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HomeMy WebLinkAboutCAP 2014-04-15 Item 2C - Update - Foster Golf Course Marketing PlanTO: FRO City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs & Parks Rick Still, Parks and Recreation Director Dave Johnson, Recreation Superintendent DATE: April 3, 2014 SUBJECT: Foster Golf Links — Marketing Plan Update ISSUE Provide an update to the committee on the status of the Foster Golf Links (FGL) Marketing Plan and answer committee questions. BACKGROUND, In November 2013, staff presented information on ways to increase revenue at Foster Golf Links, including an updated Marketing Plan. We'd like to provide an update on the status of those efforts. DISCUSSION Staff presented ways to increase revenue, which included Implement an updated Marketing Plan; Lengthen the golf season; Improve golf course playability; and adjust fees to the market level and use dynamic pricing. Staff hired a consultant to review the FGL marketing plan and to develop the plan into a working document that can be implemented by staff. This plan includes programs to retain and strengthen our core golfers, and also includes strategies to engage lapsed golfers and create new golfers. RECOMMENDATION Discussion only. ATTACHMENT A. Foster Golf Links — Marketing Plan B. Fairway Topdressing and Aeration Program 19 20 Attachment A 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. 21 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). April 2044 Update On April 15t we "soft" launched our Rewards Program (RP). The card sells for $20 and rewards the customer for registering and provides discounts to our customers. The more often our Rewards Members play; the greater discount they can earn. The rewards program is another cog in our quest to extend the playing season. Since the RP season is from April '14 to March 31, 2015, it allows the customer to utilize his earned discounts during our off - season. In the first 3 days of availability, we've sold over 100 cards with minimal promotion! The Rewards Program registration allows us to collect informational data on our core customers. FGL is collecting the guests' name, where they live and work, email, birthdate, and other pertinent information. This will allow us to target market our core customers to best maximize our earning potential. 22 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.golfnow.com) — used primarily for on -line tee time booking and marketing to the regional golf market. o Cybergolf (www.cvbergolf.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. ➢ 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. April 204 update FGL continues to utilize its multiple resources for data collection ( #1). Golf Now, our Internet tee time booking engine, now has over 2,500 emails for us to market towards. Cybergolf, continues to hold over 3,000 email club members and is utilized monthly to connect with our customers. FGL has created 9 Get Golf Ready (GGR) instructional programs ( #2) to engage new and lapsed golfers. The Get Golf Ready program is a nationally promoted instructional program taught at the local level. The GGR program is a great way to attract long term customers. The GGR program has proven to have an 80% retention rate to the facility. The first classes begin end of April. 23 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 begin in the camps and enjoy limited time on the golf course. Once they show 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. • 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. Arll2 ©14 Update We have developed a Junior Golf Academy through the PGA. The PGA Junior League Golf will begin at the end of June. For the first time in generations, area golf courses will he developing "teams" of juniors (ages 13 and under) to compete against each other. This exciting and fun format has the potential for rapid growth, as area facilities are getting behind the PGA to introduce this program. FGL will be working with the Tukwila Community Center's youth program to bring golf to their Summer Camps. Instructors from FGL will be teaching golf. to the summer campers at the Community Center. 24 Attachment B 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 32'20. 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 topdressinq 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 A 20 4Update One of the driving forces in our 2014 Marketing Plan is to extend the playing season as much as possible. The first venture onto the golf course by our new aerator, the Verti -Drain (VD), occurred on March 25"`. This aerator is just one component, albeit a huge contributor to our goal of extending the playing season each year The VD allows us to aerate the golf course fairways, tee boxes, and green surrounds at twice the speed as our previous equipment. Additionally, the technical abilities of the VD far surpass our older aerator, including increased and adjustable depth to the aerification holes, and the ability to '`track" below the surface which assists in root growth of our turfgrass and allows us to provide a firmer golf course. 26