Membership Marketing ARE YOU TARGETING THE RIGHT MEMBER? 1

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“In 2015, Uber – the world’s largest taxi company – owns no vehicles; Facebook – the world’s most popular media owner – creates no content; Alibaba – the most valuable retailer – has no inventory; and AirBnb – the world’s largest accommodation provider – owns no real estate.” MARKETS ARE CHANGING RAPIDLY AND DYNAMICALLY… WHAT DO YOU REALLY KNOW ABOUT YOUR MARKET? 3

Putting Market Analysis to Work “Business only has two functions – marketing and innovation.” Peter Drucker 4

6.5% = Clubs with a Wait List… Source: Global Golf Advisors, 2015 …or, 93.5% of clubs in North America need to be recruiting new members. 5

How are you executing market analysis now? What are best practices in private club market analysis? What are the tools you can use to analyze your market? 3 QUESTIONS THAT SHOULD DRIVE YOUR 2016 PLANNING 6

How Do You Conduct Market Analysis at Your Club Now? Club Leader as Source?Throwing Darts? 7

OR…. Hiding Behind the Tax Code? Executing Real Market Analysis? 8

Three Current Factors Impacting Private Club Memberships HOUSING | WOMEN | MARKET CORRECTIONS 9

Current Housing Trends in Arizona Source: John H. Burns Real Estate Consulting 10

Current Housing Trends in Arizona Source: John H. Burns Real Estate Consulting 11

Women…and Their Growing Influence in Private Club Markets “91% of home purchase decisions are made by women.” Martha Barletta 12

Post-Recessionary Market Corrections 1. Evacuation of Refundable Membership Programs 2. Conversion of Equity Membership Marketing to Recallable, Non-Equity Alternatives Priced at 1/4 th to 1/3 rd of Equity Joining Fees 3. Migration of Developers to Mandatory Membership Structures 13

What are best practices in private club market analysis? WORK INSIDE OUT | STUDY COMPARABLE CLUBS | MEASURE TO MARKET 14

Bona Fide Market Analysis Includes Internal and External Markets Demographics  Private Club Experience  Household Income (“HHI”)  Household Net Worth  Educational Attainment  Proximity to the Club  Personal Network  Utilization Habits/Practices Psychographics  “Push” / “Pull” Influences  Aspirational Influence  Personal Network  Club Brand Authority  Location Attractiveness 15

Internal Market Analysis Member Distribution by Category 16

Internal Market Analysis Member Distribution by Zip Code 17

Internal Market Analysis Member Distribution by Category 18

Internal Market Analysis Associates Only 19

Then Analyze Your External Market (Future Members) Local Market  Residential Orientation (73%)  25-Minute Drive Time  Business Orientation  Social Network and Profile Source-of-Origin Markets  Midwest (US and Canada)  Northwest US  Northeast Corridor (Increasing) 20

External Market Analysis (in seven parts) 1. Local Market Map 2. Demographic Profile Analysis 3. Golf Demand Profile 4. Supply Profile of Similar Clubs 5. Psychographic Profile Analysis 6. Comprehensive Club Analysis 7. Source-of-Origin Analysis 21

Local Market Map Mile Radial: 5 | 10 | 20Drive Time Radial: 15 | 30 22

Demographic Profile Analysis 23

Golf Demand Profile How many golfers can you access? 24

Golf Demand Profile Relationship Between Income and Golfing Households 25

Golf Profile of Similar Clubs  What is the overall number of facilities?  Does demand support supply?  What is the mix of facility types?  What are the comparative amenity profiles?  Who / what are your key competitors? 26

Psychographic Analysis  What factors bring members to your club?  What are the common attitudinal characteristics of your members?  What do they want, need and fear?  What other destinations do they seek? 27

Psychographic Analysis 28

Psychographic Analysis Primary Target Segment – Power Elite Households

Comprehensive Club Analysis  Location  Amenity Profiles  Pricing Analysis (all categories)  Membership Options  Number of Members  Origin of Members  Local Market Perception 30

Source-of-Origin Analysis  Where did your existing members originate?  How and why did they choose your club?  Identify and measure primary source markets?  What are the transportation vectors involved? 31

“Over 90% of the data in the world today was created in the past two years” - Harvard Business Review HOW CURRENT IS YOUR MARKET INFORMATION? 32

Where can you search tomorrow for current market information?  Mapping – |  Demographic – |  Psychographic – |  Travel (source-of-origin) – |

Discussion & Questions ARE YOU TARGETING THE RIGHT MEMBER? 34

Henry DeLozier, Partner | Principal Global Golf Advisors 35