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Our Marketing Approach
Over 26 million Americans
play golf regularly. Yet, for all its attractions, the game is inaccessible
to many, and the growth in the number of new players has slowed. According
to the National Golf Foundation, the number of rounds played between 2001
and 2002 declined three percent. According to a McKinsey study,
commissioned by the NGF, almost as many people are leaving the game as are joining it. The study
also estimates that there are 41 million people who do not play golf
regularly but strongly desire to play the game or play more.
Why can’t the golf industry
tap into this potential market? There are several reasons. People do not
have the time, money and focus needed to learn and play the game
traditionally. For many, work and family responsibilities require more
attention than ever before. Beginners are intimidated by the learning
curve, by the embarrassment of developing a new skill in public, and by the
regimen of the traditional golf course. Women, in particular, complain that
they have no friends or family to play with. Juniors are attracted by other
activities, including video games and the Internet.
There are about 16,000
traditional, regulation golf courses in the United States, but fewer new
courses are being planned and built than at any time in the last decade.
There are also over 5,500 stand-alone "alternative facilities:"
| Driving
ranges |
2,805 |
|
Executive courses
|
865
|
|
Par threes |
1,653
|
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Pitch & Putt
|
160
|
|
Others |
59 |
Excluding driving ranges, there are over 2,600 independent short golf
courses in the United States. Although many are operated on a marginal
basis, it appears that these courses could offer a compelling alternative
for the 41 million golf “wannabes” – they provide an opportunity for
beginners to swing the club, putt the ball into a hole for a score, and walk
a real golf course. These are the essential elements of the golf experience
and, indeed, golfers play an average of 29,000 rounds annually at
“alternative” golf courses for an average fee of $12-16 per 18-hole round.
In
addition to taking less time and costing less, compact courses relieve the
player from carrying 14 clubs and a large bag. This equipment is
expensive and difficult to transport, especially when traveling. We
believe that only two clubs – the putter and wedge – are necessary to
play the game with enjoyment, with less hassle and with less investment of
time, mental focus and money.
We
intend to build on this opportunity by providing an organized approach to a
fragmented and poorly managed segment of the golf industry. Our proposal is
initially to build in Stark and Summit Counties three to five short golf
courses that will each fit on 12 acres or less. The holes will be
30-80 yards long (most averaging 40-50 yards) and will be accessible with
two clubs - a putter and a wedge - by most players. It will take less
than 2 hours to play 18 holes for less than $15.
Each facility will have 27 holes (to permit leagues and open golf at the
same time) and a small clubhouse surrounded by decking. There will be
limited food and beverage operations, and we will provide an attractive
ambiance with landscaping and awnings. We may also incorporate a
driving range at one or two locations.
We
will run each course to optimize player throughout while providing an
enjoyable environment for golfers. Our marketing strategy is based on
“shotgun leagues.”
- Note: Individual players prepay
greens fees, at a significant discount to “walk-on” greens fees.
Under the shotgun format, players start simultaneously on every tee at
a set time. In this fashion, 72 players can all play 18 holes in
less than 90 minutes.
In addition, we will organize competitions between courses and afford
players the opportunity to play any of the courses in the area for one
annual fee. We will centrally manage the courses so that we can
achieve economies of scale in the areas of sales and marketing,
handicapping, maintenance and financial reporting.
By
emphasizing the social aspects of golf on a compact golf facility, we will
overcome the three barriers traditional golf cannot: time, expense and
intimidation. While we will target the 41 million underserved
golfers-in-waiting, we expect that skilled golfers will also play our 2Club
GolfTM courses, for fun, for camaraderie and for practice.
After all, traditional golfers take 80% of their shots within 100 yards of
the green.
There is precedent for our concept. In Ireland, there are more than
200 “pitch & putt” golf courses, of which 150 (with 15,000 members) are
associated with the
Pitch & Putt Union of Ireland (“PPUI”).
- Note: The PPUI model has been
followed in Canada, Australia and S.E. Asia. We have decided not to
adopt the “pitch and putt” name because it can confuse non-golfers, who
may believe we are offering baseball or Putt-Putt activities, rather
than a true golf experience.
The Republic of Ireland and Northern Ireland comprise 31,000 square miles
(versus 41,000 in Ohio) with a population of 4.5 million (versus Ohio’s 11.4
million). PPUI clubs emphasize active competition and socialization as
a way to maintain and grow interest in the game.
The "pitch & putt" phenomenon has spread to
continental Europe.
A great example of such a course in the United States is
here.
Our goal is to develop a business model, customized by locale and by
proximate demographics, which will allow rapid growth and development of the
2Club GolfTM concept throughout Ohio and the rest of the country.
Starting in northeastern Ohio, we expect that there could be five to ten
thousand 2Club GolfTM facilities operating throughout the United
States by the year 2020.
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