1. TITLE DATE Segmentation in Sport & Sailing, (simply) Our Sporting Future Conference Melbourne April 2013 Ross Kilborn

2. Segmentation - Fun or frustration ?

3. 8 States/Territories 350 Clubs 60k Club Members High Performance (Fans & supporters) New program(s) Attraction/ Participation Inclusion

4. 1:1 Marketing One decade ago direct marketing expenditure exceeded main media spend for the first time Now on line is at the point of exceeding it ! It’s more effective to identify small groups of people and market to them based on their characteristics

5. But how to identify segments ? (based on like characteristics) 1. Demographic 2. Behavioural 3. Psychographic

6. Demographic Generic Gender Age Family Structure Income / Affluence Ethnicity Geo-demographics Yachting Australia / Sailing Lifestage (age + family status) Geography

7. Behavioural Generic Purchase History Customer value Period of custom Yachting Australia /Sailing Participant/ Club Member Pathway level Boat Type

8. Psychographic Generic Research based Attitude and emotion ASC – GFK Sport Segmentation Sailing (clubs) Competition / Racing Recreational / Social Adventure / Outdoors Cruising

9. Loyalists Socially Engaged Sport Driven Apathetic Clubbers Sidelined Sportsters Club WaryPonderersSelf focusedSport indifferent Sport Athiests ASC Adult Segment profiles

10. Club Wary Pen Portrait The Club Wary are very positive about sports, though they want to enjoy their sport at a slightly less serious and competitive level. Club Wary are not particularly critical of clubs but from past experiences as members, they have some reservations. They see clubs as requiring a significant commitment and lacking in flexibility, can be slightly self conscious about fitting in and playing sport with others. Pen Portrait The Club Wary are very positive about sports, though they want to enjoy their sport at a slightly less serious and competitive level. Club Wary are not particularly critical of clubs but from past experiences as members, they have some reservations. They see clubs as requiring a significant commitment and lacking in flexibility, can be slightly self conscious about fitting in and playing sport with others. Club Wary

11. What to talk to them about? (Products) Beginners / skill building classes / teams Flexible membership around costs (e.g, 2 for 1 memberships) Proactive communications highlighting the facilities of the club Offer of trial ‘membership’ without full financial commitment What to say? (Message areas) Club is inclusive and for all levels Highlight the offer to play the sport they want at good facilities Focus on the sport and facilities Join with a friend Focus building skills while playing Competition as a means of improvement and for self achievement. How to say it? (Tone) Helpful Beginners classes and free trials are popular ways to introduce the Club Wary to clubs. More flexibility in times and prices as well as a less competitive approach could also assist. There are a range of activities which could entice this segment. Ideals for club sport Participation - Club Wary

12. Sailing…….

13. Sailing Segmentation – Simple Summary 1.Demographic a.Lifestage b.Geography 2.Behavioural a.Participant /Member b.Pathway Level c.Boat type 3.Psychographic a.Club Officials – Gold Members!

14. Background Federated structure Limited media, event income or fan base Limited budget Probably similar to many sports ! Membership database of 60k (Limited data depth) Marketing Strategy - 2011 Priority = New Participant Attraction Benefit = Existing Member Retention

15. Marketing Strategy 2011 2011 ASC Pathways to Success Participation Funding 2011-12 Appointment of gemba to conduct market research into sailing and clubs over 3 groups Club Members Participants – non members Australians – yet to Discover Sailing Outcome – Marketing Strategy Brand hierarchy Lifestage Segmentation – 3 priority segments Attributes of the offer, (the barriers) and message and media for each of them

16. The gemba Report ! 1.What Yachting Australia should do 2.What Clubs should do 3. Lifestage Segmentation & priorities

17. New Brand (non sailing public) Contemporary Acquisition led Overarching & Universal Introductory Options Pathway based Key Messages Simple Information A vehicle of cultural change responding to societal trends in sport consumption

18. Yachting Australia Segment Priority Framework Low Below Average Average Above Average High Strategic ImportancePrimary School Secondary School Young Adults Young Families Older Families Working Profession als Empty Nesters Retirees Size of segment (Absolute Size & Future interest in sailing) Commercial Potential of segment (income & YA member spend) Attractiveness to funding partners (Govt & Private) Likelihood of Acquisition of segment ( sports frequency & market share) Ability to influence other segments Ease of Implementation Primary School Secondary School Young Adults Young Families Older Families Working Profession als Empty Nesters Retirees Budget and resources required to implement Existing program can be rolled out or modified Access to infrastructure (=boats) constitutes NOT a strong barrier High LowMedium Low High Medium Low

19. YA What are the needs of three priority consumer segments? Crucial to focus on this segment since this is the time in children’s life where sampling of a variety of sports is taking place, first experiences of success happen and first friendships are built Barriers of this segment for sailing are: –parents perceive sailing as a dangerous sport for primary school kids –the fact that the ideal starting age is believed to be around 7-12 years, which is later than for other sports –the perception that sailing is an exclusive sport, reserved for older people –having to become a member & lack of equipment & facilities When asked, parents wanted their children to be in a program featuring: –Good coach : child ratio –Short time, weekend or holiday program –Certificate and clear pathway at end Any communication about a program targeting this segment needs to emphasise –Safety –Social aspects & fun –Boats provided - inclusive cost Primary School Children Primary Schooll Secondary School Children Primary School Young Families Primary School In general, this segment is participating in a variety of sports – they have the most time at hands but will already have made their choices about their favourite sports Main sports motivations for this segment are social interaction and fitness Barriers to participation in sailing are: –Cost of participating –Equipment needed –Potentially lower interest levels of teenagers who have already chosen their favourite sports –Not an ideal age to start sailing, too late When asked, parents wanted their children to be in a program featuring: –More practice than theory, learning by doing –Organised by school –2-3hrs –Weekend or summer holidays –No membership –Boats provided Program needs to be fun & social as sailing is currently not perceived as very exciting by this age group This segment is particularly crucial to engage in sports since young parents are still taking decisions for their young children By acquiring & retaining young parents there is a chance to not only get adults into the sport but also their young children since parents are looking for social activities that can be done by the entire family Fitness is a key motivator for young families to participate in sports – competition & achievement are rather uninteresting Real or potential barriers to participating in sailing are: –Lack of available time –Cost of participating –Lack of facilities & equipment –Lack of information/communication –Perceived danger of sailing for young children –Lack of offerings for kids & partners Program needs to be short, with flexible membership offering, an activity for the whole family, with only basic theory on the job. Boats provided

20. Why juniors are priority one ? 1.Currently underperforming in this segment 2.Life time value to the sport 3.Most people who boat later in life enjoyed it as a kid 4.All other sports are competing for them 5.They offer the opportunity for priorities 2 & 3 2 = Youth = retained juniors 3 = Young families = additional participants 6. A piloted Program in Victoria

21. Tackers – design drivers Clubs image Cost Safety (perception) Barriers Fun & Friends Pathway / Certificate Great coach Attractions Target = Non Sailing Kids & Parents Local area & schools via clubs Tacker get Tacker Communication

22. Tackers – 8 sub segments for communication Different message and media for each ! ClubsInstructorsParentsKids Participating 1234 Prospective 5678

23. Progress to date – Discover Sailing & Tackers Just over 1 year since gemba Research Report Launched in 2012 Implementation in 2013 forward Long term commitment Segmentation is simple Communication is key Media & message must engage Measure effectiveness

24. Lessons & Challenges Information systems – limited in ability to Segment Interface with modern media Measure Capacity of the peak bodies and clubs Cultural Change at clubs – not traditional thinking Challenge of change people like to see traditional media can’t control traditional media e.g. Sydney – Hobart

25. Information strategy Propensities and Predictions Profiles and Segmentation Data Quality and Accuracy

26. Value to you and a sponsor Who are your members, ( or segments), fans, their characteristics, and where do they live !

27. Segmentation - Art and Science ART Business Priority ? Which works for you ? Ease of implementation ? SCIENCE Actionable ! Measurable ! Customer Centric !

28. Segmentation - Fun or frustration ?

30. Thank You / Questions SPONSOR(S) WANTED