HomeMy WebLinkAboutFS 2013-11-19 Item 2C - Review - Foster Golf Links Marketing PlanTO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance & Safety
FROM: Rick Still, Parks and Recreation Director
Tracy Gallaway, Volunteer & Events Superintendent
Warren Orr, Director of Golf
DATE: November 13, 2013
SUBJECT: Foster Golf Links — Marketing Plan
ISSUE
Review of Foster Golf Links Marketing Plan and answer committee questions.
BACKGROUND
At their August 14th meeting, the Finance & Safety Committee requested further information
regarding Foster Golf Links (FGL): A) a brief financial overview, B) a professional review of the
FGL marketing plan, C) ideas to increase revenue and D) statistics regarding resident and non-
resident use of the golf course.
DISCUSSION
A. A brief financial overview — Foster Golf Links (FGL) revenue has historically covered all
of the golf related operating costs. The Indirect Cost Allocation increased from $13,000 in 2010
to $222,000 in 2011 without understanding the impacts to the budget and making adjustments
to the operational model. The golf operations is not a utility where users have to pay the
amount they are charged. A golfer can choose to play another golf course or not play golf at all.
Attachment A shows a breakdown of the 2013 expenditures and revenues that reflects a
different way to look at the budget. Some of the costs, like sales tax, get lost in the bigger
grouping of the expenditures. The sales tax and excise tax are an operating cost but not
knowing where the money goes it may seem that one should be able to reduce the expenditures
by more than is really possible. Furthermore, when fee increases are made the net revenue is
not the total amount of the fee increase due to these taxes and the admission tax.
B. A professional review of the FGL marketing plan — Staff hired a consultant to review
the Foster Golf Links marketing plan; and to expand the plan into a working document that can
be implemented by staff. After a review of the current marketing plan, FGL has developed a
2014 Marketing Action Plan (Attachment B). This plan will include programs to retain and
strengthen our core golfers. It will include a Loyalty Card Program, in which the collection of
customer data provides us the opportunity to effectively market to our core golfer.
The action plan also includes strategies to engage lapsed golfers and create new golfers. FGL
will develop specialized outreach programs, continue with our Get Golf Ready instructional
program, develop more Junior Golf opportunities, and create a community outreach program
designed to generate new golfers.
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INFORMATIONAL MEMO 11 -13 -13
Foster Golf Links — Marketing Plan
Page 2
C. Ideas to increase revenue — There are several ways proposed to increase revenue at the
golf course: 1) to implement the marketing plan (keep current golfers coming back more and
increase the number of lapsed and new golfer), 2) to lengthen the golf season, 3) to improve
golf course playability, and 4) to adjust fees to the market level and to utilize dynamic pricing.
Please see Attachment C for additional information.
D. Statistics regarding resident and non - resident use of the golf course — Resident and
non - resident statistics are currently tracked in the point of sale (POS) system. Approximately
5% of the golfers are residents. However, the "working residents" (people that work in Tukwila
but not necessarily live in Tukwila) have not been tracked. Staff does have an idea of how
many of the core golfers are working residents, an additional 7% to 10% of the golfers. All
resident use will be better tracked with the loyalty card program because there will be additional
benefits associated with residency.
RECOMMENDATION
Discussion only.
ATTACHMENT
A. Foster Golf Links — 2013 Expenditures and Revenue Breakdown
B. Foster Golf Links — Marketing Plan
C. Foster Golf Links — Ideas to increase Revenue
C:IDocuments and Settings\christy.TUKWILA \Local Settings\Temporary Internet Files \Content.Outlook \FOTTAFSUIFGL Marketing Plan 11 -13 -13 FS MEMO
rs.docx
Foster Golf Links
2013 Expenditures and Revenue Breakdown
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OLF EXPENDITURES 2013
Golf Operations & Maintenance
Salaries, Benefits, Supplies, Green Fees 974,000
1,292,653
-14 Professional Services Merchandise Sales 134,000
Sub Total 1,292,653 y Power Car rentals 175,000
Concession Proceeds 85,000
Capital Improvements 50,000 Other Revenue 24,000
Sub Total 50,000
Attachment A
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GOLF REVENUES 2103
Golf Course Revenue
Golf Operations Sub Total 1,342,653
Taxes Other Agencies
Sales Tax 112,000
Excise Tax 6,400
Sub Total 118,400
City Taxes & Overhead
Admission Tax 54,000
City Overhead 193,000
Sub Total 247,000
Taxes and Overhead Sub Total
Golf Course Sub Total 1,392,000
General Fund Subsidy 400,000
Sub Total 400,000
365,400 Genderal Fund Subsidy Sub Total 400,000
G
GRAND TOTAL 1,708,053 GRAND TOTAL 1,792,000
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Foster Golf Links - Marketing Plan
November 13, 2013
MAGoll \Marketing \Budget 2012 Golf 9-21-11 REVISED 2013 11-13-13
33
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ATTACHMENT B
Foster Golf Links - 2014 Marketing Action Plan
Executive Summary
The vision of Foster Golf Links (FGL) is to develop a golf facility that creates a welcome
environment and is a source of pride to the Tukwila community.
The purpose of this marketing action plan is to identify key ways to increase revenue
through maximizing participation. By utilizing a mix of marketing strategies and tools we
can develop a targeted approach to increasing participation at FGL by each of these
key user groups:
Strategy 1: Retain and Strengthen Our Core
Strategy 2: Engage Lapsed Golfers
Strategy 3: Attract New Customers
In order to increase overall participation, FGL needs to create awareness of its value
within its core customer base, and then build that awareness outward into the regional
golf community where we can engage the lapsed golfer and attract new golfers to our
product.
In order to accomplish this, FGL must develop an action plan that focuses on collecting
customer data and streamlining systems in the winter months, and shifts to actively
marketing opportunities as we move into the high season in May. This will allow FGL to
be ready to take on the new business it is sure to attract with a well - planned strategy to
market to each of the key user groups.
Participation Trends
While the number of rounds played overall in the United States has declined in recent
years, rounds played at FGL have steadily remained above the national average.
The factors that influence golf participation include:
• Course condition
• Weather playability
• Customer service
Typically, participation at FGL is highest during the months of May through September.
This can be attributed to better weather, the return of "snowbirds ", and the beginning of
the league play season. During the shoulder seasons, March /April and October,
participation levels are heavily affected by the playability of the course which is
impacted by weather. In the low season, November through February, participation on
the course is primarily from our core customer.
35
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Strategy 1: Retain and Strengthen our Core
Retaining and strengthening our core will be our top priority. According to the National
Golf Foundation (NGF), the core golfers, those who play more than 8 times a year,
account for 57% of all golfers. More impressively, these golfers account for 94% of
rounds played and money spent on industry related products and services. In addition,
their greatest asset to any facility is their ability to serve as ambassadors for the facility
and the game of golf. Statistics show that it takes 20 new golfers to replace the loss of
one core golfer.
As with most municipal golf courses, FGL relies heavily on our core customers. At FGL
we have approximately 3,500 core customers. To further engage our core customers
and to further increase participation, we will implement a Customer Loyalty Program by
offering a FGL Rewards Card. By providing our core customers with discounts, hosting
exclusive events, special sales and creating a more communal atmosphere, FGL will
reward our core customers.
Here's how FGL's Rewards Card program will work:
To register for the FGL Rewards Card, customers will be required to provide name,
address, phone, email address and birthdate. In addition, FGL will record and
categorize the golfer's club /league information, if applicable. By capturing this
information, FGL will have a better understanding of buying habits, interests, and
preferences of its golfers.
There will be an annual registration fee $20 to participate in the Rewards Card program.
Upon registering, the golfer will receive a free round of golf (restrictions may apply) and
20 points on their Reward's Card.
For every dollar spent, a point is earned. Reaching a predetermined level of points, a
discount is received, For example, after $100, the member receives a 5% discount on
all green and cart fees. After $400, a 10% discount is earned. As the dollar amount
spent increases, so does the discount honored.
Throughout the season, FGL will host member events such as merchandise sales,
member only tournaments and "double points" days. Points will be accrued April 1 —
March 31 and reset every April 1.
Because FGL's "Point of Sale" (POS) system is currently set up for a Rewards Card
system, the only cost to implement the Rewards Card is the cost of the card (currently
$0.65 per card).
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Strategy 2: Engage Lapsed Golfers
According to the NGF, 90 million Americans describe themselves as lapsed golfers.
Those lapsed golfers offer several reasons for "leaving" the game. Money, time, the
difficulty of the game, and family are the reasons most cited.
By its own design, FGL is a great facility to re- engage the lapsed golfer. FGL
recognizes that the primary audience for our facility is the beginning to intermediate
golfer that is looking for a fun, walk -able course. Professionals agree that the more
rounds someone plays, the more likely they are to keep playing, work on their game,
and invest in new equipment.
Strategies to engage lapsed golfers include:
1. Utilize existing systems to capture data to analyze frequency of play.
Currently FGL utilizes different systems for different data functions. The three
systems currently utilized are:
o Golf Now (www.qolfnow.com) — used primarily for on -line tee time booking
and marketing to the regional golf market.
o Cybergolf (www.cybergolf.com) — used primarily hosting of FGL website
and also allows for online tee time bookings.
o sZen — used primarily for point of sale transactions and as a customer
data tool.
By analyzing the data more thoroughly, FGL will be able to determine which type
of programming offered will best serve the lapsed player.
2. Utilize the collected data to specifically market the PGA's "Get Golf Ready"
program to the lapsed golfer.
Get Golf Ready (GGR) — is a group lesson package offered at an affordable rate.
In order to promote this program, we will utilize the national marketing platform to
reach the regional golf community, and develop specific marketing promotions,
such as email blasts and social media, to our e-Club members, Rewards Card
members and Billy Baroo's customers.
'r Besides the lesson revenue stream created from the GGR program, what
we are really trying to cultivate is a long term relationship with the golfer.
The GGR graduate has been shown to have an 80% retention rate and
will spend nearly $1,000 annually at the facility.
3. Develop specialized programs and packages for market segments.
Specialized programs could include a mix of packages and events such as:
o Opportunities to improve their game through individual and group
instruction;
o Opportunities for socialization through play and dine events; and
o Opportunities for competitive play through leagues and tournaments that
match up appropriate skill levels.
Women golfers, senior /retiree golfers, youth and families are just a few of the
market segments we would target with specialized programming.
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Strategy 3: Attract New Golfers
1. Increasing youth access to golf is very important. With that in mind we will be
working on the following initiatives to promote golf to youth in Tukwila:
a. Develop a Junior Golf Academy program. The Academy will focus on
developing interested and motivated junior golfers through a system of
instructional clinics, camps and competitive play among golfers of similar skill
level. The Academy will have a tiered system to identify and cultivate all
levels of junior golfers.
Beginning and intermediate players would begin in the camps and enjoy
limited time on the golf course. Once they have shown that they are
capable of playing at an acceptable pace, understand the rules and
etiquette, and are motivated to better themselves they will be moved up
accordingly.
ii. Advanced players will compete against their peers to bring out the best in
their golf play. By doing this, a stable of players competing in Washington
State Golf Association events, high school golf and beyond.
b. Develop a Golf Specialty Camp. Work closely with the Recreation Division
staff to develop a golf camp to be included in their summer specialty camp
program. The program can be a stand -alone golf camp, or it could be
integrated into the existing summer day camp program.
2. Tournaments are a great revenue source and opportunity to develop new
customers. In order to increase tournament and league participation we will:
a. Develop a downloadable tournament package on the FGL website. This will
allow each league and tournament to have their own site to promote their
event. It also will allow us to collect valuable player data which can be used
to reach out to golfers who do not generally frequent FGL.
b. Develop an outreach plan. FGL will develop a plan to outreach to local
businesses, community organizations, and networking groups including, but
not limited to:
• FGL Men's and Ladies Clubs
• Billy Baroo's patrons and eClub members
• Seattle Southside Visitor'Services — area hotel guests
• Rotary Club members
• Southwest King County Chamber — member businesses &
organizations
• Starfire Sports — patrons and facility visitors
3. The development of specialized programs and market segments, as noted
previously in Strategy 2, could also be utilized to attract new golfers to FGL.
39
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ATTACHMENT B
EXHIBIT 1
Foster Golf Links - 2014 Marketing Action Plan
Calendar
January
• Clean up the mailing list
• Utilize Billy Baroo's mailing list to cross market
• Prepare calendar of monthly or quarterly specials — April through October
o Golf only
o Golf & restaurant packages
• Prepare information for Recreation Guide (Spring /Summer, May - August)
• Design e-blast & newsletter templates
• Finalize Rewards Card Program details
February
• Prepare mailing lists — e -mail and physical addresses
o Residents, businesses
• Design postcard & bill insert
• Flyers to businesses
o incentive programs
o team building activities
o off -site meetings
• Rewards Card Program
o Train employees
o Prepare email launch
o Run beta test
March
• Drop physical cards in the mail
• Bill insert mailed
• E -blast middle of March
• Launch Rewards Card Program via Cybergolf & Golf Now
April
• Newsletter first week
o Outline monthly specials / detail loyalty program
• E -blast the first week
• E -blast the third week
• Bill insert mailed
FGL 11/13
41
May
• Newsletter first week
o Upcoming specials / trivia question
• E -blast the first week
• E -blast the third week
• Bill insert mailed
• Prepare information for Recreation Guide (Fall/Winter, September — December)
June
• Newsletter first week
• E -blast the first week
• E -blast the third week
• Bill insert mailed
July
• Newsletter first week
• E -blast the first week
• E -blast the third week
• Bill insert mailed
August
• Newsletter first week
• E -blast the first week
• E -blast the third week
• Bill insert mailed
September
• Newsletter first week
• E -blast the first week
• E -blast the third week
• Bill insert mailed
• Prepare information for Recreation Guide (Winter /Spring, January — April)
October
• Newsletter first week
• E -blast the first week
• E -blast the third week
November
• Newsletter first week
. • E -blast the third week
December
• Newsletter first week
• E -blast the third week
42
FGL 11/13
ATTACHMENT B
EXHIBIT 2
Foster Golf Links - 2014 Marketing Action Plan
Rewards Card Launch Timeline
January 2014 PROGRAM DETAILS
Finalize Points System details
Finalize all Reward's Card amenities
-Pool, Parks and Rec, Billy Baroo's, and other local establishments
Begin framework of Online Credit Card Purchasing
Develop Program Benchmarks
January 15th, 2014 PREPARATION AND EDUCATION
Complete sZen P.O.S. procedures
Develop Registration Paperwork
Complete Data Entry
-sZen, Men's and Ladies Club data to Cybergolf Email System
-cull and update current membership
Create and Secure advertisement in Golf Publications
Create Posters and Point of Purchase (POP) displays
February 1st, 2014 TRAINING & MORE
Employee training
Rewards Cards delivered
Posters and Point of Purchase marketed
PDF files prepared for Email and Web
Contact League and Club Leadership
Finalize Benchmarks
February 10th, 2014 BETA TEST REGISTRATION
Email 200 Men's Club and 60 Ladies Club members and begin their early
registration
Launch Rewards Card Web Page
February 24th, 2014 EARLY CONTACT
Email 500 League players to promote and begin their registration
Prepare 3`d Party marketing information
Continue training and beta testing
March 1st, 2014 LAUNCH REWARDS CARD PROGRAM
Email public through Cybergolf
Email public through Golf Now
Utilize in -house marketing and POP displays
43
PROGRAM JANUARY
Routine Marketing
Database maintenance X X X,X
Monthly e-Newsletter X
e-Blast I X
Customer Loyalty Program
Facebook posts X
1
Scheduled Marketing
Bill Inserts
Billboard Advertising
Flyers - mailing
Juniors Program
Travel Packages thru SSVS
www.colfwashinoton.com
Newspaper Advertising
FEBRUARY MARCH
i I
I I
X I X X I X X X X X
I I I
X I I X I I I
IX I
X X X X
Reactive Marketing
Texting weather-related oppty
1
e-Blast during off season
as weather demands
Foster Golf Links
2014 Marketing Action Plan
APRIL I MAY
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1
ATTACHMENT B
EXHIBIT 3
Foster Golf Links - 2014 Marketing Action Plan
Effective and Inexpensive Marketing Tools
The following is a list of easy and inexpensive ways to create awareness of and build
traffic with all 3 key user groups.
Bill Inserts — Special notices for upcoming programs and events should be distributed
to inform and generate interest in "what's happening" at the golf course.
Frequency: Monthly
Target: Residents; New and existing customers
Coupons /Deals — Special offers targeted local and regional customers.
Frequency: Occasionally
D In October, FGL did a coupon offering through Amazon. More than 100
"deals" were purchased. Customers have until April 2014 to redeem their
coupons.
D In November, FGL did a coupon offering through Golf Now. The offer is
currently active, and customers will have until February 2014 to redeem their
coupons.
Target: New customers
E -blast - A short e-mail detailing a current special or opportunity. Include a direct link to
the special on the website.
Frequency: 2x a month, high season
lx a month, low season
Target: Existing customers
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E- newsletter - A monthly newsletter with news of upcoming specials, pro tips, junior
league information, featured player profile, golf trivia. Release at the first of each month
and highlight that month's activities. Include links to the FGL website.
Frequency: Monthly
Target: Existing customers
Facebook Posts — Up -to -date information and offers including tee time availability, "did
you know" facts, newsy tidbits, and pro tips.
Frequency: 3 -4 times a month
Target: New and existing customers
Texting — Utilizing a texting program can help promote weather related specials, or tee -
time openings.
Frequency: Occasionally
Target: Existing customers
Website — It is critical that the FGL website be monitored to ensure that all information
is timely and accurate.
Frequency: Weekly
Target: New and existing customers
Paid Advertising Options
Advertising creates awareness and aims to drive consumer behavior in a way that
benefits the advertiser. FGL can utilize advertising to make residents and businesses
aware of the golf opportunities that are available.
Billboards
• Westfield Mall Parking Structure Billboard — Cost is $2,000 /month with a
production cost of $1,100 per sign. No minimum contract.
46
Newspaper Advertising (Print and Digital)
• Local and Regional papers have a variety options. Cost is typically determined
by ad size, style and frequency placement.
On -line Marketing Resources
• Golf Washington (www.golfwashington.com) which has approximately 39,000
unique hits per month; Rates vary from $39 /month to $99 /month depending on
package.
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Attachment C
Foster Golf Links — Ideas to Increase Revenue
Ideas to increase revenue — There are several ways proposed to increase revenue at the golf
course:
1) to implement the marketing plan (keep current golfers coming back more and increase the
number of lapsed and new golfer), See Attachment B.
2) to lengthen the golf season, See Exhibit 1.
3) to improve golf course playability, See Exhibit 2 and
4) to adjust fees to the market level and to utilize dynamic pricing. A new fee schedule will be
prepared for consideration first quarter 2014.
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Attachment C
Exhibit 1
Foster Golf Links — Ideas to Increase Revenue
Fairway Topdressing and Aeration Program
Foster Golf Links proposes to begin a Fairway Aeration and Topdressing Program. This
program would begin with the addition of a Deep Tine Aerator, using the Verti-Drain 22-20. It
would also include a 5-year commitment to topdressing the critical areas, fairways and tee
boxes, on the golf course. Once the process has begun, it is critical to the health of the course
that it continues.
Primary reasons for topdressing include:
• Promotes quicker drying of turf and better drainage
• Allows for good soil structure and greater thatch control
• Improves and helps maintain a better playing surface while fixing compaction issues
• Corrects surface irregularities
• Decrease special projects related to drainage
• All of these will increase course playability and lengthen the golf season.
"Poor drainage," "Too wet" and similar comments are among the primary negative comments
received on our recent survey and on customer review websites. In our current situation, carts
are restricted from the fairways earlier than our competition, thereby reducing our round
potential and limiting seniors and others access to the course.
Program Benefits:
Better course conditions
Respond to our guests concerns and suggested improvements
Increase playability and pace of play
Increase rounds in the shoulder months (Feb-May and Sept-Nov)
Allow carts on fairways more often, providing more opportunities for growth
Estimated Costs:
Verti-Drain $28,000
Topdressing (10-12 applications per year) — current market pricing estimate of $25,000-$30,000
annually
C:\Documents and Settings \christy.TUKWILA\Local Settings \Temporary Internet Files \Content.Outlook\FOTTAFSU 'Attachment C Exhibt 1 Aerating Topdressing Program 11-13-
13.docx
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N
Foster Golf Links CIP 15 -Year Plan
a,
O
a`
2
2, 4
2, 4
2, 4
2, 4
2
4
1 Have to Do
2 Need to do
30,000
3 Nice to do 4 Improve Play
Ideas to Increase Revenue
Improve Golf Course Playability
Attachment C
Exhibit 2
30,000
PVI Boiler to Instant an
ous
45,000
12 yrs
50,000
50,000
Bunker sand;! rebuild and
drainage
Green renovation #1 & 3
250,000
20 yrs
7 +16 bunkers
20,000
25,000
25,000
25,000
25,000
25,000
75,000
TBD
75,000
75,000
Green renovation #-
75,000
TBD
75,000
75,000
ion #6 &'
2
150,000
TBD
75,000
50,000
River irrigation pump
23,000
10yrs
23,000
Cal
Pe
20,000
10yrs
27,000
Exterior P
25,000
10yrs
32,500
Inte
for Painting
15,000
10yrs
17,500
Irrigation pump, pond and
pump panel
75,000
20 yrs
75,000
Rivet
igation pip
60,000
Permit Issue
Pond L
TBD
G
Ope
Sub Total
50,000
50,000
0
100,000
0
100,000
100,000
0
100,000
50,000
50,000
0
100,000
50,000
50,000
75,000
ns Budg
35,000
4 yrs
new fleet 4
years
30,000
0
32,000
32,000
32,000
0
34,000
34,000
34,000
4,
00
36,000
36,000
36,000
38,000
38,000
38,000
Sub Total
80,000 80,000 32,000 132,000 32,000 132,000 34,000 134,000 34,000 134,000 86,000 86,000 36,000 136,000 88,000 88,000 113,000