2011 dema annual report

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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.

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  • 1

    Diving Equipment and Marketing Association

    DEMA

    Annual Activity Report 2011

  • Page 2 of 35

    DEMA 2011 Annual Activity Report

    Whats 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

    Manufacturers Committee and Fund 15

    Legislative Committee 16

    Promotions Committee 20

    MARKET RESEARCH 28

    MEETINGS AND OTHER ACTIVITIES 34

  • Page 3 of 35

    What is DEMA?

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

    raised through the industrys 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.

  • Page 4 of 35

    2011 DEMA Board of Directors

    DEMAs 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 Industrys 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.

  • Page 5 of 35

    DEMAs 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]

  • Page 6 of 35

    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.

  • Page 7 of 35

    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 DEMAs 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 DEMAs 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

  • Page 8 of 35

    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!

  • Page 9 of 35

    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 havent 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 customers 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 DEMAs 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.

  • Page 10 of 35

    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.

  • Page 11 of 35

    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.

  • Page 12 of 35

    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.

  • Page 13 of 35

    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

  • Page 14 of 35

    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.

    DEMAs 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 associations 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.

  • Page 15 of 35

    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 Manufacturers Committee Chair: Stephen Ashmore

    The Manufacturers Committee represents all member manufacturers. Representatives on the Manufacturers Committee come from the DEMA Board and can also include non-Board members.

    The Manufacturers Committee monitors and allocates monies from the Manufacturers 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 Manufacturers Committee has been supportive of many different initiatives over the years.

    The Manufacturers 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

  • Page 16 of 35

    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 Divers Down Flag

    Support for continuing moratorium on Goliath Grouper harvesting

    Protecting coral reefs from sewage outfalls

  • Page 17 of 35

    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.

  • Page 18 of 35

    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

  • Page 19 of 35

    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 Divers 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 FWCs 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 DEMAs 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 regions 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, Floridas Senate Committee on Community Affairs approved a strike-all amendment that maintains the

    2025 deadline.

    DEMAs position was and is that dumping wastewater into Floridas 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 Floridas water any water - with sewage.

  • Page 20 of 35

    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?

    Its all about diving adventure and fun! Its 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 visitors 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 divers 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)

  • Page 21 of 35

    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 its 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. DEMAs 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 dont 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

  • Page 22 of 35

    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

  • Page 23 of 35

    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 communitys 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]

  • Page 24 of 35

    DIVER ACQUISITION DEMAs 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 divings 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 customers 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

  • Page 25 of 35

    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

    Whats 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 Members area becomes more effective when using a brand already synonymous with the fun of diving.

  • Page 26 of 35

    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.

  • Page 27 of 35

    The Be A Diver Pool Tour

    One of DEMAs 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, 4deep 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

    DEMAs 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.

  • Page 28 of 35

    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

  • Page 29 of 35

    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.

  • Page 30 of 35

    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 manufacturers 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 Bachelors 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 Members 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

  • 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

  • Page 32 of 35

    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.

  • Page 33 of 35

    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

  • 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 DEMAs role or actions (DEMAs 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

    DEMAs 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.

  • 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!