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10/20/03 1
Taking the Market
Robert M. SmithFocalpoint Marketing Inc.
10/20/03 2
The Questions
Is there an effective new approach that can be executed by our fragmented and diverse industry?
Is it short term economics or a longer-term trend?
Does it require concerted, industry-wide effort?
Is there a serious golf participation problem?
?
10/20/03 3
What We Did
Reviewed two dozen research studies and reports.
Interviewed 15 industry leaders.
Reviewed industry programs addressing these questions.
Distilled to a single report.
10/20/03 4
Facts in a Minute
• Rounds played: 3%
• Revenue: < 1%
• Peak demand over supply: 1990
• Avid golfer participation: 2%
• Women golfer participation: 3%
• Main reasons: job, family, time
• Junior golfers: 1.7 mm
2001-2002
10/20/03 5
What We Know
There is a serious economic problem . . . with many dimensions.
Overbuild -Generally
OverbuildHigh-end
Corp OutingsDown
Consumer Uncertainty
10/20/03 6
What We Know
There is also a longer-term problem . . . that is not going away.
• More activity options• Growing perception of time
limitations.
There is far greater competition . . . and the time crunch has put golf at a competitive disadvantage.
10/20/03 7
What We Know
Women
The traditional golf model is a mature market.
Women Kids/Minorities
Kids/Minorities
Avids
• The barriers for new entrants remain. • High attrition of first time and casual players dilutes the impact of acquisition.
Barriers
10/20/03 8
Even when the economy revives, the longer-term problems will
remain.
So . . .
10/20/03 9
Implication
The build it and they will come distribution strategy is dead!
We must learn to become marketers.
10/20/03 10
Ask These Guys . . .
10/20/03 11
So, What’s Marketing?
It is every touch of the customer . . .
1. Friend’s recommendation
2. Personal experience
3. Attitude of facility employees
4. Condition of the course
5. The pricing
6. Perception of equipment
7. Tournament watched
8. News stories
9. Advertising
10. Everything else
Top Ten in Impact
10/20/03 12
So, What’s Marketing?
Everything that you do - or fail to do - sends a marketing message.
Action Message
Intro to golf We welcome beginners
Disinterested pro You’ll never be good
Special group for women golfers
Golf is for people like me
18 holes only Golf takes all day
Club’s priced for beginners
Golf’s not that expensive
10/20/03 13
Ask These Guys . . .
10/20/03 14
Relevance to Golf
There is opportunity for renewed growth.
Growth requires a long-term course that involves some pain and a lot of change.
To grow beyond a mature market requires a new view of the market and marketing.
We must learn how to generate, nurture and retain customer demand.
We must view the industry as a single, interdependent “eco-system.”
10/20/03 15
A New Approach
It’s not about you . . .
. . . it’s about the customer.
10/20/03 16
A New Approach
Address the strategic issues
• A mature market
• Barriers to trial
• Retention problems
• Time disadvantage
• A fragmented industry
10/20/03 17
A New Approach
Use marketing intelligence
• Customer insights/trends
• Price/demand relationships
• Yield management
• Price elasticity
• Economic and consumer behavior trend forecasting
10/20/03 18
A New Approach
Take a holistic view
1. Generate consideration
2. Promote trial
3. Encourage adoption
4. Reward Loyalty
10/20/03 19
Feel Included
Getting Better
3. Usage• More than beginner• Equipment Investment• “My club”
Customer Experience
2.Trial• Introduction• Driving Range• Nine holes
4. Loyalty• More Rounds• More Purchases• Missionary Work
Holistic View
Can’t get enough
My Sport
1.Consideration• Friend’s invite• Tournament• Learn-to Promo
10/20/03 20
A New Approach
Extend the golf product line
Nine holes Par threes Family and ladies times Special introductory instruction Other family activity
•
10/20/03 21
A New Approach
Use Your Best Customers
Best customers are excited & they want to share that excitement.
Customer missionaries are your most credible marketers.
Avids are the most valuable and they will attract more Avids.
Arm them and they will prove your best competitive weapon.
10/20/03 22
A New Approach
Integrate your efforts
Develop an omnibus plan
Agree on common standards
Adopt common themes/ messages
Each take on a piece of the plan
Measure and critique
10/20/03 23
There is a Bottom Line
Reject magic bullets
+ Learn to become marketers
+ Coordinate marketing efforts
Renewed Growth and Profits
10/20/03 24
And success follows . . . end of story.