Jon Last Vice President, Corporate Marketing & Research Golf Digest Publications

2

Introduction & Methodology

•

Last year The Golf Digest Publications’ Research Resource Center conducted the largest and most comprehensive study ever done on Golf’s Best Customers

•

This year, The Research Resource Center once again turned to to gauge their opinions on the golf Golf’s Best Customers industry’s communication efforts to increase participation and grow the game.

•

To ensure that all respondents fit the profile of “best customers” they were required to have played at least 12 rounds a year on a mixture of public and private/semi-private courses. They were a total of 600 respondents to this survey, which was conducted online from October 16 th to October 22 nd 2006.

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Objectives – Looking To Our Best Customers

•

For detailed understanding of their awareness of, familiarity with, and opinions on the golf industry’s communication efforts

•

Encompassing, but not limited to:

–

How aware are best customers of efforts to promote growth

– – –

What groups do they believe are being targeted How is the game being positioned to encourage growth How would the game be best positioned and what groups are the best targets

–

Does the golf industry effectively communicate a unified message for growth

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Who Are Best Customers?

•

Golf’s Most Dedicated Players

– –

Core Golfers Avid Golfers – 8 to 24 Rounds a Year – 25 or More Rounds a Year

•

But, many are “Maxed Out” and are Having Trouble Increasing Play

–

49% say they’re currently playing the same amount of golf as they have over the past two years

– –

57% expect to be playing the same amount over the next three years 63% plan to spend the same amount on golf over the next three years

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Why Ask Best Customers?

•

Still The Bedrock of Our Industry

–

Core and Avid Golfers play the most rounds:

•

Average 64 Rounds a year

–

They are increasingly engaged with the game:

•

29% plan to spend more on golf over the next three years

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Best Customers Are In Tune With the Ways the Game is Changing

Golf is less accessible

1

Mean Score = 4.9

Golf is more accessible

7

Golf is more elitist

1

Mean Score = 4.6

Golf is Less elitist

7

Golf is less mainstream

1

Mean Score = 4.8

Golf is more mainstream

7

7

These Guys Are Good – Golf’s Best Customers Recognize Athleticism of Today’s Pros

Fewer women are committed to golf

1

Mean Score = 4.5

More women are committed to golf

7

Fewer kids are committed to golf

1

Mean Score = 4.5

More kids are committed to golf

7

Today’s pros are less athletic than in the past

1

Mean Score = 6.1

7

Today’s pros are more athletic than in the past 8

Best Customers Are Aware of the Efforts to Increase Golf Participation

I have a clear understanding of how the game of golf is being promoted in the US today I have seen advertising about playing golf and promoting the game of golf in the last six months I am aware of the golf industry’s efforts to increase golf participation*

However… 6% 65% 65%

Only 6% are “Very Aware” of those efforts

71%

*% that indicated some level of awareness on a 7 point scale (4+) 9

Efforts Targeting Kids, Women and Minorities Have the Most Resonance

Which of the following strategies do you think defines how golf is currently being promoted in the United States?

Getting More Kids to Play Golf Getting More Women to Play Golf Increasing Minority Participation In Golf Demonstrating that Golf Gives Back to Charity Making Golf More Accessible Saying How Golf is a Great Way to Make & Connect with Friends How Professional Golfers Are Good Athletes How Golf is Aesthetically Pleasing & Environmentally Sensitive Making Golf More Affordable Getting Golfers to Play More Rounds of Golf

20% 19% 18% 28% 36% 43% 62% 51% 59% 96%

Top Tier Middle Tier Bottom Tier 10

Best Customers Believe that the Industry Should Focus on Youth Involvement, Affordability & Accessibility Please indicate the three statements you personally think are most effective for promoting growth in golf participation

Getting More Kids to Play Golf Making Golf More Affordable Making Golf More Accessible Getting More Women to Play Golf Saying How Golf is a Great Way to Make & Connect with Friends Increasing Minority Participation In Golf Getting Golfers to Play More Rounds of Golf Demonstrating that Golf Gives Back to Charity How Golf is Aesthetically Pleasing & Environmentally Sensitive How Professional Golfers Are Good Athletes

3% 10% 10% 23% 20% 15% 34% 40% 62% 82%

Top Tier Middle Tier Bottom Tier 11

A Comparison Of Perceived Current Focus With Best Customers’ Recommendations Shows A Lack Of Alignment STRATEGY Getting More Kids to Play Golf Getting More Women to Play Golf Increasing Minority Participation in Golf Demonstrating that golf gives back to charity Making Golf More Accessible Saying how golf is a great way to make and connect with friends How professional golfers are good athletes How golf is aesthetically pleasing and environmentally sensitive Making golf more affordable Getting Golfers to Play More Rounds of Golf PERCEIVED CURRENT FOCUS 1 st 2 nd 3 rd 4 th 5 th 6 th 7 th 8 th 9 th 10 th DESIRED FOCUS 1 st 4 th 6 th 8 th 3 rd 5 th 10 th 9 th 2 nd 7 th

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Analyzing Gaps in Descriptive vs. Prescriptive Assessments of Desired Communication Strategies Needs Relatively Less Communication Emphasis -8 -7 -6 -5 -4 -3 -2 -1 0 Good Balance 1 2 3 4 5 6 7 8 Needs More Communication Emphasis

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Analyzing Gaps in Descriptive vs. Prescriptive Assessments of Desired Communication Strategies

Getting More Women To Play Golf

The Industry Is Currently Doing An Excellent Job Of Articulating These Messages

How Professional Golfers Are Good Athletes

Needs Relatively Less Communication Emphasis -8 -7 -6 -5 -4 -3 -2 -1 0 Good Balance 1 2 3 4 5 6 7 8 Needs More Communication Emphasis

Increasing Minority Participation In Golf Demonstrating That Golf Gives Back To Charity 14

Analyzing Gaps in Descriptive vs. Prescriptive Assessments of Desired Communication Strategies

Saying How Golf Is A Good Way To Make & Connect With Friends Making Golf More Affordable Getting More Kids To Play Golf

Needs Relatively Less Communication Emphasis -8 -7 -6 -5 -4 -3 -2 -1 0 Good Balance 1

Making Golf More Accessible

2 3 4 5

Getting Golfers To Play More Rounds Of Golf

A Greater Push On These Message Points Would Be Beneficial To The Growth Of The Game

How Golf Is Aesthetically Pleasing And Environmentally Sensitive

6 7 8 Needs More Communication Emphasis

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Who Should Participation Growth Advertising Target?

75% Who do you think advertisements promoting golf

ARE

most targeted to?

58% 56% 51% 30% 21% 34% 30% 22% 25% 45% 48% 5% Vs.

Avid Golfers Baby Boomers Business People Casual Players Club Members Families Kids 12 - 17 Kids Under 12 New Golfers Seniors Women Young Adults Other Who do you think advertisements promoting golf

SHOULD BE

targeted to?

36% 40% 23% 72% 9% 41% 61% 45% 41% 16% 55% 59% .9% 16

Who Should Participation Growth Advertising Target?

Should Be Targeted More 100.0% 90.0% Currently Targeted Less 0.0% 80.0% Casual Players 70.0% Kids 12 - 17 Women 60.0% Young Adults 10.0% 20.0% Families 30.0% 40.0% 50.0% 50.0% Kids Under 12 New Golfers 40.0% 60.0% 70.0% Baby Boomers 80.0% Avid Golfers 90.0% 100.0% Currently Targeted More Other 30.0% 20.0% Seniors 10.0% Club Members Business People 0.0% Should Be Targeted Less 17

Which Messages Most Effectively Promote Growth?

% Selected as Top 3 Message Mean Score 7-Point Scale Most Effective Messages

Golf is great way to make and connect with friends Golf’s values and sportsmanship make it a great game for kids Golf embodies strong values 70% 64% 50% 5.9

6.0

5.8

Somewhat Effective Messages

Golf is for everyone Golf is aesthetically pleasing and environmentally sensitive Golf is steeped in tradition Golf is more accessible than ever Golf gives back to charities and the community Golf courses are a positive addition to the environment

Least Effective Messages

Golf is affordable Professional golfers are good athletes 30% 19% 17% 15% 13% 10% 11% 2% 4.9

5.2

5.2

4.8

4.9

5.2

4.2

4.3

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While They Agree Focus Should be on Less Engaged Players, Best Customers Can Help to Grow the Game As Well Focus should be on getting existing golfer to play more rounds

24%

Focus should be on getting new players into the game

76% • Recall, when asked to indicate most effective growth strategies for golf participation, only 15% of golf’s Best Customers agree that getting current golfers to play more rounds should be one of the industry’s top strategies 19

What Messages Would Encourage Best Customers to Play More Rounds

Most Effective Messages Golf is about sharing time with friends Golf values & sportsmanship make it a great game for kids and adults alike Golf – the game for life. One good shot will make a memory for a lifetime

% Selected as Top 3 Message

53% 32% 31%

Mean Score 7-Point Scale

5.8

5.9

5.6

Somewhat Effective Messages Least Effective Messages Golf is about the beauty of being outdoors in nature Golf is the ultimate challenge Relax. Play Golf.

Golf. You don’t have to be good to have a good time.

Golf is great exercise Golf is about competition Golf is a great family activity Golf is fun and is a guaranteed good time Golf is interesting enough to try once, and challenging enough to keep trying Golf is an acquired taste and the more you try it, the more you enjoy it Golf courses are an asset to the community Golf is more accessible than ever to everyone Golf is cool Professional golfers are good athletes 30% 27% 21% 21% 18% 16% 13% 12% 10% 8% 4% 3% 2% 1% 5.3

5.2

5.3

5.1

4.8

4.6

5.0

5.0

5.3

4.9

5.2

4.4

4.4

4.5

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Messaging Should Also Appeal to Best Customers’ Key Drivers

How important are the following items in terms of your enjoyment of a day of golf? – Mean Score (7-point Scale) Nicely maintained greens and bunkers Nicely maintained fairways and tee boxes The people you play with Playing well on the course Fast pace of play Beautiful surrounding and scenery Scoring well Practice facilities, including ranges, chipping areas, and putting greens Courteous and knowledgeable marshals and starters Challenging course Well run and full service pro shop Attractive clubhouse and amenities Availability of beverage carts on both the front and back nine Leisurely pace of play Well stocked 19 th hole After golf events like clinics, barbeques, and putting contests Less challenging course On course contests like closest to the pin and long drives

3.1

3.0

2.9

3.7

3.6

4.0

4.4

4.8

5.1

5.3

6.1

6.0

5.9

5.8

6.3

5.8

5.7

5.7

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Final Implications and Takeaways

• Best Customers may be currently maxed out in terms of increasing their play and look to more casual / newer golfers to drive participation growth • Best Customers have mid-level awareness of the industry’s promotion message points, but they are not necessarily consistent with their thoughts on what would be most effective 22

Final Implications and Takeaways

Messages Should Emphasize:

Youth • Accessibility • Affordability • Camaraderie

Most Potentially Powerful Messages, According To Golf’s Best Customers

Top Tier Also Effective Connectivity & Camaraderie Values & Sportsmanship Enduring Memories Golf is for Everyone Aesthetics/Environment Tradition 23