Topgolf also provides another option trending in the e-commerce world- a subscription option to provide another revenue stream and loyal customers to Topgolf. In Alexandria, VA, two types of memberships are provided for monthly fees that included value-added perks and benefits as shown below.
These two business models create a hybrid style for Topgolf between a direct model and a subscription model. Out of the nine models, these two are probably the only ones that make sense for Topgolf. They are in the family entertainment industry, and provide the games, food, and beverage directly to their customers. The subscription model comes into play with the one-time initiation fee to set up an account to become a lifetime member. As seen above, there are also monthly memberships at higher fees to support customers that visit frequently, and come with value added benefits.
In a way, Topgolf does support B2C e-commerce on their site. Although almost all transactions occur at physical Topgolf locations, their site does allow for customers to sign up and pay for memberships. Also, gift cards may be purchased on their site.
The tactics that support their business models mostly exist in the digital world. Social media and word of mouth are currently what are helping Topgolf's operations (Lukovitz, 2016). I believe their product life cycle is still in the introduction stage. Most of the tactics are targeting new customers and raising awareness of their brand. The video shown below is a great example of a simple introduction video with a funny twist. The content is contains plenty of sexual innuendos and will appeal to many millennials that watched educational videos about "the first time" possibly in the late 80's and early 90's. With that said, the video targets millennials to come try Topgolf for the first time. It highlights the food, entertainment, nightlife, and that skill is not a factor and that anyone can enjoy Topgolf.
The cost of their marketing tactics in 2015 to support their business model was estimated at about $18,000 in 2015 in US measured media (Rodriguez, 2015). This is minuscule considering Topgolf's annual revenue in 2015 was estimated at $300 million (Indap, 2016). Based on these numbers, I would say their business model and supporting marketing tactics are being utilized correctly. The product is unique and demanded from many different demographics and targets. They are expanding into dozens of the right places in the United States. The prices match the markets and premium time slots. Their promotional efforts bring ridiculous returns. Below is a snapshot of Topgolf's paid search tactics. The competition level is very low, and their paid search tactics are almost unnecessary because of this.
For the sake of this assignment, it would be fun to explore another business model they could add to their mix. This is something they have started and promoted this year (http://tour.topgolf.com/), but the Topgolf Tour could expand to reach new markets. The traditional golf market has been slumping since 2005 in the United States, and both markets may experience a boost by partnering with the PGA Tour or similar as an infomediary service. Since Topgolf is the owner of a large database of Topgolf visitors, they may be the holders of newly interested leads for the PGA tour to leverage. The PGA got a boost from the return to the Olympic Games in Rio 2016, and may want to continue to reach new markets. Yes, this is a farfetched idea, but I see opportunity in being able to bring in a new audience with the channels and reach that Topgolf currently has.
References:
Golfweek (2012, July 13). Topgolf's successful mix: swings, suds, and socializing. Retrieved from http://golfweek.com/2012/07/13/topgolfs-successful-mix-swings-suds-and-socializin/
Indap, S. (2016, March 9). Topgolf targets expansion beyond the green. Financial Times. Retrieved from https://www.ft.com/content/a3573b9e-dca8-11e5-8541-00fb33bdf038
Lukovitz, K. (2015, August 3). Topgolf ramps up national marketing with expansion push. Marketing Daily. Retrieved from http://www.mediapost.com/publications/article/255224/topgolf-ramps-up-national-marketing-with-expansion.html
Rodriguez, A. (2015, April 8). Fast-growing Topgolf expects to more than quadruple visits in just three years. Advertising Age. Retrieved from http://adage.com/article/cmo-strategy/topgolf-expects-quadruple-visits-years/297907/
http://topgolf.com/us/alexandria/gift-cards/
http://topgolf.com/us/alexandria/pricing/
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