Joe Louis Barrow, Jr.Joe Louis Barrow, Jr.Chair - GOLF 20/20Chair - GOLF 20/20Diversity Task ForceDiversity Task Force

The Diversity Task ForceThe Diversity Task Force

To ensure that Women and Minorities are addressed in all GOLF 20/20 ‘Growth of the Game’ initiatives and assist the golf industry in developing diversity

…awareness initiatives

…outreach programs

…and corporate strategies.

Mission/FocusMission/Focus

Diversity Task Force MembersDiversity Task Force Members

• Joe Barrow, ChairmanJoe Barrow, ChairmanExecutive DirectorExecutive DirectorThe First TeeThe First Tee

• John BuehlerJohn BuehlerSr. Director Global Sr. Director Global CommunicationsCommunicationsCallaway GolfCallaway Golf

• Mike deMaioMike deMaioManaging DirectorManaging DirectorBurrell CommunicationsBurrell Communications

• Barbara DouglasBarbara DouglasManaging DirectorManaging DirectorNational Minority Golf National Minority Golf FoundationFoundation

• Sara HumeSara HumeExecutive DirectorExecutive DirectorExecutive Women’s Golf Executive Women’s Golf AssociationAssociation

• Nancy WeberNancy WeberSr. Vice PresidentSr. Vice PresidentGolf DigestGolf Digest

• Karen MoraghanKaren MoraghanPresidentPresidentHunter Public RelationsHunter Public Relations

• Robin HerringtonRobin HerringtonU.S. Regional Marketing U.S. Regional Marketing Manager, Nike GolfManager, Nike Golf

2003 Programs and Activities2003 Programs and Activities

• Develop Task Force Mission, Programs and ActivitiesDevelop Task Force Mission, Programs and Activities– 2003 Meetings - January/April/June/September/October2003 Meetings - January/April/June/September/October

• Understand mission/goals of GOLF 20/20 task forces and Understand mission/goals of GOLF 20/20 task forces and initiativesinitiatives– OngoingOngoing

• Commission Minority/Women golf participation studyCommission Minority/Women golf participation study– CompletedCompleted

• Develop participation targets for Minorities/Women Develop participation targets for Minorities/Women through 2020through 2020– Presented during the 2003 GOLF 20/20 conferencePresented during the 2003 GOLF 20/20 conference

• Develop GOLF 20/20 diversity media strategyDevelop GOLF 20/20 diversity media strategy

Dr. Joe BeditzDr. Joe BeditzPresident, National Golf FoundationPresident, National Golf Foundation

Minority Golf ParticipationMinority Golf Participationin the United Statesin the United States

Key FindingsKey Findings

• Minorities are a definite presence in golf.Minorities are a definite presence in golf.

• The relationship between income and The relationship between income and participation is as strong, if not stronger, in participation is as strong, if not stronger, in minority populations.minority populations.

• Minorities are attractive candidates for golf: Minorities are attractive candidates for golf: there is a large untapped pool of latent demand.there is a large untapped pool of latent demand.

Total Golf ParticipantsTotal Golf Participants

Minority 5.5 million

Non-Hispanic White31.2 million

Minorities are under-represented in golf

Minority Golf ParticipantsMinority Golf Participants

Asian-American1.5 million

Hispanic-American1.7 million

African-American2.3 million

Golf ParticipantsGolf Participants

White females20.6%

African-American6.3%

White males64.4%

Hispanic-American4.6%

Asian-American4.1%

Golf Participation Rates*Golf Participation Rates*

5.4%

7.0%

13.7%

16.7%

Hispanic-American

African-American

Asian-American

Non-Hispanic White

*Ages 5+, played at least one round of golf or visited practice facility

Participation Rates by Income and RaceParticipation Rates by Income and Race

0%

5%

10%

15%

20%

25%

30%

35%

<$25 $25-$39 $40-$49 $50-$74 $75-$99 $100-$149 $150+

White

African-AmericanAsian

Hispanic

Golf Participant Household Income

Part

icip

ati

on

Rate

9.8 million

5.5 million

Participants Interested non-participants

Latent DemandLatent Demand

Junior Participants

21%

Excl Range6%

Golfers61%

Exclusive Alternative

12%

Minorities Non-Minorities

Junior Participants

16%

Excl Range9%

Golfers73%

Exclusive Alternative

2%

Where They PlayWhere They Play

RecommendationsRecommendations

High

2.1 million

9.8 million

3.4 million

Awareness

Interest

Trial (alternative, range and juniors)

Commitment (regular golfers)

Convert

RecommendationsRecommendations

High

2.1 million

9.8 million

3.4 million

Awareness

Interest

Trial (alternative, range and juniors)

Commitment (regular golfers)

Convert

Population Change 2002-2020Population Change 2002-2020

CAGR=Compound Annual Growth Rate

Source: U.S. Census

Participation rates by income and raceParticipation rates by income and race

0%

5%

10%

15%

20%

25%

30%

35%

<$25 $25-$39 $40-$49 $50-$74 $75-$99 $100-$149 $150+

White

African-American

Asian

Hispanic

Golf Participant Household Income

Part

icip

ati

on

Rate

Focus Here

Minority Participation AssumptionsMinority Participation Assumptions

Minority Participation Assumptions Minority Participation Assumptions (millions)(millions)

1.51.7

2.3

2.62.8

3.0

3.4

3.73.9

Asian-American Hispanic-American African-American

Current

2020 Unmanaged

2020 Managed

Female Participation Female Participation AssumptionsAssumptions

16.5 million

10.8 million9.3 million

Current 2020 Unmanaged 2020 Managed

Impact of Minorities and FemalesImpact of Minorities and Females

*In today’s dollars

Joe Louis Barrow, Jr.Joe Louis Barrow, Jr.Chair - GOLF 20/20Chair - GOLF 20/20Diversity Task ForceDiversity Task Force

Diversity Task ForceDiversity Task ForceRecommendationsRecommendations

• Industry commitment to focus on increasing participation Industry commitment to focus on increasing participation of Women and Diverse populationsof Women and Diverse populations

• GOLF 20/20 Task Forces should integrate Diversity GOLF 20/20 Task Forces should integrate Diversity targets in all ‘Growth of the Game’ programs and targets in all ‘Growth of the Game’ programs and initiativesinitiatives

• Initial FocusInitial Focus– Next Five Years (2004-2008)Next Five Years (2004-2008)– African AmericansAfrican Americans– Hispanic AmericansHispanic Americans– WomenWomen

Diversity Participation Goals –Diversity Participation Goals –Minority GroupsMinority Groups

2.3

1.5 1.7

2.5

1.9

2.6

1.92.1

3.93.4

3.7

00.5

11.5

22.5

33.5

44.5

AA Asian Hispanic

2002 2008 2010 2020

1.8

Diversity Participation Goal –Diversity Participation Goal –African AmericansAfrican Americans

25000 35000 45000 60000 60000

225000

0

25000

50000

75000

100000

125000

150000

175000

200000

225000

2004 2005 2006 2007 2008 Total

280000

7900078000

510004100031000

0

50000

100000

150000

200000

250000

2004 2005 2006 2007 2008 Total

Diversity Participation Goals – Diversity Participation Goals – Hispanic AmericansHispanic Americans

56,000 76,00096,000

138,000 139,000

505,000

0

100,000

200,000

300,000

400,000

500,000

600,000

2004 2005 2006 2007 2008 Total

African Americans/Hispanic Americans

Diversity Participation Goals - Diversity Participation Goals - Incremental Increases Incremental Increases 2004 -20082004 -2008

Diversity Participation Goals - WomenDiversity Participation Goals - Women

1,000,000

285,000285,000

170,000160,000100,0000

150,000

300,000

450,000

600,000

750,000

900,000

1,050,000

2004 2005 2006 2007 2008 Total

Average Participant Spending = $663

Managed Growth -Managed Growth -Buying PowerBuying Power

$997,000,000

Diversity Task ForceDiversity Task Force2004 Programs and Activities2004 Programs and Activities

• Assist the golf industry in developing Assist the golf industry in developing marketing strategies to ensure achievement of marketing strategies to ensure achievement of 2020 diversity targets.2020 diversity targets.

• Share diversity Business Case models with all Share diversity Business Case models with all Industry organizations.Industry organizations.

• Assist all ‘Growth of the Game’ initiatives Assist all ‘Growth of the Game’ initiatives with the development of diversity components. with the development of diversity components.

Diversity Task ForceDiversity Task Force

• SummarySummary– Vast Opportunity to grow the game Vast Opportunity to grow the game

among Minorities and Womenamong Minorities and Women

– Requires Industry Commitment and Requires Industry Commitment and InvestmentInvestment

– Payback will be significantPayback will be significant