2011 DEMA Annual Report

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1 Diving Equipment and Marketing Association DEMA Annual Activity Report 2011

description

The Diving Equipment & Marketing Association's (DEMA's) Annual Report, including information on DEMA's 2011 programs, events and activities. DEMA is the trade association for the recreational scuba diving and snorkeling industry.

Transcript of 2011 DEMA Annual Report

Page 1: 2011 DEMA Annual Report

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Diving Equipment and Marketing Association

DEMA

Annual Activity Report 2011

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DEMA 2011 Annual Activity Report

What’s Inside?

WHAT IS DEMA? 3

2011 BOARD OF DIRECTORS AND 2011 MEMBERSHIP CATEGORIES 4

2011 BOARD OF DIRECTORS CONTACT LIST 5

DEMA STANDING COMMITTEES 6

Show Committee 7

Finance Committee 14

Manufacturer‟s Committee and Fund 15

Legislative Committee 16

Promotions Committee 20

MARKET RESEARCH 28

MEETINGS AND OTHER ACTIVITIES 34

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What is DEMA?

The Diving Equipment and Marketing Association is a non-profit trade association. Monies

raised through the industry‟s participation in the annual DEMA Trade Show, sponsorships, and

through DEMA Memberships, funds all of the activities of the association. Unlike for-profit

show organizers which funnel the money earned at shows AWAY from the diving industry,

DEMA funnels everything back to DEMA promotions, market and industry research, operations,

disaster assistance, and other industry efforts, all for the benefit of DEMA Members.

Like most trade associations, DEMA has several functions within the recreational diving

industry. DEMA is involved with promoting recreational scuba diving and snorkeling through

PR activities and advertising, delivering educational programming for members and consumers,

lobbying on behalf of the diving industry, and other functions. DEMA is a (501 [c] 6) California

Corporation.

Description: Worldwide Trade Association for the Recreational Diving and Snorkeling

Industries; Includes more than 1,400 member companies worldwide.

Mission: To Promote sustainable growth in recreational diving and snorkeling while protecting

the environment.

Goals:

1. To produce an annual trade event for the industry that services the needs of its stakeholders

and produces a successful financial outcome for the association.

2. To engage in marketing programs which promote the industry, create new customers, drive

business into retail stores and resorts and promote diver retention.

3. To monitor potential legislation that could adversely affect the industry.

4. To engage in marketing research programs which will:

a. Define the universe of divers

b. Determine the rate of erosion amongst existing divers

c. Determine the number of entry level certifications which take place in the

United States and Caribbean each year

d. Provide retail audit information that is made self-liquidating through annual

subscriptions.

5. To protect natural aquatic resources.

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2011 DEMA Board of Directors

DEMA‟s Board of Directors is made up of volunteers that devote an enormous amount of their

own time volunteering to help promote recreational diving and snorkeling and growing the

Industry. Their accomplishments during the year are many and few realize the time and effort

that these devoted individuals put forth.

Representing the diverse needs of all five stakeholder groups is not an easy job. In some cases

the viewpoints are in direct conflict and it takes much work to find common ground. In other

cases the difficulties are easier to overcome. In all cases, the decisions are well-thought out and

well-grounded.

The Diving Industry‟s Stakeholder groups include:

A-1 – Manufacturers/Distributors of Dive Equipment and Sales Reps

A-2 - Diver Certification and Training Agencies

A-3 - Publishing, Media, Dive Industry Consulting, Associations & Non-Retail Service

Providers

A-4 – Dive Retailers

A-5 – Dive Travel, Liveaboard Vessels and Resorts

DEMA has been pleased to have the following individuals representing the Diving Industry

during 2011:

Stephen Ashmore – A1

Scott Daley – A1

Jeff Nadler – A2 Senior Vice President

Tom Leaird – A2

Bonnie Borkin Filippi – A3 Vice President

Neal Watson – A3

Jim Byrem – A4-President

Werner Kurn - A4 –Secretary

Keith Sahm – A5 – Vice President

Tim Webb – A5-Treasurer

Board terms are three years. DEMA will next conduct Board elections beginning in December

2011.

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DEMA’s 2011 Board of Directors – Contact List

Stephen Ashmore

Tabata USA (TUSA)

[email protected]

Jim Byrem, President

Ocean Concepts Scuba

[email protected]

Scott Daley

Body Glove International

[email protected]

Bonnie Borkin Filippi

Bonnier Dive Group

[email protected]

Werner Kurn

Ocean Enterprises Inc.

[email protected]

Tom Leaird

Scuba Educators International

[email protected]

Jeff Nadler

Professional Association of Diving Instructors

[email protected]

Keith Sahm, Vice President

Sunset House

[email protected]

Neal Watson

Neal Watson Productions

[email protected]

Tim Webb

Caradonna Dive Adventures

[email protected]

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Committees DEMA Committees are an opportunity for volunteers to participate directly in the activities of

the Association and to have an impact on the effectiveness of DEMA. Committees generally

include Board members and other interested volunteers from within the diving industry or from

fields related to the activities of a given committee. In accordance with the Bylaws, committees

are advisory to the Board of Directors and DEMA Staff. They bring a wealth of experience

directly to the Association.

In 2011 there were a number of standing committees helping to provide input to the Board of

Directors and Staff of the Association. Having opinions and insight from the diving community

is critical, and the learning curve works both ways; many volunteers learn to understand the inner

workings of a large non-profit trade association, including the nuances of providing the best for

all five stakeholder groups simultaneously.

DEMA's 2011 Committees

DEMA Show Committee

Neal Watson, Chair

Tim Webb

Finance Committee

Tim Webb, Chair

Tom Leaird

Industry Marketing Committee

Scott Daley, Chair

Bonnie Borkin Filippi

Werner Kurn

Laura Walker*

International Growth Committee

Neal Watson, Chair

Stephen Ashmore

Werner Kurn

Legislative Committee

Jim Byrem, Chair

Jeff Nadler

Al Hornsby*

Dan Orr*

Manufacturers Committee

Stephen Ashmore, Chair

Scott Daley

Membership Committee

Jeff Nadler, Chair

Tom Leaird

Stephen Ashmore

Nominations Committee

Werner Kurn, Chair

Jim Byrem

Scott Daley

Tom Leaird

Keith Sahm

Professional Development Committee

Jeff Nadler, Chair

Tom Leaird

Promotions Committee

Keith Sahm, Chair

Dan Orr*

*Volunteer committee member. Not a current Director on the DEMA Board.

DEMA's Board Committees are generally determined at the first meeting of the year. DEMA

member companies with an interest in serving on future committees please contact Nicole

Russell at the DEMA Office ([email protected]) or contact a current member of the DEMA

Board of Directors using the contact information found at the following link:

http://www.dema.org/displayboard.cfm.

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Show Committee – Neal Watson, Chair

Since well before DEMA Show 2003, DEMA has worked to determine the needs of the Industry

with regard to the DEMA trade show. Working with members of the Board of Directors,

members of the industry at large, and DEMA Staff, the Show Committee determined the best

overall time of year and locations for conducting the Show, and since 2005, the DEMA Show

has been on a venue rotation between Las Vegas, Nevada and Orlando, Florida. The Show will

continue to be held in the fall, and the Orlando/Las Vegas rotation will continue through at least

2013.

DEMA Show Venue Selection – an overview:

Since venue changes usually require an advance window of three to five years, the Show

Committee is always looking into new venues to hold DEMA Show. Most recently DEMA has

reviewed proposals from locations such as Reno, New Orleans, San Diego, Denver, and many

others. Criteria for selection of a show venue include many details but in general, the selection

criteria include:

Attendee popularity

A city or metropolitan area with cultural or entertainment attractions and special event

venues appealing to the diving professional. There should be a variety of restaurants and

other entertainment within a 10 minute walking distance of the host hotel/convention

center

A major airline destination for North American and international travelers. The city

should have a substantial number of direct flights coming into the city, and be a hub for at

least one major airline

Current Trade Show News Network Labor rates for the city must be within 10% of the

median current rates for past DEMA cities.

There must be an available convention facility that meets DEMA‟s exhibit and meeting

space needs. The convention center must be in a location convenient to major hotels, the

international airport and city points of interest. The minimum conventions center size is

350,000 – 400,000 gross square feet.

A minimum of 30 meeting rooms in the convention center, capable of holding at least 50

– 100 people while using classroom style seating.

Desirable hotels convenient to the convention and exhibit facility for 10,000 – 12,000

attendees. Hotel facilities should accommodate a minimum of 1,500 – 1,800 rooms peak

night pick up, with 8,500 total room nights required within DEMA‟s block. This number

of hotel rooms must be within a 5-mile radius/15 minutes travel time (whichever is less)

of the convention center.

Hotel room rates within the block cannot exceed $180.00/night.

DEMA staff and Board members are always looking for ways to maintain and increase the value

of exhibiting and attending DEMA Show. Additional benefits have been developed for

members to attend the show including significant member discounts for exhibits-only and

seminar entrance.

Exhibitor programs include the Image Resource Center which focuses on the photography and

video industries. This area showcases companies which are in a unique position to help the entire

Diving Industry acquire more customers through the use of videography and photography.

Companies specializing in photography and video are exhibiting in this area, and almost all are

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providing FREE seminars on digital photography, video and ways for all businesses to use this

popular activity to turn more people into divers.

For several years DEMA has also provided a “Host/Guest” exhibitor program option to help

exhibitors work together during periods of business consolidation, and at the request of

exhibitors and attendees, DEMA developed a workable documentation requirement for entry of

professionals in the Show. DEMA also strictly prohibits “suit casing” or aisle selling

by exhibitors, as well as companies that are not currently exhibiting, maintaining the value of the

show.

DEMA Show 2012 Moves to the Sands Exposition Center

After a long negotiation DEMA Show has completed a move to the Sands Exposition Center on

the Strip in Las Vegas for 2012! This is a huge exhibit space and will make the Strip area of Las

Vegas more accessible to DEMA Show attendees and exhibiting personnel during off-show

hours.

DEMA Show Among Top 250 Shows!

In 2010 DEMA Show was recognized as being one of the top 250 tradeshows in the US by Trade

Show News Network. This ranking is due in part because of the support of exhibitors and

attendees who stay in the DEMA Hotel Block during the trade show.

The Show Committee thanks all who participate in DEMA Show, making it possible to help

keep costs down for everyone!

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DEMA Show Venue and Timing – A Primer

Almost every year Orlando and Las Vegas are rated in the top five cities for conventions in the United States. These

two cities are diverse in their appeal, and they fit the needs of the diving industry very well.

Every year more than 30% of DEMA Show Attendees are NEW to DEMA SHOW. This means that they are coming

into the industry (or haven‟t been to DEMA Show in at least five years), and are open to new products, new services

and new education. When on the East Coast of the US (Orlando) more attendees come from the East Coast and

Europe. When on the West Coast more attendees come to DEMA Show from the western side of the US and Asia.

Site selection and timing of DEMA Show are based on the benefits to exhibitors and attendees, including hotel room

pricing and proximity to the convention center, exhibitor rates for labor, and other factors.

DEMA Show Attendees and Exhibitors have indicated through surveys and stakeholder meetings that Las Vegas and

Orlando were among the best cities for them in which to attend and exhibit at DEMA Show. Establishing a location

rotation with Las Vegas and Orlando is a reflection of DEMA customer‟s needs. As a result, DEMA Shows are being

held in the following venue rotation:

2011: Orlando, Florida – November 2-5

2012: Las Vegas, Nevada – November 14-17*

2013: Orlando, Florida – November 6 - 9

*NOTE: DEMA Show is moving to the Sands Exposition Center in 2012!

In addition to these customer-selected venues, surveys and stakeholder meetings clearly indicate that there is a variation

in timing preference; one that is dependent on the stakeholder and their business cycle, as well as their particular

geographic location. Information gathered from retailers and others that have participated in DEMA‟s stakeholder

meetings, surveys, and other sessions, has indicated that there are two keys to encourage DEMA Show participation:

hold the Show at a time when there is as little direct interference as possible with the varied stakeholders‟ businesses,

and make sure that the Show is conducive to conducting business.

DEMA has continually focused on augmenting the benefits to attending the Show. Initiatives have included specific

buyer registration procedures and documentation and the production of solid educational opportunities that provide

opportunities for attendees and exhibitors to learn new methods to grow their business. These benefits are in addition to

the buying and selling opportunities and the chance to see new equipment as well as network on a face to face basis, all

of which have been and will continue to be the hallmark of DEMA Show.

Timing the Show to meet the varied geographic and business cycle needs for our industry has proved challenging.

Conducting the Show in early to mid-October creates conflicts with many retail businesses who are taking customers in

the water through the end of October. The former late-January timing of DEMA Show (staged in January during its

first 25 years) caused just as many conflicts with other types of businesses in different parts of the country and world.

Through surveys and stakeholder meetings it became clear that the timing for DEMA Show which produced the least

amount of business interference for both exhibitors and attendees is the period from the end of October through the first

several weeks in November (just prior to the US Thanksgiving holiday). DEMA Shows have now been booked as close

to this time frame as possible in the venues requested by DEMA exhibitors and attendees.

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Bringing in Young Professionals

DEMA recognizes the importance of encouraging early participation in the industry by younger

diving professionals and those who are relatively new to the diving industry. Many instructors

and professionally-certified diving leaders do not fully engage in the industry until sometime

after first becoming certified at the professional level. Many of these relatively new certified

individuals may not see the full extent or professionalism of the industry until they come to their

first DEMA Show.

Since individuals certified at the professional level (ie: instructors, divemasters, dive control

specialists, and assistant instructors and others with professional credentials) have long been

permitted to attend the trade-only event, DEMA developed a pilot DEMA Show-based education

program in 2007 to encourage these typically-younger professionals to attend. This program has

continued since that time. It is important to recognize that admitting new professionals does

NOT change the documentation requirements for admission to DEMA Show. The

“Immersion Program” consists of a one-day pass to DEMA Show, offered at a lower registration

price and good only for Saturday, November 5.

CREDENTIALS AND DOCUMENTATION

ATTENDEE NON-BUYER OPTION 1 (Dive Store Staff, Travel Industry Professional, Non-Exhibiting

Manufacturer or Other Industry Professional

The Following Credentials are Required: Valid printed business card to include name of business under which the attendee registers, attendee name

and position

AND ONE of the following:

Tax ID # for the dive-industry business under which the attendee registers.

Copy of current (last 12 months) business license with name of business under which the attendee

registers. Please note: If current license was sent in with your 2010 DEMA Membership payment

you may skip this step. If unsure, please send in a copy.

Paycheck stub issued to attendee by company under which attendee registers. Must include

company name and attendee name and be dated within 90 days of DEMA Show 2011

International Identification - business registry information used in the country of origin or which

permits buying in the US

ATTENDEE NON-BUYER OPTION 2 (Instructor, Assistant Instructor or Dive Master/Con, Etc.)

The Following Credential is Required to Register:

Training Agency-issued certification card including name and level of professional certification achieved.

Instructors, Assistant Instructors, Dive Control Specialists and Dive Masters are NOT automatically

qualified to receive a “Buyer” designation and are therefore ineligible to receive pricing information unless

they can produce “Buyer” documentation.

DEMA hopes to encourage recently-certified diving professionals to attend DEMA show for the future. As

with all who register for DEMA Show, these pros are required to provide appropriate documentation before

entry is permitted, and they are provided only with Show credentials that are appropriate for their level of

certification and qualifications.

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Magnet Exhibitor Program

This program was new for DEMA Show 2010 and placed interested DEMA-member exhibitors

in strategic, pre-determined locations around the DEMA Show floor, using incentives to

encourage exhibitors to participate. The program was designed to take advantage of the fact that

trade show sales floors function in a manner similar to “shopping malls” which place magnet

stores (in the case of DEMA Show, magnet exhibitors) in specified areas, helping to direct the

flow of attendee traffic, for the benefit of all exhibitors. The program has continued in 2011 and

2012.

The Magnet Exhibitor Program:

1. Helps insure that major exhibitors exhibit at DEMA show, in turn helping to attract more

and better qualified show attendees

2. Assists all exhibiting companies by helping direct attendee traffic throughout the show

floor

3. Provides additional return on investment to companies investing in DEMA Show through

exhibit space purchases of 800 net square feet or more.

Any DEMA-member exhibitor, exhibiting at DEMA Show 2011 is eligible to participate in this

program by selecting space for the 2012 show during space selection or at any time thereafter.

Selection is based on magnet space availability, their commitment to taking 800 net square feet

in one of the designated Magnet “zones,” and their seniority space selection points. Exhibitors

that select at least 800 net square feet in exhibit space within these zones are eligible for the

Magnet promotional pricing.

The Magnet Exhibitor Program provides benefits to all exhibitors:

1. By creating “zones” on the show floor in which “Magnet Exhibitors” are placed, attendee

traffic is directed throughout the show floor to each of the zones. Traffic direction

maximizes the exposure received by the other exhibitors in the path of and near the

magnet zones.

2. By changing the flow of traffic, all exhibitors have a greater opportunity for “face time”

with potential and current customers. When exhibits are designed carefully to attract

these potential customers and get them to dwell longer, more time and more interaction

becomes possible, resulting in a better show for all.

3. The program also provides more opportunities for exhibitors to select their space in close

proximity to a major exhibitor. This helps to increase visibility for all exhibitors, as more

attendees will be directed around the show floor. With a different “flow” to the show,

more attendees are likely to see more exhibitors. The result has been a renewed interest

in DEMA Show, including additional educational opportunities for all.

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For Magnet Exhibitor companies there continue to be direct and essential benefits of exhibiting

at DEMA Show, including:

“Face time” with customers and potential customers

Attracting new persons to the industry and retailing (remember, more than 30% of all

DEMA Show attendees are “first time attendees” EACH YEAR)

Support of current retailers through seminars and other contact opportunities

Show Only Sales

Future sales/sales orders

Enhanced brand image

Evidence shows that a majority of retailers/attendees come to DEMA Show because they want to

see new products and services from all their vendors, and they expect these vendors to support

them at the show. However, in recent years some companies have altered their sales cycle and

process by using a field sales force to introduce products and services to their professional

customers prior to DEMA Show. While it is understandable that the marketplace has changed in

the last few years, the result is that some major exhibiting companies do less selling at DEMA

show, which impacts their dollar ROI. This program changes the cost/sales equation for

exhibitors that wish to purchase substantial exhibit space at DEMA Show.

Magnet zones are designed to attract attendees to various areas of the show floor, and as such are

not placed directly near the front show entrance. This means that additional space is available

for non-magnet exhibitors near the entrance, and in locations near areas of interest, such as the

demonstration pool, retailer resource center, image resource center, etc.

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The “Be A Diver” Adventure Sports Festival!

This is an international consumer event designed to grow recreational diving by bringing in

a NEW DIVING AUDIENCE while engaging with current divers. More information to

come!

WHEN: April 26-28, 2013

WHERE: Greater Fort Lauderdale Convention Center, Fort Lauderdale, Florida

About:

The Be A Diver Adventure Sports Festival is a celebration of diving, adventure sports, water

sports and outdoor lifestyles and includes events, exhibits, seminars and other activities to

promote diving and other crossover activities.

Goals:

1. To promote sustainable growth in safe recreational diving and snorkeling.

2. To create more divers by reaching a larger audience outside of the diving industry.

3. To increase the sales of diving equipment and travel to current customers and sell to new

divers

It is All About Reaching a Larger Audience

Drawing customers who are attracted to the lifestyle which recreational diving offers.

Tap into feeder markets such as swimming and snorkeling

Re-activate previously-certified divers

Engage the families and young household members of previously certified divers

Host diving and other activities for current divers, including high potential growth activities

such as Free diving, Technical diving, and Spearfishing

Engage national and international consumer and trade audiences

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2011 Finance Committee – Chair Tim Webb (Board Treasurer)

The Finance Committee provides oversight to all budgetary activities of the Association,

approves the budget for the fiscal year, and reviews all Association financial transactions.

DEMA‟s financial standards are developed using Generally Accepted Accounting Principles. In

addition to following these high standards, DEMA also retains the services of an outside

professional accounting firm to conduct annual audits of all financial activities of the

Association, as well as periodic evaluations of financial data. The association‟s audited

financials are posted on www.dema.org for member review.

Giving Back to the Industry

One of the most important objectives of the Association is the opportunity to place money back

into the diving industry for promotional purposes. Since January 2003, DEMA has carefully

placed money into successful promotions that were then evaluated for their return on the

investment, using standard financial evaluation techniques.

DEMA considers funding many different projects and allocates funds to these projects taking the

following into careful consideration:

Projects Managed Directly by DEMA (Board or Staff) – This is the most common type of

project, usually involving extensive committee and Board discussion, plans and evaluation prior

to implementation. Projects of this nature may be proposed internally or by an outside entity, but

are managed by DEMA Staff with Board supervision. As such:

1. Projects are under direct control of DEMA Board.

2. Project costs can more be more easily evaluated and controlled

3. Project success can be more easily and accurately measured

4. Compliance with anti-trust regulations can be more easily monitored

5. Compliance with association objectives and corporate standards can be more easily

monitored

6. Safety risks can be mitigated more easily

Projects managed directly by DEMA require evaluation by DEMA staff, recommendations to the

Board and Board approval.

Projects Not Directly Managed by DEMA – When projects not managed directly by DEMA staff

are considered for DEMA funding, the following should be considered:

1. Projects are NOT under direct control of DEMA Board or staff. For this reason

additional information is required before approval of funding

2. DEMA sets limits on funding to prevent cost overruns and expects periodic reports from

the project management team

3. Clear objectives and evaluation measures must be provided by the team managing the

project prior to funding.

4. Written information must be provided to DEMA regarding the individuals involved, their

qualifications to conduct the project, the responsibilities of each, and the terms, limits and

conditions of the project.

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5. Project proposals are be reviewed by DEMA counsel prior to approval

6. DEMA must be indemnified against losses, injuries, violations of anti-trust regulations

and laws, and other issues appropriate to the project in question.

7. Projects must DIRECTLY benefit the diving industry

8. Consideration should be given to DEMA member companies when appropriate

9. Adequate liability insurance naming DEMA, staff and directors is required and should be

incorporated into any funding agreement as appropriate

10. Approved project funds can only be dispersed after a written agreement is executed

Projects not directly managed by DEMA require evaluation by DEMA staff and in some cases

may require evaluation by outside sources. Such evaluation by outside sources may involve

additional cost to the team proposing the project prior to recommendations being given to the

Board and prior to the necessary Board approval.

2011 Manufacturer’s Committee – Chair: Stephen Ashmore

The Manufacturer‟s Committee represents all member manufacturers. Representatives on the

Manufacturer‟s Committee come from the DEMA Board and can also include non-Board

members.

The Manufacturer‟s Committee monitors and allocates monies from the Manufacturer‟s Fund,

which was established in 1994 when DEMA was re-organized to include all stakeholders in the

Diving Industry. The Fund is composed of 5% of the gross receipts from DEMA Show each

year and is used at the discretion of the manufacturers to promote recreational diving. The

allocation of the funds follows a Board-approved process, and the Manufacturer‟s Committee

has been supportive of many different initiatives over the years.

The Manufacturer‟s Fund allocated $113,000 in promotions for the industry during 2011.

Programs supported include:

Be A Diver Pool Tour Funding

Manufacturing Sales Index (MSI)

Be a Diver Marketing Campaign including the creation and promotion of DiveCaching

PSYTE Funding/Retail Retention

DEMA Member Promotions

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Legislative Committee – Jim Byrem, Chair

Each year DEMA establishes a Legislative Committee which includes DEMA Board members

and DEMA Member volunteers. The Committee works directly with staff to review issues and

bills, and provides input to government officials and organizations through the DEMA staff

before legislation can negatively impact recreational diving.

Legislative advocacy can be complex and require substantial amounts of time, but can be well

worth the effort. Legislative advocacy provides DEMA Members with a direct voice in helping

keep dive sites open and protecting the underwater environment. When DEMA has the

opportunity to act or comment on potential legislation which may have a far-reaching impact,

DEMA Members have the added bonus of receiving notifications regarding those changes to

federal, state or local laws. The goal is to provide such notification in time for Members to also

participate in actions affecting these issues.

DEMA Members in Florida Organize to Prevent a Detrimental Change in the Lobster Harvesting Laws

In addition to the opportunity for Members to provide input to government officials at the local,

state and federal level through DEMA, just the act of “taking a seat at the table” means the

diving industry has a voice when new policies and regulations are discussed. Without this effort,

diving is not kept top of mind when policy decisions are made.

Like any trade association, not every DEMA legislative effort is

successful, but many are. Following are the major legislative efforts

undertaken during 2011:

Written and spoken testimony on Coastal and Marine Spatial

Planning before the Interagency Ocean Policy Task Force and

The White House Council on Environmental Quality

Personal meetings with Legislators from Florida and California

regarding implementation of Coastal Marine Spatial Planning

and its impact of recreational diving

Proactive steps regarding the implementation of new

fishing/lobstering license requirements for dive operators in

Florida

Creation and distribution of a Public Service Announcement to the diving and boating

industries regarding the use of the Diver‟s Down Flag

Support for continuing moratorium on Goliath Grouper harvesting

Protecting coral reefs from sewage outfalls

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Coastal Marine Spatial Planning

Since 2009 DEMA has submitted written testimony to the White House Council on

Environmental Quality for every comment period regarding the creation of a “National Ocean

Policy,” and on the concept of “marine spatial planning.” DEMA continues to participate by

analyzing each phase of this effort and commenting in writing and in person.

Coastal Spatial Marine Planning is essentially “zoning” of the oceans, rivers and lakes in the US

for control by the federal government. The “zones” are termed „Regional Planning Areas” and

are connected to state waters. Regional Planning Zones are illustrated below.

This policy was created by a Presidential Executive order (without Congress) and involves 27

different federal agencies (http://www.whitehouse.gov/the-press-office/executive-order-

stewardship-ocean-our-coasts-and-great-lakes). The federally-mandated policy will have a long-

term impact on access to diving areas as well as on fishing and energy uses.

DEMA has officially commented, explaining the need for officials to take a balanced approach

which protects aquatic resources while preventing unneeded restrictions on non-consumptive

users. As recreational diving is not inherently a consumptive or extractive activity, DEMA has

indicated that diving use should not be restricted or considered as part of extractive user groups.

Further, DEMA has testified on numerous occasions that in locations where hook and line

fishing is permitted, spearfishing should also be allowed. Spearfishing is a much more selective

process than other fishing forms and should not be prevented or restricted more than other

extractive processes, some of which are less selective.

DEMA continues to monitor and comment on these issues, and has requested a “seat at the table”

to continue providing input. This National Ocean Policy will most certainly have additional

impact and some restrictions on aquatic resource usage in the future.

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Spoken comments made by DEMA in Washington DC during the summer can be found at this

website (at 47:30):

http://www.livestream.com/interior/video?clipId=pla_57d9db90-5d64-4b1a-9012-

c3ced1a4fd21&utm_source=lslibrary&utm_medium=ui-thumb

DEMA Executive Director Tom Ingram also met with

several legislators from Florida and California while in

Washington, to discuss the need for the diving industry to

have input as this policy is implemented. DEMA has

received support for such need from several legislators

and will

continue to

pursue this

line of

input.

Fishing/Lobstering License Requirements for Dive

Vessel Operators in Florida

In July 2011 DEMA filed an injunction in the state

of Florida to prevent the enforcement of a revised

memorandum from the Florida Fish and Wildlife

Commission (FWC) regarding fishing and lobstering licensure. The memorandum subjected dive

charter operators to fines and penalties for failure to possess a Florida fishing license and lobster

tag when advertising spearfishing or lobstering trips or when transporting divers who collect

lobster or spear fish. The injunction cited the “unpublished and unpromulgated” nature of the

FWC memorandum which changed the long-held procedure requiring that only divers (and NOT

the operators of vessels which transport these divers) to possess the lobster license.

DEMA alleged that the process for such a change had not been followed correctly resulting in

confusion to boat operators and divers alike, with the result being that many could purchase

unnecessary licenses at great cost to the industry. DEMA filed the injunction to stop the

enforcement of the memorandum and to maintain the status-quo until after the lobster mini-

season. DEMA recommended that dive vessel operators refrain

from purchasing the vessel-based license prior to the Florida lobster

mini-season which ran July 27-29.

Ultimately, and prior to the beginning of the two-day lobster mini-

season, the FWC withdrew the requirements as stipulated in the

memorandum. DEMA pledged to work with the FWC to help draft

legislation that made sense and which would be enforced in a

manner not unnecessarily costly to the industry.

Dive Flag Public Service Announcement

At the beginning of the traditional dive and boating season DEMA

rolled out a video public service announcement reminding divers to

use a diver down flag and stay close to it, and reminding boaters to

Col./FL Rep. Allen West and Tom Ingram

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stay away from dive flags. The PSA was distributed to cable television stations in three states

(Florida, Texas and California) and also ran through DEMA‟ social media channels.

Sponsored by Diver‟s Alert Network (DAN) and in partnership with the National Safe Boating

Council, the PSA will be redistributed annually to help keep boaters and divers aware of the need

for dive flags. The PSA can be viewed here: http://www.youtube.com/watch?v=-uIUF9Iccyk.

Support for Continuing Moratorium on Harvesting Goliath Grouper

In February DEMA joined with a group of concerned citizens to express the opinion that current

moratorium on harvesting goliath grouper in Florida should be maintained until more data from

thorough stock assessments could be gathered to determine if the goliath grouper stocks remain

vulnerable to overfishing.

The DEMA position was taken in recognition of the FWC‟s own appraisal of its recent study,

which indicated that a significant number of data gaps were found, resulting in some unverified

assumptions used in the research. An FWC survey also found that 49% of Florida dive centers

favored continuing protection at this time. The moratorium on goliath grouper harvesting in

Florida remains in effect.

Protecting Coral Reefs from Sewage Outfalls

In 2008, with DEMA‟s backing, Florida lawmakers set a timeline for South Florida to stop

pumping 300 million of gallons of sewage a day into the ocean by the year 2025, and to treat

most of the region‟s wastewater to reuse for other purposes. In April several Miami lawmakers

introduced a new bill that would delay the deadline imposed in 2008 to stop dumping sewage

into the ocean until the year 2030.

Due to intervention and commentary provided by DEMA, together with the Professional

Association of Diving Instructors (PADI) and others in opposition to the new bill, Florida‟s

Senate Committee on Community Affairs approved a strike-all amendment that maintains the

2025 deadline.

DEMA‟s position was and is that dumping wastewater into Florida‟s oceans has damaged

beaches, marine life and coral reef, and that the pipes needed to be closed down as soon as

possible to reduce ocean pollution. The dive industry will continue to support the campaign

against contaminating Florida‟s water – any water - with sewage.

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Promoting Recreational Diving – Promotions Committee, Keith Sahm, Chair

DEMA is a non-profit trade association. Money earned by DEMA through your DEMA

Membership and through your participation in DEMA Show is what drives all promotions,

research, legislative activity and presenting opportunities for face-to-facce customer contact at

the DEMA Show.

LOCAL DIVING AND DIVER

RETENTION

What is DiveCaching?

It‟s all about diving adventure and fun! It‟s an

underwater “treasure” hunting game and

activity for snorkelers and certified divers that

can be organized by any group of divers or by

professional dive centers.

Divecaching is ideal for keeping your

customers involved in both local diving and

dive travel, and for divers who may have been

out of the water for a while this is a great, fun

reason for them to take a refresher scuba

course and get back into diving!

DiveCaching combines certified scuba diving

skills or snorkeling skills with some high tech

equipment and simple underwater search

techniques, while looking for a hidden “cache”

of goodies. The premise is simple; divers hide

a “treasure” or cache underwater, they post the

location of the hidden cache online, and other

divers search for it. When the cache is found,

the finder logs their visit to the cache by

recording their name on an on-site visitor‟s log

book or slate, and puts the cache back where

they found it. Sometimes the finders enhance

the cache by placing additional items in the

cache container. Other times the finders simply

put the cache back in the hiding place

unchanged for the next DiveCacher to locate.

After returning to the surface, the diver‟s visit

to the cache is logged online.

Keeping Divers Active

Like most businesses, retaining current customers is the most cost-effective way for the diving industry to prosper. Finding ways to keep divers active and participating has been the focus of many different efforts in the professional diving community over the years – training organizations have created specialty certifications to train divers in new and fun activities, and to keep divers coming back to the retail store for additional purchasing and interaction. Manufacturers continuously introduce the latest equipment innovations, and resorts and retailers offer promotions, sponsor dive clubs, and conduct fun activities that help induce divers to stay active and involved. Not surprisingly, in general the more active a diver is, the more likely they are to remain a customer. In addition there is also evidence to suggest that when retail stores have longevity in the marketplace, their customers are more likely to stay active, in part due to the ease with which the customer can stay involved with familiar store personnel and the evident comfort level customers have with policies, people and practices that are known to him or her in their “home store.” Both activity levels and loyalty remain important issues for retaining customers. There are many, often conflicting theories on how to keep divers active. One often-touted concept is that re-certification of divers should be required. Another is that certain levels of certification should be required before the certification is considered “life-long.” Still another is that equipment purchasing should be required to ensure the customer has a financial commitment that would keep him/her active. Unfortunately, like most mandates or regulations, the use of these “requirements” would seem more likely to create a barrier to entry, and ultimately

reduce participation, rather than increase retention. But these theories are understandably borne of the frustration that accompanies the ever-present question in this industry of how to keep a certified diver participating and buying. (continued…)

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For divers there can be many rewards for

DiveCaching and everyone has their favorite

reason for participating; some thrive on the fun

and adventure of the hunt; others enjoy

exploring a new dive site or returning to one

that they have not visited in a while. Still

others enjoy practicing their diving skills,

using new diving equipment, or using skills in

navigation, buoyancy control or search, or just

simply being with friends and family. Some,

especially the younger DiveCachers will love

the “treasure!”

DiveCaching is an underwater form of

“Geocaching,” a decade-old land-based

activity with more than 5 million participants

worldwide. There are already some

underwater geocaches listed on the

Geocaching.com website, and more are being

listed every day. Because it‟s an activity

which can be done on land AND underwater

looking for geocaches both in and out of the

water is a great activity for customers with

family members who are not yet divers.

DEMA introduced DiveCaching in May

2011as a means for DEMA members to reach

out to current diving customers and keep them

diving. DiveCaching is ideal as a FUN diving

activity that can take place LOCALLY but

divers can also participate in DiveCaching

when they travel.

How will DiveCaching help your dive center?

Keeping Divers Active (…continued)

Rather than placing additional obstacles in the path of potential or current customers, it would seem that using a market-driven approach would provide a better long-term retention answer. Underwater photography, which has become very easy and relatively inexpensive in the digital age, is an example of a market-driven specialty that has the potential to keep diving customers involved. In fact ANY specialty area of training and participation (wreck diving, night diving, and other specialty training areas) can contribute to the repertoire of activities that keep a diver involved. DEMA’s research indicates that such specialty training and activities do contribute to diver retention and to equipment purchases. In spite of the success of specialty areas of diving in driving participation and equipment sales, there are limitations inherent in specialty activities that may restrict their ability to keep a diver involved. In part this limitation exists because specialties generally require some specific circumstance to accomplish, e.g.; Night diving requires nightfall and specific processes and procedures that keep the diver safe; Underwater photography requires relatively clear water and a subject for the photograph if the diver is to enjoy success. An “ideal” activity or specialty training area is one in which the diver can participate regardless of circumstances such as low visibility, temperature limitations, equipment requirements, etc. This is especially true in the current economic conditions, where such specialty diving activity could be part of a so-called “staycation,” conducted as part of regional or local diving event, requiring little in the way of travel for the consumer. While research does not actually indicate that local diving actually increases the propensity of a diver to purchase diving equipment more so than traveling to dive (such purchases appear to be connected to a SERIES of events and activities), it is obvious that ANY fun diving-related activity should help to keep the customer involved and should help increase the long-term chances of a customer making additional purchases.

When divers hide caches in their local dive lake, quarry or river it will encourage more local

diving participation by current customers. Divers working or living in resorts can also hide

underwater geocaches in these locations making it possible to play the game anywhere in the

world; there is almost no limit to the type of caches and hiding places. Divers can play all

manner of games that promote both diving and DiveCaching once containers are hidden and

logged on geocaching.com, and stores can develop their own games. DEMA will also provide

suggestions to member stores.

Divers will want to upgrade equipment and get additional training to participate. Consider

promoting additional training in buoyancy control, search and compass navigation as a starter,

but don‟t forget underwater photography, drysuit diving and training for low visibility diving.

DiveCaching can also help acquire new customers. Families with non-divers can participate in

land-based geocaching while their families are looking for caches underwater, encouraging more

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family-friendly outings and diving-related social events. In addition the geocaching community

is very large (more than 5 million world-wide) and there are many who will be interested in

finding caches underwater.

The data on the current geocaching audience indicates it is attractive for the diving community,

and expanding our reach:

Gender Percentage

Male 55%

Female 45%

Income Percentage

$0 – $30K 17%

$30K – $60K 33%

$60K - $100K 34%

$100k+ 17%

Age Percentage

3 - 12 3%

13 - 17 13%

18 - 34 28%

35 - 49 29%

50+ 27%

College Attendance Percentage

No college 36%

College 50%

Graduate School 14%

Kids in Household Percentage

No kids 0 – 17 years 65%

Have Kids 0 – 17 years 35%

No kids 0 – 3 years 90%

Have kids 0 – 3 years 10%

No kids 3 – 12 years 75%

Have kids 3 – 12 years 25%

No kids 13 – 17 years 84%

Have kids 13 – 17 years 16%

Geocachers are also found in states that rank highly in the DEMA Certification Census for entry

level (Open Water) certifications.

States Rank: Geocaching.com

Rank: Open Water Certifications

(DEMA Certification Census)

CALIFORNIA 1 1

FLORIDA 3 2

TEXAS 2 3

NEW YORK 4 4

ILLINOIS 7 6

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DEMA has created a series of DiveCaching “How To” videos to help get your customers

involved in this fun activity. See them on YouTube (BeADiverCampaign Channel) or on

Geocaching.com/DiveCaching. Check out the introductory video here:

http://www.youtube.com/watch?feature=player_embedded&v=mb9OafeqlCM

Environmental initiatives are also possible with DiveCaching. “Cache In Trash Out” (CITO) is

the geocaching community‟s environmental initiative, and when searching for caches underwater

or on land cachers can pick up any garbage they encounter and carry it out of the area. Similar to

beach cleanups and other diving-related environmental efforts, this one also helps keep our dive

areas clean. CITO events should be considered by every dive center!

DiveCaching is a fun activity for all divers and dive centers should get involved to bring their

current customers in for more diving fun! For more information on DiveCaching log onto

www.DiveCaching.org and www.geocaching.com, or contact DEMA at [email protected].

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DIVER ACQUISITION DEMA‟s Be A Diver Campaign

DEMA launched the Be A Diver campaign in April 2008. The main and continuing goal of the

Be A Diver campaign is to provide a means by which DEMA Members can promote the FUN of

diving. The Be A Diver campaign has many different elements and works in a manner that is

complementary to other marketing campaigns, but can also stand alone as an inexpensive and

complete promotional campaign for DEMA Member stores. In what remains one of the toughest

US and world economies in recreational diving‟s short history DEMA Members have exclusive

access to a complete and economical toolbox to use in customer acquisition.

In addition to the

availability of

advertisement

materials for DEMA

member use, DEMA

has also provided a

website –

BeADiver.com –

which lists every

retailer in the US.

DEMA members

receive preferential

listings, and their

website URL, phone

number and distance

from the zip are

provided to consumers

in alpha order under the Retail Store Locator. In addition, for a small fee there are preferential

store listings based on the potential customer‟s actual location. Non-members receive an alpha

listing as well, following the DEMA members‟ store listing by zip code.

For purposes of the Be A Diver

listing, DEMA defines “retail dive

store” as DEMA member retailers

which meet all of the following

criteria:

1. Teach scuba diving

2. Sell scuba diving equipment

3. Provide diving equipment

service

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4. Have a retail store front

5. Have regular retail business hours

6. Be zoned for business where such business zoning is required

7. Provide air fills

8. Provide DEMA with a copy of the government-issued business license which permits the

business to operate

What‟s in the Toolbox?

Like any good promotional campaign, to be successful, all of the promotional materials in the Be

A Diver campaign must be used together. The components of a good promotional mix include:

Advertising – such as radio, television and print ads through various media.

Sales Promotions – Sales promotions involve the use of media and non-media pressure

applied for a pre-determined, limited period of time at the consumer, with the objective of

stimulating trial or increasing consumer demand, or to improve product visibility and

availability.

Publicity (PR) – The classic definition of “Publicity” or “PR” states that it is non-paid-for

communications of information about the company or product, generally in some media

form.” While the actual appearance of the product or service in the media may be

considered “free,” most publicity activities do have a cost associated with them. PR

firms charge for follow up, “stunts” cost money to create, and even writing press releases

can have a cost. Still, these can be very effective when used in conjunction with other

promotional activities and getting the attention of the media can provide a store with far

more visibility than not having it. The Be A Diver Pool is a form of publicity.

Personal Selling – Diving is a relationship business, and notwithstanding the sales that

take place on the web, getting people to come to a store and purchase equipment or learn

to dive is still largely dependent on the face-to-face selling skills employed by dive store

staff. All employees should be versed in selling techniques and willing to participate in

the sales process. Given that more than 60% of all divers look to their diving instructor

for guidance on what they should buy, this is especially important for the instructional

staff.

All of these elements within the Be A Diver campaign are available to DEMA members FREE

OF CHARGE to help capture the attention of the target customer.

The Power of a Brand

Using the Be A Diver brand helps DEMA members by tagging onto a brand already known

outside of the diving industry through television commercials, internet and print advertising.

Reaching the potential audience in the DEMA Member‟s area becomes more effective when

using a brand already synonymous with the fun of diving.

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Example Advertising Components of the Be A Diver Campaign

Using the highly visible brand BeADiver SAVES MONEY AND TIME for DEMA Members.

Results for 2011

As members, more than 600 retailers in the US and internationally have access to the Be A Diver

brand materials, and many are using them as part of their entire “promotional mix,” along with

advertising components from their training organizations and other vendors.

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The Be A Diver Pool Tour

One of DEMA‟s main goals is to help promote

sustained growth in recreational diving. The

Association has provided significant amounts of media

attention to the Industry over the last several years.

One of the MOST productive tools for the diving

industry in terms of media exposure has been the Be A

Diver Pool, a 16,000 gallon, 4‟deep portable swimming

pool supervised by Dave Reidenbach and used to grab

media attention in good potential diving markets.

The pool is staffed by Dave and by volunteer instructors from DEMA Member retail stores who

take advantage of the unique opportunity to display their banners, distribute informative

materials and promote their location to a new customer base.

Potential consumers are also provided the chance to have unique face to face contact with their

neighborhood dive professional and all of their scuba diving questions immediately answered.

The grass-roots interactive opportunity is a valuable resource to participating DEMA member

retailers as they continue to get new business through their involvement.

The Be A Diver Pool has received tremendous media exposure, and to make it more appealing to

companies outside of the diving industry, DEMA has been working with an independent auditing

company since 2005 to audit all media coverage of promotional projects, including the Pool.

This is the only objective way to determine the amount of exposure and the value of the

promotional projects to the Association.

Through July 2011 the Pool has generated the following media exposure:

Media Category Media Impressions* Dollar Value*

Broadcast Exposure 10,829,571 $2,011,867

Print and online 12,801,836 n/a

TOTAL 23,631,407 $2,011,867 + print and online

DEMA‟s highly visual Be A Diver Pool Tour is seen on television, various forms of print media,

and on the web. The Pool Tour has also been successful in generating significant exposure and

sales for those retailers that use it as part of their promotional mix.

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Marketing Data and Analysis

At the heart of “marketing” is the understanding of the customer, how we communicate with

them and what message will generate the greatest response in a cost-effective manner.

Most everyone in the diving industry has some idea of their own customers; retailers see the

equipment and training they sell to customers; manufacturers have an understanding of who

purchases their products through warranty registrations and information from their retail dealers.

Training organizations can easily check their own certification information for demographic

details, places where they live and more.

The question for the Industry and for DEMA is how to pull all this information together to

enable additional sales, more traffic, greater retention and more fun. Having marketing data

from all sources in the diving industry, including data from actual divers is critical.

DEMA participates in several ongoing research projects each year, but also has additional

customized data available for DEMA Members to use. All members of the diving community

can benefit from this type of data.

Fast Facts: Recreational Scuba Diving and

Snorkeling

There are between 2.7 to 3.5 million active scuba divers in the US with as many as 6 million active scuba divers worldwide

There are about 11 million snorkelers in the US and about 20 million snorkelers worldwide

Profile of the most active divers in the US – the divers who spend the most on equipment, certifications and training combined (n=308,000 divers; Published 2007, affirmed, 2009):

o Age – Between 38 & 53 years old – Mean: 45 Median: 46 o 76% are male o Household Income – 56% make between $75,000 and $100,000 o Occupation – 80% are White-Collar/ Professional/ Technical/ Management o Home ownership – 93% own their own home o Mortgage amount – Median of $148,000 o Marital Status – 71% married o Presence and age of children – 17% have kids under 18

Certification Census

Thanks to the three participating certification organizations data has been made readily available

regarding the number of new divers certified each year since 2003. The Census includes data on

Open Water-level diver certifications only, as defined by the Recreational Scuba Training

Council (RSTC). This statistic is a measure of growth for the Industry at large, and is indicative

of the health of the sport.

The cooperative effort between all of the currently reporting certification agencies includes

reporting their certification information to an independent, third party auditing firm. Although

not all training organizations currently participate with this program, all are invited to participate.

Open Water certification numbers are reported to DEMA in total only after the third party

auditing firm does a thorough review of the data, removes any duplication that appear across

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agencies, and receives a letter of verification from the reporting training organization. This

process is designed to make the Census totally anonymous with regard to training organizations

and to produce an accurate accounting of the totals within the US. Neither the DEMA Office nor

the DEMA Board receives access to individual training organization totals, only the aggregate

total. Up-to-date certification census data is available at www.dema.org and important state-by-

state data is available to DEMA Members.

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Manufacturing Sales Index (MSI)

For more than 20 years DEMA has gathered and

reported data on sales at the manufacturing level.

The data is reported by those manufacturers that

voluntarily participate in the program and is

gathered by a third party administrator on a

monthly and quarterly basis.

The individual manufacturer‟s information is kept

confidential and only the aggregate is reported to

participating companies.

Data from the ongoing manufacturing research

program is used by manufacturers to compare their

sales with those in the Industry, to help understand

market share information, and to help determine

trends.

MSI – Domestic US Shipments Domestic 2007-2008-2009 To Date

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

JANUARY

FEBRUARY

MARCH

APR

ILM

AY

JUNE

JULY

AUG

UST

SEP

TEM

BER

OCTO

BER

NOVEM

BER

DEC

EM

BER

Sh

ipm

en

ts

2009 to

Date

2008

2007

Largest Single Group of Customers Who Bought Diving Equipment (n= 101,000 equipment customers)

Income Equipment Purchaser

Compared to US Overall

Median Household Income: $124,295 $53,935

Mean Household Income: $155,901 $65,258

Per Capita Income $53,762 $24,752

Age of Householder Equipment Purchaser

US

35 – 54 57.6% 43.0%

55 - 64 17.6% 13.3%

Marital Status Equipment Purchaser

US

Males, Never Married 19.4% 30.0%

Males, Currently Married 75.4% 58.9%

Males, Divorced 3.7% 8.6%

Females, Never Married 16.1% 23.9%

Females, Currently Married 72.7% 54.9%

Females, Divorced 5.5% 10.8%

Household Composition Equipment Purchaser

US

Married Couple and Family 78.9% 51.7%

Married Couple-Children under 18 40.9% 23.5%

Married Couple – no child under 18

38.1% 28.1%

Average Household Size 2.91 2.66

Housing Equipment Purchaser

US

Owner Occupied 94.1% 66.5%

Owner Occupied, Single Detached 89.0% 53.6%

Median year structure built 1974 1966

Median Home Value $359,016 $161,077

Educational Attainment Equipment Purchaser

US

High School Graduate Only 11.7% 28.6%

Associate or Bachelor’s Degree 41.0% 21.9%

Masters, Professional or Doctorate 27.3% 8.9%

Occupation Equipment Purchaser

US

White Collar 86.2% 60.5%

Blue Collar 13.8% 39.5%

Understanding The Diving Consumer

For a variety of marketing programs the place to begin is in understanding the current customer

and their buying habits. DEMA has conducted studies at a national level in the US, but diving is

a diverse activity and each geographic region is different in terms of diving season, and

equipment and training needs.

DEMA Members have at their disposal the ability to analyze their own local customers using a

very sophisticated marketing information system which provides data regarding the Member‟s

actual customer “lifestyle” including:

Income

Education

Group Quarters

Dwelling Type

Geographic Mobility

Place of Work and Commuting

Mode of Travel

Employment Industrial Classification

Occupation

Age

Race, Hispanic Origin, and Ethnicity

Immigration

Home Language

Household Structure & Family Status

Page 31: 2011 DEMA Annual Report

31

How Much Money Does Scuba Diving And Snorkeling Bring to Florida?

“Geo-demographics” is a disciplined

analysis that combines geography and

demography and is used to develop customer

profiles. It is important to note that

geography plays a role in the demographics

of an area. For example, sometimes the

“place” attracts certain types of people, as

when some “ethnic neighborhoods” attract

recent immigrants with similar ancestries.

Sometimes “people” transform the “place.”

These studies are useful because they

provide verifiable data which can be

duplicated by anyone properly using the

same sophisticated marketing information

system DEMA uses. That makes the data

useful when DEMA or any member of the

diving community uses this system to seek

sponsorship funding outside of the Diving

Industry. Other data collected internally

from within the Industry, even though it may

be accurate, is not

generally verifiable

in the same

manner, in some

cases making it less

useful for reaching

outside the Industry

to develop

partnerships.

The data and

customer profile

are useful within the Industry as well. Geo-

demographic data allows the marketer to:

Develop clear and detailed

understandings of customers and

markets

Select effective targets based on

business need

Recreational scuba diving and snorkeling contribute about $11 billion to the US gross domestic product

Coral reefs in the Caribbean, including Florida generate about $2.1 billion in revenue each year.

Snorkeling in Florida accounts for about 4.24 million visitor-days per year

Scuba Diving in Florida accounts for about 4.56 million visitor-days per year

Scuba Diving and Snorkeling create about 26,000 full-time equivalent tourism-related jobs each year

Visitors participating in recreational scuba diving and snorkeling contribute about $904.4 million to the Florida economy each year

In 2009 residents learning to dive in Florida contributed about $20 million in additional sales of equipment, education and travel to the local economies.

While much of Florida has natural reefs, artificial reefs also contribute to the local economy. For example, estimates from research submitted by The University of West Florida indicate there are more than 4,200 chartered dive trips taken to the artificial reef/aircraft carrier Oriskany off of Pensacola Florida annually, carrying divers from all over the world. Annual revenue generated from visitors traveling from Escambia and Baldwin Florida counties alone is estimated at $2.2 million, and dive-related expenditures drive an economic impact of $3.6 million in local output and additional jobs while generating $1.4 million in local income.

Create media messages and images most likely to trigger a response

Optimize advertising costs through cost-effective media placement

Identify high-potential untapped market locations and sites

Analyze penetration and sales performance in any neighborhood

Compare locations for sales performance benchmarks and objectives

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To supplement the effort, DEMA also provides assistance and information to help retail stores

and others make the most of their advertising dollars using the Be A Diver materials. Several

“How To” Guides are available to any interested diving professional, including a Regional Cable

Television Advertising Buying Guide, Direct Mail Guide, and Be A Diver Promotional Guide

(which includes a catalog of available advertising materials).

The two primary advantages to using this type of program

are;

it provides an understanding of where the customers

are generally located, making it possible to focus

television, local print, internet and radio marketing

efforts;

it makes it possible to purchase the addresses of

these potential customers using zip codes and use

the household data to determine where to find the

greatest concentrations of potential customers.

It is worth noting that companies such as Master Card,

Sprint, Verizon, Rexall Drugs and many others use this

same computer platform for their marketing efforts.

“Top Activities” in which Active Divers Participate (Including Snorkeling and

Scuba)

Profile TGI*

Participate in Skiing Downhill 162.71

Participate in Snorkeling/Skin Diving 159.13

Participate in Tennis 158.48

Participate in Golf 155.69

Participate in Scuba Diving 152.21

Participate in Bicycling-Mountain 145.70

Participate in Bicycling-Road 141.34

Participate in Racquetball 139.13

Participate in Sailing 138.66

Participate in Jogging/Running 137.49

Participate in Weight Lifting 137.24

Participate in Yoga 137.03

Participate in Water Skiing 135.40

Participate in Backpacking/Hiking 134.67

*TGI = Target Group Index where 100.00 is average participation nationwide

In addition, this “lifestyle” marketing information system helps retailers locate customers, and

map the area around the retail store to determine the best potential for reaching additional

customers. The data from these individual store analyses can save DEMA members money by

avoiding non-productive target neighborhoods, and can even be used to plan the best areas for

cable TV and radio ad coverage, as well as providing data for the sale or purchase of the store.

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EXAMPLE NEIGHBORHOOD DATA

Pitney Bowes MapInfo® PSYTE US Advantage Profile Report 60 mile Ring Atlanta, GA (DMA-9)

September, 2011

PSYTE Code Cluster Name HH Count in

region

% of total HH in region

Base Count of Cluster in US

% of Total US HH

Regional Penetration of Total US Cluster HH

Index

Low Density Suburban 1

LDS1_03 Nouveau Manors 78,853 3.86% 958,236 0.83% 8.23% 463.81

LDS1_09 Suburban Wave 184,387 9.03% 2,337,607 2.03% 7.89% 444.59

LDS1_22 Kids, Dogs, Vans 174,958 8.57% 2,525,670 2.19% 6.93% 390.44

LDS1_06 Balancing Acts 68,650 3.36% 1,698,427 1.48% 4.04% 227.82

LDS1_02 Executive Domain 92,875 4.55% 2,471,005 2.15% 3.76% 211.85

LDS1_13 Sierra Snuggle 50,516 2.47% 2,775,999 2.41% 1.82% 102.57

LDS1_07 Equestrian Heights 16,660 0.82% 1,368,272 1.19% 1.22% 68.63

LDS1_01 Tuxedo Trails 7,445 0.36% 862,273 0.75% 0.86% 48.67

LDS1_20 Empty Nest East 5,331 0.26% 1,540,993 1.34% 0.35% 19.50

LDS1_16 Frontier Towns 0 0.00% 857,073 0.74% 0.00% 0.00

Total Low Density Suburban 1 679,675 33.28% 17,395,555 15.11% 3.91% 220.22

* Shaded areas are DEMA Target Clusters

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Page 34 of 35

Membership Meetings

During 2011 DEMA conducted a series of “2020 Vision Sessions,” conceived as a way for

DEMA Members to provide input as DEMA creates its future strategic plans. Member input is

always valuable, especially with the changing role of associations.

Brainstorming sessions were set up at Beneath the Sea in Secaucus, New Jersey and the Scuba

Show in Long Beach, California. DEMA Members and members of the Diving Industry

discussed some of their ideas regarding the Diving Industry and where it is headed in the next 3 –

5 – 10 years.

In brainstorming sessions such as these there are no wrong or right answers – just ideas. What is

more critical is to gather this information and make it available for both Industry members and

the DEMA Board of Directors so that it can be useful for all. Input was based on the needs of

the Industry, not on DEMA‟s role or actions (DEMA‟s role is and should be determined by those

Industry-wide needs). The session participants were split into groups and provided with ground

rules. A series of questions were asked and the participants recorded their own discussions and

reported their response back to all. The prompts used to facilitate the discussion were:

1. What five things do you see changing (or want to see change) in the Industry?

2. Of these items, what do you see are PRIORITIES?

3. Brainstorm – how does the Industry get there?

4. Discussion

In addition to the face-to-face sessions, DEMA also started a 2020 Vision Session Group on

LinkedIn.com for those that attended the face-to-face sessions.

Face-to-Face Meetings

Some of the ideas presented during these sessions are likely to be familiar. As happens, some

ideas conflicted with each other – e.g., one group indicated the need for embracing the Internet,

another group (in the same room at the same time!) indicated that they wanted to see less use of

the Internet.

Because of the time limits involved, it was not feasible to solicit comprehensive implementation

processes from each of the participants during these sessions. This task will fall to the DEMA

Board of Directors and DEMA Staff, once all sessions and final recommendations are

completed.

LinkedIn Group

Comments posted on LinkedIn were also very interesting and gave additional insights into

DEMA‟s role in the future. For example:

Retailers and other small business owners are very independent. The general feeling is

that the best ideas come from other retailers.

Retailers have been “burned” by “research” from within the Diving Industry in the past,

and are very careful about its use.

Some of the ideas that were continually discussed included an ongoing concern about the

aging diver population and the aging diving professional population.

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Page 35 of 35

DEMA must look carefully at these comments and develop some recommendations that are

strategic in nature. Ideas which can be successfully implemented by DEMA must work

simultaneously for manufacturers, training organizations, retailers, destinations and liveaboards

and must be supported by the diving media. The DEMA Board should utilize these comments

and ideas by participating in a strategic planning session to discuss the needs of the Industry and

how to best address them.

An additional session is being held at DEMA Show 2011 in Orlando, Florida. Additional

information will be available following this session.

See you in Las Vegas for DEMA Show 2012!