Consulting countryclub

Mt Eliza Ranelagh Club

The Way Forward Catalyst Consulting Group Ameni Kabboudi (668027) Ricky Li (395891) Kim Newton (392095) Jiannis Tsaousis (585102) Irene Wang (594288) MAY 30, 2014 -COMMERCIAL IN CONFIDENCE-

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

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RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

DISCLAIMER The University of Melbourne, its staff and participating students will bear no responsibility for any loss or inconvenience arising to the client organisation and/or any third party which may arise through the use of the data or recommendations from the Consulting Research Project and final report.

If you have any questions regarding this report, please contact the Capstone Coordinator, Jacqui Hoare, fbe-capstonestudies@unimelb.edu.au.

Acknowledgments Catalyst Consulting would like to thank the following persons for their undivided support and council in the completion of this project: David Crockett, Management Committee Director (Safety) and our client contact, for his diligent guidance and support throughout this process, efficient provision of primary data and efforts in enabling our surveys to proceed; Lawrence Henderson, Management Committee President, for providing vital insight into the strategic and existential challenges facing the Club; Erin McGavin, Club Manager, for her efficient provision of Club information and valuable feedback during our Club inspection; Austin Chia, MGMT30012 Subject Director, for his indispensable guidance, patience, constructive feedback and faith in our team, and; Jacqui Hoare, MGMT30012 Subject Coordinator, for promptly tending to all our administrative queries, patience and constructive feedback.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

Executive Summary This report was commissioned by the Ranelagh Club (‘the Club’) to develop an official mission and vision that will form the basis of the Club’s future strategic decision making.

This is the first consulting report to have ever been commissioned by the Club as a result of its history of management by ‘mums and dads’ which is responsible for a lack of documented vision, strategy and policies, and in turn, for a comprehensive set of challenges that confronts today’s management committee.

Subsequent to the refined mission and vision, this report proceeds to analyse the Club’s value proposition, perform a market analysis and analyse existing recruitment channels, from which a number of recommendations have been drawn. Our research mostly relies on primary data which includes a telephone survey of a non-representative mix of 23 existing Club members; interviews with Management Committee members and the Club Manager; results from previous Club-conducted surveys, and; other primary data from the Club.

These data are supplemented by secondary research, which especially takes prominence in our target market analysis and findings, including Australian Bureau of Statistics (ABS) data from the 2011 census of the Mt Eliza locality, and IBIS World industry data.

From the surveys and our own inspection, the Club’s strengths and weaknesses were observed whilst the interviews informed us of the Club’s opportunities and threats, which were collectively canvassed in the SWOT analysis on which the proposed vision statement is based. Similarly, the Club’s distinct attributes, value-enhancements and suitable market were canvassed during the aforementioned process of data collection and inform the proposed mission statement.

It is on the basis of the newly-constructed mission statement that the report proceeds to analyse existing membership services, with a gap analysis of survey data identifying dissatisfaction with the Club’s dining service, in particular its hours of operation, menu and value-for-money. This finding is only made heavier by the fact that survey respondents rated dining as the most important Club amenity for members, whilst tennis was identified to be the Club’s competitive advantage, despite some maintenance concerns.

Further, the gap analysis identified significant safety concerns regarding the Boat Storage facility. These concerns were echoed by committee members interviewed, who reported the malfunctioning of the shed’s launching system in the 2013/14 summer narrowly avoided injury and/or loss of life, leading to a significant occupational health and safety audit by WorkSafe Victoria.

The Club’s membership recruitment is subsequently accorded greater strategic direction with a market analysis investigating both internal and external factors relating to the Ranelagh Club. A Porter’s five forces analysis was undertaken, and determined that there exists a medium level of competition in the industry. Local demographics were analysed using a range of secondary research, especially ABS census data, recommending that the Club’s prime market within its area are young families with dependent children; businesspeople, and; semi-retirees/workers approaching retirement age. A competitive analysis was undertaken to determine the Club’s key strengths and weaknesses in comparison to competitors. The Club’s current internal marketing mix and communication

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methods were also analysed, providing further insight into the necessary strategic direction for the its membership recruitment.

An analysis of Club’s membership levels reveals a concerning attrition rate that has been disguised by proportionately more new member applications, thus unnecessarily adding to the burden of the management committee and stymying genuine membership growth.

Contemporaneously, it is identified that ‘word-of-mouth’ is single- handedly the Club’s most valuable asset in regards to recruitment, with the average survey respondent very likely to recommend the Club to their friends and colleagues.

In response to the report’s findings, it is recommended that: Recommendations Opportunities/Threats/Problems Addressed 1. Mission statement Lack of official mission and organisational clarity 2. Vision statement Lack of official vision to inform future strategy-based decision making 3. Alter Clubhouse dining hours in Strong member dissatisfaction with consultation with members, with a Clubhouse dining despite its rating as the view to extending them most important service 4. Perform maintenance repairs to the Strong member concern regarding tennis tennis courts court’s condition despite high satisfaction 5. Remove or replace motor boat shed Significant safety concerns by members and launching facility previous malfunction due to ageing system, posing a serious risk to member welfare 6. Establish a membership officer Unstructured membership recruitment position on the Management processes Committee 7. Forge partnerships with local real Attracting new/first homebuyers in Mt Eliza estate agencies as members 8. Make the Club website more Facilitation of a registration of interest in interactive for prospective members membership online (currently unavailable) 9. Offer financial incentives to High rate of survey respondents who would members who successfully refer recommend club membership new members Our recommendations aim to give the Ranelagh Club organisational clarity in its purpose and resolve; a vision for what it should strive towards as a 21 st century social and recreational club; improvements to its current member offering, and; a strategic-orientation to its membership recruitment with minimised resources. We are confident that these findings and recommendations will form the basis for the Management Committee’s future development of strategy in areas outside of the provision of this report.

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Table of Contents 1

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B ACKGROUND PROBLEM STATEMENT & PURPOS E PROJECT SCOPE METHODOLOGY ERROR! BOOKMARK NOT DEFINED.

2.1 2.2 2.2.1 2.2.2 2.3 2.4 2.4.1 2.4.2 2.4.3 3

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OVERVIEW OF M ETHODOLOGY DATA SOURCES AND COLLECTION M ETHODS P RIM ARY DATA SECONDARY DATA DATA ANALYS IS TECHNIQUE M ETHODOLOGICAL SCOPE AND LIMITATIONS P RIM ARY DATA LIM ITATIONS INTERNAL RANELAGH CLUB DATA LIMITATIONS EXTERNAL DATA

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3.1 M ISS ION STATEMENT 3.1.1 ANALYSIS OF THE EXISTING MISSION STATEM ENT 3.1.2 REFINED MISSION STATEM ENT 3.2 VIS ION 3.2.1 ANALYSIS OF THE EXISTING VISION 3.2.2 REFINED VISION

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4 MEMBERSHIP VALUE ERROR! BOOKMARK NOT DEFINED. 4.1 VALUE P ROPOS ITION 4.1.1 DEFINITION 4.1.2 IDENTIFICATION OF THE VALUE P ROPOSITION 4.2 GAP ANALYS IS 4.3 CRITICAL ISS UE: B OAT STORAGE

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5.1 5.2

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5.3.4 CONCLUSION ERROR! B OOKMARK NOT DEFINED. 5.4 INTERNAL ANALYS IS : COMMUNICATIONS SUMMARY ERROR! BOOKM ARK NOT DEFINED .

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6 MEMBERSHIP RECRUITMENT ERROR! BOOKMARK NOT DEFINED. 6.1 M EMBERS HIP TRENDS 6.1.1 P ROBLEM 1: ATTRITION 6.1.2 DECLINE IN JUNIOR MEM BERSHIPS 6.2 EXIS TING REC RUITMENT CHANNELS 6.2.1 WEBSITE 6.2.2 REFERRALS 6.2.3 LOCAL PARTNERSHIPS

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7 RECOMMENDATIONS ERROR! BOOKMARK NOT DEFINED. 7.1 7.1.1 7.1.2 7.2 7.2.1 7.2.2 7.2.3 7.2.4 7.3 7.3.1 7.4 7.4.1 7.4.2 7.4.3

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UPDATE THE WEBSITE AND M AKE JOINING M ORE INTERACTIVE AND EASIER FOR THE PUBLIC ERROR! B OOKMARK NOT DEFINED .

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REFERENCE LIST

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APPENDICES

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9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8

APPENDIX A: SIGNED P ROJECT CHARTER APPENDIX B: SIGNED DATA COLLECTION PLAN APPENDIX C: SURVEY OUTPUT D ATA APPENDIX D: SURVEY S AMPLE S UMMARY APPENDIX E: SURVEY T EMPLATE APPENDIX F: FOOD AND B EVERAGE COMPARIS ON APPENDIX G: M AS TER T ABLE OF COMPETITORS COMPARIS ON APPENDIX H: M EMBERS HIP T RENDS

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List of Figures and Tables FIGURES FIGURE 1: PROJECT METHODOLOGY PHASES FIGURE 2: KEY COMPONENTS OF MISSION STATEMENT FOR RANELAGH CLUB FIGURE 3: ACTIVITY IMPORTANCE RATINGS FIGURE 4: GAP ANALYSIS FIGURE 5: O VERVIEW OF STRATEGIC MARKET OPPORTUNITY ANALYSIS FIGURE 6: PORTER’S FIVE FORCES FIGURE 7: WAGES AND SALARY EARNERS IN MT ELIZA FIGURE 8: FAMILY STATUS IN MT ELIZA FIGURE 9: OCCUPATION IN MT ELIZA FIGURE 10: THE FOUR “PS ” OF MARKETING FIGURE 11: TOTAL N UMBER OF M EMBERSHIPS BY CATEGORY FIGURE 12: M EMBERSHIP SATISFACTION FIGURE 13: JUNIOR MEMBERS AS A PROPORTION OF TOTAL M EMBERS FIGURE 14: RANELA GH C LUB HOME PAGE FIGURE 15: RANELA GH C LUB MEMBERSHIPS PAGE FIGURE 16: IMPLEMENTATION TIMELINE

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TABLES TABLE 1: IMPORTANCE VERSUS SATISFACTION TABLE 2: M EMBERSHIP F EES COMPARISON TABLE 3: RECOMMENDED PHYSICAL ACTIVITIES FOR OLDER P EOPLE

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1

Introduction

1.1 Background The Ranelagh Club is one of four member-based country-style clubs spanning the Mornington Peninsula. A growing non-profit organisation, the Club has 672 current memberships equating to 1686 members.

Since its establishment in 1924, members have enjoyed access to an array of recreational, social and dining activities including tennis, sailing, private beac h boxes and private dining.

This is a club that is rooted in the principles of family-oriented fun, sports, leisure and exclusivity.

While the role of the country club in the 21 st Century has transformed and comes with its challenges in an increasingly disconnected, decentralised world, the Ranelagh Club continues to be a source of exclusivity in Mount Eliza. Yet the Club records low membership participation in its activities and a significant drop-off in membership each year, which it has recently been able to offset with greater subscriptions, yet unnecessarily adds to burden placed on Club staff and committee members. The Club’s issues are worsened by and rooted in its lack of a clear mission statement and vision; and thus the Club has commissioned a report to address a number of key areas.

1.2 Problem Statement & Purpose The Ranelagh Club is currently presented with many challenges and opportunities for the future. Areas that have been identified as critical to address include the undeveloped mission statement and vision and challenges surrounding recruitment. If these issues are not addressed it will ultimately result in the decline of a Club steeped in history.

Catalyst Consulting Group has been engaged to develop a concrete mission statement and vision, and supporting analysis and recommendations around membership and recruitment, to assist in helping the Ranelagh Club break from its current ‘survivalist’ mentality and ensure growth and sustainability into the future.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

1.3 Project Scope The following is the scope overview for this report.

1. Vision and Mission a. Existing Mission Statement and Vision State and analyse the Club’s existing (unofficial) mission statement and vision b. Refined Mission Statement and Vision Document a clear, comprehensive and succinct Mission Statement and Vision for the Club.

2. Membership Value a. Value Proposition i. Outline and identify the Club’s existing value proposition ii. Investigate the greatest contributors to the Club’s value proposition and the strengths and weaknesses of the value proposition b. Gap Analysis c. Boat Storage 3. Market Analysis An analysis of internal and external factors, including an analysis of industry competition, competitors, local and target demographics, communications and marketing mix.

4. Membership Recruitment Channels Analyse the Club’s existing recruitment strategy by outlining and analysing the channels through which members are recruited.

5. Recommendations Recommendations arising from the above sections accompanied by a suitable implementation plan where necessary and possible.

The signed project charter and data collection plan can be viewed in Appendix A.

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2

Methodology

2.1 Overview of Methodology Presented in figure 1 below is a diagrammatic summary of the project methodology.

Initiate

Plan

Analyse

Develop

Close

Team contract

Finalise scope

Analyse survey data

Refine mission statement and vision

Presentation to subject Director & Coordinator

Introductory client meeting

Create data collection plan

Analyse existing mission statement and vision

Present value proposition

Methodology

Define scope

Client site visit

Analyse the value proposition

Present market analysis

Introduction

Create progress charter

Develop survey questions

Perform a market analysis

Present member recruitment analysis

Conclusion

Create project plan

Analyse member recruitment

Present recommendations

Front and back matters

Conduct survey

Completion and submission of report

Collate primary and secondary research

Presentation to the Ranelagh Club management

Figure 1: Project methodology phases The initiate phase of the project involved writing the team contract, having an introductory meeting with the Ranelagh Club, defining the project scope items and creating a project charter. Following this was the plan phase, which involved finalising the project scope items, creating a project plan, creating a data collection plan, collating primary and secondary data, inspecting the Ranelagh Club grounds, and developing and conducting a survey for Ranelagh Clubs members.

The next phase of the project involved an analysis covering the project scope items. This began with analysing the existing unofficial combined mission statement and vision of the Club and conducting a value proposition analysis. A market analysis was also undertaken to better inform the analysis of member recruitment at the Club. The develop phase followed this, which involved presenting the analysis and implications for the Club of each area analysed, and making key recommendations to address any opportunities and threats from the scope items. Finally, the close phase involved completion of all elements of the report, and presentations to both the subject Director and Coordinator, and the Ranelagh Club management.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

2.2 Data Sources and Collection Methods A number of have been used in the preparation of this report. Of these, key data sources included:  Phone surveys with currently members of the Ranelagh Club  Data from the Australian Bureau of Statistics  Competitor publications  The Ranelagh Club publications  IBISWorld Industry Reports

2.2.1 Primary Data Context The phone survey was conducted to allow for greater insight into the views of current members of the Ranelagh Club to enhance the analysis of the scope items undertaken. 23 current members participated in the phone survey. The board of directors of the Ranelagh Club agreed to the phone survey, and director David Crockett sent both emails and text messages to current members asking if they were willing to participate in the phone survey.

The telephone numbers of those who agreed were forwarded to Catalyst Consulting and were contacted for the survey. The full survey sample can be located under Appendix D: Survey Sample.

Data Collection Instrument The data collection instrument utilised to collect the phone survey responses was a template document, with questions under the headings ‘Your Membership Details’, ‘Communication and Technology’ and ‘Your Feedback’. Members of Catalyst Consulting asked questions over the phone, and the response was recorded in individual documents. The document used as the template to record the survey responses can be found under Appendix E: Survey Template

2.2.2 Secondary Data Major sources of secondary data used in this project include: Internal Ranelagh Club Data  Past survey results from 2007 and 2013  Internal accounts, working papers and documents  The 2013 Financial Year Annual Report  Client consultations with the following people:  David Crockett – Safety & Risk Director  Lawrence Henderson – President  David Logan – Treasurer & Vice President  John Griffin – Secretary & Offshore Activities Director  Mark Southall – Assets Director  Erin McGavin – Club Manager External Data  The Australian Bureau of Statistics: 12

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

 

ABS Report National Regional Profile: Mt Eliza (Statistical Area Level 2) (29)  ABS Report 4102.0 – Australian Social Trends, March 2009 (27)  ABS Report 6306.0 – Employee Earnings and Hours, Australia, May 2012 (30)  ABS Report 4177.0 – Participation in Sport and Physical Recreation, Australia, 2011-12 (28) IBISWorld Industry Reports:  IBISWorld Industry Report R9112 Sports and Physical Recreation Clubs in Australia (15) Competitor websites and publications

2.3 Data Analysis Technique Primary Data The primary data was analysed by collating the data for each question into different sections based on whether it was quantitative data and qualitative data. For the quantitative data, a thematic analysis was undertaken to observe particular themes in the data to be used in the analysis.

2.4 Methodological Scope and Limitations 2.4.1 Primary Data Limitations Survey Sample Given the limited number of members who when asked agreed to be take part in the survey, the sample size is not large enough for quantitative results to be statistically significant. The sample was also not random, and members who were believed to likely agree to participate in the survey were asked first. Further, not all members of the Club were asked if they would participate. The results however are still useful in providing evidence to support observed themes, and thus are important to include in the report. The quality of the responses collected may have also been compromised, due to people potentially being embarrassed to give an honest answer, and also not having a large amount of time available to participate in the survey. To moderate this, members were asked at the beginning of the call if there was a time that would be more convenient for them to participate, and stating that Catalyst Consulting is an independent group and that all responses will remain confidential.

2.4.2 Internal Ranelagh Club Data Limitations All directors and management communicated with were very helpful in locating available information. There were times however when the require data did not exist, and this has caused limitations to the analysis undertaken.

2.4.3 External Data Given the limited size of the country club market in Australia, there was a very limited amount of data available. Data based on similar industry thus had to be used to supplement the analysis.

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3

Mission Statement and Vision

In order to develop a business strategic plan for the Ranelagh Club, the first step is developing a mission statement, which provides the foundation for the whole process.(24) By having a clear mission statement, the Ranelagh Club would know what they are, what they want and when and how they want to grow, which is one of the key successes to becoming a strong club.(11) After the mission and values are defined, the next step for the Ranelagh Club is to develop a vision which determines what kind of practice they want in the future.(24) Thus in this section, the existing vision and mission statement of the Ranelagh Club will be analysed first and then a new vision and mission statement will be refined separately based on the analysis.

3.1 Mission Statement Cause and effect are often attributed to symbolising the relationship between mission and vision respectively. A mission would be something to be accomplished, a declaration of the Club’s core purpose and remain timeless.(6) A vision however describes the future state the Club ultimately seeks to achieve, “a condition that is better… than what now exists”.(6) The following Club (joint) vision and mission statement has been loosely yet unofficially used by the Ranelagh Club: “To be a sustainable sports and leisure club for members, and their guests, that provides safe, family orientated facilities and activities, whilst preserving our environment”. Therefore, the Ranelagh Club lacks at present clear and separate mission statement and vision that respectively outline its raison d’être and long-term goal.

3.1.1 Analysis of the Existing Mission Statement A mission statement should give answers to two basic questions about the organizat ion: who it is and what it does.(12) Specifically, Bart (4) discusses that in order to delineate a clear mission statement, the Ranelagh Club needs to focus on three elements:   

Distinction: How to make the club stand out among competitors and how to make the Club stand out over its competitors Key market: What is the Club’s target market?

Contribution: What is an effective value proposition that the Club provides to its members?

With the purpose of articulating the best and the most effective mission statement for the Ranelagh Club based on Bart’s view, the figure below illustrates what should be included in the distinction, key market and contribution sections of a mission statement according to the analysis in the body of this report (Section 2-4).

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Distinction • Tennis • Dining

Key Market • The Ranelagh Club caters to Mornington Peninsula residents, especially: • Families • Professionals and Managers • Retirees

Contribution • • • •

Sporting Activities Social Activities Dining Activities Networking Activities (Business-to-Business Network (B2B)) Figure 2: Key components of mission statement for Ranelagh Club

The following analysis compares the above three elements in Figure 2 with those in the existing mission statement: Distinction There is no distinction made in the existing mission statement. However, Figure 1 displays that tennis and dining distinguish the Ranelagh Club from its rivals based on the value proposition analysis (Section 4.1).

Key Market The Club’s targeted membership is not specified in the existing mission statement. According to local and target demographics analysis in Section 5.2, the key market of the Ranelagh Club should be families, older people/retirees and business people (Section 5.2). Whilst the recommended target market location in Section 5.2 is Mt Eliza, the mission statement needs to be reflective of the Club’s present situation, which is a membership base of residents in the broader Mornington Peninsula area.

Contribution Providing safe, family-oriented facilities and activities to its members is all that is mentioned in the existing mission statement as the Club’s contribution. This should be more greatly specified to reflect the fact that the Ranelagh Club provides an array of recreational, social and dining activities to its members, which include private dining, tennis, sailing, private function room use, business networking, beach boxes and boat storage.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

3.1.2 Refined Mission Statement The proposed, improved mission statement gives the Ranelagh Club a timeless sense of purpose by grounding its mission in the activities that distinguish it, the market it serves and the value it provides members. Tennis and dining are emphasised, as is the home-away-fromhome atmosphere and beachside location that make the Club unique (which all rated highly in the surveys conducted, as elaborated in Section 4.1) whilst particular attention is paid to the demographics that the Club currently and strategically serves (to which Section 5.2 refers).

Please refer to recommendation 7.1.1 for the proposed mission statement.

3.2 Vision A vision as defined is an aspirational description of what an organization would like to achieve or accomplish in the mid- to long-term and succinctly illustrates the Club’s desired future state of operation (24), whilst being the cornerstone of the Club’s strategic plan.(33) 3.2.1

Analysis of the Existing Vision

Since the vision of the club must complement its operational environment, a review of the internal (strengths and weaknesses) and external information (opportunities and threats) of the club via a SWOT analysis will facilitate a revision to its stated vision.(24) SWOT ANALYSIS Strengths   

The Ranelagh Club is the only Club in Mt Eliza that provides its members with its own purpose-built tennis courts and a tennis club.

Similar business networks operated by the Mornington Yacht Club and Frankston Yacht Club cost more to join than the Ranelagh Club’s B2B. Multi-purpose Clubhouse/function centre with highly sought-after views of Port Phillip Bay.

Weaknesses   

  

Sailing and boating activities (including the Motor Boat Shed) are not as professionally operated as the Club’s competitors’ offerings.

Despite its numerous recreational and sporting activities, Club facilities are aged and tired requiring significant capital investment in the future.

The clubhouse restaurant is under-utilised (only open 3 days a week), raising the ire of many surveyed members. However, this gives the Club the ability to expand its dining service, especially with the upcoming renegotiation of its contract with the Ranelagh Catering Company (RCC) Membership attrition rate, whereby the Club’s growth is being stymied by significant annual losses in existing members (Section 6).

The restrictions on membership imposed by the Club’s existing constitution (Section 6).

Low rate of membership engagement in Club activities and facilities (Section 6).

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Opportunities 



A growing population with suitable demographics presents membership growth opportunities, with 82% (28) of all households being families of which 43.52% have dependent children under the age of 15 years.(29) As per Section 4.1.2, this cross-section of the population is very likely to participate in sport and recreation activities, the likes of which the Ranelagh Club offers, at a probability of 68% for two-parent households and 63% for those with one parent.(28) External partnerships with local real estate agents, schools and businesses that would strategically benefit the Club’s membership recruitment.

Threats     

The sports and physical recreational club industry in Australia is highly competitive with low barriers to entry.(15) Severe, climatic events which may cause significant damage to the Club’s natural environment and ecological capital.

Amalgamation of competitor clubs in the local area and consolidation within the country/recreational club market.

Canadian Bay Club, Mornington Yacht Club and Frankston Yacht Club are three competitors in Mt Eliza, all of them have different advantages (Section 5.3).

Reduction in membership fees of the aforementioned rival clubs’ business networking programs.

At present, the Ranelagh Club does not have a singular, specific vision. Instead, its mix of vision and mission has fuelled much indecisiveness and does not paint a clear picture of where the Club is headed into the future.

3.2.2 Refined Vision As the Club lacked any pre-existing vision, the proposed vision builds onto the Club’s timeless mission (recommendation one) and draws upon the aforementioned SWOT analysis, surveys, primary and secondary research conducted in the following sections to elucidate a future state of where the Club is headed.

In particular, the vision makes reference to the Club’s exclusivity of membership and the opportunity that the growing family demographic presents in Mt Eliza. Further, it situates the Club as a hub of social activity within the locality and aims for it to be the centre of a web of local and regional connections, in reference to the great membership recruitment and finance opportunities presented by forging external partnerships with local schools, businesses, nonprofit associations and real estate agents.

This would not be possible without addressing the Club’s weaknesses, including its ageing infrastructure and membership attrition rates. The Club’s vision provides for a rectification to both challenges, aiming for Club membership to be “a life-long passport to Mt Eliza”, bolstered by attractive, modern and warm facilities that take advantage of the Ranelagh Clubs prime beachfront location.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

4

Membership Value

4.1 Value Proposition 4.1.1 Definition The value proposition is a succinct statement summarising what attracts customers and what the company offers.(3) The value proposition is a powerful driver of customer decisionmaking. It is typical to identify the value proposition from the perspective of a customer, with the value proposition highlighting aspects that are of most importance and value to customers.(2)

4.1.2 Identification of the Value Proposition In order to identify the value proposition of the Ranelagh Club, a great deal of attention was paid to investigating what current members need from the Club.

To determine member needs in regards to activities, the following questio n was asked in the phone survey, how important are the following activities to you, as a member of the Ranelagh Club?

4

3.5 3 2.5

2 1.5

Importance Scale

1

0.5 0

Figure 3: Activity Importance Ratings Source: Catalyst Consulting Survey (May 2014)

Figure 3 shows that the average member score of importance for each of the activities provided at the Club. As the figure illustrates, members perceive dining as the most important activity at the Ranelagh Club. This result is supported by secondary research on country clubs, which states – ‘dining is a signature offering at most country clubs, and has become increasingly important to club members. Overall, 63% of the 2008 survey respondents say dining is ‘very important’ compared to 50% in 2001. This percentage is relatively cons istent across all age groups’.(21) 18

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The next most important activity at the Ranelagh Club is tennis, followed by the function room. Compared with other activities and services provided by the Club, it is clear to conclude that dining, tennis and the function room are some of the main factors in influencing members to join the Club and maintain their membership.

4.2 Gap Analysis Considering the limited financial and human resources at the Ranelagh Club, it is important to identify the most critical aspects of the Club that need improvement. A gap analysis is presented to highlight key areas for improvement at the Ranelagh Club.

The gap analysis shows a comparison between the average score for importance and the average score for satisfaction.(31) The equation for the gap analysis is shown below: Gap Analysis = Average score for importance – Average score for satisfaction A negative score in the gap analysis indicates that members rate the activity as important but are dissatisfied with the value they receive from the activity. Alternatively, if the mean score of the activity is positive, it indicates that members find the activity is relatively unimportant, but are satisfied with it.(17)

Dining Tennis Sailing Clubs Business Network Golf Function Room Boat Storage

Importance 3.8 3.3 2.6 2.3 1.9 1.9 2.8 2.6

Satisfaction 3.1 4 3.2 2.3 3 3.2 3.5 2.2

Gap -0.53 0.7 0.6 0 1.1 1.3 0.4 -0.6

Table 1: Importance versus Satisfaction Source: Catalyst Consulting Survey (May 2014)

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Dining Tennis Sailing

B2B Clubs

Golf Function Room

Boat Storage -1

-0.5

0

0.5

1

1.5

Figure 4: Gap Analysis Source: Catalyst Consulting Survey (May 2014)

The importance of activities was rated on a scale of 1 to 5, with 5 being very important and 1 being not important at all. Satisfaction was also rated on a scale of 1 to 5, with 5 being very satisfied and 1 being not satisfied at all.

Table 1 shows the average importance and satisfaction scores for each activity, and then calculates the gap in these scores using the gap analysis equation. Figure 4 then graphically represents the gap in each activity. As illustrated, dining and boat storage both received a negative score, being -0.53 and -0.6 respectively. It highlights that both these activities have a gap between member needs and their satisfaction levels.

Members perceive dining as the most important activity at the Club; however have only rated it as being moderately satisfying. Further, the survey question ‘what could the club do to increase your satisfaction and use of the Ranelagh Club?’ drew responses from around 40% of respondents on dining, and of which 70% indicated that the value of dining should be improved. Specifically, the comments were focuses on the price, the ambiance, service quality, menu, and the speed of service.

The second critical area highlighted is the motor boat storage. Based on consultation with the Ranelagh Club directors, issues around the safety and financial viability of the boat storage area are very pressing. When the survey question, ‘are there any improvements in boat storage activities that you would like to see in the future’, was asked to members, over 80% suggested that a new launching system should be provided or the boatshed should be moved or shut down entirely.

Overall, the gaps in the two activities can be interpreted as critical areas that need to be improved and can be prioritised in future efforts to improve overall value for Ranelagh Club members.

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4.3 Critical Issue: Boat Storage A critical issue that may be detracting from membership value is the boat storage facility. The existing boat storage facility at the Ranelagh Club was originally constructed in 1961, where the total expenditure including the building, launching system, access roads and power, amounted to 21,625 pounds. The boat storage has since been renovated and extended several times.

Currently, the ageing infrastructure of the boat storage facility has become a large problem at the Ranelagh Club on several levels. In 2014, a major safety incident occurred at the facility, increasing the focus on the boat storage facility’s future.

The main launching system used was purchased in 1971. The launching system is properly maintained and serviced, however the New York State Office of General Services suggests that the useful life of boat launching equipment is 20 years on average.(5) The current launching system at the Ranelagh Club has been used for over 43 years, and as such, there is great risk within continued operation of the boat launching system at the Ranelagh Club.

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5

Market Analysis

The current Mornington Peninsula private club market provides both challenges and opportunities for the Ranelagh Club. Of critical importance is that a strategic market opportunity analysis be conducted to help identify areas of opportunity for the Club. As discussed by Aaker and Mills(1), the best way to conduct this analysis is to investigate both external and internal factors. This will then provide the correct context to move onto the membership recruitment analysis (Section 6) later in the report.

As shown in figure 5, the strategic market opportunity analysis will analyse factors in the external environment, as well as in the internal. The external analysis will involve the application of the Porter’s five forces model, a demographics analysis and a competitor analysis. The internal analysis will involve a marketing mix analysis and an external communications overview.

External Analysis

Internal Analysis

Porter’s five forces

Marketing mix analysis

Demographics analysis

Communications summary

Competitor analysis Figure 5: Overview of strategic market opportunity analysis

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5.1 External Analysis: Porter’s Five Forces

Supplier Power Low -No supplier dominance

Threat of Entry Low - Network effect barrier - Switching costs - Geographical advantage - Government restrictions

Industry Rivalry

Medium Member Power Low - Diverse nature of members

Threat of Substitutes High - Large number of businesses involved that offer similar services

Figure 6: Porter’s five forces Source: The Five Competitive Forces That Shape Strategy, Porter, Michael E (23)

Competition in the Mornington Peninsula private club market appears to be of a medium level when the Porter’s five forces model is applied, as summarised in figure 6. As discussed

by Porter (23), there are several factors to consider regarding each force, which have been applied in the following detailed analysis of each of the five forces.

Threat of Entry The threat of new entry to the Mt Eliza private club market is relatively low due to the existence of several relatively high barriers to potential entry. Sources of these entry barriers include network effects, with member willingness to sign up increasing with the number of other members who also patronise the club. Switching costs is another barrier, with most clubs charging a once-off joining fee. Incumbent clubs also have an advantage in that they already own or have access to the most favorable geographical areas in Mt Eliza. Finally, an important barrier to potential entry are current government restrictions, with there being many restrictions relating to clubs in Mt Eliza, which concern development, liquor licensing and ownership of beachfront property.

Supplier Power Given the nature of the activities that clubs in Mt Eliza frequently participate in, such as tennis, yachting and dining, the power of these suppliers is relatively low. There are often several different companies or people to whom clubs are able to contract work out with relative ease.

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Member Power Given the diverse nature and number of people who are members of clubs in Mt Eliza, member power is relatively low. As participant clubs in this industry are differentiated, and members face costs in switching, this results in a further reduction in member power.

Threat of Substitutes A substitute would be considered a threat to the private c lub market of Mt Eliza if it performed the same or a similar function to activities offered to members by the Ranelagh Club. Given that there are a number of businesses in Mt Eliza that specialise in activities such as dining and sailing, there is hence a high threat to the market of substitution.

Rivalry among existing Industry Competitors The above four forces, in combination, lead to an analysis of the level of competition amongst those in the Mornington Peninsula private club market as being medium. The threat of entry to the market is relatively low, coupled with relatively low member and supplier power. The threat of substitutes however is high, creating a medium level of competition in the industry.

5.2 External Analysis: Local and Target Demographics Marketing plan development begins with knowing the customers.(18) Since it is not possible for the Ranelagh Club to reach out to all residents in the large and diverse market of Mt Eliza, the Club can choose which groups they wish to target by identifying customer bases.(19) In order to identify a target market, an analysis of the local demographics of Mt Eliza where the Ranelagh Club is located by customer segmentation analysis is required. Characteristics of local demographics like age, family status and occupation offer the customer bases. The results of this analysis are the demographics/markets that the Ranelagh Club should target for membership recruitment.

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5.2.1 Customer Base: Age Wages and salary earners 15 -24 years

6%

16%

25 - 34 years

18% 35 - 44 years

12% 45 - 54 years

26%

22%

55 - 64 yaers

65 - over

Figure 7: Wages and salary earners in Mt Eliza Source: National Regional Profile of Mount Eliza 2013, ABS(29)

Since wages and salary are a good indicator of spending power (26), dividing all wages and salary earners in Mt Eliza into age brackets gives a reasonable customer base. As shown by Figure 7, those in the 35 to 44 years and 45 to 54 years ranges are the main wage and salary earners in Mt Eliza, accounting for 22% and 26% of the population respectively. An example of a similar social organization that analyses demographics is the Frankston RSL, with their Club Business Plan (7) describing the core membership demographic of the RSL to be 25 to 50 years in age, based on demographics analysis findings highlighting that 40% of Frankston’s population is between 25 to 50 years old. It implies that customer segmentation based on age is a useful tool in deciding the Club’s target market.

According to the segmention analysis result, people in the age bracket 35 to 54 years old would be an ideal target market for the Ranelagh Club. Activities such as dining, social and sporting activities offered by the Ranelagh Club would appeal to potential members as it could reduce pressure and stress resultant from the need to balance work, family and other activities for working people in this age bracket (27). The Club provides an opportunity for them to enjoy family time, while simultaneously relaxing. In addition, the Ranelagh Club could benefit by targeting them given many in this age bracket may have dependent children, potentially increasing family memberships, which are the most expensive membership type.

Those in the age bracket 55 to 64 years are also an important target market though they only occupy 18% of all wage and salary earners. There are three reasons implying this as follows:

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Recreational Activities Recreational physical activities provided by the Ranelagh Club provide retirees a means to live a healthy lifestyle desired by those of this age. (32) Fewer Work Commitments In addition, as this group is likely to retire soon or already have (partially) retired, they will likely have more time to spend at the Club due to fewer work commitments, and potentially fewer financial constraints given that any children of those in this group are likely to now be independent.

Work Experience Furthermore, this group generally has significant work experience, and the ability and time to make a contribution to the development of the Ranelagh Club. Volunteering for committees is an example of a way this group can contribute to the Club, as these roles are generally time intensive and thus are something more manageable to someone who is retired.

5.2.2 Customer base: Family status

Family status

Lone person households 17% Group households 1%

Family households 82%

Figure 8: Family status in Mt Eliza Source: National Regional Profile of Mount Eliza 2013, ABS (29)

As the existing mission statement mentions that the Ranelagh Club aims to provide familyoriented facilities and activities to the members, dividing the customer base into different

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groups based on the family status of Mt Eliza residents (Figure 8) helps to determine whether families could be a target market for Mt Eliza.

There are three reasons listed below for which families are considered an important target market for the Club: Demographics Advantage This target market is supported by a large customer base as Figure 8 shows that 82% of Mt Eliza residents identify as residing in a family household, whilst lone person households and group households only constitute 17% and 1% respectively.

Potential Market This market could be further developed since the ABS (28) presents data that people living in family households with dependent children are more likely to participate in sport and physical recreation (68% if two parents, 63% if one parent) than lone person households (61%). Further, participation in organised sport and physical recreation (e.g. recreation clubs) was highest amongst persons aged 15–17 years (58%) who would fall within family memberships (28).

Financial Benefits Targeting to adults and their children from family households rather than single persons from family households would increase revenue for the Ranelagh Club from membership fees, dining fees and training fees for sporting activities.

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5.2.3 Customer Base: Occupation Occupation 2%

3%

5% 12%

Managers Professionals Technicians and Trades Workers

19%

Community and Personal Service Workers Clerical and Administrative Workers

14%

Sales Workers

27% 8%

Machinery Operators and Drivers Labourers

12%

Inadequately Described/Not Stated

Figure 9: Occupation in Mt Eliza Source: National Regional Profile of Mount Eliza 2013, ABS (29)

This section illustrates the third key finding from the demographics analysis. Porter (22) argues that differentiation is one of two competitive advantages that an organisation can achieve relative to its rivals, therefore entry to the newly developed B2B business network at the Ranelagh Club could be used to distinguish the Club from its four competitors.

Considering the B2B business network, the Mt Eliza customer base can be separated into occupation, with a key portion of this market being professionals and managers. Reasons for targeting managers and professionals are listed below.

Demographics Advantage Figure 9 displays that the number of professionals (27%) and managers (19%) accounted for almost half of all occupations in Mt Eliza.

Market Demand A successful manager requires business networking as it provides a variety of up-to-date managerial information and can facilitate mutual benefits for all participants. (25) Professionals also need business networks to enhance their professional development.

Financial Benefits Managers had the highest average weekly earnings among major occupations and professionals had the highest average hourly earnings among full-time non-managerial adult 28

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employees in Australia.(28) The Ranelagh Club will benefit from targeting them since their willingness and ability is relatively higher than others to spend money in the Club.

5.2.4 Conclusion Based on the analysis presented above, the Ranelagh Club should consider families with adults in the 35-54 age bracket, people from 55 to 64 years old and professionals and managers as their three main target markets. In other words, family memberships and the business network should be a focus for the Club, providing the greatest membership recruitment opportunities and benefits.

5.3 External Analysis: Competitor Analysis This competitor analysis has been undertaken to identify direct competitors in the market and evaluate their current operating situation to determine their strengths and weaknesses in respect to that of the Ranelagh Club.

A site visit and consultation with Directors has revealed that the Canadian Bay Club, Mornington Yacht Club and Frankston Yacht Club are the Ranelagh Club’s direct competitors.

Therefore, the analysis below will focus on club size, quality of facilities, activities provided to members and future plan of each direct competitor. All information was sourced from competitor websites and publications.

5.3.1 Frankston Yacht Club Frankston Yacht Club is situated in Frankston. The club is approximately a 10-minute drive from the Ranelagh Club.

Frankston Yacht Club was founded in 1937. Since its inception, the club has concentrated on providing yachting activities in the area of Port Phillip Bay, and as a result, the club was nominated as the Yachting Victoria Discover Sailing Centre of the Year for 2012-2013.

Currently, the club has 190 members and provides yachting racing, sailing lessons and a clubhouse, the Alex Hawkins Building, which was built in 1973 and was extended in 1983.

The clubhouse is able to provide seating for 120 people and has a standing room capacity of over 180 people.

Recently, the Frankston Yacht Club has announced to its members that a new building offering a cafe, dining and community facilities will be built on the Long Island Site at Frankston Foreshore. Furthermore, it will be the main clubhouse to Frankston Yacht Club.

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5.3.2 Mornington Yacht Club Mornington Yacht Club is located at Schnapper Point Drive on Mornington Peninsula, approximately a 13-minute drive south of the Ranelagh Club.

Similar to Frankston Yacht Club, Mornington Yacht Club (MYC) also provides yacht racing and family-oriented sailing activities, and additionally has its own business social network.

Facilities at the club include a deep-water harbor, a launching ramp, two launching cranes and a slipway. MYC also has facilities to assist disabled persons in water sailing.

Furthermore, MYC has a licensed restaurant called ‘The Rocks’. The restaurant opens for breakfast, lunch and dinner seven days a week. The private function room facilities in the restaurant are available to members free-of-charge.

5.3.3 Canadian Bay Club Canadian Bay Club is located in Mount Eliza on the Mornington Peninsula. The club is approximately a 5-minute drive from the Ranelagh Club.

Canadian Bay Club was founded in 1957. As with the Ranelagh Club, Canadian Bay Club also has a rich history. The movie ‘On the Beach’ was filmed on club grounds. As a boating club, Canadian Bay Club mainly focuses on providing yacht racing and a variety of sailing activities to its members.

Currently, there are approximately 260 family members at the club and membership numbers have been stable in recent years. The main facilities at the club include storage for powerboats, kayaks and sail boats, a private launching ramp and a fully-equipped kitchen.

Notably, Canadian Bay Club is considering the development of a new Clubhouse. Directors are currently finalising details including funding, a utilization plan, and a future benefit estimate.

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5.3.4 Conclusion Membership Fees Class

Ranelagh Club

Frankston Yacht Club

Mornington Yacht Club

Canadian Bay Club

Family

$650

$400

$899

$700

Single (Senior)

$350

$350

$673

$500

Junior

$150

$140

$142-493

-

Joining Fee

$150(onceoff)

-

-

$900 (once-off)

Table 2: Membership Fees Comparison Source: The Ranelagh Club and Competitor Websites

Membership fees across the four clubs are slightly different; however the activities provided are largely homogenous. As Table 2 shows, the Frankston Yacht Club has a price advantage in all three of the membership categories. Mornington Yacht Club has the highest membership fee. $899 is charged to family members at Mornington Yacht Club, approximately 40% higher than the membership fees at the Ranelagh Club.

Considering the high intensity competition, increasing the membership fees in the short run at the Ranelagh Club may lead to membership resignation.

Tennis We found that clubs considered as the Ranelagh Club’s main competitors all focus on sailing and yachting; however none of them provide tennis coaching programs and activities such as those offered at the Ranelagh Club. The Club has six tennis courts available to members without extra charge and provides a variety of tennis lessons for all ages.

Therefore, tennis is classified as one of the comparative advantages of the Ranelagh Club when compared to its competitors in the Mornington Peninsula.

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Dining Based on the analysis, all clubs listed in the analysis provide fully- equipped kitchens with modern amenities to members, but only the Mornington Yacht Club owns a licensed restaurant The Rocks. Currently, the restaurant at the Ranelagh Club has the ability to increase its opening hours as it is only open three days a week, which presents an opportunity for the Club moving forward.

Review Based on the location, the quality of facilities, activities organized by the club, and membership fees, Frankston Yacht Club is classified as the largest competitor to the Ranelagh Club in the Mornington Peninsula area. Therefore, the strategy and the future development plan of the Frankston Yacht Club should be closely monitored by the Club’s Board of Directors, and the potential impact those changes would have on the Ranelagh Club also needs to be considered.

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5.4 Internal Analysis: Communications Summary The Club uses a variety of methods and platforms for external communication. The following is a list of methods that are currently used by the Club.

Club Website (www.ranelagh.com.au) The Club maintains its own website. This website contains detailed information regarding the Club’s history, information regarding memberships, upcoming events, private functions and information pertaining to activities such as the ‘B2B’ business network, tennis, sailing and private functions.

Monthly Newsletters The Club newsletter is published monthly, with printed copies available for collection at the Clubhouse. The newsletter varies monthly, but common sections include ‘Coming Up’featuring upcoming events held at the Club, ‘In the Restaurant’- featuring dining times and deals, a section covering tennis news and a section covering the Ranelagh Yacht Squadron.

Email Emails are sent to members on an informal basis to advertise upcoming events and news items.

Facebook A public Facebook page for the Ranelagh Club exists whose posts predominantly advertise upcoming events and posting photos from past events.

YouTube A YouTube account has been created for the Club, which to date has posted two video.

Magazine Advertisements Advertisements are occasionally printed in ‘The Village Mt Eliza’ magazine, which are distributed free to homes and businesses in the Mt Eliza area.

Flyers Flyers are placed around the Club’s grounds and facilities, predominantly promoting upcoming events.

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6

Membership Recruitment

Membership recruitment is the lifeblood of the Ranelagh Club, without which the Club would lack purpose, soul and attraction as a genuine social and recreational club pitched to the upper-middle class residents of the growing locality that is Mount Eliza. At $279,022 in 2012/13, membership fees account for 61.83% of the Club’s revenues and are its single most significant cash inflow per year. In 2011/12, subscriptions constituted 67.29% of total Club revenues.

Thus, it is perplexing and troubling that the Club’s management and its Committee of Management does not have any single documented membership recruitment strategy, policy or handbook apart from the following requirements that must be satisfied by membership candidates prior to joining the Club:  The candidate resides in Mount Eliza, Victoria 3930  The candidate is nominated by an existing Club member  The candidate’s membership application is approved by Club management.

Whilst the first condition considerably restricts the market from which the Club can grow its membership base and is not always abided by the Committee of Management in its determinations on membership applications, altering this clause in the Club’s constitution is deemed highly improbable. Thus, the ensuing analysis of the Club’s membership recruitment is based on the aforementioned conditions for membership being maintained by the Ranelagh Club into the future.

6.1 Membership Trends Since the year 2000, the Ranelagh Club has observed an overall upward trend in its membership growth, recording 629 total memberships in the year 2013 compared to 471 memberships in 2000, when available records began, as shown in Figure 11, whilst the total number of members has increased from 1124 to 1686 over that same period.

800 700

600 500

FAMILY

400

COUPLE

300

SINGLE

200

JUNIOR

100

TOTAL

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

0

Figure 11: Total Number of Memberships by Category Source: Ranelagh Club (2013)

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6.1.1 Problem 1: Attrition What is marked is the attrition rate of members. According to the Club’s draft membership acquisition strategy, between years 2012 and 2013, 74 memberships were discontinued, representing a 10.68% rate of attrition on 2012 membership numbers. This attrition only worsens the burden of growing the Club, as the Committee of Management must recruit new members to offset its significant losses/non-renewals prior to making any positive net impact.

It must be noted that the Club has not previously attempted to ascertain from departing members the reason for not renewing their club membership.

Yet survey respondents, as shown in Figure 12, reported a high rate of likelihood to renew their membership, who on a scale of 1 to 5, recorded a likelihood of 4.43 on average, despite giving a mean satisfaction with their membership of 3.71. It is important to also note that the gap between the rate of self-renewal and that of recommending the Club is almost negligible at 0.26.

Referral Gap Referral Gap Overall Satisfaction (avg) Referral Gap

Likelihood to recommend (avg)

Likelihood to renew (avg) 0

1

2

3

4

5

Figure 12: Membership Satisfaction Source: Ranelagh Club (2013) Figure 12 therefore suggests: 



Membership renewal does not require a high or very high level of overall member satisfaction, suggesting that members, and indeed survey respondents, are willing to overlook the Club’s existing shortfalls and renew their membership. Thus membership satisfaction is not a sole determinant of membership renewal.

A high proportion of renewing/recurrent members are willing to recommend the Ranelagh Club to their friends and colleagues, and effectively act as agents in membership recruitment on the Club’s behalf (as evidenced by the very small ‘referral gap’ of 0.26).

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6.1.2 Decline in Junior Memberships Whilst family, couple, single and total memberships have grown from years 2000 to 2013, the number of junior memberships has fallen considerably over this time, from 58 to 22. The decline is even steeper when junior members are considered in proportion to total member numbers, from 5.16% in 2000 to 1.30% in 2013 as outlined in Figure 13.

Junior Members as a Proportion of Total Members 6.00% 5.00% 4.00% 3.00% 2.00%

Junior Members as a Proportion of Total Members

1.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0.00%

Figure 13: Junior Members as a Proportion of Total Members Source: Ranelagh Club (2013) Whilst some of the losses in junior memberships may be due to growth in family memberships (from 168 to 284 over the same period), such a decline in the dedicated junior category is disconcerting as it:   

Undermines the future of junior activities, such as the yacht squadron and tennis club Signifies missed opportunities in interacting with local schools in positioning the Ranelagh Club as a suitable recreational facility for water-sports and tennis for school-aged children, which would feed into greater family memberships Signifies missed opportunities in creating a lifelong Ranelagh membership ethos (as reflected in the proposed vision statement) for Club members, from junior to single, couple and family, with a membership type already available for every important stage of one’s life.

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6.2 Existing recruitment channels 6.2.1 Website The Ranelagh Club offers the public the ability to inquire about joining on its website, www.ranelagh.com.au. Immediately on the home page, as depicted in Figure 14, there is one identifiable main menu button prompting visitors to click “Join Now” which simply opens a PDF version of the membership form whilst the smaller menu bar at the top of the screen allows visitors to click “Membership” which will direct them to a different page.

Figure 14: Ranelagh Club Home Page Source: www.ranelagh.com.au (2014)

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On the Membership page, as depicted in Figure 15, a printable PDF application form for the Club is available, as are a copy of the Club’s bylaws, its Family Friendly Policy and its relatively indistinguishable e-shop for membership renewals.

Figure 15: Ranelagh Club Memberships Page Source: www.ranelagh.com.au/memberships (2014) The online recruitment channel is ineffective as it lacks interaction. Instead of allowing or asking clients to give their contact details to the website to register their interest in joining, a dense PDF application form is available on the home page (Figure 15) which requires the prospective member to print out, complete by hand, sign and send to the Club, as well as requiring a nominator. Placing the administrative burden on the prospective member instead of on the Club is not ideal as it is a disincentive to the member registering their membership immediately, thus preventing the Club from pursuing a maximised level of prospective members.

Further, the promotion of the Club’s bylaws and Family Friendly Policy are noticeable and noteworthy on its Memberships page (Figure 15). Given the Club only offers its membership application form as the sole channel through which the public can register its interest and that the form requires a commitment to the adherence of its bylaws, it is only reasonable that these policies exist and are downloadable.

However, these policies, upon reading, paint the Ranelagh Club as rigid, driven by rules and uninviting. In particular, the Club’s Family Friendly Policy explicitly states “there have been no formal guidelines… which have caused some problems in the past”, painting the Club in a disorganised manner whilst “your Committee wishes to establish some standards for acceptable behaviour for children”, which strikes a harsh tone that contradicts the actual family friendliness of the Club. Such a policy is a barrier to attracting young families – an important target market as identified in Section 5.2.

Simultaneously, as Figure 15 shows, the Memberships page also offers membership types which can be purchased and added to the site’s e-store cart. Whilst this e-store/online payment service exists for existing members only, it does not explicitly state that the payment service is not for prospective members of the public who would like to join the Club, as one’s

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application must be first approved by the Committee. Thus, this private members’ online payment service appears confusingly conjoined with the membership recruitment section of the page and, to the foreign eye, illustrates a lack of effort by the Club to tailor its website to membership recruitment, the lifeblood of the Club. A greater delineation is required.

6.2.2 Referrals Referrals of Mount Eliza residents by existing members to the Club are single-handedly the most significant and successful recruitment channel. In a 2007 committee-conducted survey, 95% of all new members surveyed in that year responded that they had approached the Club and joined it thanks to ‘word of mouth’. This is the cheapest and most effective recruitment channel and signifies the strong community spirit that the Ranelagh Club embodies. This is reinforced by the strong likelihood of members recommending Club membership to their colleagues and friends, as shown in Figure 12.

6.2.3 Local Partnerships Whilst 4 of Mount Eliza’s 16 real estate agents are members of the Ranelagh Club, the opportunity has yet to be seized to promote membership to new homeowners of the Mount Eliza area. This suggestion was also raised in an unofficial Membership Acquisition Strategy 2014 written by Committee Member, David Crockett, and proves a worthy opportunity given the elusive and exclusive appeal of the Club, its capacity to help new residents integrate and settle within the community and the very high rate of owner-occupancy in the area.

An existing opportunity that is being pursued by the Club but has yielded little fruit is the offer of discounted membership to newly-wed couples whose weddings take place at the Club and are operated by the Ranelagh Catering Company (a contractor of the Ranelagh Club).

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7

Recommendations

7.1 Mission Statement and Vision 7.1.1 Proposed Mission Statement “Our mission is to enrich the lifestyle choices of families, businesspeople and retirees of the Mornington Peninsula as a sports- and leisure-based club, by providing a wide array of recreational, social, networking and dining activities to our members. The Ranelagh Club is a home-away-from-home for our members, with our unbeatable beachside location overlooking Port Phillip Bay complementing our beach boxes, tennis club, yacht squadron, private dining, Clubhouse, boat storage and business-to-business networking program, making the Club a hub for Mt Eliza parents, children, professionals and retirees all-year-round.”

7.1.2 Proposed Vision “Membership of the Ranelagh Club will be a privilege for those living on the Peninsula, with social, sporting, networking and dining activities to cater for every generation and every stage in life, with particular attention to young families whose Ranelagh Club membership will ultimately be a life- long passport to Mt Eliza. We will seek to capitalise on our breathtaking beachside location and bolster our activities by offering modern, warm and dedicated member and function facilities, with the very best buildings complementing our precious natural environment.”

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7.2 Membership 7.2.1 Dining As mentioned in section 4.2, dining – the most important activity provided by the Club as rated by survey respondents received a negative score in the gap analysis. A set of remedies should therefore be undertaken in order to improve member satisfaction and retain the comparative advantage of the Club’s dining services among other competitors in the market.

Based on consultation with Club directors, the Ranelagh Club currently subcontracts its dining service to the Ranelagh Catering Company and this contract will expire in July 2015.

Before renewing the contract, we suggest that recommendations regarding hours of operation should be considered by the board of directors.

Hours of Operation As noted in Appendix E, the restaurant currently opens three days a week. Based on comments from surveyed members, it is recommended that the Club restaurant should have a larger range of opening days and times for its members.

The current positive financial position of this service supports the recommendations. For the 2013 financial year, the bistro and bar generated a revenue-share of $76,761, contributing approximately 17% to the total revenue from ordinary activities at the Club. This figure far exceeds the industry benchmark level of 8.5%. (16) Specifically, it is recommended that Club dining opening hours should be decided in consultation with members, and therefore another interview focused on the dining service at the Ranelagh Club needs to be conducted in preparation for Ranelagh Catering Company contract negotiations.

7.2.2 Tennis As mentioned in section 3.3, tennis is considered as the Club’s main competitive advantage.

We believe that the Club should maintain this advantage by maintaining the quality of tennis programs and by ensuring no the current policy of no auditioned fee for members besides a voluntary payment.

Based on the survey results, some aspects still need to be improved in order to better meet member needs. When the question ‘are there any improvements in Tennis Court activity that you would like to see in the future?’ was asked, over 50% of respondents indicated that a higher level of maintenance and more diversified tennis programs should be provided.

Therefore, as a result of this finding, a set of recommendations regarding the tennis division at the Ranelagh Club is as follows:  

Increase the maintenance budget of the tennis courts to maintain the Club’s quality reputation.

Fix tennis fences and the lighting system in order to address safety issue on the tennis courts.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014



Continue the tennis programs that appeal to adult members and continue developing tennis programs for both families and children.

7.2.3 Boat Storage As the analysis in section 4.2 and section 4.3 presented, the boat storage provided by the Club received a negative score in the gap analysis and more importantly has significant safety issues. Therefore, one alternative recommended is that the Club purchase a new launching system immediately and adjust the storage fees charged to members accordingly to ensure its continued running does not generate losses for the broader membership. However, given the limited financial resources, replacing the existing launching system may be financially difficult in the short term.

Alternatively, based on the phone survey of members, shutting down the boat storage facility could be seen as another viable option. The safety issues concerning the boat storage have been highly concerning to interviewed members. Nearly 85% of respondents who have recently used the boatshed indicated there is great dangers with running the launching system at the boatshed and over 50% respondents agreed to close or remove the boat storage at t he Club.

The two recommendations we provided above are given for guidance only. Based on the scope charter delivered to the Club Committee, detailed recommendations in respect of how to further develop the boat shed at the Ranelagh Club are beyond the pro visions of this project. Therefore, we suggest that a future team would be engaged with the Club to further develop strategy in this area.

7.2.4 Implementation

1st July 2014 Fix equipment on the tennis courts

July 2014

September - October 2014 Conduct surveys of members in relation to extra Clubhouse opening hours

September 2014

July - August 2014 Continue to develop tennis programs for children & families

November 2014

January 2015

January - March 2015 Prepare financial budget and estimate potential financial impact

April - July 2015 Use recommendations to assist in developing the new catering contract

March 2015

July 2015

April 2015 Make the final decision regarding dining

August - November 2014 Engage with another consulting team in respect of boatshed issue

Figure 16: Implementation Timeline

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May 2015

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

This section sets out a detailed implementation plan in respect of the recommendations provided in section 7.2.

The recommendations, such as fixing fences and lighting systems and providing more diversified tennis programs have a short-term time horizon, and are relatively easy to create and implement immediately for the Club.

In relation to the dining service, a longer time- horizon of approximately one year needs to be considered. Conducting a further survey during September to October 2014 is suggested.

Following this, a detailed financial budget plan should be prepared. Considering time constraints on the Club, the plan should be finalised by March 2015. At the beginning of April 2015, based on the future survey results and the financial budget plan, the Club Committee will be better equipped to make their final decision once aspects to change in relation to dining. Any changes decide upon should then be negotiated in the contract with the subcontractor.

In terms of development of boat storage facility at the Ranelagh Club, the next consulting team engaged by the Club from July to late November 2014 analysis should undertake an analysis to determine the boathouse’s future.

7.3 Market Analysis 7.3.1 Local and Target Demographics This section will provide recommendations on how to use service strategies to attract people from the three main target markets: families with 35-54 years old employed parents, 55-64 years old people, and managers and professionals.

Families with 35 – 54 year old employed parents Given that parents would like to enjoy both family and relaxation time after work, family events provided by the Club could offer this kind of opportunity for families without any burden on the parents in organising events themselves.

It is recommended that the Club creates permanent weekly or monthly family events ranging from parties to themed dinners, movie nights and other social events. These are recommended as they are suitable for the whole family to attend and guests invited may be enticed join the club to enjoy this membership-only benefit. (10)

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

55 – 64 year old people As the analysis in section 5.2.1 mentioned that older people are more likely to wish to pursue a healthy lifestyle, a range of physical activities that are suitable to those in the age bracket of 55 to 64 years old are recommended. (14) Combined with the Ranelagh Club’s current activitues, these five physical activities listed below in Table 3 are suggested in order to attract and maintain memberships in this target age range:

Table 3: Recommended Physical Activities for Older People Source: Recommendations on physical activity for older Australians(14)

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Managers and Professionals Presently, the B2B business network at the Ranelagh Club offers a lower joining fee than its competitors and offers one free breakfast to new members. The Ranelagh Club should keep these initiatives and develop more networking events to attract managers and professionals within a reasonable budget.

The main recommendation for the B2B business network is to create an exclusive business network. It is a form of business network many organisations in other countries are currently using, including Exclusive Business Group in America, Business for Breakfast in the UK and Ottawa Executives’ Association in Canada. Specifically, the organisation allows only one type of member per business category or profession into each business network group established, which locks out the competition between same sectors and professions, and ensures resources of other sectors and professions are exclusive to each member.(13)

7.4 Membership Recruitment 7.4.1 Establishment of a membership officer position There is considerable merit in assigning responsibility to an individual who has an ongoing commitment to the Club and who can follow through on membership recruitment projects over several years. Many good marketing ideas get lost through lack of continuity in personnel. This should become a dedicated position of the Committee of Management and all membership applications and new members should be introduced through this Officer. Thus, membership recruitment will become a core part of business in monthly management committee meetings and will be measurable on a monthly basis.

The nominated person should ideally have good oral communications skills, a network of business and professional contacts within the local community (eg journalists, local council representatives and local business people), access to communications technology (eg computing, printing, copying facilities) and a willingness to develop knowledge of marketing practice. Most importantly, however, they should have an attitude that is focused on member needs.

7.4.2 Real estate agent partnerships The Club should form relationships with Mount Eliza’s 16 real estate agents, especially the 4 that are existing Club members, in promoting membership to new homeowners of the Mount Eliza area as part of a sponsorship arrangement. This suggestion was also raised in an unofficial Membership Acquisition Strategy 2014 written by Committee Member, David Crockett, and proves a worthy response to the target market opportunity outlined in Section 4 of families and businesspeople in particular. This is a relevant recommendation given the elusive and exclusive appeal of the Club, its capacity to help new residents integrate and settle within the community and the very high rate of owner-occupancy in the area (Section 4).

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

Active and successful referrals by real estate agents of new Mt Eliza residents to the Ranelagh Club may form the basis of a value-in-kind sponsorship in which the Club recognises the partner agencies in its marketing material, such as its weekly e-newsletters and quarterly print editions.

A concerted effort in attracting new homebuyers to the area will help the Club deliver on the proposed vision in which membership is touted as a “lifelong passport to Mt Eliza”. This will require practical support by an expansion of new-member-oriented functions, which the Club already operates successfully with its open days in summer months. This can be enhanced by:  

Involving more local professionals, including those outside the Club, in the B2B networking breakfasts with a view to engaging them as full-time members Ensuring there is a monthly new member function, with guest speaker dinners or cocktail functions in winter months and open days of the entire property in spring to autumn, to ensure that membership recruitment functions according to the existing structure of the Club – that is, the monthly meeting and reporting cycle of the management committee. o This will in turn make membership recruitment more traceable and an integral component of each management committee meeting, in addition to the establishment of a Membership Officer position.

7.4.3 Update the website and make joining more interactive and easier for the public As a result of the findings in Section 6.2.1: 1. Remove the membership application form, bylaws and Family Friendly Policy from the joining page and transfer them to a dedicated policies or documents webpage.

2. Create an easy-to-complete web form where prospective members can register their interest quickly and provide all relevant contact details that would be required for follow-up by the Membership Officer.

3. Create a separate, dedicated page for the Club’s e-store for online membership renewals.

4. Publicise the next Open Day/New Member’s Function for which a member of the public who completes the online web-form would be automatically registered.

7.4.4 Offer financial incentives to existing members for the successful referral of new members It is recommended that financial incentives be given to existing members to put into action their pre-existing, high rate of likelihood to recommend membership to friends and colleagues, as depicted in Figure 12.

Word of mouth has already been identified as a very effective channel of membership recruitment, given the strong interpersonal connections upon which the Club is based. Further, it is a very cheap solution, saving on indiscriminate, untargeted and expensive marketing, whilst referring members can mentor their referred members in their first months as Club members to facilitate a smooth and easy process of integration.

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The financial incentives should be linked with the Club’s member loyalty card, whose value is under-realised at present, after a consultation process with committee members and the Club manager. The upcoming contract renegotiation with the Ranelagh Catering Company will provide the management committee with the opportunity to secure, if the committee sees fit, a voucher system for referring members for use at Clubhouse dining.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

8.0 Reference List 1.

Aaker DA. Strategic market management: John Wiley & Sons; 2008.

2.

Anderson J, Narus J, Van Rossum W. Customer Value Proposition in Business.

Harvard Business Review. 2006;84(3):91-9.

3.

Bank M. Client Value Proposition Sydney, Australia: Macquarie Bank; 2010 [cited 2014 May 22]. Available from: http://www.macquarie.com.au/mgl/au/advisers/keep- up-todate/news/client-value-proposition.

4.

Bart CK. Industrial firms and the power of mission. Industrial Marketing Management. 1997;26(4):371-83.

5.

Branch FA. Useful Life Table. In: Services NYSOoG, editor. New York, USA: New York Sate Office of General Services; 2010.

6.

Campbell A, Yeung S. Brief Case: Mission, Vision and Strategic Intent. Long Range Planning. 1991;24(4):145-7.

7.

Club FR. 2012-2015 Frankston RSL Business Plan Frankston, Victoria: Frankston RSL Club; 2011 [cited 2014 May 20]. Available from: http://frankstonrsl.com.au/wpcontent/uploads/2013/09/Frankston-RSL-Business-Plan-2012-15-v1.pdf.

8.

Club R. Rules and Bylaws Mt Eliza, Victoria: Ranelagh Club; 2007 [updated February 7, 2007; cited 2014 May 20]. Available from: http://www.ranelagh.com.au/files/Page-3-By-Laws.pdf.

9.

Club R. Family Friendly Policy Mt Eliza, Victoria: Ranelagh Club; 2013 [cited 2014 May 20]. Available from: http://www.ranelagh.com.au/files/Page-3-By-Laws.pdf.

10.

Community S. Top 9 Ways to use Traditional Celebrations to Positively Impact your Club Australia: Sports Community; 2013 [cited 2014 May 23]. Available from: http://sportscommunity.com.au/resources/i-top-9-ways-to-use-traditional-celebrations-topositively- impact-your-club/.

11.

Ehrmann D. Building Strong Clubs. 2008.

12.

Falsey TA. Corporate philosophies and mission statements: A survey and guide for corporate communicators and management: Quorum Books; 1989.

13.

Group EB. Exclusive Business Group America: Exclusive Business Group; 2013.

Available from: http://www.exclusivebusinessgroup.com/.

14.

Health TDo. Recommendations on physical activity for health for older Australians.

In: Health TDo, editor. Australia: Australia Government; 2013.

15.

IBISWorld. IBISWorld Industry Report R9112 Sports and Physical Recreation Clubs in Australia. Australia: 2013.

16.

International Health RSA. Financial & Operations Research: International Health, Racquet & Sportsclub Association 2013 [cited 2014 May 22]. Available from: http://www.ihrsa.org/financial-operations-research 17.

Kaur J, Kumar V. Competency Mapping: A Gap Analysis. International Journal of Education and Research. 2013;1(1).

18.

Kolbeck C. Know Your Members to Successfully Market Your Club. ACSM's Health & Fitness Journal. 2013;17(5):40-1.

19.

Kotler P. Marketing management: A south Asian perspective: Pearson Education India; 2009.

20.

McCarthy E, W P. Basic Marketing: A Managerial Approach. Illinois, US: Irwin; 1987.

21.

McMahon Group I. Dining is becoming more important. McMahon Club Trends.

2009;Winter 2009:18.

22.

Porter ME. Competitive advantage: Creating and sustaining superior performance: Simon and Schuster; 2008.

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RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

23.

Porter ME. The Five Competitive Forces That Shape Strategy. 1 ed: Simon and Schuster; 2008.

24.

Pract JO. Strategic Planning: Why It Makes a Difference, and How to Do It: US National Library of Medicine National Institutes of Health 2009 [cited 2014 May 24].

Available from: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2790676/.

25.

Rodacker U. successful managers. Supervision. 2006;67(5):8-9.

26.

Semon TT. Spending power transcends income. Marketing News. 1996;30(16):13-.

27.

Statistics ABo. 4102.0 - Australian Social Trends, Sep 2009. In: Statistics ABo, editor.

Australia: Commonwealth of Australia; 2009.

28.

Statistics ABo. 4177.0 - Participation in Sport and Physical Recreation, Australia, 2011-12. In: Statistics ABo, editor. Australia: Commonwealth of Australia; 2012.

29.

Statistics ABo. National Regional Profile: Mount Eliza (Statistical Area Level 2). In: Statistics ABo, editor. Australia: Commonwealth of Australia; 2013.

30.

Statistics ABo. 6306.0 - Employee Earnings and Hours, Australia, May 2012. In: Statistics ABo, editor. Australia: Commonwealth of Australia; 2013.

31.

Susan JTa. Importance-Satisfaction Analysis for Marine Park Hinterlands: A Western Australian Case Study. Tourist Management. 2007;28:768-76.

32.

Walker SN, Volkan K, Sechrist KR, Pender NJ. Health-promoting life styles of older adults: Comparisons with young and middle-aged adults, correlates and patterns. Advances in Nursing Science. 1988;11(1):76-90.

33.

Zuckerman AM. Creating a vision for the twenty- first century healthcare organization.

Journal of healthcare management/American College of Healthcare Executives.

1999;45(5):294-305; discussion -6.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

9

Appendices

9.1

Signed Project Charter (Appendix A)

Progress Report Two

Project Charter Part A: Project Background The Ranelagh Club (“the Club”) is one of four member-based country-style clubs stretching the Mornington Penins ula. Since its establishment in 1924, members have enjoyed access to an array of recreational, social and dining activities including tennis, sailing, private beach boxes and private dining.

This is a club which is rooted in the principles of family -oriented fun, sports, leisure and exclusivity.

As a growing non-profit organisation, with 629 memberships recorded in 2013, 1500 members and rising, the Club is in search of a business plan given its lack of a c oherent, documented strategy outlining short -, medium- and long-term plans. For this reason, the Club’s management committee of eight elected members and its employed Office Manager, Erin McGavin, are committed to solving these shortfalls and addressing marketing, membership growth, membership engagement, commercial arrangements and building developments in a coherent, documented and strategic way.

While the role of the country club in the 21 st Century has transformed and comes with its challenges in an increasingly disconnected, decentralised world, the Ranelagh Club continues to be a source of exclusivity in Mount Eliza. Yet the Club records low membership participation in its activities and a significant drop-off in membership each year, which it has recently been able to offset with greater additions, yet unnecessarily adds to burden placed on Club staff and committee members. Meanwhile, the Club is constrained by its Articles of Association which stipulate that members must be residents of Mount Eliza and that only two membership levels be provided, among other restrictions. However, neither stipulation is ever fully adhered to, creating an unclear sense of direction regarding membership and how to market the Club to the public.

The Club’s issues are worsened by its lack of a clear mission statement and vision; a building master plan and supporting finance strategy, and; an operations strategy (with particular concern to its catering contract). Further, management committee members are volunteers whose election is every year, thus impeding the long-term strategic foresight and planning of which the Club has evidently been deprived and which it desperately requires.

Due to these difficulties, the competitive country club market on the Mornington Penins ula requires that the Ranelagh Club does more than to merely survive, wit h the Committee President’s observation that it is struggling to do so. Its issues stem from a lack of a documented vision and mission to guide all fut ure s t rat egies and decision-making, wit hout whic h the Club will be inhibited from pursuing a purposeful, methodical and considered direction and may incur vast damage to its finances, membership and community standing.

Part B: Project Aim Through a process of consultation with all listed stakeholders (see Part E), we aim to document a clear, comprehensive yet succinct vision for the Ranelagh Club which will guide future strategies and decision-making. Based on the vision developed, we will seek to subsequently analyse membership, the market and recruitment, with close attention paid to the drivers of the Club’s value proposition, recruitment channels, target demographics, internal and external communications.

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Part C: Project Scope The Club currently has an undefined and a non-documented business strategy, which presents many opportunities for development. Catalyst Consulting Group will work with the Club using a multi-layered approach focusing on: (1) vision and mission; (2) membership value; (3) market analysis; (4) membership recruitment, and; (5) recommendations.

We propose that each of the following scope items will be deconstructed as follows and be accompanied by a short-, medium- and long-term implementation plan as required: 6.

Vision and Mission a. Existing Mission Statement and Vision State and analyse the Club’s existing (unofficial) mission statement and vision b. Refined Mission Statement and Vision Document a clear, comprehensive and succinct Mission Statement and Vision for the Club.

7.

Membership Value a. Value Proposition i. Specify the concept of value proposition ii. Identify the Club’s existing value proposition b. Gap Analysis Identify the critical improvement areas need to be improved by conducting a gap analysis c. Boat Storage Provide an overview of the boat storage facilities at the Club, and identify significant safety concerns regarding to boat storage facilities.

8.

Market Analysis An analysis of internal and external factors, including an analysis of industry competition, competitors, local and target demographics, communications and marketing mix.

9.

Membership Recruitment Analyse the Club’s existing recruitment strategy by outlining and analysing the channels through which members are recruited.

10. Recommendations Recommendations arising from the above sections accompanied by a suitable implementation plan where necessary and possible.

Exclusions 1. Operations Strategy, including a review of the Club’s catering contract 2. Building Maintenance and Redevelopment Plan (‘Building Master Plan’) 3. Finance and Investment Strategy 4. Club Amalgamation Feasibility Study The above exclusions are beyond the provisions of this project and the capacity of the project team.

In order to adequat ely analyse, review and make det erminations on the above issues, we rec ommend, that the Club engage consultants (whether students or external) in the near future regarding those issues.

Part D: Agreed Project Deliverables We agree to deliver a quality, intelligible and easy-to-read strategy pertaining to vision, membership and marketing as itemised above by May 30, 2014. An accompanying presentation of the recommended strategy will be made to the Management Committee by this date, at a time and date found to be mutually convenient by the Club’s Committee and Catalyst Consulting Group.

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

Part E: Stakeholder List We consider the major stakeholders of this project to be the following people with whom we propose to consult or interview at the very least, as this project is considered to be of pertinenc e and interest to them.

1.

2.

3.

4.

5.

Ranelagh Club Board of Directors Club Manager – Erin McGavin President – Lawrence Henderson Secretary – John Griffin Treasurer – David Logan General – David Crockett General – Michael Stephens General – Sally Riley General – Mark Southall Existing Club Members Ranelagh Catering Company Ranelagh Tennis Club Ranelagh Yacht Squadron

David Crockett is the Group’s first point-of-contact and will therefore be the primary signatory on all documentation between the Club and Catalyst Consulting Group.

David Crockett and Lawrence Henderson will review the deliverable, whilst all directors will be consulted directly or indirectly. Stakeholders 2 to 5 will be sought to be interviewed in select samples when visiting the site (April 11, 2014), in addition to those committee members who have yet to be consulted.

X

X

X

David Crockett Director, Ranelagh Club

Kimberley Newton Client Liaison, Catalyst Consulting Group

Ricky Li Catalyst Consulting Group

X

X

X

Ameni Kabboudi University Liaison, Catalyst Consulting Group

Jiannis Tsaousis Catalyst Consulting Group

Irene Wang Catalyst Consulting Group

52

9.2

Signed Data Collection Plan (Appendix B)

Progress Note Three

Data Collection Plan Element 1: Overview of Project Scope The Club currently has an undefined and non -documented business strategy, which presents many opportunities for development. Catalyst Consulting Group will work with the Club to develop a business strategy featuring a triple -layered approach: (1) vision and mission statement; (2) members hip strategy, and; (3) marketing strategy.

1.

Vision and Mission Statement We will identify a clear vision t hat outlines the club’s core values and purpose as well as its objectives, contextualis ing t he aforementioned and the role of the club in the 21st century. By developing a clear mission statement we will subsequently be able to deliver tailored solutions in line with our project scope to meet Ranelagh Club’s challenges and opportunities.

2.

Membership Strategy We will investigate the membership composition of the Ranelagh Club and identify and analyse the demographics of Club members and loc als alike, in refining the Club’s target market which will underpin our remaining analysis. The value proposition of the club and its competitors will be deconstructed, researched and refined as will the Club’s recruitment channels. Further, the members hip strategy will address the Club’s member participation and drop-off challenges through an investigation and analysis of member disengagement and membership management systems.

3.

Marketing Strategy Building on the aforementioned two scope items, this item further involves us investigating the external communications of th e Club and its competitors, conducting a brand analysis, investigating how the Club is viewed in the local community and the alignment of the Club’s current marketing and branding with the vision as articulated in Part 1. This and previous parts’ analysis will inform our recommende d marketing strategy for the Club.

Element 2: Issue Tree Diagram See overleaf.

Element 3: Data Collection Table See overleaf.

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Ref #

Inquiry Question

Information Required

Data Sources

Data Collect.

Method

1.1.1.1

What are the Club’s mission, values and objectives and how are they viewed?

What are the strengths, weaknesses, opportunities and threats of existing activities and operations?

Stated mission, values an objectives; directors’ views Strengths, weaknesses, opportunities and threats of current operations Recreational club market trend Competitors’ mission statements, target markets & value props.

Current Club opportunities

Ranelagh Club History Presentation; Committee meeting Membership Details, Ranelagh Club Brochure, Ranelagh Map

Primary Source

Industry Research/reports Industry Research. Online Data

Secondary Source Secondary Source

Ranelagh Newsletter

Primary Source

Mornington Pen. Demographics Key segments of customer Current club operations Different membership structures for the club Recruitment practices; SWOT Analysis of Recruitment

Aust. Bureau of Statistics Membership Details Club Activities Register Membership Trends

Secondary Source Primary Source Primary Source Primary Source

Marketing; Committee Members; New Member Data; Journals/Research Competitor Public Reports

Primary Sources

Primary Source

Secondary Source

1.2.1.1

1.3.1.1 1.3.2.1 1.3.3.1

What is the market trend for country and recreational clubs?

What is the competitors' mission statement, target markets and value propositions for membership?

What opportunities are available for the club?

2.1.1.1 2.1.3.1 2.2.1.1 2.2.3.1

What are the local community’s demographics?

What are the key segments for customer?

What are the club’s existing services and operations?

What is the most valuable membership structure for the club?

2.3.3.1

What are the Club’s recruitment channels and its strengths, weaknesses, opportunities and threats?

2.3.3.2

What are the other competitors' tools used to get new members?

2.4.1.1

What is the structure of membership in the club?

2.4.2.1

How often do members participate in club services?

2.4.2.2

How can we improve the membership participation and drop-off?

Competitors’ recruitment channels Segmentation of membership activities Records of membership participation Member attitudes

2.4.4.1

What is the current communication system with members and how can we improve it?

How does the membership management system operate?

Current communications strategy & member attitudes Membership Management System

What type of media platform does the club use for external communication?

What are the alternative media platforms to maximize the club’s positioning?

What is the marketing strategy employed by competitors?

External communications Alternative media platforms

Membership Details, Activities of club Member Records; Guest Book entries; Loyalty Card data Member surveys; committee feedback; online research Newsletters & mail-outs; surveys; feedback Member database; committee feedback Current Marketing Electronic Online Data & Research

Competitor external communications

Competitor marketing (web, newsletters, ads, etc.)

2.4.4.2 3.1.1.1 3.1.1.2 3.1.2.1

Primary Source

Secondary Source

Primary Sources Primary Source Primary Source Primary Sources Primary Source Secondary Source

RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

3.2.1.1 3.2.2.1

How does the local community perceive the club and how can it be improved?

What kind of marketing strategy should be implemented in the club in accordance with its vision?

Local community attitudes Existent Marketing plan, vision and mission of club, Feedback from members, results of survey

Feedback; local media coverage; member surveys Current Marketing Electronic

SIGNATURE PANEL

X

X

X

David Crockett Director, Ranelagh Club

Kimberley New ton Client Liaison, Catalyst Consulting Group

Ricky Li Catalyst Consulting Group

X

X

X

Ameni Kabboudi University Liaison, Catalyst Consulting Group

Jiannis Tsaousis Catalyst Consulting Group

Irene Wang Catalyst Consulting Group

56

Primary Source Primary Source

9.3

Survey Output Data (Appendix C)

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9.4

Survey Sample Summary (Appendix D)

Respondent Number

Age

Gender

Membership Years

Membe rship Type

1

51

Male

17

Single

2

60

Male

8

Family

3

40

Male

.33

Family

4

45

Female

6

Couple

5

31

Male

.25

Single

6

87

Female

7

Social

7

46

Male

10

Family

8

49

Female

3

Family

9

70

Male

20

Single

10

43

Male

8

Family

11

54

Male

18

Family

12

69

Male

1

Couple

13

62

Unspecified

10

Family

14

Unspecified

Male

6

Family

15

Unspecified

Female

12

Family

16

Unspecified

Male

15

Single

17

70

Male

10

Family

18

46

Male

25

Family

19

70

Male

15

Single

20

65

Male

8

Single

21

69

Male

10

Family

22

45

Female

1.5

Single Plus

23

65

Male

5

Couple

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9.5

Survey Template (Appendix E)

Catalyst Consulting Group is authorised by the Board of Directors of the Ranelagh Club of Mount Eliza Inc to conduct this survey Please spare a few minutes to complete this membership survey to help improve the service to you.

Your Membership Details: Number of Years of Membership What is your age?

You are:

Male

How often do you use the Clubhouse facilities?

Female

Every week Once a fortnight

Type of Membership

Once a month

Single

Less than once a month

Single Plus

What would influence you to use the Clubhouse more often?

Couple Are you resident at Mt Eliza?

Junior Yes

______________________________________ ______________________________________ ______________________________________

Family No

If no, how far away do you live? _____________________________________________________________________________

Do you have membership at another club?

Yes

No

What cial are your hobbies/interests? _____________________________________________________________________________

Are you working for your own business or working for an employer? Are you interested in the ‘B2B’ business network at the Ranelagh Club? ____________________________________________________________________________ ______________________________________________________________________________

60

How important are each of the following activities to you, with regards to your needs as a member of the Ranelagh Club? (1-least important; 5-most important)

1

2

3

4

5

Dining

☐

☐

☐

☐

☐

Tennis

☐

☐

☐

☐

☐

Sailing

☐

☐

☐

☐

☐

Clubs (Languages, Wine, Book, Yoga etc)

☐

☐

☐

☐

☐

Business Network

☐

☐

☐

☐

☐

Golf

☐

☐

☐

☐

☐

Function Room

☐

☐

☐

☐

☐

Boat Storage

☐

☐

☐

☐

☐

Others:

☐

☐

☐

☐

☐

For each activity in which you have participated in the past year, please rate how satisfied or dissatisfied you were with that activity. (1- least satisfied; 5-most satisfied) Note: For activities you did not participate in, just leave blank.

1

2

3

4

5

Dining

☐

☐

☐

☐

☐

Tennis

☐

☐

☐

☐

☐

Sailing

☐

☐

☐

☐

☐

Clubs (Languages, Wine, Book, Yoga etc)

☐

☐

☐

☐

☐

Business Network

☐

☐

☐

☐

☐

Golf

☐

☐

☐

☐

☐

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RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

Function Room

☐

☐

☐

☐

☐

Boat Storage

☐

☐

☐

☐

☐

Others:

☐

☐

☐

☐

☐

How frequently do you use the following Ranelagh Club’s sport facilities?

Tennis Court: Very frequently

Frequently

Sometimes

Rarely

Never

Boat House: Very frequently

Frequently

Sometimes

Rarely

Never

Please rate the following aspects of the Ranelagh Clubs Tennis Courts and Boat Storage facilities (1- least satisfied; 5-most satisfied)

Tennis courts

1

2

3

4

5

Hours of operation

☐

☐

☐

☐

☐

Equipment

☐

☐

☐

☐

☐

Safety

☐

☐

☐

☐

☐

Value for the price

☐

☐

☐

☐

☐

Boat Storage

1

2

3

4

5

Hours of operation

☐

☐

☐

☐

☐

Equipment

☐

☐

☐

☐

☐

Safety

☐

☐

☐

☐

☐

Value for the price

☐

☐

☐

☐

☐

Are there any improvements in these activities that you would like to see in the future? ___________________________________________________________________________________ ___________________________________________________________________________________

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___________________________________________________________________________________

Do you have any recommendations regarding the ‘B2B’ business network at the Ranelagh Club? __________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

Communications and Technology: Do you read the newsletter?

Yes

No

Please rate the following communication methods used at the Club: (1- least satisfied; 5-most satisfied)

1

2

3

4

5

Content of newsletter

☐

☐

☐

☐

☐

Club website

☐

☐

☐

☐

☐

Club calendar

☐

☐

☐

☐

☐

Online payment

☐

☐

☐

☐

☐

Responses to phone inquiries/emails

☐

☐

☐

☐

☐

Frequency of communication (1-too often; 5- not enough)

☐

☐

☐

☐

☐

What is the best method of communication with members?

E-mail

Website

Print newsletter

Facebook

Other

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RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

Your Feedback What value do I get for my membership?

On a scale of 1 to 5, where 1="Not likely at all" and 5="Extremely likely," how likely are you to do the following?

5–

1 - Not likely at all

2

3

4

Remain a member of the Ranelagh Club for the next year











Recommend the Ranelagh Club to others











Extremely likely

Overall, how satisfied are you with your membership at the Ranelagh Club?

1 – Extremely unsatisfied

2

3

4

5 – Extremely satisfied











What could the club do to increase your satisfaction and use of the Ranelagh Club? ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

What additional future improvements or other offerings would you like to see the club consider? ___________________________________________________________________________________ ___________________________________________________________________________________ __________________________________________________________________________________

64

9.6

Food and Beverage Comparison (Appendix F) Ranelagh Club

Opens on Thursday from 6pm, Friday noon-9pm and Sunday 9am8pm

Canadian Bay Club

Fully equipped kitchen with an oven, crockery and fridges.

Mornington Yacht Club

Fully equipped kitchen.

Attached restaurant- The Rocks

Frankston Yacht Club

9.7

9.8

Fully equipped kitchen; Professional bar facilities

Master Table of Competitors Comparison (Appendix G) Bar & Bistr o

Tennis

Sailing

Ranelagh Club

√

√

√

√

Davey’s Bay club

√

√

√

√

√

Canadian Bay Club

√

√

√

√

√

Morningto n Yacht Club

√

√

√

Frankston Yacht Club

√

√

√

Beach Access, Beach Boxes

Club s

Golf

√

√

√

Function Room

Business Network

√

√

Boat storage Facilities

√

√

√

√

√

√

√

Membership Trends (Appendix H) YEAR

FAMILY COUPLE

SINGLE JUNIOR

TOTAL MEMBERSHIPS

TOTAL MEMBERS

2000

168

149

96

58

471

1124

2001

158

125

96

49

428

1027

2002

177

126

89

44

436

1093

2003

182

162

100

31

475

1183

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RANELAGH CLUB: THE WAY FO RWARD Catalyst Consulting Group | May 2014

2004

190

172

105

24

491

1233

2005

195

177

101

23

496

1258

2006

211

182

95

21

509

1324

2007

214

183

100

13

510

1335

2008

225

198

116

13

552

1425

2009

246

198

121

16

581

1517

2010

248

211

113

27

599

1554

2011

266

252

121

29

668

1718

2012

278

265

125

25

693

1792

2013

284

205

118

22

629

1686

-END-

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