Bear Creek Golf Range Executive Summary
Melecio D. Magallon
Marketing Strategy
October 12, 2014
BEAR CREEK GOLF RANGE
CURRENT SITUATION:
Established by Dan Shay and George Patton on May 1, 1993, Bear Creek Golf Range was to be a professional golf range whose goal was to “establish an image as the ‘professional golfing center’, run by professionals.” The company emphasis was on its ability to provide top quality training and service to experienced serious golfers. It also hoped to provide its golfers with first-class amenities that would have established itself as an upscale facility far above average facilities. Unfortunately, Bear Creek experienced a few financial issues early in its development which prevented it from achieving its initial plans. These issues along with a few other issues prevented Bear Creek from attaining its desired usage rate of 33% and left it struggling to operate at a disappointing usage rate of 20%.
KEY PROBLEM:
Although Bear Creek has been able to establish itself as a professional golfing range which caters to serious golfers, it still faces many challenges which will impact the company’s future profitability. The most significant issue which the company faces is its low usage rate of 20%. Bear Creek’s inability to capture its fair share of the golfing business has resulted in the disappointing rate. Bear Creek’s 20% usage rate ranks it last when compared to its major competitors: Greenbrier at 35%, Golfarama at 33%, and two other discount golfing ranges each at 25%. In calculating Bear Creek’s breakeven point it was determined that Bear Creek would need to reach a usage rate of
33% which is equivalent to an average daily rate of 105 customers. All of this leads to the question, “What does
Bear Creek need to do to improve its 20% usage rate to a point where its future profitability is no longer in doubt?”
SWOT ANALYSIS:
STRENGTHS
Dan Shay’s PGA Reputation
Individual/Group lessons given by PGA Pro
First class greens, fairways, and hitting areas
Premium equipment
Marketing Strategy
October 12, 2014
BEAR CREEK GOLF RANGE
CURRENT SITUATION:
Established by Dan Shay and George Patton on May 1, 1993, Bear Creek Golf Range was to be a professional golf range whose goal was to “establish an image as the ‘professional golfing center’, run by professionals.” The company emphasis was on its ability to provide top quality training and service to experienced serious golfers. It also hoped to provide its golfers with first-class amenities that would have established itself as an upscale facility far above average facilities. Unfortunately, Bear Creek experienced a few financial issues early in its development which prevented it from achieving its initial plans. These issues along with a few other issues prevented Bear Creek from attaining its desired usage rate of 33% and left it struggling to operate at a disappointing usage rate of 20%.
KEY PROBLEM:
Although Bear Creek has been able to establish itself as a professional golfing range which caters to serious golfers, it still faces many challenges which will impact the company’s future profitability. The most significant issue which the company faces is its low usage rate of 20%. Bear Creek’s inability to capture its fair share of the golfing business has resulted in the disappointing rate. Bear Creek’s 20% usage rate ranks it last when compared to its major competitors: Greenbrier at 35%, Golfarama at 33%, and two other discount golfing ranges each at 25%. In calculating Bear Creek’s breakeven point it was determined that Bear Creek would need to reach a usage rate of
33% which is equivalent to an average daily rate of 105 customers. All of this leads to the question, “What does
Bear Creek need to do to improve its 20% usage rate to a point where its future profitability is no longer in doubt?”
SWOT ANALYSIS:
STRENGTHS
Dan Shay’s PGA Reputation
Individual/Group lessons given by PGA Pro
First class greens, fairways, and hitting areas
Premium equipment