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Golf Business Update 2012: Opportunities for Growth in Rounds Played

Explore the latest 2012 golf industry updates, including a rise in rounds played year-over-year, factors contributing to this growth, golf participation trends in Canada, and the latent demand for golf. Discover insights on consumer confidence, course development, demographics, and commitment levels among golfers. Uncover the key drivers of retention and the importance of fun in sustaining golfers' commitment.

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Golf Business Update 2012: Opportunities for Growth in Rounds Played

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  1. Golf Business Update 2012 and The Opportunity for Growth

  2. Rounds Played

  3. Rounds Played – 2012 YTD (Up 5.7% Nationally) (% Change from previous year through December) Mountain (+7.0%) West N Central (+7.6%) New England (+3.2%) East N Central (+10.8%) Pacific (+1.6%) Mid Atlantic (+10.1%) South Atlantic (+2.4%) +2.0% or higher +1.9% to -1.9% -2.0% or lower South Central (+5.0%) Source: Golf Datatech National Rounds Played Report in cooperation with PGA Performance Trak and the NGF.Based on a sample of approximately 4,000 reporting facilities

  4. Factors Underlying Jump in Rounds • Weather! • PGA Performance Trak reports playable days up over 6.5% nationally • Consumer Confidence and Spending • Consumer confidence & spending have been gradually rising as the recession driven “hunker down” mentality starts to fade

  5. Rounds Volume % Change Year Over Year 5.7% Source: Golf Datatech National Rounds Played Report

  6. Golf Participation

  7. Golf Participation in Canada

  8. Short Term Participant Trend Participants (MM) 30.0 29.8 29.5 28.6 27.1 26.1 25.7 44% 56% Source: NGF golf participation study

  9. Core Golfers in Canada

  10. Golf Course Development

  11. Growth of Golf Facilities Number of facilities Private Daily Fee Municipal Source: NGF

  12. Net Change in Supply Net Change = new course openings minus permanent closures (18HEQ), not factoring in courses closing for, or reopening from, renovations Source: NGF Facility Tracking

  13. Europe 7,014 21% International Golf Course Supply North America 18,410 54% Asia 4,425 13% Africa 865 3% South America 603 2% Oceania 2,014 6% TOTAL 33,331 199 Golfing Countries

  14. Looking Ahead

  15. Consumer Confidence Index 90 = Normal Index currently stands at 58.6 through January 2013 Source: The Conference Board

  16. Consumer Spending Improving Real Personal Consumption Expenditure Index [Index numbers, 2005=100] Seasonally adjusted Source: Bureau of Economic Analysis - Last Revised on: October 26, 2012

  17. The Opportunity For Growth

  18. Latent Demand Definition: People who express an interest in playing golf, but have not yet started. HOW INTERESTED: Very 6 MM Somewhat 19 MM A Little 47 MM Q: How interested are you in playing golf now? Percent of non-golfing population over age 6 Source: NGF/Synovate

  19. Latent Demand Segments Percent Of Latent Latent Very/Somewhat Interested Beginners (Never Played) Those With Some Experience (Never Committed)1 Former Committed Golfers2 12 47% 9 37% 4 16% 25 100% (1) Classified themselves as “Not” or “OK” (2) Classified themselves as “Fun”, “Hooked” or “Nut” Source: NGF/Synovate

  20. Demographics of Latent Demand • Golf’s latent demand skews: • Female (48% versus 19% of all golfers) • Average Income <$50K (44% versus 23% of all golfers) • Younger – Under 30(43% versus 28% of all golfers) Source: NGF/Synovate

  21. Lapsed Participants Definition: People age 18-69 who have not played in the past two years, but played at some point in the past Lapsed Participants 21.5 Million Lifetime golf experience of Nots and OKs: Played 1-2: 31% Played 3-9: 42% Played 10+: 27% Source: NGF/Synovate

  22. Demographics of Lapsed Participants • Lapsed participants skew: • Female (41% versus 19% of all golfers) • Average Income <$50K (38% versus 23% of all golfers) Source: NGF/Synovate

  23. Understanding Commitment to GolfFrom the “Nuts” to the “Nots”

  24. Traditional View 25.7 Million Golfers 11.3 M OCCASIONAL (1-7 Rounds) 14.4 M CORE (8+ Rounds) • 6% of Rounds • 7% of Spend • 94% of Rounds • 93% of Spend *Average among those who keep score (79% of occasional; 95% of core) Source: NGF/Synovate

  25. Commitment Levels NUTS HOOKED CASUAL FRINGE NOTS I’m a “golf nut,” I love the game and it’s my favorite activity I’m “hooked,” it’s one of my favorite things to do I’m a “casual” golfer – it’s one of several ways I like to spend my recreational time Golf is OK, but I most often choose to do something else with my recreational time I don’t really consider myself a golfer, I play rarely and usually only at the urging of others

  26. Impact of Commitment 25.7 Million Golfers * Percent who say they will be playing in 2 years (Top 2 Box) unless physically unable Source: NGF/Synovate

  27. Frequency vs. Commitment Segments OCCASIONAL (1-7 Rounds) CORE (8+ Rounds) Commitment Category Commitment Category Fringe Fringe Casual Casual Source: NGF/Synovate

  28. Attraction to the Game Reasons golfers like golf: % mentioned as “one of the main reasons I like golf” Source: NGF/Synovate

  29. Demographics Source: NGF/Synovate

  30. The Underpinnings of Commitment Correlation (r) (with Commitment) Completely Agree (5 on a 5 point scale) COMPETENCE .46 .42 Hooked Casual Fringe COMFORT .42 .42 Source: NGF/Synovate

  31. Competence & Comfort Lead to Retention “Comfort” Index by Retention Likelihood* * Likelihood to be playing 2 years from now Competence/Comfort factors scored and indexed to Hooked Golfers (100) Source: NGF/Synovate

  32. It Comes Down to Having Fun % Top 3 Box (8-10) FUN COMMITMENT Q. All things considered, how much FUN is golf for you? (0-10 Scale; 10 = Really Fun) Source: NGF/Synovate

  33. … and Perceiving Value Value Rating Fun Rating Source: NGF/Synovate

  34. Commitment = Prioritization AVERAGE COMMITMENT $86K $84K $88K $73K $92K Avg. Income Source: NGF/Synovate

  35. Implications for Growing the Game

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