The Game has Changed Overview of Kohler and the Hospitality and Real Estate Group How our marketing efforts have changed over the last three years Our.

The Game has Changed • Overview of Kohler and the Hospitality and

Real Estate Group

• How our marketing efforts have changed over the last three years

• Our strategies for 2012 and beyond

Who We Are– Lodging -- TAC and IOW

Who We Are• What we have – River Wildlife/Sports Core

Who We Are – Golf – Blackwolf Run and Whistling Straits

Golf

Who We Are – Golf Championships

Who We Are – Shopping/dining experiences

Who We Are – Kohler Waters Spa

Who We Are – Riverbend

Who We Are– Old Course Hotel, Golf Resort and Spa – St

Andrews, Scotland

How it Came Together• No “master plan” for creating/growing the

H&RE group• Three items together fueled the growth of our

resort business:– Taking a chance against the advice of many– Listening to our customers along the way– Being mindful of the latest industry trends

State of the State -- 2008

• Extremely profitable business• Record occupancy year over year 2006,2007

through July 2008• Record rounds, F&B covers, Memberships,

average daily rate, group rooms, etc.• AND THEN….

Luxury Consumption IndexUnity Marketing Tracking Study

10097.8

102.7

96 95.6

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94.4

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So Now What??• Understand the economic conditions in a

recession-based economy• Understand the customer mindset• Understand the new marketing mix• Create strategic market plan to find, attract

and retain the customer willing to travel to Kohler and St. Andrews in this economy

Understanding Our Visitors• American Club Resort– Gender

– Age

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04/19/23 17

AFFLUENT TRAVELERS WILL NOT OPEN THEIR WALLETS BLINDLYJanuary 2011 “Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness”

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Six trends now play a role in shaping the post-recession travel industry

Value takes center stage.

Social media begets new ways of sharing.

Mobile takes travel on the go.

Personalized micro-niche travel is taking off.

Online travel spans new horizons.

Sustainable is becoming attainable.

Evolving Marketing PracticesOLD

• People are all the same• Media is stable• Media are few and large• Puffery• Differentiate with quality,

innovation• Plan your timing• Separate media• Time-tested methods

NEW

• Everyone is different• Media is destabilized• Media are many, small• Authenticity• Differentiate with emotional

relevance• All is Web-sourced• Experiment - courage to try

unknown

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Marketing to the Rescue

• Target who is traveling• Find out how to reach them• Utilize the research as a backbone of our

strategic action plan• New technology, new voice tone, change in

ownership

Our New Marketing Action PlanPre-2009

• Group business is booming• It’s about Luxury • Static Pricing• Puffery• Differentiate with the

product• Print is King• Tried and true marketing,

don’t rock the boat

2010 and beyond

• Group business is rare• It’s all about the experience• Flex pricing• Authenticity• Differentiate with emotional

relevance• All is Web-sourced• Experiment - courage to try

unknown

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What that looks like• Digital marketing (SEM, SEO, re-marketing)• Web-campaigns (fading but still relevant)• Social (engagement, not offers)• Grow our database (email opt-ins)• Open up new sales and marketing channels– Jet Setter, Perfect Escape, Snique away, etc.

• Public Relations (tried and true)

November 19, 2010

Facebook represents 1 in every 10 U.S. internet visits

Source: Experience Hitwise

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November 19, 2010

Facebook generates nearly 1 in every 4 page views in the U.S.

Source: Experience Hitwise

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Facebook is an important channel for consumers to share their favorite brands and products with their friends

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Geographic Targeting

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Targeting by interest and geography

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Opportunities for The American Club Resort Hotel in Social Media (near-term)• Re-launch Destination Kohler Facebook page as The American Club

Resort Hotel to reflect consumer conversation and new branding • Create a balanced Facebook presence that will maintain two primary

pages: Kohler Golf and The American Club Resort Hotel:• Create master content calendar and unified team for managing the

new The American Club Resort Hotel page.• Create social media roadmap for the next 12 months for The American

Club Resort Hotel and Kohler Golf pages• Create Facebook events for special events within The American Club

Resort Hotel fan page

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Opportunities for Destination Kohler in Social Media (near-term)

• Build relationships with influencers in the golf space• Transform current Twitter account @DKReservations to

support The American Club Resort Hotel Facebook page• Encourage people to post reviews about their Kohler trip

on review websites such as TripAdvisor.• Create Kohler Golf Virtual Leaderboard via Facebook,

Twitter and a dedicated page on the Destination Kohler website

• Partner with a major blog conference organizer to host an event at the American Club.

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Current E-mail Programs

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The American Club ResortSubscribers = 115,623

Old Course HotelSubscribers = 12,058

American Club Resort PRSubscribers = 617

Shops at WoodlakeSubscribers = 3816

Sports CoreSubscribers = 2035

Kohler Waters SpaSubscribers = 1806

Opportunities for Destination Kohler in Opt-in marketing (near-term)

• Customer acquisition• More customers, more business • Balance offers and experiences in 2012• Engagement and ROI

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Other Digital Marketing Opportunities for Destination Kohler (near-term)

• Invest in SEM and SEO• Protect our search terms• Remarketing and PPC advertising – sniper

approach• Online Campaigns

Old School efforts still in tact• Tried and True public relations – new mediums, same

messaging

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Venture Capitalist Legend John Doerr calls it “SoLoMo”: Social – Local – Mobile. Over the next decade, these three trends will interact to reshape our lives. Each facilitates the other. We are practicing all three.