Spring Creek Golf Course Project Situation Analysis (20 pts) First, review the financial data and make a report. Include all of the following: Total annual Revenues and Gross Profit, Number and Percentage of rounds, revenues and profits from the membership program (5 pts) Calculate the current LTVs for Regular and Club Members You will need to determine the most logical number of years and justify it. (Provide the LTV tables) (10 pts) Calculate the changes in LTV (Include the LTV tables) if: (1.) Spending goes up by 10% and retention goes up by 5% (2.) Spending goes up by 20% and retention goes up by 10% Leaky Bucket How many new Regular and Club Members are needed each year to maintain the current number of members for each group (around 200 regular members and 75 Club members). (3 pts) Summarize the current financial situation. (2 pts)

Spring Creek Championship Golf Course Current Database Information General Regular Club Golfers Members Members $99 $5,900 13/5 140/24 8.500 3.240 10,660 Approximate # of people in database Approximate Retention rate Total Rounds of Golf Database Info - Do you have the following info for each group? Address Telephone number Email addresses (approximate%) Birthdate Gender Income Education Proximity from the course NO NO NO NO NO NO NO NO YES YES YES YES NO NO NO NO YES YES YES YES NO NO NO NO # of rounds played per year for each cardholder? # of rounds played by guests of the cardholder? Dollars spent on golf per year for each cardholder Dollars spent on Pro shop merchandise Dollars spent on food and beverage Dollars spent at the driving range Dollars spent on lessons NO NO NO NO YES YES NO NO NO NO NO YES YES NO NO NO NO NO Communication Activities Surface mail Newsletters Surface mail Renewal Form Surface mail special offers Email newsletters Email special offers and Events Email Renewal Form Telephone renewals Telephone special offers NO NO NO YES YES YES NO NO YES YES YES YES YES YES YES YES Spring Creek Golf Course Income Statements and Member Renewals General Regular Club Golfers Members Members $99 $5,900 13/5 140/24 8,500 3,240 10,660 $ 340,000 $ 240 $ 120 $975 $ 34,000 $ 50 $600 200 Membership Ave. Rounds Total Rounds of Golf Played 2021 Green/cart fees (100% gross profit) Guest Green Fees (100% gross profit) Food and Beverage (est) (50% gross profit) Pro Shop $ (est) (50% gross profit) Events (est) (50% gross profit) Total Revenues Total Profits 2019 members Year End) 2020 members Year End) 2021 members (Year End) 2019 $ (est.) Revenues 2020 $ (est. Revenues 2021 $ (est.) Revenues 2019 membership fees (est.) 2020 membership fees (est.) 2021 membership fees (est.) 2019 $ (est. Profits 2020 $ (est. Profits 2021 $ (est.) Profits % of Profits Total Profits 2021 $ 42,500 $ 30 $500 $ 10,000 $ 20 $90 $ 50.18 $559 $8,065 $509 $7,470 68 170 58 180 65 $111,800 $548,420 $95,030 $467,770 $426,550 $100,620 $524,225 $ 19,800 S 401,200 $ 16,830 $ 342,200 $ 17.820 $ 383,500 $101,800 $ 507,960 $ 86,330 $ 433,260 $ 383,250 $ 91,620 $ 485,550 40.0% 9.5% 50.5% $ 960,420 Club Club Regular 200 Regular 170 68 58 2020 Beginning # of players card members (from 2019) Retained members New members Year end # of members Retention rate 115 55 170 58% 55 3 58 81% 2021 Beginning of players card members (from 2020) Retained members New members Year end = of members Retention rate 108 72 180 64% 47 18 65 81% le Spring Creek Golf Course Current Membership program Regular Members $99 per year Preferred Tee times Reduced Green Fees The Spring Creek Golf Course Medalists Newsletter One free round of golf with annual signup First chance sign-up for golf leagues Club Membership $5900 Preferred Tee times Includes green cart fees The Spring Creek Golf Course Medalists' Newsletter One free round of golf with annual signup First chance sign-up for golf leagues Spring Creek Green Fees No Membership Regular membership winter Summer winter Summer Prime $ 60 $50 $ 30 $ 40 Twilight $ 45 $ 40 $ 40 $ 35 Super Twilight S 35 $ 30 $ 30 $ 25 Retention Rate Regular Member Club Members Year 1 0.5 0.75 Year 2 Year 3 Year 4 Year 5 Year 6-10 0.3 0.6 0.6 0.7 0.7 0.75 0.8 0.8 0.8 0.85 The Current database marketing membership program is very simplistic but does not capture any information other than = of rounds played. It is a discount access card with a reward component for the regular members. It is set up as simple easy to administer "Big Gulp" style program, where the Regular member has their card stamped every time they play. Every eight round is free. For the Club members all rounds are included in the membership. So, their rounds are not currently tracked. Thus, the amount spent at the course is mostly estimated. As a result it is difficult to calculate LTV and the spending rates for each individual member. Joe has made estimates for you to get a baseline. Spring Creek Golf Course 0000000 Expires 6/30/20 JOHN SCHIBROWSKY #2469 CC ADID policidadizeze Spring Creek Championship Golf Course Current Database Information General Regular Club Golfers Members Members $99 $5,900 13/5 140/24 8.500 3.240 10,660 Approximate # of people in database Approximate Retention rate Total Rounds of Golf Database Info - Do you have the following info for each group? Address Telephone number Email addresses (approximate%) Birthdate Gender Income Education Proximity from the course NO NO NO NO NO NO NO NO YES YES YES YES NO NO NO NO YES YES YES YES NO NO NO NO # of rounds played per year for each cardholder? # of rounds played by guests of the cardholder? Dollars spent on golf per year for each cardholder Dollars spent on Pro shop merchandise Dollars spent on food and beverage Dollars spent at the driving range Dollars spent on lessons NO NO NO NO YES YES NO NO NO NO NO YES YES NO NO NO NO NO Communication Activities Surface mail Newsletters Surface mail Renewal Form Surface mail special offers Email newsletters Email special offers and Events Email Renewal Form Telephone renewals Telephone special offers NO NO NO YES YES YES NO NO YES YES YES YES YES YES YES YES Spring Creek Golf Course Income Statements and Member Renewals General Regular Club Golfers Members Members $99 $5,900 13/5 140/24 8,500 3,240 10,660 $ 340,000 $ 240 $ 120 $975 $ 34,000 $ 50 $600 200 Membership Ave. Rounds Total Rounds of Golf Played 2021 Green/cart fees (100% gross profit) Guest Green Fees (100% gross profit) Food and Beverage (est) (50% gross profit) Pro Shop $ (est) (50% gross profit) Events (est) (50% gross profit) Total Revenues Total Profits 2019 members Year End) 2020 members Year End) 2021 members (Year End) 2019 $ (est.) Revenues 2020 $ (est. Revenues 2021 $ (est.) Revenues 2019 membership fees (est.) 2020 membership fees (est.) 2021 membership fees (est.) 2019 $ (est. Profits 2020 $ (est. Profits 2021 $ (est.) Profits % of Profits Total Profits 2021 $ 42,500 $ 30 $500 $ 10,000 $ 20 $90 $ 50.18 $559 $8,065 $509 $7,470 68 170 58 180 65 $111,800 $548,420 $95,030 $467,770 $426,550 $100,620 $524,225 $ 19,800 S 401,200 $ 16,830 $ 342,200 $ 17.820 $ 383,500 $101,800 $ 507,960 $ 86,330 $ 433,260 $ 383,250 $ 91,620 $ 485,550 40.0% 9.5% 50.5% $ 960,420 Club Club Regular 200 Regular 170 68 58 2020 Beginning # of players card members (from 2019) Retained members New members Year end # of members Retention rate 115 55 170 58% 55 3 58 81% 2021 Beginning of players card members (from 2020) Retained members New members Year end = of members Retention rate 108 72 180 64% 47 18 65 81% le Spring Creek Golf Course Current Membership program Regular Members $99 per year Preferred Tee times Reduced Green Fees The Spring Creek Golf Course Medalists Newsletter One free round of golf with annual signup First chance sign-up for golf leagues Club Membership $5900 Preferred Tee times Includes green cart fees The Spring Creek Golf Course Medalists' Newsletter One free round of golf with annual signup First chance sign-up for golf leagues Spring Creek Green Fees No Membership Regular membership winter Summer winter Summer Prime $ 60 $50 $ 30 $ 40 Twilight $ 45 $ 40 $ 40 $ 35 Super Twilight S 35 $ 30 $ 30 $ 25 Retention Rate Regular Member Club Members Year 1 0.5 0.75 Year 2 Year 3 Year 4 Year 5 Year 6-10 0.3 0.6 0.6 0.7 0.7 0.75 0.8 0.8 0.8 0.85 The Current database marketing membership program is very simplistic but does not capture any information other than = of rounds played. It is a discount access card with a reward component for the regular members. It is set up as simple easy to administer "Big Gulp" style program, where the Regular member has their card stamped every time they play. Every eight round is free. For the Club members all rounds are included in the membership. So, their rounds are not currently tracked. Thus, the amount spent at the course is mostly estimated. As a result it is difficult to calculate LTV and the spending rates for each individual member. Joe has made estimates for you to get a baseline. Spring Creek Golf Course 0000000 Expires 6/30/20 JOHN SCHIBROWSKY #2469 CC ADID policidadizeze