SMAARTball Sports Technology

Transcription

1 SMAARTball Sports Technology Product Development Market Research Results* *Excerpts from the Study 1

2 U.S. Golf Ball Industry: Market Analysis 2

3 U.S. Golf Ball Market Estimation: Sources National Golf Foundation Reports 2007 Time Magazine Article: The Golf Game Sporting Goods Manufacturers Association Barnes Report: U.S. Sports and Athletic Goods Manufacturing Hoover s and FirstData Reports Interviews with representatives of golf courses, driving ranges and manufacturers 3

4 Golf Ball Wholesale Market Evaluations * Time Magazine's Golf Ball Wholesale Valuation: Annual Golf Ball Market Total 2007: $ 763,000, Average Price Per Ball = $1.27 *Number of Golf Balls Sold (2007) = 763, /$1.27 = $600,787,000 ** NGF Golf Ball Wholesale Valuation: Annual Golf Ball Market Total 2007: $ 805,000, Average Price Per Ball = $1.27 **Number of Golf Balls Sold (2007) = 805, /$1.27 = $633,858,000 *** Longitudes Group Golf Ball Wholesale Valuation: Annual Golf Ball Market Total 2009: $ 735,000, Average Price per Ball Provided by: Longitudes Group National Golf Foundation National Sporting Goods Association Average Price Per Ball = $1.27 ***Number of Golf Balls Sold (2009) = 735, /$1.27 = $578,740,000 4

5 Driving Range Market Size Estimates and Key Statistics for the Golf Ball Market Practice Range Breakdown Smart Ball Pilot Research On-Course S tand-alone Total Ranges: 12,000 Ranges 2,000 R anges 14,000 Ranges It is estimated that the new ball sales market for driving ranges is 97,800,000. About half of total driving range sales. Practice Range B reakdown Tees per Range Type of Range Amount of Ranges B alls/year/range Total B alls/year 1-20 Small 2,200 2,000 4,400, Medium 7,400 8,000 59,200, Large 4,400 30, ,000,000 Totals: 14,000 40, ,600,000 Practice Range B reakdown Type of Range Number of R anges Percent Total C ourses S tand-alone 2, % 2,000 P rivate on-cours e 3,514 80% 4,393 Municipal on-cours e 1,674 63% 2,657 D aily F ee on-cours e 6,834 67% 10,200 5

6 The Total Annual U.S. Golf Ball Market is estimated to be 604,462,000 balls. Overall Golf Ball Market Estimate Time Magazine Golf Ball Estimate 600,787,000 National Golf Foundation Golf Ball Estimate 633,858,000 Longitudes Group Golf Ball Estimate 578,740,000 Average 604,461,667 How are golf balls purchased? Point of Sale Percent Sold Off-Course Golf Store 42% On-Course Golf Store 24% Sporting Goods 15% Mass Merchant 8% Warehouse Club 4% Mail Order 1% Internet 1% Other 5% Total 100% Who Buys Golf Balls? Market Share: End User Percent of Market Practice Range 15.4% Avid Golfer 50.5% Moderate Golfer 21.5% Occasional Golfer 12.6% Totals: 100.0% 6

7 GPS Golf Ball: Quantitative Findings 7

8 GPS Driving Ranges General Interest Q27. Would you be more likely to patronize driving ranges that offered this GPS system? 84% 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No 8

9 GPS Driving Ranges Price & Frequency Q28A. How much more per session (bucket of balls) would you be willing to pay to use a driving range that offered this technology? 20% 48% 25% 7% 0% 20% 40% 60% 80% 100% 0 - $5 $5 - $10 $10 - $20 More than $20 Q28B. How many more times per month would you visit a driving range that offered this technology? 21% 49% 27% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% None 1 to 2 3 to 4 5 or more 9

10 Respondent Demographics Smart Ball Pilot Research D1. Into which of the following age categories do you fall? D2. Which of the following best describes your annual household income? 45 to 54 41% $100,000- $200,000 49% 35 to 44 43% 25 to 34 10% 55 to 64 5% 18 to 24 1% $75,000- $100,000 21% > $200,000 5% Prefer not to answer 7% <$15,000 1% $60,000- $75,000 5% $45,000- $60,000 5% $30,000- $45,000 5% $15,000- $30,000 2% 10

11 GPS Golf Ball: Driving Range Owner/Manager Qualitative Findings 11

12 Key Findings Driving Ranges & Golf Courses Both the practical importance of the data and the marketable value of a new technology make the GPS Golf Ball concept appealing to driving range facilities. Managers believe customers will pay more for instant access to info on drive distance, launch angle, and ball spin. Offering innovative technology can serve as a differentiator. The product is much more appealing to driving range facilities (versus golf courses), because it fits more comfortably into their revenue model. Participants at larger driving range facilities and golf courses did not balk at the idea of $100,000+ of capital investment to install and maintain a Smart Ball system. An ideal ROI model should demonstrate reaching the break-even point within three to four years. A major question will be logistics of separating out a range exclusively for GPS balls at an established facility. The main concerns of potential customers are a) finding space to dedicate to an exclusively GPS ball-related area, and b) keeping the more valuable GPS balls separate from normal balls without changing their size/shape or investing in labor to separate them manually. ball for actual play. continued 12

13 Key Findings Driving Ranges & Golf Courses The potential to improve and/or expand instructional offerings may actually be the technology s strongest selling point. Using data to augment club fitting can improve product sales by helping customers clearly see how particular clubs affect their performance. Technology must easily integrate into existing operations and offer efficient service options, or it is not worth the investment. Two versions of the ball may be needed: a mass-produced, range-quality ball for driving practice and a higher-quality, top flight ball for actual play. 13