The Game has Changed

1. The Game has Changed • Overview of Kohler and the Hospitality and Real Estate Group • How our marketing efforts have changed over the last three years • Our strategies for 2012 and beyond

2. Who We Are • Lodging -- TAC and IOW

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

4. Who We Are – Golf – Blackwolf Run and Whistling Straits Golf

5. Who We Are – Golf Championships

6. Who We Are – Shopping/dining experiences

7. Who We Are – Kohler Waters Spa

8. Who We Are – Riverbend

9. Who We Are • Old Course Hotel, Golf Resort and Spa – St Andrews, Scotland

10. How it Came Together • No “master plan” for creating/growing the H&RE group • Three items together fueled the growth of our resort business: • Taking a chance against the advice of many • Listening to our customers along the way • Being mindful of the latest industry trends

11. State of the State -- 2008 • Extremely profitable business • Record occupancy year over year 2006,2007 through July 2008 • Record rounds, F&B covers, Memberships, average daily rate, group rooms, etc. • AND THEN….

15. So Now What?? • Understand the economic conditions in a recession-based economy • Understand the customer mindset • Understand the new marketing mix • Create strategic market plan to find, attract and retain the customer willing to travel to Kohler and St. Andrews in this economy

16. Understanding Our Visitors • American Club Resort • Gender • Age

17. January 2011 “Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness” Affluent Travelers Will Not Open Their Wallets Blindly

19. Six trends now play a role in shaping the post-recession travel industry • Value takes center stage. • Social media begets new ways of sharing. • Mobile takes travel on the go. • Personalized micro-niche travel is taking off. • Online travel spans new horizons. • Sustainable is becoming attainable.

20. Evolving Marketing Practices OLD • People are all the same • Media is stable • Media are few and large • Puffery • Differentiate with quality, innovation • Plan your timing • Separate media • Time-tested methods NEW • Everyone is different • Media is destabilized • Media are many, small • Authenticity • Differentiate with emotional relevance • All is Web-sourced • Experiment - courage to try unknown

21. Marketing to the Rescue • Target who is traveling • Find out how to reach them • Utilize the research as a backbone of our strategic action plan • New technology, new voice tone, change in ownership

22. Our New Marketing Action Plan Pre-2009 • Group business is booming • It’s about Luxury • Static Pricing • Puffery • Differentiate with the product • Print is King • Tried and true marketing, don’t rock the boat 2010 and beyond • Group business is rare • It’s all about the experience • Flex pricing • Authenticity • Differentiate with emotional relevance • All is Web-sourced • Experiment - courage to try unknown

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

24. November 19, 2010 Facebook represents 1 in every 10 U.S. internet visits Source: Experience Hitwise

25. November 19, 2010 Facebook generates nearly 1 in every 4 page views in the U.S. Source: Experience Hitwise

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

27. Geographic Targeting

28. Targeting by interest and geography

29. Opportunities for The American Club Resort Hotel in Social Media (near-term) • Re-launch Destination Kohler Facebook page as The American Club Resort Hotel to reflect consumer conversation and new branding • Create a balanced Facebook presence that will maintain two primary pages: Kohler Golf and The American Club Resort Hotel: • Create master content calendar and unified team for managing the new The American Club Resort Hotel page. • Create social media roadmap for the next 12 months for The American Club Resort Hotel and Kohler Golf pages • Create Facebook events for special events within The American Club Resort Hotel fan page

30. Opportunities for Destination Kohler in Social Media (near-term) • Build relationships with influencers in the golf space • Transform current Twitter account @DKReservations to support The American Club Resort Hotel Facebook page • Encourage people to post reviews about their Kohler trip on review websites such as TripAdvisor. • Create Kohler Golf Virtual Leaderboard via Facebook, Twitter and a dedicated page on the Destination Kohler website • Partner with a major blog conference organizer to host an event at the American Club.

31. Current E-mail Programs The American Club Resort Subscribers = 115,623 Old Course Hotel Subscribers = 12,058 American Club Resort PR Subscribers = 617 Shops at Woodlake Subscribers = 3816 Sports Core Subscribers = 2035 Kohler Waters Spa Subscribers = 1806

32. Opportunities for Destination Kohler in Opt-in marketing (near-term) • Customer acquisition • More customers, more business • Balance offers and experiences in 2012 • Engagement and ROI

33. Other Digital Marketing Opportunities for Destination Kohler (near-term) • Invest in SEM and SEO • Protect our search terms • Remarketing and PPC advertising – sniper approach • Online Campaigns Old School efforts still in tact • Tried and True public relations – new mediums, same messaging

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