SLRG Golf Market Outlook 2011

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SLRG's annual consumer outlook for the golf market was culled from a survey of over 1,100 avid golfer respondents. It was presented by Sports and Leisure Research Group President Jon Last, on January 28 to invited guests of Sports Illustrated Golf Group at the 2011 PGA Merchandise Show in Orlando, Florida.

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SLRG Golf Market Outlook 2011

  1. 1. The Golfer Mindset 2011Presented January 28, 2011 Ready to Recover? 1
  2. 2. Agenda• Two Minute Take-Aways• Golfer expectations for 2011 perceptions, participation, spending and retail channel preferences• Golfer attitudes in 2011 and their implications for the industry 2
  3. 3. Two Minute Take-Aways• The ―Hangover‖ lingers, but golfers perceive themselves to be removed from its effects, as they slowly emerge from the ―cocoon.‖• Golfers begin to find ―value‖ opportunities and that coincides with heightened expectations. Service remains a key differentiator.• Equipment innovation creates challenges (lack of loyalty; differentiation) AND opportunities (demand, custom fitting). Off course specialty benefits.• Amidst significant membership losses, private club members are concerned about future viability. Corrective action is slow in coming. 3
  4. 4. Background, Objectives and Methodology• Winter 2011 SLRG Sports Omnibus – Assess the attitudes and perceptions of golfers – Control sample of non-sports fans• Sports and Leisure Research Group launched the survey in January 2009, 2010 and 2011• The 2011 online survey included 1,150 golfers 4
  5. 5. Golf’s Popularity: Less Mass but More FansIndicate whether you feel this sport has become morepopular, less popular or stayed the same over the past I watch and follow closely two-three years 6% Net Change 64% 20% PGA Tour Golf PGA TOUR 47% 26% 11% 36% LPGA LPGA TOUR 14% 13% - 23% Net Change 0% 10% 20% 30% 40% 50% 60% 70% 0% 5% 10% 15% 20% 25% 30% 35% 40% Less Popular More Popular Winter 2011 Winter 2010 • LPGA tournaments drop from 34 in 2008 to 24 in 2010 Top 3 Box 5
  6. 6. Up Trend in Expectations….But There is a Gap Between Expectations and Reality• Do you expect to/Did you actually play the same • Do you expect to spend the same amount or moreamount or more in… next year? 100%100% 96% 94% 90% 90% 80% 77% 77% 80% 76% 72% 70% 70% 66% 60% 60% 50% Expected 50% 40% Actual 40% 30% 30% 20% 20% 10% 10% 0% 0% 2009 2010 2011 2010 2011 Top 3 Box 6
  7. 7. Why Golfers are Playing More Among those who expect to play more in 2011 (44% in 2011; 44% in 2010)70% 60%61%60%50% 42%40% 37% 31%30%30% 22% 20% 18%19% 18%20% 15%17% 16% 15% 14% 13%15% 13% 13% 11%10% 6%0% I have more I have more My game has Family I have reduced My family is Ive recently My health has There is better Ive joined a Im playing time golf partners improved obligations business more involved bought new improved value in the golf league or more business to play with have pressures in golf equipment marketplace local program golf decreased Winter 2010 Winter 2011 • Hierarchy remains unchanged Top 3 Box 7
  8. 8. Why Golfers are Playing Less Among those who expect to play less in 2011 (4% in 2011; 7% in 2010) 47% 16% I have less time Its harder to find people to play with 42% 14% 28% 15%Family/Children responsibilities Golf is too expensive 25% 18% 26% My game has not improved or has 10% Health reasons 31% gotten worse 11% 22% 8% More business pressures Courses are too crowded 20% 7% 17% New golfers are making golf less 5% Costs have gone up 22% enjoyable 5% 0% 10% 20% 30% 40% 50% 0% 5% 10% 15% 20% Winter 2011 Winter 2010 Winter 2011 Winter 2010 Top 3 Box 8
  9. 9. Perceptions on New Equipment Purchasing: • Innovation is still alive, but the process is complex Mean 7.5 • Custom Fitting is a game changing opportunity • Brand Loyalty remains compromised60% 56% Mean 6.250% 38% 39%40% Mean 6.1 37% 30%30% 28% 24% 19%20% Mean 5.1 15%10% Mean 7.5 Mean 6.2 Mean 6.1 Mean 5.1 Mean 5.0 3%0% New golf equipment continues Buying new5.0 equipment has Mean golf Buying the right new golf I wont buy new golf equipment Ive found one brand of golf to become more technologically become more complicated equipment can help me to without having a custom fitting equipment that I plan to stick innovative every year process in recent years immediately improve my game first with, when I make my next purchase Top 3 Box Bottom 3 Box Mean: 10 point scale 9
  10. 10. Golf Purchasing Trends; Actual Purchasing Incidence Exceeded Expectation….and 2011 Shows Promise80% 73%70% 68% 60%60% 57% 53%50% 39%40% 35% 34% 32%30% 28% 27% 24% 21% 21% 22% 21% 21% 19%20% 16% 17% 15% 14% 12% 13% 12% 9% 10% 9% 9% 9% 9% 10% 11%10%0% Golf Balls Golf Apparel Golf Shoes Driver(s) Replacement Hybrids Other Faiyway Wedges Golf Bags Putters Irons Grips Woods/Metals Plan to Purchase in 2010 Purchased in 2010 Plan to Purchase in 2011 Top 3 Box 10
  11. 11. Spending Levels: Expectations Continue to Rise, but Actual Purchases Generally Lag Them Expected Purchasing Actual Purchasing 2011 $308 2010 $243 Drivers Drivers 2010 $271 2009 $221 2011 $245 2010 $192Fairway Woods Fairway Woods 2010 $232 2009 $175 2011 $199 2010 $162 Hybrids Hybrids 2010 $178 2009 $161 $- $50 $100 $150 $200 $250 $300 $350 $- $50 $100 $150 $200 $250 $300 11
  12. 12. Spending Levels: Expectations Continue to Rise, but Actual Purchases Generally Lag Them Expected Purchasing Actual Purchasing 2011 $655 $498 2010 Irons Irons 2010 $550 $478 2009 2011 $161 2010 $149Wedges Wedges 2010 $133 2009 $120 $138 2010 $127 2011Putters Putters $124 2009 $129 2010 $- $100 $200 $300 $400 $500 $600 $700 $- $100 $200 $300 $400 $500 $600 12
  13. 13. Spending Levels: Expectations Continue to Rise, but Actual Purchases Generally Lag Them Expected Purchasing Actual Purchasing 2011 $127 2010 $122 Golf Balls Golf Balls 2010 2009 $112 $115 2011 $119 2010 $117 Golf Shoes Golf Shoes 2010 $119 2009 $109 $216 2010 $215 2011Golf Apparel Golf Apparel $211 2009 $211 2010 $- $50 $100 $150 $200 $250 $- $50 $100 $150 $200 $250 13
  14. 14. Spending Levels: Expectations Continue to Rise, but Actual Purchases Generally Lag Them Expected Purchasing Actual Purchasing 2011 $78 2010 $68Replacement Grips Replacement Grips 2010 2009 $68 $59 2011 $138 2010 $137 Golf Bags Golf Bags $140 $120 2010 2009 $- $20 $40 $60 $80 $100 $120 $140 $160 $- $20 $40 $60 $80 $100 $120 $140 $160 14
  15. 15. In An Increasingly Value Driven Economy, Service is Still a Differentiator70% 64% 65% 61%60%50%40% 34%30% 23% 21%20%10%0% Quality service can make the ultimate difference in what I buy If I see something I like, I dont worry about the price Winter 2009 Winter 2010 Winter 2011 Top 3 Box 15
  16. 16. After Temporary Aberration, Off-Course Specialty Regains Primacy; Sporting Goods Still Formidable Top Anticipated Purchase Channels for Golf Equipment40% 37% 35%35% 31%30% 28%25% 26% 25%20% 20% 20%15%10%5%0% Winter 2009 Summer 2009 Winter 2010 Winter 2011 Off-Course Specialty Sporting Goods Retail 16
  17. 17. Brand Loyalty May be Challenged;But Familiar Names Stay Top of Mind 17
  18. 18. A Significant Minority of Country Club Members AreFeeling Concerned About The Private Club Model Private clubs in general, need to make aggressive changes to remain Mean 6.9 49% relevant in the coming years • Less significant in the My club must make aggressive changes to remain viable in the 35% South U.S. Mean 6.1 coming years • More prevalent in West than Mid-West Im concerned about the financial Mean 5.7 35% stability of my club 0% 20% 40% 60% Top 3 Box Mean: 10 point scale Base: National Sample of Private Club Members 18
  19. 19. Efforts to Attract Juniors, Families and Women Are Minimal. Nearly 1/3 Report Aggressive Discounting50%45% 43%40%35% 30%30% Mean 6.8 27% 25%25% Mean 5.320% Mean 6.0 17%15% Mean 5.210% Mean 5.55%0% My club has made concerted My club has aggressively My club has been putting My club recently instituted a My club has been putting efforts to attract younger reduced the cost of more emphasis on junior golf variety of new non-golf more emphasis on womens members in the past few years membership to attract new programs recently programs to attract families golf programs recently members over recent years Top 3 Box Mean: 10 point scale Base: National Sample of Private Club Members 19
  20. 20. Country Club Members Estimate ―The Hit‖ to MembershipLevels—More than Half Report Losses 19% report a gain in membership MembershipLevel Over the 18% 22% 11% 29% 10% 6% 3% Past Two Years Lost more than 10% Lost between 5% and 10% Lost less than 5% Remained flat or consistent over the past two years Increased by 5% 51% report a Increased by 5-10% loss in Increased by more than 10% membership Base: National Sample of Private Club Members 20
  21. 21. Perceptions on Retirement Lifestyle: First, The Good70% 62%60% 54% 49%50% 43% 44% 42% 42% 40% 39%40% 36% 33%30% 28% 22%20% 14%10%0% Im confident that I will have I feel that I will be more I plan to scale down my lifestyle I plan to continue working even I invest so I can retire early enough to retire in comfort comfortable in my retirement in my retirement in retirement than my parents are/were Winter 2009 Winter 2010 Winter 2011 Top 3 Box 21
  22. 22. But It’s Not All A Rosy Picture0.7 61%0.6 50% 51% 50%0.5 45% 45% 45% 43%0.4 38% 31% 29%0.30.20.1 0 Im looking forward to my I consider myself to be health The best years of my life are still Age 60 is the new 40 This year will be a better year "golden years" conscious to come for me than last year Winter 2009 Winter 2010 Winter 2011 Top 3 Box 22
  23. 23. Trend to Watch: Are Golfers Breaking Out of the Cocoon???70% 60%60% 58% 50%50% 47% 39%40% 31%30% 24%20% 15%10%0% Im spending more time at home than I Id rather spend time with family than Im spending more time these days with Spending time with and caring for did two years ago with friends or business associates friends and family, than I did in the past children and aging parents will reduce the time I can dedicate to playing sports and attending sporting events Winter 2010 Winter 2011 Top 3 Box 23
  24. 24. But Child Centricity and Ubiquitous Technology Remain an Impediment90% 81%80% 72% 73%70% 65% 65% 60%60%50% 48% 41% 39%40% 34%30% 26%20%10%0% Theres too much new technology to We live in an age of constent updates The world is less safe for children today Golf is my personal "oasis" from day-to- keep up with than when I was growing up day chaos Winter 2009 Winter 2010 Winter 2011 Top 3 Box 24
  25. 25. Golfers Still Question the Economy…70% 63% 60%60%50%40% 31%30% 24%20%10% 6% 4%0% Theres really no such thing as job security any more We have seen the U.S. unemployment rate reach People will go back to spending freely on luxuries bottom, and it will add jobs in 2011 again in 2011 Winter 2010 Winter 2011 Top 3 Box 25
  26. 26. …But They Feel Better About Themselves!!60% 55%50% 47% 46% 44% 42%40% 34% 32%30% 27%20%10%0% Im more budget conscious today than I Today, I have to make more difficult I feel better about my financial situation Im planning to take a major vacation was two years ago decisions about purchases than I did 5 today than I did a year ago this year years ago Winter 2010 Winter 2011 Top 3 Box 26
  27. 27. Attitudes: Tiger Can Come Back…But It’s Still All About The Golf80%70% 68%60% Mean 7.850% 43% 43%40% 35% 32% 28% 29%30% 20%20% Mean 6.6 Mean 7.0 Mean 6.310% 7% 6%0% Im interested in learning Once an athlete becomes a Professional athletes are Tiger Woods will I expect Tiger Woods to The golfing public is more about the private public figure, it is role models ultimately go down in make a big comeback on rooting for Tiger Woods to lives of top sports stars acceptable for his or her history as the greatest the PGA TOUR in 2011 come back strong in 2011 private life to be open to golfer of all time public scrutiny Winter 2010 Top 3 Box Winter 2011 Top 3 Box Mean: 10 point scale 27
  28. 28. So… What Does This All Mean For Golf Marketing?• Messaging and Marketing Communication should be sensitive to these cultural and perceptual realities: • Emphasis on Personalization and heightened service • With the proliferation of new products, ―guidance‖ is still coveted • Acknowledgement of more ―grounded and pragmatic‖ values, while harkening back to the nostalgia of simpler times and a desire to enjoy them. • Private clubs need to evolve with ―The Sandwich‖ Generation and seize the opportunity to provide ―real time relevance,‖ escape and family focus • Continue to tone down “conspicuous consumption” imagery and messaging, given lingering sensitivity and economic uncertainty 28

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