Emerald Driving Range

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Golf Driving Range Business Plan

Market Analysis Summary

Emerald Driving Range will be focusing on golfers at all levels and all ages who want a good quality practice facility.

Our target groups include children (ages 6-17), and we are developing a program for them to participate in. Golf is becoming more and more popular and as kids are beginning to participate at younger ages we would like to give them opportunities to learn the game. Another target group is adults, both male and female, who have an interest in either learning the game of golf, or getting better at it. The last target group is comprised of high schools, local colleges, and universities who want a facility to have classes and instruction, as well as train their golf teams. The need for a state-of-the-art driving range in this community has been apparent for many years and Emerald Driving Range intends to satisfy that need.

4.1 Market Segmentation

The profile of our customers consists of the following Psychographic and Demographic factors.

Adults

  • 70% male.
  • Age range of 18 years to 65.
  • Average annual household income of $70,000.
  • Professional/white collar worker.
  • Plays for business as well as pleasure.

Children

  • Age 7 - 17.
  • Parents play golf.
  • Play other sports in addition to golf.

Schools

  • School sizes range between 500 - 2,000 students for high schools in the area.
  • Community colleges and university have approximately 40,000 students combined.
  • 10% of the local schools are private institutions.
  • 40% of high schools and colleges/universities have an active golf team.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Adults 10% 50,000 55,000 60,500 66,550 73,205 10.00%
Children 10% 60,000 66,000 72,600 79,860 87,846 10.00%
Schools 10% 5,000 5,500 6,050 6,655 7,321 10.00%
Total 10.00% 115,000 126,500 139,150 153,065 168,372 10.00%

4.2 Target Market Segment Strategy

Our market strategy is based on becoming a viable of choice for people looking for a place to practice every aspect of the game of golf. We will have a resident professional with an assistant to assist those customers who wish to have lessons. The target markets are separated into three segments; "Children," "Adults," and "Schools".

Children - Age range of 9 - 17 years of age. Most of the parents of these children also play golf. In addition to golf many of this group plays other sports. Most of these kids also come from middle to upper-class families.

Adults - This group has an age range of 18 - 59 years of age. 70% of this group are males (professional/white collar worker) with an annual household income in excess of $70,000 dollars. It is common for this group to play for business as well as pleasure. Many companies also use golf as a company event for its employees.

Schools - Many local high schools in the area have golf teams that need local practice facilities. With a university and community college in the area the need for convenient practice facilities exists. Working with these institutions to provide facilities to hold classes and practice will fill this need. Local high schools typically have 500 to 2,000 students. With ten schools in the area we are looking at approximately 15,000 students. Private schools only make up about 10% of the schools in the area. The university and community college have combined enrollments of approximately 40,000 students.

4.3 Service Business Analysis

The Driving Range business entails providing a facility that allows for practice in every aspect of the game. Driving, chipping, and putting.

4.3.1 Competition and Buying Patterns

With the increased popularity of golf and the limited number of practice facilities in the area, people will welcome another choice.

Main competitors:

  • Fiddler's Green -- Par 3 18-hole golf course with a driving range and clubhouse selling golf equipment. On-site professional is available to give lessons. Driving range is small but well equiped. Location is not convenient for many people as it is out of town a few miles.
  • Riveridge -- Regulation 18-hole course with a large driving range and pro shop. Located in town, it is convenient to get to and is a well run facility.
  • Laurelwood -- A large nine-hole municipal course with a small driving range and pro shop. Convenient in town location but the driving range is very small and outdated.

All of the driving ranges in the area also have golf courses as part of the facility. The quality of the golf course is usually one of the main draws for people to come and practice. Location also plays a big part in how many consumers choose their practice facility. Driving ranges with an on-site professional draw people who are looking for instruction.