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

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3 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 16 th to October 22 nd 2006.

4 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

5 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

6 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

7 Best Customers Are In Tune With the Ways the Game is Changing Golf is more accessible Golf is less accessible Mean Score = Golf is more mainstream Golf is less mainstream Mean Score = Golf is Less elitist Golf is more elitist Mean Score = 4.6

8 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 = More kids are committed to golf Fewer kids are committed to golf Mean Score = Today’s pros are more athletic than in the past Today’s pros are less athletic than in the past Mean Score = 6.1

9 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

10 Top Tier Middle Tier 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 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 Bottom Tier

11 Best Customers Believe that the Industry Should Focus on Youth Involvement, Affordability & Accessibility 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 Top Tier Middle Tier Bottom Tier

12 A Comparison Of Perceived Current Focus With Best Customers’ Recommendations Shows A Lack Of Alignment STRATEGY PERCEIVED CURRENT FOCUS DESIRED FOCUS Getting More Kids to Play Golf1 st Getting More Women to Play Golf2 nd 4 th Increasing Minority Participation in Golf3 rd 6 th Demonstrating that golf gives back to charity4 th 8 th Making Golf More Accessible5 th 3 rd Saying how golf is a great way to make and connect with friends 6 th 5 th How professional golfers are good athletes7 th 10 th How golf is aesthetically pleasing and environmentally sensitive 8 th 9 th Making golf more affordable9 th 2 nd Getting Golfers to Play More Rounds of Golf10 th 7 th

13 Needs Relatively Less Communication Emphasis Needs More Communication Emphasis Good Balance Analyzing Gaps in Descriptive vs. Prescriptive Assessments of Desired Communication Strategies

14 Needs Relatively Less Communication Emphasis Needs More Communication Emphasis Good 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

15 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 Needs Relatively Less Communication Emphasis Needs More Communication Emphasis Good Balance A Greater Push On These Message Points Would Be Beneficial To The Growth Of The Game

16 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 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.

17 Who Should Participation Growth Advertising Target? Casual Players Avid Golfers Baby Boomers Business People Young Adults Women Kids Club Members Kids Under 12 Seniors Families Other New Golfers Currently Targeted Less Currently Targeted More Should Be Targeted More Should Be Targeted Less Opportunities / Groups With Upside Less Focus / Message Saturated

18 Which Messages Most Effectively Promote Growth? Most Effective Messages Golf is great way to make and connect with friends70%5.9 Golf’s values and sportsmanship make it a great game for kids64%6.0 Golf embodies strong values50%5.8 Least Effective Messages Golf is affordable11%4.2 Professional golfers are good athletes2%4.3 Somewhat Effective Messages Golf is for everyone30%4.9 Golf is aesthetically pleasing and environmentally sensitive19%5.2 Golf is steeped in tradition17%5.2 Golf is more accessible than ever15%4.8 Golf gives back to charities and the community13%4.9 Golf courses are a positive addition to the environment10%5.2 % Selected as Top 3 Message Mean Score 7-Point Scale

19 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

20 What Messages Would Encourage Best Customers to Play More Rounds Most Effective Messages Golf is about sharing time with friends53%5.8 Golf values & sportsmanship make it a great game for kids and adults alike32%5.9 Golf – the game for life. One good shot will make a memory for a lifetime31%5.6 Somewhat Effective Messages Golf is about the beauty of being outdoors in nature30%5.3 Golf is the ultimate challenge27%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 exercise18%4.8 Golf is about competition16%4.6 Golf is a great family activity13%5.0 Golf is fun and is a guaranteed good time12%5.0 Golf is interesting enough to try once, and challenging enough to keep trying10%5.3 Golf is an acquired taste and the more you try it, the more you enjoy it8%4.9 Golf courses are an asset to the community4%5.2 % Selected as Top 3 Message Mean Score 7-Point Scale Least Effective Messages Golf is more accessible than ever to everyone3%4.4 Golf is cool2%4.4 Professional golfers are good athletes1%4.5

21 Messaging Should Also Appeal to Best Customers’ Key Drivers Nicely 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 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 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)

22 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

23 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 Also Effective Golf is for Everyone Aesthetics/Environment Tradition