Jon LastVice President, Corporate Marketing & ResearchVice President, Corporate Marketing & Research

Golf Digest PublicationsGolf Digest Publications

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 Golf’s Best Customers to gauge their opinions on the golf 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 16th to October 22nd 2006.

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

Who Are Best Customers?

• Golf’s Most Dedicated Players

– Core Golfers – 8 to 24 Rounds a Year

– Avid Golfers – 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

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

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

Golf is more accessible

Golf is less accessible

Mean Score = 4.91 7

1 7

Golf is more mainstream

Golf is less mainstream

Mean Score = 4.8

1 7

Golf is Less elitist

Golf is more elitist

Mean Score = 4.6

1 7

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

More women are committed to golf

Fewer women are committed to golf

Mean Score = 4.5

1 7

More kids are committed to golf

Fewer kids are committed to golf

Mean Score = 4.5

1 7

Today’s pros are more athletic than in

the past

Today’s pros are less athletic than in

the past

Mean Score = 6.1

Best Customers Are Aware of the Efforts to Increase Golf Participation

65%

71%

65%

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*

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

6%However… Only 6% are “Very Aware” of those efforts

TopTier

MiddleTier

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?

18%

19%

20%

28%

36%

43%

51%

59%

62%

96%Getting More Kids to Play Golf

Making Golf More Accessible

How Professional Golfers Are Good Athletes

Saying How Golf is a Great Way to Make & Connect with Friends

How Golf is Aesthetically Pleasing & Environmentally Sensitive

Making Golf More Affordable

Getting Golfers to Play More Rounds of Golf

Getting More Women to Play Golf

Increasing Minority Participation In Golf

Demonstrating that Golf Gives Back to Charity

BottomTier

Best Customers Believe that the Industry Should Focus on Youth Involvement, Affordability & Accessibility

3%

10%

10%

15%

20%

23%

34%

40%

62%

82%Getting More Kids to Play Golf

Making Golf More Accessible

How Professional Golfers Are Good Athletes

Saying How Golf is a Great Way to Make & Connect with Friends

How Golf is Aesthetically Pleasing & Environmentally Sensitive

Making Golf More Affordable

Getting Golfers to Play More Rounds of Golf

Getting More Women to Play Golf

Increasing Minority Participation In Golf

Demonstrating that Golf Gives Back to Charity

Please indicate the three statements you personally think are most effective for promoting growth in golf participation

TopTier

MiddleTier

BottomTier

A Comparison Of Perceived Current Focus With Best Customers’ Recommendations Shows A Lack Of Alignment

STRATEGYPERCEIVED CURRENT

FOCUSDESIRED FOCUS

Getting More Kids to Play Golf 1st 1st

Getting More Women to Play Golf 2nd 4th

Increasing Minority Participation in Golf 3rd 6th

Demonstrating that golf gives back to charity 4th 8th

Making Golf More Accessible 5th 3rd

Saying how golf is a great way to make and connect with friends

6th 5th

How professional golfers are good athletes 7th 10th

How golf is aesthetically pleasing and environmentally sensitive

8th 9th

Making golf more affordable 9th 2nd

Getting Golfers to Play More Rounds of Golf 10th 7th

-8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8

Needs Relatively Less Communication

Emphasis

Needs More Communication

EmphasisGood

Balance

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

-8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8

Needs Relatively Less Communication

Emphasis

Needs More Communication

EmphasisGood

Balance

How Professional Golfers Are Good Athletes

Demonstrating That Golf Gives Back To Charity

Increasing Minority Participation In Golf

Getting More Women To Play Golf The Industry Is Currently Doing An Excellent

Job Of Articulating These Messages

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

Getting More Kids To Play Golf

Saying How Golf Is A Good Way To Make & Connect

With Friends

Making Golf More Accessible

Getting Golfers To Play More Rounds Of Golf

Making Golf More Affordable

How Golf Is Aesthetically Pleasing And Environmentally

Sensitive

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

-8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8

Needs Relatively Less Communication

Emphasis

Needs More Communication

EmphasisGood

Balance

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

Game

Who Should Participation Growth Advertising Target?

Who do you think advertisements promoting golf ARE most targeted to?

Who do you think advertisements promoting golf SHOULD BE targeted to?

Business People

Avid Golfers

Baby Boomers

Casual Players

Club Members

Kids Under 12

Kids 12 - 17

New Golfers

Seniors

Women

Young Adults

Other

Families

36%

40%

23%

72%

9%

41%

61%

45%

41%

16%

55%

59%

.9%

75%

58%

51%

56%

30%

21%

34%

30%

22%

25%

45%

48%

5%

Vs.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Who Should Participation Growth Advertising Target?

Casual Players

Avid GolfersBaby Boomers

Business People

Young Adults

Women

Kids 12 - 17

Club Members

Kids Under 12

Seniors

Families

Other

New Golfers

Currently Targeted

Less

Currently Targeted

More

Should Be Targeted More

Should Be Targeted Less

Opportuniti

es /

Groups W

ith

Upside

Less Focus /

Message

Satura

ted

Which Messages Most Effectively Promote Growth?

Most Effective Messages

Golf is great way to make and connect with friends 70% 5.9

Golf’s values and sportsmanship make it a great game for kids 64% 6.0

Golf embodies strong values 50% 5.8

Least Effective Messages

Golf is affordable 11% 4.2

Professional golfers are good athletes 2% 4.3

Somewhat Effective

Messages

Golf is for everyone 30% 4.9

Golf is aesthetically pleasing and environmentally sensitive 19% 5.2

Golf is steeped in tradition 17% 5.2

Golf is more accessible than ever 15% 4.8

Golf gives back to charities and the community 13% 4.9

Golf courses are a positive addition to the environment 10% 5.2

% Selected as Top 3 Message

Mean Score 7-Point Scale

While They Agree Focus Should be on Less Engaged Players, Best Customers Can Help to Grow the Game As Well

• 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

76%24%

Focus should be on getting new players

into the game

Focus should be on getting existing golfer to

play more rounds

What Messages Would Encourage Best Customers to Play More Rounds

Most Effective

Messages

Golf is about sharing time with friends 53% 5.8

Golf values & sportsmanship make it a great game for kids and adults alike 32% 5.9

Golf – the game for life. One good shot will make a memory for a lifetime 31% 5.6

Somewhat Effective

Messages

Golf is about the beauty of being outdoors in nature 30% 5.3

Golf is the ultimate challenge 27% 5.2

Relax. Play Golf. 21% 5.3

Golf. You don’t have to be good to have a good time. 21% 5.1

Golf is great exercise 18% 4.8

Golf is about competition 16% 4.6

Golf is a great family activity 13% 5.0

Golf is fun and is a guaranteed good time 12% 5.0

Golf is interesting enough to try once, and challenging enough to keep trying 10% 5.3

Golf is an acquired taste and the more you try it, the more you enjoy it 8% 4.9

Golf courses are an asset to the community 4% 5.2

% Selected as Top 3 Message

Mean Score 7-Point Scale

Least Effective

Messages

Golf is more accessible than ever to everyone 3% 4.4

Golf is cool 2% 4.4

Professional golfers are good athletes 1% 4.5

Messaging Should Also Appeal to Best Customers’ Key Drivers

2.9

3.0

3.1

3.6

3.7

4.0

4.4

4.8

5.1

5.3

5.7

5.7

5.8

5.8

5.9

6.0

6.1

6.3Nicely maintained greens and bunkers

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 19th hole

After golf events like clinics, barbeques, and putting contests

Less challenging course

On course contests like closest to the pin and long drives

Scoring well

Courteous and knowledgeable marshals and starters

Practice facilities, including ranges, chipping areas, and putting greens

Challenging course

Beautiful surrounding and scenery

Fast pace of play

Playing well on the course

The people you play with

Nicely maintained fairways and tee boxes

How important are the following items in terms of your enjoyment of a day of golf? – Mean Score (7-point Scale)

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

Final Implications and Takeaways

Messages Should Emphasize: Youth • Accessibility • Affordability • Camaraderie

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

Top Tier

Connectivity & Camaraderie

Values & Sportsmanship

Enduring Memories

AlsoEffective

Golf is for Everyone

Aesthetics/Environment

Tradition