Golf Car Budget Projections

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Golf Car Budget Projections document sample

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							RUFFIN BECKWITH
Senior Vice President
World Golf Foundation
AMERICA’S “WELCOME
TO GOLF” PROGRAM
Nancy Oliver
Link Up 2 Golf
WORKSHOP BREAKOUTS
• Branding
• Marketing
• Method of Site Selection
• Improving Retention
• What is needed to move forward and what
  can each segment of the industry contribute
  to meet those needs.
RECOMMENDATIONS ON
BRANDING
• Assn. logos brought value & credibility
• Needs to stay non-commercial
  (nationally as well as locally)
• Comparable programs in place could become
  LU2G affiliates
• Individual courses with similar programs
  could start as affiliates, and convert to LU2G
  brand as appropriate
RECOMMENDATIONS ON
BRANDING
• Website should serve as primary umbrella for
  all new player development
• Suggested revising name to directly
  communication to new golfers
• Need a mission statement
NATIONAL MARKETING
CONCEPTS
• Focus on latest demand
• Portray fun in visuals
• National spokesperson
  (recognizable by non-golfers)
• All industry sites to feature links to LU2G
• Create “Introduce a Friend to Golf” campaign
NATIONAL MARKETING
CONCEPTS
• Use cable distributors of Golf Channel for
  regional impact
• Promote where fans are (tournaments,
  consumer golf shows, etc.)
• Direct all leads to LU2G website
• CAUTION: National promotion to coincide
  with sufficient number of sites on website
SITE SELECTION
• Focus should be on public access facilities
• No limitations on quantity or geography
• Must meet basic minimum requirements
• Should have necessary staff resources,
  existing database, customer friendly, teaching
  professional dedicated to LU2G
SITE SELECTION
• Local courses should be responsible for
  local marketing
• National marketing funded nationally
• Prospective sites should go through
  application process
• Approved facility should enter 2 year
  agreement listing requirements & benefits,
  with opportunity for renewal
IMPROVING RETENTION
• Establish on-going communication vehicle
  with students
• Offer organized play after graduation
• Facilitate social activities among new golfers
• Created follow-up packages
• Develop more opportunities for 9-hole golf
WHAT NEXT?
What is needed to move forward and what can
each segment of the industry contribute to meet
those needs?

• What should happen
• Items to be contributed
• Items that need additional funding
WHAT SHOULD HAPPEN
• NGCOA & PGA should drive the program
• Must be able to economically succeed on a
  local grass-roots level
• Program needs to be turn-key…just add
  water.
• Would like PGA refocus energy from Play
  Golf America & certification programs to
  player development programs.
WHO CAN CONTRIBUTE WHAT
• Airtime and space for advertising – PGA
  Tour, LPGA, USGA, PGA of America, golf
  publications
• Website Links to LU2G – Everyone
• PGA Sections to assist in identifying suitable
  host facilities
• PGA Tour Productions to help produce
  training vehicles
• Manufacturers could donated free demo
  clubs
ITEMS THAT REQUIRE
FUNDING
• Upgrade and manage website
• Produce and distribute promotional materials
• Training Expenses
• Create an incentive for golf professionals to
  recruit and retain players
• Minimal staff
LINK UP 2 GOLF FACILITY
RECOMMENDATIONS FOR 2003
• Prepare and present overall business plan
• Measure Retention in 2003
• Develop viable host facility model
• Minimal expansion in 2003
• Identify potential LU2G affiliates
• Have program ready to roll-out in fall, 2003
JuniorLinks USA
John Engh
Vice President, Youth Development
National Alliance for Youth Sports
JuniorLinks.com
• Registration drive
• Continued support of USGA Foundation
• Need for industry to provide promotion
  and content
JuniorLinks USA: CONCEPT
• Develop alliances with non-golf
  organizations (Boys & Girls Clubs)
• Facilitate alliances within junior golf
• Oversee development of the schools
  initiative of the schools initiative
JuniorLinks USA
• Task force to develop growth objectives
• Need for more focused goals
• Overall agreement that concept is worth
  pursuing
• Task force to refine concept in first
  quarter 2003
GOLF IN SCHOOLS
Dr. Betsy Clark
Vice President of Professional Development
Ladies Professional Golf Association
FORM A SUB GROUP OF 2020
JUNIOR TASK FORCE TO FOCUS
ON SCHOOL GOLF PROGRAMS
• Assess current status of integrated physical
  education (PE) school golf programs nationwide
  – Identify school PE golf curriculum that incorporates
    national PE standards, i.e. SNAG

• Identify school-based “champions” and target
  markets for program implementation
• Develop a budget model and identify funding
  resources for each target market
FORM A SUB GROUP OF 2020
JUNIOR TASK FORCE TO FOCUS
ON SCHOOL GOLF PROGRAMS

• Identify and foster golf industry and school
  system partnerships
• Identify and develop “transition into play”
  opportunities for each target market, i.e.
  course access, instruction, equipment, and
  ongoing integration into existing junior golf
  programs (The First Tee, Hook A Kid On Golf,
  LPGA-USGA Girls Golf, and other local
  programs)
RETENTION AND
FREQUENCY
Ben Blake
President and CEO
LinksCorp
RETENTION AND
FREQUENCY with different challenges
• Very different issues
• Research: We know why people leave the
  game; do we know why they play less?
• Collect existing information
• Leagues: will promote more frequent play and
  build a database
• More emphasis on the family
• Retention begins with beginners
• Ongoing issue for 20/20 to address
ALTERNATIVE FACILITIES:
COMMUNICATION AND
RELATIONSHIPS
Steven J. di Costanzo
President Golf Range Association of America (GRAA)
• Need for golf industry to be more inclusive of
  “practice centers and learning facilities”
  – Defined as golf ranges, par 3 courses, executive
    courses, pitch and putt, and golf domes
  – Time to Change the Name to “Practice Centers and
    Learning Facilities”

• Formation of Alternative Facilities Task Force
  and review of year 1 goals
• Review of co-branded Golf 20/20 & Golf
  Range Association of America (GRAA) best
  practices survey
• Sundance Golf Course and Learning Center
  “Success Story”
  – 5 Star transition program from practice to rounds
    played
• New Player Development Programs
  – National junior golf initiative at golf ranges
  – Will Link Up 2 Golf expand to GRAA practice
    centers & learning facilities?
• Research Needs
  – Best Practices-marketing to families
  – Range-only and alternative-only golfer static or
    transitional?
  – Where do people learn the game of golf?
MARKETING TO THE
EMERGING FAN BASE
Joe Louis Barrow Jr.
Senior Vice President, World Golf Foundation
THE EMERGING
POPULATION
• PART ONE
  – THE SHIFTING DEMOGRAPHICS

• PART TWO
  – WHAT CORPORATE AMERICA IS DOING

• PART THREE
  – WHERE DO WE GO FROM HERE?
  – WHAT CAN WE LEARN FROM CORPORATE
    AMERICA
SHIFTING DEMOGRAPHICS AND
ECONOMIC OPPORTUNITIES
Ken Lovell
Director, Research & Development
PGA TOUR
FAN BASE
• Fan base becoming
  more diverse
• Remains below level
  of non-minority fans
• TV audience shows
  similar trends and
  some opportunities
          DEMOGRAPHIC
          PROJECTIONSno longer be the minority
            By 2060, “Minorities” will

                      90
                      80
 % of US Population




                      70
                      60
                      50
                      40
                      30
                      20
                      10
                      0
                           1980   2000   2020   2040   2060   2080
                                     Multi-ethnic   White
Source: US Census 2000
            MINORITY BUYING POWER
                                                       As The Minority Population Grows,
                                                  Its Purchasing Weight Grows Proportionately

                                                   $1,000
                        Buying Power (Billions)




                                                                                        Black
                                                    $750
                                                                                        Hispanic
                                                    $500
                                                                                        Asian

                                                    $250                                N ative
                                                                                        Americans

                                                      $0
                                                            1990   2000   2002   2007
Source: Selig Center for Economic Growth
PARTICIPATION
• Leading to much lower numbers of participating golfers


                                     Estimated Total Participants
       24.6                                     2001




                               1.3          1.4        0.4          0.1

       White               Hispanic        Black      Asian         Other

Source: National Golf Foundation
PARTICIPATION
• Minorities have lower participation rates than whites


14%
                 12%
12%
                                    Estimated Participation Rates
10%                                            2001
 8%

 6%                                   5%          5%           5%

 4%

 2%

 0%
                White               Afr ican-   Hispanic     Other
                                   Amer ican
Source: National Golf Foundation
QUANTIFYING THE
OPPORTUNITY
• Estimated 2001 Incremental Minority
 Spending
• Average Spending per golfer
  – African Americans:   $988 per year
  – Hispanics:           $872 per year
• Incremental Golfers
  – African Americans:   1.9 Million
  – Hispanics:           1.7 Million

• Estimated Incremental Spending in 2001:
  –$3.4 Billion
SUMMARY
• Minorities are growing
• Minority interest in golf is growing
• Minority participation is low
• The upside for golf marketing to minorities is
  substantial
MARKETING TO THE FAN
BASE
Mike de Maio
Managing Director
Burrell Communications, Inc.
MARKETING TO THE FAN
BASE
Gregory Dixon
Manager for Diversity Marketing and Communications
Volvo Cars of North America
VCNA MISSION
We, Volvo, deliver the Best Product, the Best
Value and the Best Experience

To a Diverse Target Audience

Via our Product-, Communication- and Retailer
Network Strategies and Actions
CHALLENGES FACING
VOLVO:
Lagging in Diversity
•   Lowest ratio of sales                                   Volvo       Acura     Audi       Infiniti
    to African                                              Cars    Cars   SUV    Cars     Cars     SUV
    Americans, Asians               African American          4%      4%     2%       4%     5%      7%
    and Hispanics                   Hispanic                  3%      4%     3%     3%       2%       2%
    among all                       Asian American            2%     11%    12%     5%       5%       7%
    Premium/Luxury                  Share of total            9%     19%    18%    12%      12%      15%

    brands.*

•   Diverse consumers                                          BMW         Mercedes          Lexus
                                                            Cars    SUV    Cars   SUV      Cars   SUV
    represents 9% of
    total Volvo sales.*             African American          4%      2%     8%       8%     5%      4%
                                    Hispanic                  3%      2%     4%       6%     3%      2%
                                    Asian American           14%     21%     9%       9%     8%      10%
                                    Share of total           21%     25%    21%    23%      16%      15%




* = Source: Strategic Vision 2002 NVES Early Buyers Study
THE EMERGING
POPULATION
WHERE DO WE GO FROM HERE?
• First
   – Quantify current Fan base and Participation rates.

• Second
   – Set Industry specific targets for Fan base
     and Participation.

• Third
   – Develop marketing plans that target the
     emerging population.
WOMEN: A MAJOR
CONTRIBUTOR TO GROWTH
Pam Swensen
Vice President, Sales and Marketing
Executive Women’s Golf Association
Retention: Discuss the research and
programs that have been developed
to reach and maintain the attention,
dollars and interest of the six million
women who currently consider
themselves “golfers.”
Attraction: Develop concepts for new
programs, research and marketing to
assist the industry to reach and capture
the attention of women who would like to
become part of the game.
1. Develop a relationship between
LinkUp2Golf and the EWGA, as an
example, as a natural transition to
integrate women into other
participation initiatives.
2. Build awareness that there are
successful women’s programs in
existence for women to learn and
flourish in the game.
3. Continue to include the women’s
segment into the planning of industry
programs and initiatives. Increase
sensitivity in industry-wide
communication efforts.
4. Encourage a brand image campaign
that includes women
and other emerging markets.
5. Conduct focus group research.
COLLEGES
Dick Horton
Tennesse Section PGA
BACKGROUND
• PGA of America to date has Golf for Business &
  Life programs in 24 colleges and universities
  operational for the past two years
• 3500 students are in these programs, 95% want
  to continue the game, 50% of these students
  never had played golf
• 35% are women
• PGA has committed $1.6 million to date and will
  add another $1.4 million - total investment: $3
  million
BACKGROUND
• Universities are embracing the program to
  significant levels
• The quality and experience of PGA teachers is a
  critical factor and one of the key components of
  success
• Management and control process by the PGA
  are actively producing data and research to
  strengthen and refine the current program
CONCLUSIONS
• PGA of America should continue to be the lead
  organization for the college golf initiative
• All other industry stakeholders would buy into
  supporting roles of the college golf initiative
• Funding sources could include:
   – Initial seed money from grants (limited)
   – Student fees (i.e., activity fee - especially if an
     accredited college course)
   – Alumni and business sponsorship support
   – University department funding
       • Career Services Department, Student Life Department,
         Athletic Department
GENERAL COMMENTS/
OBSERVATIONS
• Faculty and administration support and
  involvement is critical, possibly this is the starting
  point that leads to a sustained program
• Allied associations and stakeholders in the
  industry will provide input and support to the PGA
  for the selection of future universities
ASSOCIATIONS
Steve Mona
Chief Executive Officer
Golf Course Superintendents Association of America
QUESTIONS
• Discuss the collective funding concept
• Determine how the association
  community might equitably fund this
  effort
• Prioritize how the funds should be used
CONCLUSIONS
• There is a role for associations to assist in
  overall growth efforts
• No support for general or unspecified fund
• No support for new layer of bureaucracy
• Come back with a funding formula and
  prioritization of projects
• Expected impact of funded programs need to
  be clearly articulated
 CONCLUSIONS
• Little bit from a lot of sources acceptable
• Consider national promotion as a means of
  fundraising
• Allow latitude to all participants in supporting
  overall industry initiatives
• Use in kind resources that associations already
  possess
SUMMARY


Associations will support growth efforts;
   Need initiatives’ cost and impact
          prior to commitment
MEDIA & COMMUNICATIONS
WORKSHOP
Jim Nugent
Publisher, Golfweek
OWNER/OPERATOR
WORKSHOP
David Pillsbury
President, American Golf Company
OVERVIEW
• Owners are grateful for the interest in player
  development shown by the industry
• Several programs have been piloted and
  proven successful
• To date not successful scaling PD program
• Need to convince owners that it’s in their
  enlightened self interest to execute grass
  roots PD program
• Program should be turn key, low start up
  costs, and ultimately, self funding
NEXT STEPS
• Develop a business plan for National PD
  – Scaleable program will require a collaborative
    effort from all stakeholders
  – Program must produce quick site level results:
    New Golfers!
• NGCOA/PGA will develop business plan to
  present to executive board in Q1
• Multi course operators expressed willingness to
  lead execution of the plan
MANUFACTURER/SUPPLIER
WORKSHOP
Dave Branon
Chairman Dunlop/Slazenger (retired)
NEAR CONSENSUS
Golf will not grow without stimulants
• Debate - National Impetus (Programs) vs.
  Local Initiatives
• Agreement that whatever the source it will
  be a grass-roots battle
• Concern that “Golf” is not being compellingly
  presented or taught correctly for the beginners
Note: Retention (and frequency) as important
      as development
CONSENSUS
Funding war-chest will be required

• Debate - Methodology (from dedicated
  tournament to PGA TOUR/player “tax” to
  progressive assessments)…universal
  compliance an issue as is amounts required
• Concern that current initiatives while good are
  not potentially pervasive enough…need menu
  of alternatives (how-to and how-much)
GOLF 20/20 EXECUTIVE
BOARD
New Members

• Bob Dedman, Jr., Chairman & CEO,
  ClubCorp
• Ron Drapeau, CEO, Callaway
• Dave Manougian, COO, The Golf Channel
• Jim Nugent, Publisher, GolfWeek
• Dave Pillsbury, President, American Golf
• Phil Tralies, President & CEO, Club Car
 “Don’t let it end like this.
Tell them I said something.”
    - Pancho Villa’s Last Words

						
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