Sales and strategical understanding

towards

operating a Profitable Golf Business in

Hungary

1.Market Conditions and Opportunities• After crisis its a reduction of golf

businesses in Hungary

• strategic reduction of up to 3 well performing 18 hole golf courses in Hungary(Royal Balaton golf Club, Oldlake Tata, Máriavolgy-Alcsútdoboz)

• Appropriate pricing strategies adopted Appropriate pricing strategies adopted by the industryby the industry

• below cost pricing to be resisted

• Golf businesses working together an international basis

• businesses cooperating to broaden the offering & improve promotion

• develop international relations to encourage growth

• It’s a must to develop international Hungarian Golf Cups

2.Strong and Sales oriented Management

• Profitable golf businesses need more than administrators

• strong front of house qualities are essential

• all employees must understand hospitality management

• ability to communicate clearly and affectively

• marketing / promotional skills are necessary

• must be capable of selling

• Management Structure must be streamlined & efficient

• effective decision making is critical

2.Strong and Sales oriented Management (cont’d)

• Golf businesses must adopt a strategic plan

• In Hungary less than two in every three

companies have a strategic written plan

• I assume that a strategic plan and an action

plan will increase Balatongolf membership

number

• Golf businesses require full year and full time

management

• owners must work closely with management

• golf businesses without a sales executive

should appoint one or outsource to a

company-here came Smart Staff in August

2012

3.Maximize Efficiency & Control Costs

•Most of the Hungarian golf clubs have reduced their costs

• Lot of high paid people within the clubs made redundant

• Service levels and the product are suffering in many clubs

• Cost savings should be achieved through efficiencies, rationalisation and a better managed business and not with lowering the service level!

• Cuts imposed on promotion, management and services levels should be assessed as part of an overall strategy plan

3.Maximize Efficiency & Control Costs

• Participate in group buying schemes to assist in reducing costs

• materials, inputs, direct costs & services

•Consider outsourcing various aspects of the operation• course maintenance• sales & professional marketing-golf its an image business!!•professional clubhouse maintenance, food & beverage, merchandise

• Adjust resource structure to reflect seasonality of the business

• change in working conditions, less full time staff, centralise certain functions

Key Considerations

4.Broadening the Consumer Base& Revenue Streams

• Broaden the membership offering to attract new

customers

• Provide different packages(Media package, VIP

partner event, HR package-and develop consumer

choice)

• Bundle products & services more effectively(golf

breakfast, golf learning day, Balatongolf packages

for foreign tourists including 2-3 days Budapest

programme etc)

• Exploit all facilities to develop new revenue

streams(for ex weddings, company sponsored Golf

Cups etc)

5.Revenue growing steps• Invest in sales & marketing initiatives

• recruit experienced sales professionals • improve the ability of the business to capture & build membership databases!!!!• know your customers & align your offering to suit• exploit online sales tools• implement a differentiated promotional campaign to specific consumer groups

• Implement membership retention initiatives• recruiting new members is 5 times the cost of retaining an existing member• develop programmes for integrating new members• enhance communication between the club and its members• provide benefits of membership -that add value• improve customer service!!!, the members experience & the product

5.Revenue growing steps

• Implement membership growth strategies

• broaden the membership base to attract new customers

• add value to the membership

• clearly communicate the membership offering

• clearly define the sales process and have a clear sales focus

• monitor performance at generating and converting leads

5.Revenue growing steps

•Embrace technology & online booking engines

•provides a platform to drive green fee revenue

• allows for implementation of yield management initiatives

• provides the ability to adapt quickly to changing consumer demands

•Prepare 2-3 players from Balatongolf Club for the 2016 Olimpycs and get media exposure and state support for that!

Thank you very much for your kind attention!

Zoltán HajduTel.:+ 30 816 47 70

E-mail: zoltan.hajdu @smartstaff.hu