TITLE

DATE

Segmentation in Sport & Sailing, (simply)

Our Sporting Future Conference

Melbourne April 2013

Ross Kilborn

Segmentation - Fun or frustration ?

8 States/Territories 350 Clubs 60k Club Members

High Performance(Fans & supporters)

New program(s)Attraction/ ParticipationInclusion

1:1 Marketing

• One decade ago direct marketing expenditure exceeded main media spend for the first time

• Now on line is at the point of exceeding it !• It’s more effective to identify small groups of people

and market to them based on their characteristics

But how to identify segments ?(based on like characteristics)

1. Demographic

2. Behavioural 3. Psychographic

Demographic

Generic

•Gender•Age•Family Structure •Income / Affluence•Ethnicity •Geo-demographics

Yachting Australia / Sailing •Lifestage (age + family status) •Geography

Behavioural

Generic

•Purchase History •Customer value •Period of custom

Yachting Australia /Sailing • Participant/ Club Member• Pathway level • Boat Type

Psychographic

Generic

• Research based • Attitude and emotion • ASC – GFK Sport Segmentation

Sailing (clubs)

• Competition / Racing • Recreational / Social•Adventure / Outdoors•Cruising

Loyalists Socially Engaged

Sport Driven

Apathetic Clubbers

Sidelined Sportsters

Club Wary Ponderers Self focused Sport indifferent

Sport Athiests

ASC Adult Segment profiles

Club Wary Pen Portrait

The Club Wary are very positive about sports, though they want to enjoy their sport at a slightly less serious and competitive level.

Club Wary are not particularly critical of clubs but from past experiences as members, they have some reservations.

They see clubs as requiring a significant commitment and lacking in flexibility, can be slightly self conscious about fitting in and playing sport with others.

Pen Portrait

The Club Wary are very positive about sports, though they want to enjoy their sport at a slightly less serious and competitive level.

Club Wary are not particularly critical of clubs but from past experiences as members, they have some reservations.

They see clubs as requiring a significant commitment and lacking in flexibility, can be slightly self conscious about fitting in and playing sport with others.

Club Wary

What to talk to them about? (Products)

Beginners / skill building classes / teams

Flexible membership around costs (e.g, 2 for 1

memberships)

Proactive communications highlighting the facilities of the

club

Offer of trial ‘membership’ without full financial

commitment

What to say? (Message areas)

Club is inclusive and for all levels

Highlight the offer to play the sport they want at good facilities

Focus on the sport and facilities

Join with a friend

Focus building skills while playing

Competition as a means of improvement and for self

achievement.

How to say it? (Tone) Helpful

Beginners classes and free trials are popular ways to introduce the

Club Wary to clubs. More flexibility in times and

prices as well as a less competitive approach

could also assist. There are a range of activities which could entice this

segment.

Ideals for club sport Participation - Club Wary

Sailing…….

Sailing Segmentation – Simple Summary

1. Demographic

a. Lifestage

b. Geography

2. Behavioural

a. Participant /Member

b. Pathway Level

c. Boat type

3. Psychographic

a. Club Officials – Gold Members!

Background

• Federated structure • Limited media, event income or fan base • Limited budget• Probably similar to many sports !

• Membership database of 60k (Limited data depth)• Marketing Strategy - 2011

• Priority = New Participant Attraction • Benefit = Existing Member Retention

Marketing Strategy 2011

• 2011 ASC Pathways to Success Participation Funding• 2011-12 Appointment of gemba to conduct market research into sailing

and clubs over 3 groups • Club Members • Participants – non members • Australians – yet to Discover Sailing

• Outcome – Marketing Strategy• Brand hierarchy • Lifestage Segmentation – 3 priority segments• Attributes of the offer, (the barriers) and message and media for each

of them

The gemba Report !

1. What Yachting Australia should do 2. What Clubs should do 3. Lifestage Segmentation & priorities

New Brand (non sailing public)

•Contemporary •Acquisition led •Overarching & Universal •Introductory Options •Pathway based •Key Messages •Simple Information

A vehicle of cultural change responding to societal trends in sport consumption

Yachting Australia

Segment Priority Framework

LowLow Below AverageBelow Average AverageAverage Above AverageAbove Average HighHigh

Strategic Importance Primary School

Secondary School

Young Adults

Young Families

Older Families

Working Professio

nals

Empty Nesters

Retirees

Size of segment (Absolute Size & Future interest in sailing)

Commercial Potential of segment (income & YA member spend)

Attractiveness to funding partners (Govt & Private)

Likelihood of Acquisition of segment ( sports frequency & market share)

Ability to influence other segments

Ease of ImplementationPrimary School

Secondary School

Young Adults

Young Families

Older Families

Working Professio

nals

Empty Nesters

Retirees

Budget and resources required to implement

Existing program can be rolled out or modified

Access to infrastructure (=boats) constitutes NOT a strong barrier

High High Low Medium Medium Low Low Low

High High Medium Medium Medium Medium Low Low

YA

What are the needs of three priority consumer segments?

• Crucial to focus on this segment since this is the time in children’s life where sampling of a variety of sports is taking place, first experiences of success happen and first friendships are built

• Barriers of this segment for sailing are:

– parents perceive sailing as a dangerous sport for primary school kids

– the fact that the ideal starting age is believed to be around 7-12 years, which is later than for other sports

– the perception that sailing is an exclusive sport, reserved for older people

– having to become a member & lack of equipment & facilities

• When asked, parents wanted their children to be in a program featuring:

– Good coach : child ratio

– Short time, weekend or holiday program

– Certificate and clear pathway at end

• Any communication about a program targeting this segment needs to emphasise

– Safety

– Social aspects & fun

– Boats provided - inclusive cost

Primary School Children

Primary Schooll

Secondary School Children

Primary School

Young Families

Primary School

In general, this segment is participating in a variety of sports – they have the most time at hands but will already have made their choices about their favourite sports

Main sports motivations for this segment are social interaction and fitness

Barriers to participation in sailing are:

–Cost of participating

–Equipment needed

–Potentially lower interest levels of teenagers who have already chosen their favourite sports

–Not an ideal age to start sailing, too late

When asked, parents wanted their children to be in a program featuring:

–More practice than theory, learning by doing

–Organised by school

–2-3hrs

–Weekend or summer holidays

–No membership

–Boats provided

Program needs to be fun & social as sailing is currently not perceived as very exciting by this age group

•This segment is particularly crucial to engage in sports since young parents are still taking decisions for their young children

•By acquiring & retaining young parents there is a chance to not only get adults into the sport but also their young children since parents are looking for social activities that can be done by the entire family

•Fitness is a key motivator for young families to participate in sports – competition & achievement are rather uninteresting

•Real or potential barriers to participating in sailing are:

– Lack of available time – Cost of participating– Lack of facilities & equipment– Lack of

information/communication– Perceived danger of sailing for

young children– Lack of offerings for kids &

partners

•Program needs to be short, with flexible membership offering, an activity for the whole family, with only basic theory on the job. Boats provided

Why juniors are priority one ?

1. Currently underperforming in this segment

2. Life time value to the sport

3. Most people who boat later in life enjoyed it as a kid

4. All other sports are competing for them

5. They offer the opportunity for priorities 2 & 3 2 = Youth = retained juniors

3 = Young families = additional participants

6. A piloted Program in Victoria

Tackers – design drivers

Tackers – 8 sub segments for communication Different message and media for each !

Clubs Instructors Parents Kids

Participating 1 2 3 4

Prospective 5 6 7 8

Progress to date – Discover Sailing & Tackers

• Just over 1 year since gemba Research Report • Launched in 2012 • Implementation in 2013 forward• Long term commitment

• Segmentation is simple • Communication is key

• Media & message must engage • Measure effectiveness

Lessons & Challenges

• Information systems – limited in ability to • Segment• Interface with modern media• Measure

• Capacity of the peak bodies and clubs • Cultural Change at clubs – not traditional thinking • Challenge of change

• people like to see traditional media • can’t control traditional media e.g. Sydney – Hobart

Information strategy

Value to you and a sponsor

Who are your members, ( or segments), fans, their characteristics, and where do they live !

Segmentation - Art and Science

ART

•Business Priority ?•Which works for you ? •Ease of implementation ?

SCIENCE

•Actionable !•Measurable ! •Customer Centric !

Segmentation - Fun or frustration ?

Thank You / Questions

SPONSOR(S) WANTED