2010 DEMA Annual Report

Diving Equipment and Marketing Association

Annual Activity Report 2010

DEMA 2010 Annual Activity Report

WHAT’S INSIDE? WHAT IS DEMA?

2010 BOARD OF DIRECTORS AND 2010 MEMBERSHIP CATEGORIES

2010 BOARD OF DIRECTORS CONTACT LIST

DEMA STANDING COMMITTEES 

Committees and Chairs 

Show Committee

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Finance Committee

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Manufacturer’s Committee

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Legislative Committee

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Promotions Committee

RESEARCH PROGRAMS

MEETINGS AND OTHER ACTIVITIES

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WHAT IS DEMA? Like most trade associations within their own industries, The Diving Equipment and Marketing Association 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 non-profit (501 [c] 6) California Corporation.

Description: Worldwide Trade Association for the Recreational Diving and Snorkeling Industries; Includes more than 1,300 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 conserve and protect natural aquatic resources.

2010 DEMA BOARD OF DIRECTORS Ten (10) elected volunteers that represent the five diving stakeholder groups, two representatives from each regular stakeholder group; A1 - Manufacturers A2 - Training Organizations A3 - Media, Associations and others A4 - Retail Dive Stores A5 - Dive Travel Destinations and Vessels DEMA’s Board of Directors is made up of elected volunteers who are officers of the corporation and who devote an enormous amount of their own time to helping promote and grow 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 different 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.

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As defined in the DEMA Bylaws, the Diving Industry’s stakeholder groups include:     

A1 – Manufacturers/Distributors of Dive Equipment and Sales Reps A2 – Diver Certification and Training Agencies A3 – Publishing, Media, Dive Industry Consulting, Associations & Non-Retail Service Providers A4 – Dive Retailers A5 – Dive Travel and Resorts

DEMA has been pleased to have the following individuals representing the Diving Industry during 2010 on the Board of Directors: A1 – Charlie Bush, Vice President A1 – Stephen Ashmore A2 – Jeff Nadler A2 – Dan Orr, Secretary A3 – Ty Sawyer A3 – Neal Watson A4 – Jim Byrem, President A4 – Dave Riscinti, Vice President A5 – Keith Sahm, Vice President A5 – Tim Webb, Treasurer Board terms are three years. DEMA will next conduct Board elections beginning in December 2010.

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DEMA’S 2010 BOARD OF DIRECTORS – CONTACT LIST

Jim Byrem, President Ocean Concepts Scuba jim@oceanconcepts.com

Charlie Bush, Vice President Cramer Decker/Sherwood Scuba charliebush@cramerdecker.com

Dave Riscinti, Vice President Blue Water Divers driscinti@dema.org

Keith Sahm, Vice President Sunset House ksahm@dema.org

Dan Orr, Secretary Divers Alert Network dorr@dan.duke.edu

Tim Webb, Treasurer Caradonna Dive Adventures tim@caradonna.com

Stephen Ashmore Tabata USA (TUSA) stephena@tusa.com

Jeff Nadler Professional Association of Diving Instructors jeff.nadler@padi.com

Neal Watson Neal Watson Productions neal@nealwatson.com

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DEMA STANDING COMMITTEES DEMA Committees are an opportunity for volunteers to participate in the activities of the Association and to have an impact on the effectiveness of DEMA. Committees are generally made up of Board members and may include other volunteers from the Diving Industry. They are advisory to the Board of Directors and DEMA Staff, and bring a wealth of experience to the Association.

In 2010 there are 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.

Committees and Chairs DEMA Show Committee Neal Watson, Chair

Media Committee Ty Sawyer, Chair Dave Riscinti Tim Webb

Finance Committee Tim Webb, Chair Stephen Ashmore Dave Riscinti

Nominations Committee Keith Sahm, Chair Stephen Ashmore Jim Byrem Jeff Nadler Ty Sawyer

International Growth Committee Neal Watson, Chair

Professional Development Committee Dave Riscinti, Chair Jeff Nadler

Legislative Committee Jim Byrem, Chair Al Hornsby Jeff Nadler Dan Orr

Manufacturer’s Committee Charlie Bush, Chair Stephen Ashmore Steve Lamphear Harry Ward

Promotion Committee Keith Sahm, Chair David Riscinti DEMA's Board of Director Committees are generally determined at the first meeting of the year. DEMA member companies with an interest in serving on future committees should contact Nicole Russell at the DEMA Office (nrussell@dema.org), or 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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Committee Activities Show Committee – Chair: Neal Watson 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, 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 2012.

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 that are in a unique position to help the entire Diving Industry acquire more customers. Companies specializing in photography and video are exhibiting in this area, and almost all are providing FREE seminars to Show attendees on the topics of 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 into 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 beginning in 2012! Look for more information on this move in the coming months!

DEMA Show Among Top 200 Shows!

In 2009 DEMA Show was again recognized as being one of the top 200 tradeshows by Trade Show Week Magazine. This ranking is due to the support of exhibitors and attendees, and because of the support of organizations that participate in the DEMA Hotel Block during the trade show. The Show Committee thanks all who participate in DEMA Show!

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Site Selection and Timing of DEMA Show 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 will be held in the following rotation: 2010: Las Vegas, Nevada – November 17-20 2011: Orlando, Florida – November 2-5 2012: Las Vegas, Nevada – November 14-17* *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, have 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 businesses. 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, and the former late-January timing of DEMA Show 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.

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 newly-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 education program starting in 2007 for DEMA Show 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 credentialing requirements for admission to DEMA Show.

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The “Immersion Program” consists of a one-day pass to DEMA Show, offered at a lower registration price and good only for Saturday, November 20, 2010.

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 2010 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 continue encouraging newly-certified 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.

Magnet Exhibitor Program – Pilot Program This program was new for DEMA Show 2010 and places interested DEMA-member exhibitors in strategic, pre-determined locations around the DEMA Show floor, using incentives to encourage exhibitors to participate. The 2010 pilot program was designed to take advantage of the fact that trade show sales floors function in a manner similar to “shopping malls.” Malls place magnet stores in specified areas, helping to direct the flow of shopper traffic, for the benefit of all. In this case DEMA’s Show floor plan has been designed to do the same for exhibitors.

The Magnet Exhibitor Program: 1. Helps ensure 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 2009 was eligible to participate in this pilot program by selecting space for the 2010 show during space selection or at any time 8

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 order.

Exhibitors that selected at least 800 net square feet in exhibit space within these zones are eligible for the Magnet promotional pricing. In total for 2010 there were more than 600 10x10 exhibit spaces within these three Magnet Zones.

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. By providing more opportunities for exhibitors to select their space in close proximity to a major exhibitor, visibility is increased 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.

For Magnet Exhibitors 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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2010 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 independent audits of all financial activities of the Association, as well as periodic evaluations of financial data, and a two-year audit of the Association was completed in 2010. The Association’s financials are posted on www.dema.org for member review.

Funding Industry Initiatives One of the most important objectives of the Association is the opportunity to fund promotional initiatives determined by the DEMA Board of Directors. Since January 2003, DEMA has carefully placed money into successful promotions that were then evaluated for their return on the investment.

For example, in 2009 and 2010 to date, DEMA’s Be A Diver Pool Tour cost about $200,000 per year but introduced scuba diving to thousands of people. The value of the media exposure alone, generated by the Be A Diver Pool, created a profound ROI for the members of the Association as shown below: Media Category Media Impressions* Dollar Value* Broadcast Exposure 12,362,425 $1,966,732 Print 38,581,608 n/a On line 33,861,821 n/a TOTAL 84,805,854 $1,966,732 + print and online *Media impressions and dollar value are provided to DEMA through a third party audit.

From a financial analysis standpoint, the dollar return on investment of Association dollars for the Be A Diver Pool Tour is almost 5 times the money spent (492% return), creating more than 84 million opportunities to see diving in a positive light.

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Manufacturer’s Committee – Chair: Charlie Bush, Board Vice President 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.

Among its jobs, 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.

The Manufacturer’s Fund has supported many different programs over the years. In 2010 the fund allocated more than $122,000 in promotions for the Industry. Programs supported in 2010 include:     

Be A Diver Pool Tour Manufacturing Sales Index (MSI) Be a Diver Marketing Campaign PSYTE Marketing Information System Funding/Retail Retention Council on Retail Excellence (CORE)

Legislative Committee – Chair: Jim Byrem, Board President Legislative efforts can be complex and require much time for monitoring, developing position statements and sometimes testifying before lawmakers and others. DEMA has devoted resources to these efforts because they benefit all members through the promotion of recreational diving, protecting diver access to diving locations, and by protecting the underwater environment. The volunteers involved with this committee devote many hours to resolving issues and helping the DEMA membership and the Diving Industry through their efforts.

2010 saw a major environmental tragedy in the Gulf of Mexico as well as extended government involvement in ocean-related issues, all of which have an impact on the recreational diving industry. In both situations DEMA participated to help mitigate the negative impact on members. Following is a summary of DEMA’s 2010 activities:  

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Testimony before the US Senate regarding Ocean Acidification Providing information to DEMA Members with regard to the BP/Deep Horizon Oil Spill and development of a web forum to assist in getting information to divers and the media on areas that were not impacted by the oil spill, keeping dive sites and businesses operating.

Proactive steps regarding the lobster mini-season in Florida

Testimony Before the US Senate: Ocean Acidification On April 22, 2010 DEMA testified in a hearing on the environmental and economic impacts of ocean acidification before the US Senate’s Committee on Commerce, Science and Transportation, Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard.

The testimony outlined the economic value of the Diving Industry within the United States and its dependency on the health of the oceans and marine ecosystems. Ingram was invited to provide input on the potential economic impacts of “Ocean Acidification” representing the 12

interests of the multi-million dollar scuba diving and snorkeling industry and approximately 3 million active scuba divers in the United States.

“DEMA strongly supports scientific and economic investigation to determine the potential impacts of ocean acidification and looks forward to working with Congress to ensure that the marine environment remains clean and healthy, a viable place for continued diving consumer use, and remains open to careful stewardship by diving businesses around the world,” stated Ingram. “The health of the ocean directly and immediately impacts our business. Without an appropriate place to dive, there simply is no Diving Industry.”

Ingram emphasized 3 key areas during his testimony regarding ocean acidification and the potentially negative impacts for the Diving Industry: 1. The loss of the overall value of recreational diving and snorkeling in terms of jobs, revenue and contribution to the Gross Domestic Product of the US and elsewhere; 2. The dependence of the Diving Industry on a healthy marine environment, now and for the future; 3. How legislation to lessen the potentially negative effects of ocean acidification could impact diving-related businesses.

In addition to Ingram, testimonies were also given by the panel which included Sigourney Weaver, actress and spokesperson for the film Acid Test from the Natural Resources Defense Council; Dr. James Barry, Senior Scientist at Monterey Bay Aquarium Research Institute and member of the National Academy’s Ocean Acidification Panel; Donny Waters, fisherman and former President of the Gulf of Mexico Reef Fish Shareholders Alliance; and Dr. John Everett, President of Ocean Associates, Inc. Ingram closed his testimony by expressing his gratitude for including DEMA and the Diving Industry in the process, and expressed DEMA’s ability and desire to provide additional input as policies regarding ocean acidification are considered and crafted.

Tom Ingram’s written statement is available online by visiting: http://commerce.senate.gov/public/?a=Files.Serve&File_id=947d13e0-ae49-4e9e-96b8f21038a5010d BP/Deep Horizon Oil Spill Starting within a few days of the April 20 explosion of the BP/Deep Horizon Oil spill, DEMA began helping Members by providing information on the progress of the oil spill, the business claims process and providing the diving population and DEMA members with information on the “next steps” needed along the way. In addition to securing television time and print space to discuss the potential for catastrophe, DEMA also emphasized the fact that many areas were NOT affected by oil, and were open for diving business.

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To aid in providing vacationers and water sports enthusiasts with accurate, current first-hand information of water conditions and proximity locality of oil emanating from the oil spill, and in order to counter misconceptions that all the water along the entire Gulf Coast was contaminated and closed to water-sports activities including scuba diving and snorkeling, DEMA launched a new website- www.gulfstatediving.com. During the period before the oil spill was contained, the site could be updated with “real-time� posts by dive stores, dive boat operations and other Dive Industry-related businesses in the Gulf State region to demonstrate that many divers were still active and many dive sites remained open and free from oil.

The website allowed dive-related businesses to post links to videos, store websites, the latest dive site information and more. The website also provided scuba divers and water sports enthusiasts with an outlet to share accurate and current news of the water conditions they experienced with a Gulf State Diving Facebook page. The inaugural link on the site was a video taken on June 13 during a calm and clear underwater dive to the aircraft carrier Oriskany, the world’s largest artificial reef, located 22NM off the Pensacola, Florida coastline.

Scuba diving and snorkeling in Florida accounts for 8.8 Million visitor-days annually and more than 4,200 chartered dive trips are taken to the Oriskany alone. Dive-related expenditures drive an economic impact of $3.6 Million in local output, hundreds of jobs and $1.4 Million in local income.

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Deep Water Horizon Oil Spill DEMA Report to the Board of Directors July, 2010 This report is a summary of the activities in which DEMA has engaged following the April 20 Deepwater Horizon oil rig explosion and resultant oil spill in the Gulf of Mexico. The full extent of the environmental damage caused by the oil spill is not yet known, and the oil continues to discharge from the damaged pipe in spite of the efforts of BP.

Skimming operations at the site of the Deepwater Horizon incident 17 May 2010 Š BP p.l.c.

To monitor the movement of the oil and closings of fisheries, NOAA has set up an environmental response management application which can be found here (you may have to copy and paste the URL into your browser): http://gomex.erma.noaa.gov/erma.html#x=87.41821&y=27.60567&z=7&layers=3796+497+4591 This environmental disaster will most certainly have a long-term direct impact on diving businesses located in the Gulf States and is likely to have a significant indirect on companies that supply the Diving Industry in that area. It is important that DEMA stay on point for this issue in order to assist our members and the Industry in any way we can.

Following is a list of the direct communication sent to members of the Industry to date along with links to the actual communication: 5/5: To 111 retail contacts in affected area Memo including BP Response, NOAA info, lawyer reference http://archive.constantcontact.com/fs032/1102612872918/archive/1103365626968.html 6/3: To DEMAIL Memo including assistance planner link http://archive.constantcontact.com/fs032/1102612872918/archive/1103454227205.html 6/9: To DEMAIL Memo including steps to take, BP claim manual and request for comments about media misperceptions to oilspill@dema.org http://archive.constantcontact.com/fs032/1102612872918/archive/1103465546755.html

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6/9: Dive Newswire (DNW) DEMA Provides Detailed Help for Dive Professionals Affected by DeepWater Oil Accident DEMA Executive Director Tom Ingram distributed this news to the dive industry regarding the oil spill in the Gulf of Mexico.

6/14: To 973 contacts in 5 affected states Memo announcing launch of gulfstatediving.com http://archive.constantcontact.com/fs032/1102612872918/archive/1103481231418.html 6/16: DNW Blast DEMA Launches Website to Help Promote Positive Information about Gulf Coast Diving GulfStateDiving.com Created to Help Compile Positive, First-Hand Information From Dive Businesses in the Gulf State Region 6/26: 973 contacts in 5 affected states Class action lawsuit filed by dive center – what to watch for http://archive.constantcontact.com/fs032/1102612872918/archive/1103516069660.html In addition to the direct communication to date, DEMA established the website www.GulfStateDiving.com to allow consumers and dive operators to connect, giving the dive operators the opportunity to post their current conditions, operation hours, websites, links to videos etc. DEMA then worked directly with Adams PR to publicize the website, landing interviews on the Peter Greenberg radio program, WFTV in Orlando Florida, and numerous travel and oil spill-related websites through connection with PR Newswire. Diver’s Alert Network also called out GulfStateDiving.com in a release on Dive Newswire on 6/15/10. see: http://www.divenewswire.com/NewsITems.aspx?newsID=10979

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A list of the Association’s publicity outlets appears below.

2010 DEMA Special Project Deep Water-Horizon Oil Spill (As of 7-1-2010) Broadcast Date Location 16-Jun-10 17-Jun-10 19-Jun-10

West Palm Beach, FL Orlando, FL The Hangout in Gulf Shores, AL

Television Station WPTV WFTV Peter Greenberg Worldwide Radio Show

Description

Impressions

Interview

53,940

Broadcast time 1:21

Interview Tom Ingram’s 5-minute live interview focused on the topic of how divers can help and the launch of the gulf state diving website.

160,883 TBD

:25 5:00

214,823

6:46

TOTAL Print Publications Date Print Publication 6/25/2010 Tampa Bay Business Journal 6/27/2010

The Washington Post

Description Roundup: Oil-eating microbes get noticed DEMA recently launched a web site 'Gulf State Diving'

TOTAL Online Placements Date Website/Publication Totals for Online Publications

Impressions 7,742 797,679 805,421

DESCRIPTION

CIRCULATION 135,811,394

Lobster Mini-Season in Florida In advance of the 2010 lobster mini-season, and for the second year running, DEMA ran a Public Service Announcement (PSA) on television stations in the Southeast, encouraging scuba divers to check their equipment and refresh their diving skills at a local retailer, and be mindful of safety procedures.

The 30-second PSA was a reminder to divers that prior to lobster season, it’s not too late to tune up their equipment and refresh their skills before lobster mini-season. The video can be seen on YouTube at: http://www.youtube.com/watch?v=AAYgBadqyJA.

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Promotions Committee – Chair: Keith Sahm, Board Vice President Promoting Recreational Diving: The Be A Diver Campaign In what remains one of the toughest economies in recreational diving’s short history, DEMA continues to keep the Be A Diver campaign and recreational diving visible to the public through outreach programs that assist the diving retailer, provide assistance with locating customers for DEMA member stores, and assisting with developing the store’s optimum advertising and promotional mix.

DEMA launched the Be A Diver campaign in April 2008. It is perhaps the largest customer acquisition campaign in DEMA’s history, and is designed to drive potential consumers to the BeADiver.com website, where ALL retailers (DEMA members or not) in the US are listed, and the customer can search for a store by zip code.

In 2010 DEMA updated the BeADiver.com website to make it more user-friendly and to help member stores be more easily seen when the website is opened.

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DEMA members are given 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.

The Be A Diver Co-op Advertising Program The Be A Diver Co-op program continued in 2010, supplying funds to help DEMA member retailers run television or radio ads in their local market. In addition, in conjunction with the release of the Disney film “Oceans,” DEMA funded co-op in-theater ads to generate excitement with a highly targeted audience also interested in environmental issues and life in the oceans.

There is real value in having DEMA members participate directly in the Be A Diver campaign through cooperative advertising opportunities.

In 2010 the co-op program made matching funds available to all DEMA member segments, when any segment uses the funds to purchase television or radio air time for advertising as part of a retailer support campaign. For example, manufacturers could contribute money toward the media purchase for their retail dealers; training organizations may contribute money for their retailer members; destinations may contribute money for retailers that sell their destination; and money may be combined by local retailer associations to purchase air time in a media buy that covers an appropriate marketing area for all participating retail stores. For purposes of the co-op program, DEMA defines “retail dive store” as DEMA member retailers which meet all of the following criteria: 1.

2.

3.

4.

5.

6.

7.

8.

Teach scuba diving Sell scuba diving equipment Provide diving equipment service Have a retail store front Have regular retail business hours Be zoned for business where such business zoning is required Provide air fills Provide DEMA with a copy of the government-issued business license which permits the business to operate.

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-paidfor 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 19



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 be 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.

Participants in the 2010 co-op program used at least three different promotional elements, which could include various components of the Be A Diver campaign materials as part of their promotional mix, including direct mail, print ads for newspaper, local/regional magazines, website banners, and even movie theater promotions. All of the Be A Diver components are available for DEMA members to use FREE OF CHARGE to help capture the attention of the target customer.

Results for 2010 The program was used by more than 20 DEMA retail dive centers around the US, and in total DEMA has provided funding that reached millions of potential consumers, providing about $200,000 toward advertising for recreational diving. In a less-than-robust economy, this funding attracted potential customers and kept diving in the public domain, when many activities had “hunkered down” for the duration of the recession.

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Co-Op Advertising – A Word From Participating DEMA Member Retailers I want to thank the DEMA board, and the few manufactures that have participated in the “Be a Diver Campaign”. Without your help we could not do the advertising like we have. Because of the dollar volume, we are receiving spots as low as $1 per spot and we will be on every Monday Night Football this fall in this package. They are also auto filling up to a third additional spots in an auto rotation at any hour for this package at no additional charge. The results from this advertising are very good. Daily I hear from customers that they have seen our ads as they come into the store. Our classes are up and our gross revenues are also up and I can only believe that it is due in a large part to this ad (sic) campaign. It really helps. Thank you DEMA and those few manufactures that have seen the light to help.

Sid Stovall President Ascubaventures

Dave, I want to thank you and the staff at DEMA for the advertising support you have/are providing this year. I strongly believe that local advertising is the primary key to expansion of the Diving Industry and, with the help of DEMA's co-op program, local TV advertising is within reach of all established Diving businesses. I have been preaching to store owners, the benefits and affordability of TV for many years, and it's usually fallen on deaf ears. The pie will only grow when the message is transmitted to the populace, and this can be done if we get enough people on board, and putting out the word.

We have been at this for over 31 years now. The co-op funds available this year, have allowed us to expand our TV advertising in to areas outside of cable. While it is too early to evaluate the total impact, it is obvious that having the funds to expand into the broadcast world is bringing in new clientele.

Dave, I will try to provide you with regular updates on results from the expanded coverage. We have adequate history to do this. If you have questions don't hesitate to contact me. The list gets long on occasion but you will get a response.

Thanks again for the support.

Rick Wadle, Pres Dive World Scuba Center San Antonio, Texas 78201

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DEMA, Dave Reidenbach Board Members of DEMA 4/02/10 I would first like to Thank you for the Be a Diver retail support Co-Op Program. Rum Runner Dive Shop, Olympus Dive Center, and PADI have pooled their money together to promote the Be a Diver Campaign in Eastern North Carolina. We could not have put together an Ad campaign of this size or depth without the help from DEMA and the CoOp program. Through this campaign we will be able to reach approximately 350,000 people via radio and streaming radio with the Be a Diver Campaign. This type of exposure to the Diving Industry is peril in order for us to survive. The efforts that DEMA has put forth to help out dive shops and the Industry all over is just the shot in the arm that we need.

The following is what we are doing with the Co-Op funds and the Be a Diver program. Through Beasley Broadcast Group we are using radio to promote the Be a Diver campaign on six radio programs here in Eastern NC. Each month the 23 second Be a Diver spot will run 366 times targeting the market segment that are most likely to become divers or continue to dive. The last seven seconds of the Ad states that the listener can become a certified diver in just two weeks with Rum Runner Dive Shop located at... We believe that this will be an effective Ad Campaign and look forward to following up with you to tell you about our success with the Be a Diver campaign. Other ways we have and are using the Be a Diver program most recently are as followed. Thursday April 1st we used Buddy the inflatable SCUBA guy at our local Expo and streamed the Be a Diver TV commercial on flat screen TV’s throughout the day. The exposure we received was so great Rum Runner Dive Shop’s booth won third place out of 103 for best marketing. Our email marketing campaign to Be a Diver will be kicking off soon with use of the post card to our customers. Those that print off the Be a Diver post card and bring it into the shop receives a chance to win a free dive trip here off the coast.

So as you can see we are in full tilt this Spring attracting new divers and retaining certified divers through our campaign. We look forward to using the 6,600.00 dollars in Co-Op funds to promote the Be a Diver program.

Thank you Dave, for taking so many of my emails, phone calls and helping us with the Be a Diver campaign. We really could not have done this without you or DEMA. It is our pleasure to help you and DEMA out in any way possible to make this a successful campaign.

Sincerely, James Gautreau Rum Runner Dive Shop 252-439-4390 www.rumrunnerdiveshop.com

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During the time the Be A Diver aired on radio our sales were up 20% over the previous year.

We also had a lot of new customers stop in.

Jason Pecknold Scuba 7 (850) 584-3487 Office (850) 584-3490 Fax www.jhscuba7.com

Dave, Since beginning our advertising in the movie theaters April 19, we've received some word from customers who have seen our pre-feature commercial and a couple families who have called in to take advantage of the free scuba discover. I spoke to the person who sends the text messages and he said 150 people have responded to the text promotion in response to our ads. Even though only a couple have called, these others will hopefully take advantage and call soon since we put a deadline of May 31st. The Be A Diver posters look great and the theaters positioned them right at the entrance to the theater Oceans played in.

I saw Oceans myself opening day and it was a perfect commercial for diving in itself. With these other new movies coming out, we should hope to see more people in the theaters and therefore, more response to our ads.

Thanks again for working on this with us, just being able to get our name out there for twice as long as we would've will increase awareness for our store.

Regards, Deann - Dive Addicts Draper UT

Marketing Data and Analysis To supplement the effort, DEMA also provided 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).

In addition, DEMA has made available to members the use of a geo-demographic “Lifestyle” marketing information system which helps retailers locate potential and current customers, and map the area around the retail store to determine the best potential for reaching additional customers. The information from the system 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 evaluating potential store locations.

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There are two primary advantages to using this information system; it provides an understanding of where the customers are generally located, making it possible to focus marketing efforts; and it also makes it possible to purchase the addresses of these potential customers using zip code and household data to determine where to find the greatest concentrations of potential customers.

DEMA has also negotiated a very inexpensive rate through the Association for acquiring potential customer mailing lists with a high (greater than 90%) accuracy rate, targeted, and more affordable than most mailing list vendors. Mailing lists are typically priced per thousand names (CPM), and in a typical mailing list house stores will pay anywhere from $0.12 to $0.25 or more per name, per use ($120 - $250 per thousand), depending on the number of filters chosen.

DEMA has arranged for multiple uses of the target customer mailing list for 12 months at drastically lower prices. Contact Dave Reidenbach at Bigwavedave@dema.org for additional information.

It is worth noting that companies such as Master Card, Sprint, Verizon, Rexall Drugs and many others use this same marketing information system for their marketing efforts. If purchased directly from the vendor (Pitney Bowes) the individual store analysis could cost as much as $7,000 for each store location. The basic retail analysis of up to 2,000 customer names is a DEMA member benefit and is free.

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Pitney Bowes MapInfo® PSYTE US Advantage Profile Report 60 mile Ring

Atlanta, GA (DMA-9) September, 2010 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

679,675

33.28%

17,395,555

15.11%

3.91%

220.22

Total Low Density Suburban 1 * Shaded areas are DEMA Target Clusters

The Be A Diver Pool Tour DEMA’s mission 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. DEMA has funded the Be A Diver Pool, a 16,000 gallon, 4’deep portable swimming pool supervised by Dave Reidenbach. 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. All DEMA members are welcome to participate with the Be A Diver Pool.

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The Be A Diver Pool has also 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, such as the Pool. This is the only objective way to determine the amount of exposure and the value of the promotional projects to the Association. To date the Pool has generated the following media exposure for 2009 and 2010: Media Category Broadcast Exposure Print On line TOTAL

Media Impressions* 12,362,425 38,581,608 33,861,821 84,805,854

Dollar Value* $1,966,732 n/a n/a $1,966,732 + 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 sales for those retailers that use it as part of their promotional mix.

RESEARCH DEMA continues to conduct various ongoing research projects, and in 2010 took a more active and direct role in research than ever before. Research can typically be broken down into primary (conducted directly by DEMA) and secondary (research conducted by another source). For some projects DEMA has relied on member-owned research which has proven to be dependable for projects within the diving community itself. For projects that require additional corroboration of results, DEMA has sponsored or conducted primary research that provides data which can be confirmed by a third party.

Certification Census Thanks to the three participating certification organizations, data has been made readily available regarding the number of divers certified each year. Starting in 2003, DEMA began gathering the 26

data on Open Water level diver certifications (as defined by the Recreational Scuba Training Council –RSTC) as a measure of growth for the Industry at large. This is an important statistic for the Industry, especially at the level of entry certifications as it is indicative of the health of the sport.

The cooperative effort between all of the reporting certification agencies includes reporting their certification information to an independent, third party auditing firm. Although not all training organizations participate with this program, all are invited to participate. This index provides trends for growth.

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 agencies, and receives a letter of verification from the reporting 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 ever receives access to the individual agency totals, only the aggregate total.

Updated certification census data is available at www.dema.org and state by state data is available to DEMA members.

Certification Census for 2009

Certification Census for Q1 and Q2 2010

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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. Recently DEMA’s Manufacturing Committee revised the reporting requirements for the MSI in order to gather additional detail on sales at the wholesale level.

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. Additional information from this important program will be available in 2011.

Domestic 2007-2008-2009 To Date 16,000 14,000

Shipments

12,000

2009 to Date

10,000 2008

8,000 6,000

2007 4,000 2,000

EM BE R TO BE N R O VE M BE D R EC EM BE R

SE PT

O C

US T

LY JU

AU G

NE JU

M AY

IL AP R

CH

Y

M AR

UA R

NU JA

FE BR

AR Y

0

Customer Research In 2006 DEMA first introduced the idea of Lifestyle or “Psychographic” data to the Diving Industry as a means of understanding more about the potential diving customer. Data was gathered from the customer data bases belonging to training organizations, manufacturers, retailers, destinations and the media to understand more about the most active or “alpha” diving customer – the one that spent the most on the sport and was most regularly involved in recreational diving. More than 308,000 customers were studied in 2006, using a database of actual diving customers that came from manufacturers, retailers, training organizations and destinations.

The data gathered in 2006 revealed the following profile of the most active diver:        

Age – Between 38 & 53 years old – Mean: 45 Median: 46 76% are male Household income – 56% make between $75,000 and $100,000 Occupation – 80% are White-Collar/ Professional/ Technical/ Management Home ownership – 93% own their own home Home mortgage median amount – $148,000 Marital status – 71% are married Presence and age of children – 17% have kids under 18 28

DEMA used the AnySite and PSYTE Marketing Information System in depicting psychographics/lifestyle to conduct this study. This is the same computer-based platform used by Sprint, Verizon Wireless, Rexall Drugs, Master Card and many other major firms.

Research Within Stakeholder Groups - Manufacturing In 2009 DEMA conducted a similar study using the PSYTE computer platform and more than 102,000 customer records. This time however the study used only customer records from manufacturers, indicating divers who had actually purchased diving equipment such as regulators and buoyancy control devices. The study confirmed much of the data gathered in 2006, and also offered some interesting changes to the customer profile.

The results indicate that the most active and buying customer is actually slightly older than the individual revealed in the 2006 study. Additional data is also being compiled to create an overall profile of this customer to assist retailers in reaching a similar customer more effectively.

Research Within Stakeholder Groups - Travel In 2010 DEMA conducted yet another study using the PSYTE computer platform and more than 30,000 customer records from a diving destination. Final results from a collection of these studies will be available in early 2011.

Why Study The Diving Consumer?

For a variety of marketing programs the place to begin is in understanding the current customer and their buying habits. In addition, the DEMA studies provide information on “lifestyle.”

“Lifestyle” as defined for these purposes consists of a multitude of variables, 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 and Family Status

Geo-demographics, a disciplined analysis that combines geography and demography is used to develop the customer profiles. 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 used by DEMA. That 29

makes the data useful when DEMA or any member of the diving community uses this data to seek funding for programs and partnerships 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 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

Many of these benefits are available at no cost to DEMA Members!

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Top Three Geo-Demographic Customer Profiles Executive Domain Income Median Household Income: Mean Household Income: Per Capita Income

Executive Domain $124,295 $155,901 $53,762

USA $53,935 $65,258 $24,752

Age of Householder 35 – 54 55 – 64

Executive Domain 57.6% 17.6%

USA 43.0% 13.3%

Marital Status Males, Never Married Males, Currently Married Males, Divorced Females, Never Married Females, Currently Married Females, Divorced

Executive Domain 19.4% 75.4% 3.7% 16.1% 72.7% 5.5%

USA 30.0% 58.9% 8.6% 23.9% 54.9% 10.8%

Household Composition Married Couple and Family Married Couple-Children under 18 Married Couple – no child under 18 Average Household Size

Executive Domain 78.9% 40.9% 38.1% 2.91

USA 51.7% 23.5% 28.1% 2.66

Housing Owner Occupied Owner Occupied, Single Detached Median year structure built Median Home Value

Executive Domain 94.1% 89.0% 1974 $359,016

USA 66.5% 53.6% 1966 $161,077

Educational Attainment High School Graduate Only Associate or Bachelor’s Degree Masters, Professional or Doctorate

Executive Domain 11.7% 41.0% 27.3%

USA 28.6% 21.9% 8.9%

Occupation White Collar Blue Collar

Executive Domain 86.2% 13.8%

USA 60.5% 39.5%

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Top Three Geo-Demographic Customer Profiles (cont’d) Sierra Snuggle Income Median Household Income: Mean Household Income: Per Capita Income

Sierra Snuggle $72,952 $80,178 $27,227

USA $53,935 $65,258 $24,752

Age of Householder 35 – 54 55 - 64

Sierra Snuggle 55.1% 11.7%

USA 43.0% 13.3%

Marital Status Males, Never Married Males, Currently Married Males, Divorced Females, Never Married Females, Currently Married Females, Divorced

Sierra Snuggle 25.8% 65.4% 7.6% 21.1% 63.3% 10.7%

USA 30.0% 58.9% 8.6% 23.9% 54.9% 10.8%

Household Composition Married Couple and Family Married Couple-Children under 18 Married Couple – no child under 18 Average Household Size

Sierra Snuggle 65.1% 36.1% 29.0% 2.96

USA 51.7% 23.5% 28.1% 2.66

Housing Owner Occupied Owner Occupied, Single Detached Median year structure built Median Home Value

Sierra Snuggle 82.1% 71.9% 1982 $182,630

USA 66.5% 53.6% 1966 $161,077

Educational Attainment High School Graduate Only Associate or Bachelor’s Degree Masters, Professional or Doctorate

Sierra Snuggle 22.8% 30.3% 9.8%

USA 28.6% 21.9% 8.9%

Occupation White Collar Blue Collar

Sierra Snuggle 68.5% 31.5%

USA 60.5% 39.5%

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Top Three Geo-Demographic Customer Profiles (cont’d) Suburban Wave Income Median Household Income: Mean Household Income: Per Capita Income

Suburban Wave $76,499 $85,833 $30,615

USA $53,935 $65,258 $24,752

Age of Householder 35 – 54 55 - 64

Suburban Wave 53.6% 11.4%

USA 43.0% 13.3%

Marital Status Males, Never Married Males, Currently Married Males, Divorced Females, Never Married Females, Currently Married Females, Divorced

Suburban Wave 21.9% 70.5% 6.4% 18.0% 67.1% 9.3%

USA 30.0% 58.9% 8.6% 23.9% 54.9% 10.8%

Household Composition Married Couple and Family Married Couple-Children under 18 Married Couple – no child under 18 Average Household Size

Suburban Wave 68.5% 38.0% 30.5% 2.82

USA 51.7% 23.5% 28.1% 2.66

Housing Owner Occupied Owner Occupied, Single Detached Median year structure built Median Home Value

Suburban Wave 85.6% 76.8% 1985 $176,466

USA 66.5% 53.6% 1966 $161,077

Educational Attainment High School Graduate Only Associate or Bachelor’s Degree Masters, Professional or Doctorate

Suburban Wave 21.3% 34.8% 12.2%

USA 28.6% 21.9% 8.9%

Occupation White Collar Blue Collar

Suburban Wave 73.5% 26.5%

USA 60.5% 39.5%

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MEETINGS AND OTHER ACTIVITIES Member Meetings During 2010, DEMA conducted several member meetings around the country to discuss ideas to cope with the economic situation and its impact on the Diving Industry.

Topics included the continuing Be A Diver campaign and its review and recognition from within the business and association community. DEMA also reviewed the use of the Be A Diver materials as well as the access for Members to the PSYTE computer marketing information system.

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A significant portion of these meetings included a marketing seminar on avoiding “Hit and Run Advertising.” The program covered many topics, including the use and effectiveness of such strategies as:    

Advertising/Social Media Personal Selling Sales Promotions Publicity (PR)

Presentation Slides Discussed Positioning and Competing Activities

In addition, the marketing seminar discussed some of the ways to incorporate all of these important topics together to make for the most effective use of the tools available from the Be A Diver campaign.

Meetings were held in Chicago; Seacaucus, NJ; and Long Beach, CA. Materials were also posted on www.dema.org for those unable to attend. As always these meetings were also an opportunity for retailers and others to discuss other DEMA business, including the trade show and the Association’s overall strategy to help the Industry survive in this economy.

Thanks to all those show organizers for allowing DEMA to bring the retailers together to discuss these important issues!

Wounded Warriors DEMA again participated with the Be A Diver Pool at the Wounded Warrior Disabled Sports Adaptive Water sports Festival in Breezy Point New York July 9-11, 2010. The Pool received live coverage during Fox’s National News program “Fox and Friends” as well as three local New York news stations for a total public relations value of $939,761 and with a potential viewer-ship of 4,195,631.

DEMA also participated with the island of Bonaire to host seven wounded warriors and their significant others on a one week Dive Certification trip August 7-14, 2010.

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Captain Don’s Habitat provided complimentary rooms, PADI provided the certification materials, Aeris/OCEANIC provided masks, fins, snorkels and dive computers, Henderson provided the wet suits, Princeton Tec provided lights, and Caradonna Dive Adventures, Inc. funded the Gala Awards evening at the Lt. Governor’s residence. All other meals and on-island expenses, including the Bonaire Marine Park tags and even the airport departure tax were funded by the people of/friends of Bonaire. Day-by-day coverage of the trip and photo gallery on the Bonaire Insider has received over 25,000 views to date.

It should be noted that the 2009 Be A Diver Wounded Warrior certification trip to Bonaire received post-event coverage in the form of a ½ hour ABC special, filmed by the ABC affiliate in Orlando, FL. Tom Ingram provided the establishing voice-over and was interviewed during the program which focused on two warriors, Eric and Juan who were in the class of 2009, DEMA's 'Be A Diver' diver acquisition program and the Wounded Warrior Project. The back story from the trip involves Eric confessing to Juan that he was considering suicide before going to Bonaire. He credits the trip and his friendship with Juan with saving his life, and Eric is now working with new wounded warriors. Juan has also increased his efforts to work with new warriors and that is how the story ends. He is now helping WW transition to the next level of athletic competition including the para-olympics. The program aired on: Saturday, July 3rd: Sunday, July 4th: Sunday, July 4th: Sunday, July 4th:

12:30 PM on WFTV Central Florida Spotlight 7:00 PM on WRDQ Central Florida Spotlight 9:30 PM on WFTV Live Fireworks Show The program also aired as a patriotic special before the 4th of July Fireworks at Walt Disney World.

The DEMA Board continues to support all efforts to use recreational diving to help wounded veterans whenever possible, and invites other groups to help as well.

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Diving Equipment and Marketing Association 3750 Convoy Street # 310 San Diego, CA 92111 858-616-6408 www.dema.org