrolled to the hole that he was playing, stood A golfer scrolled to the hole that he was playing, stood

over or near his ball, and read the yardage to the green over or near his ball, and read the yardage to the green on the xCaddie’s digital readout.on the xCaddie’s digital readout.

The Complete SystemThe Complete SystemBefore each shot check the distance to the green, Before each shot check the distance to the green,

select the club and press enter over the ball.select the club and press enter over the ball.On the green, scroll to Putter and press enter over the On the green, scroll to Putter and press enter over the

ball. Finish putting out and then enter the total number ball. Finish putting out and then enter the total number of putts.of putts.

Comfirm or edit the score and press enter to make Comfirm or edit the score and press enter to make corrections.corrections.

Instruction Card for Instruction Card for

the Complete System xCaddiethe Complete System xCaddie

The U.S. Golf MarketThe U.S. Golf Market

In 2000, 26.7 million Americans played 586 million In 2000, 26.7 million Americans played 586 million rounds on just over 17,000 public and private courses rounds on just over 17,000 public and private courses around the United States.around the United States.

Each year about 2 million new golfers began playing Each year about 2 million new golfers began playing the sport, resulting in a net growth of 200,000 to the sport, resulting in a net growth of 200,000 to 400,000 golfers per year.400,000 golfers per year.

Recently, the game had attracted more women and Recently, the game had attracted more women and younger golfers through much of the 1980s and 1990s.younger golfers through much of the 1980s and 1990s.

Nevertheless, the prototypical golfer was still male, Nevertheless, the prototypical golfer was still male, over 40 years old and with a household income over over 40 years old and with a household income over $70,000.$70,000.

The GolferThe Golfer

Golfers could be segmented in many different ways.Golfers could be segmented in many different ways.

One basis was frequency of play.One basis was frequency of play.

A second basis was expertise, typically measured by A second basis was expertise, typically measured by a golfer’s handicap that was a historical average of a golfer’s handicap that was a historical average of how many strokes a golfer took for an entire round.how many strokes a golfer took for an entire round.

A third basis was based on the courses they played-A third basis was based on the courses they played-public versus private.public versus private.

Golf CoursesGolf Courses

As ofAs of 2000, there were slightly over 17,000 golf 2000, there were slightly over 17,000 golf courses in the United States, most of which fell into courses in the United States, most of which fell into one of four categories :one of four categories :

Municipal and lower-end public coursesMunicipal and lower-end public courses represented the backbone of golf in the United represented the backbone of golf in the United States.States.

High-end public coursesHigh-end public courses offered more of a offered more of a challenge than municipal courses, and attracted challenge than municipal courses, and attracted more avid and accomplished golfers.more avid and accomplished golfers.

Golf CoursesGolf Courses

Resort coursesResort courses often gave preference to those often gave preference to those staying at the resort. They tended to be of high staying at the resort. They tended to be of high quality.quality.

Private coursesPrivate courses represented the aspiration of many represented the aspiration of many golfers. The quality of these courses tended to be golfers. The quality of these courses tended to be very high, and members were charged accordingly. very high, and members were charged accordingly.

New courses were being built in the United States New courses were being built in the United States at a rate of about 300 to 400 per year. The vast at a rate of about 300 to 400 per year. The vast majority were higher-end public, resort, and private majority were higher-end public, resort, and private courses.courses.

The Golf ProfessionalThe Golf Professional

The person responsible for running the golf-related The person responsible for running the golf-related activities at a course was the head professional.activities at a course was the head professional.

He might be assisted by several employees and He might be assisted by several employees and assistant pros.assistant pros.

The third responsibility was giving lessons.The third responsibility was giving lessons.

A final responsibility and constant headache for A final responsibility and constant headache for pro shop personnel was managing the pace of play pro shop personnel was managing the pace of play on the course. on the course.

Selling the GolfLogix solutionSelling the GolfLogix solution

About 80 percent of golfers are satisfiedAbout 80 percent of golfers are satisfied

Traditional sport and sensitive to adopt Traditional sport and sensitive to adopt a new thinga new thing

Find the courses that are forward thinkingFind the courses that are forward thinking

Distance only system’s benefitsDistance only system’s benefits

Better golfBetter golf

Improve pace by playImprove pace by play

AffordabilityAffordability

PortabilityPortability

Ease of useEase of use

Ease of installationEase of installation

Complete System’s benefitsComplete System’s benefits

Game historyGame history

Performance StatisticsPerformance Statistics

Personalized Web sitePersonalized Web site

An aid to teachingAn aid to teaching

CompetitionsCompetitions

Distance;Low-tech solutionsDistance;Low-tech solutions

-Yardage markers-Yardage markers-Sprinkler Heads-Sprinkler Heads-Yardage Booklets-Yardage Booklets-Rangefinders-Rangefinders

Distance;High-tech solutionsDistance;High-tech solutions

-Cart-moounted system-Cart-moounted system-PDA based system-PDA based system

An Example of the Information An Example of the Information

Contained in a Yardage BookletContained in a Yardage Booklet

An Example of a Cart-mounted GPS SystemAn Example of a Cart-mounted GPS System

An Example of a PDA-based GPS SystemAn Example of a PDA-based GPS System

Performance TrackingPerformance Tracking

Manual Records in BookletsManual Records in Booklets

Software package for PDAsSoftware package for PDAs

What parts of their game were goodWhat parts of their game were good

And what parts needed work?And what parts needed work?

Going Straight to ConsumersGoing Straight to Consumers

After very limited sales in 2001, 2002 was showing lots After very limited sales in 2001, 2002 was showing lots of promise.of promise.

Over a dozen new courses had adopted either the Over a dozen new courses had adopted either the Distance Only or Complete System.Distance Only or Complete System.

Most courses that had agreed to a trial had Most courses that had agreed to a trial had subsequently signed lease agreement.subsequently signed lease agreement.

The units would retail for approximately $300 with The units would retail for approximately $300 with a 50 percent to 60 percent gross margin, depending a 50 percent to 60 percent gross margin, depending on volume.on volume.

But a device could capture 1 percent to 2 percent of But a device could capture 1 percent to 2 percent of veteran golfers.veteran golfers.