Transcript Document

Jon Last
Vice President, Corporate Marketing & Research
Golf Digest Companies
Page 2
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
Introduction to the Game
Driven as Much by Friends & Business Associates as by Family
Q. How were you first introduced to Golf?
Parents/Spouse/Other Family (Net)
40%
Total
Best Customers
Friend/Work Colleague (Net)
34%
Introduction to the Game
Where Did You First Play Golf?
Total
Best Customers
%
Core
Golfers
%
Avid
Golfers
%
At a public course
59
57
60
At a par 3 or short course
14
16
13
At a private club
12
At a range
9
12
6
At school
2
2
2
23%
9
28%
14
19%
Introduction to the Game
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!
Mean Scores (1-7 Scale)
Reasonably Priced Introductory
Lessons at Driving Ranges
6.17
Junior HS and HS Golf
In PE Programs
6.06
5.84
Free Golf Days At the Course
Adding Women’s Golf Programs
by Women and for Women
5.76
Bundle New Equipment
Purchases with Lessons
Elementary School Golf
In PE Programs
5.62
5.55
Total
Best Customers
Introduction to the Game
If Today’s Best Customers Are Indicative of the Future,
We Need to Hook Them Younger!
Q. When did you first learn to play?
45-54
6%
55-64
1%
65+
1%
35-44
10%
Under 18
44%
25-34
17%
Total
Best Customers
18-24
21%
Drivers of Satisfaction and Enjoyment
Drivers of Satisfaction and
Enjoyment
Drivers of Enjoyment – Conditions, People & Performance
Mean Score (1-7 Scale)
Total
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 and
Enjoyment
Overall Enjoyment Is Less about Course
Challenge & More about Conditioning
Forced Choice: Do you generally prefer to play a course that is…
Very challenging,
not top condition
12%
Total
Best Customers
88%
Not as challenging but in
very good condition
Drivers of Satisfaction and
Enjoyment
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 Course
Conditioning
Better
Architecture/Course
Layout
Drivers of Satisfaction and
Enjoyment
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?
Total
Best Customers
%
Core
Golfers
%
Avid
Golfers
%
The people you play with
vs. How well you play
57
43
61
39
54
46
The people you play with
vs. The condition of the golf course
56
44
61
39
52
48
The people you play with
vs. The pace of play
63
37
68
32
58
42
• 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.
Key Best Customer Attitudes
About the Game
Key Best Customer Attitudes
About the Game
What Golfers are Thinking Today!
Agreement Ratings on 27 Statements
Mean Scores (1-7 Scale)
Total
Best Customers
Core
Golfers
Avid
Golfers
1. There are no guarantees in golf
6.23
6.17
6.29
2. More young players like Tiger Woods and Michele Wie
have been instrumental in growing the game
6.14
6.10
6.18
3. Golfers today are more athletic than they were
20 years ago
5.61
5.50
5.70
4. Golf is an intimidating game for beginners
5.55
5.46
5.63
Key Best Customer Attitudes
About the Game
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
Total
Best Customers
%
For me, golf is more about the competition
Core
Golfers
%
Avid
Golfers
%
35
27
42
65
73
58
Or
For me, golf is basically a leisure activity
Key Best Customer Attitudes
About the Game
…And It’s More about Preference for Course Variety
I would rather play the same
course on a regular basis
19%
Total
Best Customers
81%
I would rather play a
variety of courses
Key Best Customer Attitudes
About the Game
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 of
the 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
Inhibitors to More Play
Bad Behavior, Course Condition & Skill Level
Q. What inhibits your enjoyment of the game of golf?
Mean Scores (1-7 Scale)
Total
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
Inhibitors to More Play
Cost & Time – The Two “Crutches”
Q. What inhibits your enjoyment of the game of golf?
Mean Scores (1-7 Scale)
Total
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
Inhibitors to More Play
A Further Look At Costs
Total
Best Customers
Core
Golfers
Avid
Golfers
So cheap that its quality would
be questionable?
$20
$20
$21
Such A bargain that you would
definitely purchase it?
$31
$30
$33
Starting to get expensive, but still
worth considering?
$55
$52
$57
So expensive that you would not
consider it?
$93
$88
$98
Inhibitors to More Play
Going Beyond the Crutches
They Say
Crutch #1
Crutch #2
“Golf is too
expensive”
“I don’t have
enough time to
play golf”
They Mean
“I’m not getting value out of my
experience”
Issues
Customer service; Pace
of play; Conditions
“I spend on lessons & equipment
but I don’t get better”
“My on-course experience doesn’t
justify the time investment”
Too crowded; bad
service; lack of
improvement
Inhibitors to More Play
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
Drivers of Increased Play:
Concepts
Success Breeds Interest and Increased Play
Why are you playing MORE Golf in last two years?
Total
Best Customers
#2 – My game has improved
50%
Why do you expect to be playing MORE Golf in the next 3 years?
Total
Best Customers
#1 – My game has improved
46%
• 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!”
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?
Total
Best Customers
#3 – I have more golf partners to play with
41%
#4 – My family is more involved with golf
19%
Drivers of Increased Play:
Concepts
…Enhanced Service Would Also Improve the Golf Experience
Q. What would enhance your overall golf experience?
Mean Scores (1-7 Scale)
Total
Best Customers
Improved pace of play
5.98
Courteous and upbeat staff
5.92
Marshals who do their job
5.14
Drivers of Increased Play:
Concepts
Growing the Game is More about Adding New Golfers
Q. What do you think is more important to insure golf’s future?
Getting Existing
Golfers To Play More
• Those favoring new golfers spoke to:
26%
Bringing In New
Golfers
74%
Total Best Customers
– Junior golf programs
– Continuous focus on minorities
and women
Drivers of Increased Play:
Concepts
Growing the Game is More about Adding New Golfers
Q. What do you think is more important to insure golf’s future?
Getting Existing
Golfers To Play More
26%
Bringing In New
Golfers
74%
Total Best Customers
• However, a significant
number of respondents
took on a more
protectionist approach
Drivers of Increased Play: Tactics
Drivers of Increased Play:
Tactics
Q. How Effective Would The Following Be In Getting
Golfers To Play More Frequently?
Top 5 Out of 9 Tested
Mean Scores (1-7 Scale)
Reduced Fees During Off-Peak Hours
6.18
Discounted Golf Packages
6.03
5.31
Less Expensive Golf Instruction
Joining An Organized Golf League
Family Golf Programs
4.81
4.64
Total
Best Customers
Drivers of Increased Play:
Tactics
Moving Golf Leagues to the 40% Mark
Total
Best Customers
%
Core
Golfers
%
Avid
Golfers
%
35
26
44
Golf leagues not through work
26
16
36
Golf leagues through work
12
11
13
Current Participation
Any Leagues (Net)
Drivers of Increased Play:
Tactics
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.
Drivers of Increased Play:
Tactics
Innovative Memberships Programs: The Health Club Model
“Market golf like your local gym club.”
Martin S - Los Angeles
Drivers of Increased Play:
Tactics
The Health Club Model: What Would It Take?
Number of rounds you would prepay for in a month for unlimited golf
Total
Best Customers
Core
Golfers
Avid
Golfers
Average Number of Rounds:
5.29
4.94
5.67
Median Number of Rounds:
5
5
5
Extremely interested
Drivers of Increased Play:
Tactics
Another Popular Option: Consumer Loyalty Programs
with REAL, Attainable Rewards
Extremely interested
Total
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%
Drivers of Increased Play:
Tactics
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
Drivers of Increased Play:
Tactics
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
Drivers of Increased Play:
Tactics
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
Drivers of Increased Play:
Tactics
Promoting the Golf Family
Q. What other family members play golf?
Total Golfers
Core Golfers
Avid Golfers
51%
41%
44%
55%
48%
38%
Spouse or Significant Other
Child/Children
The Future – Golf in the Year 2150
The Future:
Golf in the Year 2150
Optimism in General – But Lots of Caveats Too!
Mean Scores (1-7 scale)
Best
Customers
1. Golf will be bigger than ever as media and grass roots
programs 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 increasing
cost of real estate
4.61
Implications
Implications
The Attrition Battle: Tipping The Scale of Critical Success Factors
Play More If
Benefits > Detractors
Play Less If
Detractors > 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