Ruffin Beckwith

2. Ruffin Beckwith Senior Vice PresidentWorld Golf Foundation

5. COACH

6. C

7. Communications

8. O O

9. JuniOrGOlf

10. A

11. Alternative Facilities

12. C

13. College Golf Opportunities

14. H

16. Researc H

18. Regulation Round • A regulation round of golf is defined by one person who tees off in an authorized “start” on a regulation golf course. The round is not defined by the number of holes played or the fees paid.

20. Timothy W. Finchem Commissioner, PGA TOURChairman, World Golf Foundation

22. Dr. Joe Beditz President National Golf Foundation

23. GOLF 20/20: Consumer Research Findings Opportunities to Grow the Game

24. Goals • In 2000, GOLF 20/20 set forth two ambitious participation goals for the year 2020: • Increase the number of participants in the U. S. from 35 million to 55 million • Increase the number of rounds from 570 million to one billion.

25. Consumer Research Initiative • To help strategize on how to achieve those objectives, unprecedented consumer research was conducted: • Phase I -- Participation and Interest Survey mailed to 100,000 U. S. households • Phase II – In depth follow-up surveys to 1,500 golfers and 2,000 non-golfers with interest

26. This Consumer Research Was Conducted to Address Several Key Objectives: • Identify our best and most profitable customers. • Identify our best and most profitable prospects, and determine how they can be identified and located. • Understand what strategies can be implemented to help convert those prospects. • Provide a benchmark against which future progress will be measured

27. Consumer Research Team • Paul Metzler: PGA of America • Ken Lovell: PGA TOUR • Joe Beditz, Jim O’Hara: NGF • World Golf Foundation • NFO WorldGroup

28. Golf Participationin the United States

29. Growth in Golf Participants Since 1950 Baby Boomers coming of age Tiger Woods emerges 30 Recession, declining income Plenty of money for course development 25 20 Millions of golfers 15 CAGR = 4.3% Arnold and Jack on TV 10 5 0 1950 1960 1970 1980 1990 2000 Source: NGF CAGR=Compound Annual Growth

30. Golf Participation Rates by Decade Average annual golf participation rates 11.7% 9.5% 6.5% 3.5% 1960s 1970s 1980s 1990s Source: NGF

31. Growth in Golfers – 1950 - 2000 Millions of Golfers 30 25 20 15 10 5 0 1950 1965 1980 1995 2000 Source: NGF

32. Participation Changes in the Last 5 Years • Over the past 5 years, the number of core and avid players are on the rise. Yet, the number of occasional golfers has dipped slightly. 3.4% -0.8% Occasional Golfers Core Golfers

33. Participation in 2001 • The 2001 consumer research confirmed the existence of 36 million golf participants. 6.6 Millions of Participants Avid 7.0 Core 36.0 11.8 Occasional 4.0 1.7 Juniors Exclusive Alter. Facility Users 4.9 Exclusive Range Users Total Golf Participants

34. Latent Demand in 2001 • There are 40+ million people in the United States who express an interest in playing or playing more than they do now. Millions of Prospects Express Interest in Playing or Playing More Express Interest and Fit Best Customer Profile 43.2 12.0 Good Prospects Best Prospects

36. Jim O’Hara Vice President, ResearchNational Golf Foundation

37. What We Learned

38. The 20/80 Rule Does Not Apply to the Golf Industry

39. Golfers Playing 25+ Rounds Annually Account For Three-Fourths of Total Rounds Percent of Golfers Percent of Rounds Played 6% 16% Occasional (1-7) 47% Core (8-24) 27% 78% Avid(25+) 26% Source: Golf 20/20

40. Golfers Spending $1,000+ Annually Account For Three-Fourths of Total Spending Percent of Golfers Percent of Spending 25% Spend <$1,000 70% 75% Spend $1,000+ 30% Source: Golf 20/20

41. But Not All Avid Golfers are Best Spenders and Not All Best Spenders are Avid Golfers 6.6 million Avid Golfers (25+) 7.6 Million Best Spenders ($1,000+) 2.5 Mil 4.1 Mil 3.5 Mil Thus, there are 10+ Million “Best Customers” Source: Golf 20/20

42. The Rule in the Golf Industry is 40/80 Percent of Golfers Percent of Rounds Played Percent of Spending 15% 19% Other Golfers 60% 85% 81% Best Customers 40% Source: Golf 20/20

43. Best Customers Are Distinguishable

44. There is a Distinct Demographic Profile Demographics GenderMale 75%Female 25% Age18-39 30%40-64 51%65+ 19% Income<$50K 24%$50-74K 21%$75K+ 55% Presence of ChildrenUnder 13 30% 13-18 24% None 60% Source: Golf 20/20

45. Most Are Recreational Public Golfers Golf Characteristics Years Played<5 16%5-9 18%10-19 25%20+ 41% Private Club MemberYes 27%No 73% Average Score<85 15%85-99 38%100+ 47% Source: Golf 20/20

46. They Have Distinct Lifestyle Characteristics • Best Customers are distinguishable by their perceived athleticism and physical fitness, sports TV consumption, traveling, and investing. Source: Golf 20/20

47. They Have Distinct Lifestyle Characteristics How Best Customers Can Be Distinguished From Other Golfers Best Golfers Views of Rank Themselves 1 Athletic 2 Sports TV Viewer 3 Frequent Flyer 4 Investor 5 Domestic Traveler 6 Cell Phone User 7 Foreign Traveler 8 Into Physical Fitness Source: Golf 20/20

48. And They Are Concentrated in Three Regions Source: Golf 20/20

49. There is Both Room and Opportunity to Grow Our “Best Customers”

50. There Are Millions of Solid Prospects • There are 12 Million Adults in the U.S. Who Fit The Best Customer Profile, Express Interest in Playing or Playing More, But Are Not Currently Best Customers 3 12 6 3 Former Golfers Best Prospects Current Golfers Never Evers Source: Golf 20/20