2. WOMEN: A MAJOR CONTRIBUTOR TO GROWTH Pam Swensen Vice President, Sales and Marketing EWGA

3. OBJECTIVES RetentionRetention –Develop strategies to reach and maintain the attention, dollars and interest of the six million women who currently consider themselves “golfers” AttractionAttraction –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 ActionAction –Generate three or four specific action items for the Executive Board to consider

5. WOMEN IN GOLF Nancy Berkley Review of Research

6. PRESENTATION OUTLINE Current ResearchCurrent Research –Golf 20/20 –NGF: Research and Publications –LU2G –Golf Digest - 2003 Releases –Women’s Golf Associations What We Know AboutWhat We Know About –Part I: The Customer –Part 2: Providers of Products and Services

7. PART I: WHO IS THE CUSTOMER?

8. THE BIG PICTURE Women represent 24% of golf “participants”Women represent 24% of golf “participants” Women represent 24% of “golfers”Women represent 24% of “golfers” Women account for 21% of total golf spendingWomen account for 21% of total golf spending Women spend average $750/year Men spend average $874/yearWomen spend average $750/year Men spend average $874/year Women account for 18% of golf roundsWomen account for 18% of golf rounds Source: Golf 20/20 2001 Segmentation Study

9. THE BIG PICTURE Ages Women golfers come to golf older and laterWomen golfers come to golf older and later 51% of women golfers are between 40 and 6451% of women golfers are between 40 and 64 63% of women golfers are 40 or older63% of women golfers are 40 or older Ages 18-29 Ages 30-39 Ages 40-49 Ages 50-59 Ages 65+ Source: Golf 20/20 2001 Segmentation Study

10. EMPLOYMENT & FAMILY ISSUES FOR WOMEN 56% work full-time56% work full-time 16% work part-time16% work part-time 14% retired14% retired 12% unemployed12% unemployed 28% have kids at home28% have kids at home Source: Golf 20/20 2001 Segmentation Study

11. RETENTION RESEARCH A. 52% of former women golfers say they quit because they “didn’t have time” B. 37% of former women golfers say they quit because of “family obligations” C. 25% say “had trouble finding someone to play with” D. Should we be asking why they stay rather than why they quit?

12. HOW MANY? 110.2 Million U.S. Women = Total Possible Market Sizing the Market - Women Golfers - 18 and older 72% 20%* 2% 6% * Estmate based on ESPN surveys - 32.5% women 12+ are golf fans Source: Golf 20/20 2001 Segmentation Study Golfers Only Use Range or Alternate Facility Fans (non-participants Non-participants; Non-fans

13. Choices: Where should we put marketing efforts?Choices: Where should we put marketing efforts? Understanding segments may drive decisionsUnderstanding segments may drive decisions Lack of gender research on converting fans and range users to “golfers”Lack of gender research on converting fans and range users to “golfers” More research needed on women “golfers” segmentsMore research needed on women “golfers” segments HOW MANY? Sizing the Market - Women Golfers 18+

14. Segmented marketing delivers products and services to the most profitable customersSegmented marketing delivers products and services to the most profitable customers “Segment” = Set of potential customers that are alike in the way they perceive and value the product, in their patterns of buying and in the way they use the product“Segment” = Set of potential customers that are alike in the way they perceive and value the product, in their patterns of buying and in the way they use the product GOLF 20/20 SEGMENTATION STUDY

15. Guidelines for Segmentation: Segment must beGuidelines for Segmentation: Segment must be –Measurable and profitable –Reachable thru existing communication/media –Large enough to be profitable –Willing and able to purchase –Stable GOLF 20/20 SEGMENTATION STUDY

16. SEGMENTING BY USAGE Women Golfers 18+ 54% 22% 24% Average Rounds Played by ALL Women Golfers = 18 Rounds/Year Source: Golf 20/20 2001 Segmentation Study Occasional 1-7 Rounds/Year 3.3M Core 8-24 Rounds/Year 1.5M Avid 25+ Rounds/Year 1.4M

17. BUT, Medians by Segment Show Different Profile SEGMENTING BY USAGE Women Golfers 18+ More than half of occasional women golfers play only one or two rounds a yearMore than half of occasional women golfers play only one or two rounds a year No research on movements between segments orNo research on movements between segments or Cost to acquire customer vs. retain customer?Cost to acquire customer vs. retain customer?

18. OCCASIONAL PROFILE - 3.3M Young AgeYoung Age –50% below age 40 WorkingWorking –79% working full-time or part-time Poorly SkilledPoorly Skilled –35% score 120+ Weak CommitmentWeak Commitment –Only 6% say “very committed” –35% say “somewhat committed” –27% introduced to golf earlier than other segments (by age 17) Source: Golf 20/20 2001 Segmentation Study SEGMENTING BY USAGE Women Golfers 18+

19. CORE PROFILE - 1.5M AgeAge –57% between 40 and 64 WorkingWorking –74% working full-time or part-time Average SkillAverage Skill –46% score 100-120 Stronger CommitmentStronger Commitment –20% say “very committed” –51% say “somewhat committed” Source: Golf 20/20 2001 Segmentation Study SEGMENTING BY USAGE Women Golfers 18+

20. AVID PROFILE - 1.4M Older AgeOlder Age –67% over age 50 Working LessWorking Less –54% working full-time or part-time –34% retired More SkilledMore Skilled –Similar to Core, but less score over 120 and more under 90 CommitmentCommitment –43% say “very committed” –46% say “somewhat committed” Source: Golf 20/20 2001 Segmentation Study SEGMENTING BY USAGE Women Golfers Ages 18+

21. NGF 1994 Study “High Interest Women Golfers”NGF 1994 Study “High Interest Women Golfers” Profile similar to core and avid golfersProfile similar to core and avid golfers Measured “Needs”, i.e. Value of leisure activity and perception of golf to meet those needs.Measured “Needs”, i.e. Value of leisure activity and perception of golf to meet those needs. PERCEPTION AND VALUE

22. High Need and High Perception Lets me get outside in the fresh airLets me get outside in the fresh air Enables me to compete against myselfEnables me to compete against myself Is always a challenge to keep up my concentrationIs always a challenge to keep up my concentration Puts me in touch with naturePuts me in touch with nature Rewards my practice and hard workRewards my practice and hard work Allows me to play just for funAllows me to play just for fun Has very specific, well-thought-out rulesHas very specific, well-thought-out rules BUT, #1 Need “Helps Me to Relax” had low perception Study asked: Can we get these women, who are keen on the competition and challenge of the game, to relax while on a golf course?Study asked: Can we get these women, who are keen on the competition and challenge of the game, to relax while on a golf course? PERCEPTION AND VALUE

23. WHAT DOES SHE WANT? Two Golf Digest Research Studies to be Released at 2003 PGA Expo 1. Comprehensive Women and Golf Study Objective: To segment women’s market into distinct “clusters” based on combination of consumer attitudes, lifestyle, habits and demographics 2. Study of Women’s Process of Buying Golf Equipment

24. SUMMARY - PART I Complex marketComplex market Role of teacher and retailer important but lack of quantitative researchRole of teacher and retailer important but lack of quantitative research Choices: To market the consumer AND/OR build and incent the delivery systemChoices: To market the consumer AND/OR build and incent the delivery system

25. PART II: WHO PROVIDES PRODUCTS AND SERVICES TO WOMEN GOLFERS?

26. WHAT DO WE KNOW ABOUT PROVIDERS? Best Practices of Professionals “Women’s Golf Programs That Work” NGF 1999Best Practices of Professionals “Women’s Golf Programs That Work” NGF 1999 RESEARCH HIGHLIGHTS Build a relationship with customersBuild a relationship with customers Make golf funMake golf fun Group lessons - even on courseGroup lessons - even on course Graduated lessonsGraduated lessons Novice tournament formatsNovice tournament formats Provide socialization opportunitiesProvide socialization opportunities Commitment needed from providers :Commitment needed from providers : –Takes three years to build relationships and golfers Qualitative Research

27. WHAT DO WE KNOW ABOUT PROVIDERS? LU2G ResearchLU2G Research –67% of LU2G participants are women EWGA ResearchEWGA Research Manufacturers’ ResearchManufacturers’ Research Other Qualitative Research

28. RESEARCH FROM WOMEN’S ASSOCIATION Highlights from 1997, 1999, 2001 Top management at a facility must be committed to growing women’s golfTop management at a facility must be committed to growing women’s golf Teaching must be fun and graduatedTeaching must be fun and graduated Broader programs needed to raise golf awarenessBroader programs needed to raise golf awareness –Legitimizing nine-hole programs –Nationwide women’s golf participation program –National brand image campaign Research from Sunriver Forum

29. RESEARCH FROM WOMEN’S ASSOCIATION –More “social” interaction programs such as women’s day/night at range –New national forum needed to coordinate women’s golf resources and programs Research from Sunriver Forum (cont.)

30. OTHER RESEARCH OPPORTUNITIES USGA “member’s organization” - GHIN systemUSGA “member’s organization” - GHIN system Rally for a Cure - over 130,000 participantsRally for a Cure - over 130,000 participants Association of Golf Merchandisers - 700 buyers (mostly women)Association of Golf Merchandisers - 700 buyers (mostly women) EWGA - 16,000+ membersEWGA - 16,000+ members PGA/LPGA ProfessionalsPGA/LPGA Professionals

31. MICRO-VIEW Number of courses 2001= 15,709Number of courses 2001= 15,709 Number of women golfers/course = 394Number of women golfers/course = 394 Segment by usageSegment by usage –Occasional = 211 –Core = 95 –Avid = 88 –Area range users = ? –Area non-participants = ?

32. GROWTH SCENARIOS If we wanted 10 million women golfers in 2010If we wanted 10 million women golfers in 2010 Requires 241 more women golfers per course and/or more rounds and spending per golferRequires 241 more women golfers per course and/or more rounds and spending per golfer Next steps?Next steps?