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Diving Equipment and Marketing Association DEMA

Annual Activity Report 2011

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DEMA 2011 Annual Activity Report What’s Inside? WHAT IS DEMA?

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2011 BOARD OF DIRECTORS AND 2011 MEMBERSHIP CATEGORIES

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2011 BOARD OF DIRECTORS CONTACT LIST

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DEMA STANDING COMMITTEES Show Committee Finance Committee Manufacturer‟s Committee and Fund Legislative Committee Promotions Committee

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MARKET RESEARCH

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MEETINGS AND OTHER ACTIVITIES

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What is DEMA? The Diving Equipment and Marketing Association is a non-profit trade association. Monies raised through the industryâ€&#x;s participation in the annual DEMA Trade Show, sponsorships, and through DEMA Memberships, funds all of the activities of the association. Unlike for-profit show organizers which funnel the money earned at shows AWAY from the diving industry, DEMA funnels everything back to DEMA promotions, market and industry research, operations, disaster assistance, and other industry efforts, all for the benefit of DEMA Members. Like most trade associations, DEMA has several functions within the recreational diving industry. DEMA is involved with promoting recreational scuba diving and snorkeling through PR activities and advertising, delivering educational programming for members and consumers, lobbying on behalf of the diving industry, and other functions. DEMA is a (501 [c] 6) California Corporation. Description: Worldwide Trade Association for the Recreational Diving and Snorkeling Industries; Includes more than 1,400 member companies worldwide. Mission: To Promote sustainable growth in recreational diving and snorkeling while protecting the environment. Goals: 1. To produce an annual trade event for the industry that services the needs of its stakeholders and produces a successful financial outcome for the association. 2. To engage in marketing programs which promote the industry, create new customers, drive business into retail stores and resorts and promote diver retention. 3. To monitor potential legislation that could adversely affect the industry. 4. To engage in marketing research programs which will: a. Define the universe of divers b. Determine the rate of erosion amongst existing divers c. Determine the number of entry level certifications which take place in the United States and Caribbean each year d. Provide retail audit information that is made self-liquidating through annual subscriptions. 5. To protect natural aquatic resources.

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2011 DEMA Board of Directors DEMA‟s Board of Directors is made up of volunteers that devote an enormous amount of their own time volunteering to help promote recreational diving and snorkeling and growing the Industry. Their accomplishments during the year are many and few realize the time and effort that these devoted individuals put forth. Representing the diverse needs of all five stakeholder groups is not an easy job. In some cases the viewpoints are in direct conflict and it takes much work to find common ground. In other cases the difficulties are easier to overcome. In all cases, the decisions are well-thought out and well-grounded. The Diving Industry‟s Stakeholder groups include: A-1 – Manufacturers/Distributors of Dive Equipment and Sales Reps A-2 - Diver Certification and Training Agencies A-3 - Publishing, Media, Dive Industry Consulting, Associations & Non-Retail Service Providers A-4 – Dive Retailers A-5 – Dive Travel, Liveaboard Vessels and Resorts DEMA has been pleased to have the following individuals representing the Diving Industry during 2011: Stephen Ashmore – A1 Scott Daley – A1 Jeff Nadler – A2 Senior Vice President Tom Leaird – A2 Bonnie Borkin Filippi – A3 Vice President Neal Watson – A3 Jim Byrem – A4-President Werner Kurn - A4 –Secretary Keith Sahm – A5 – Vice President Tim Webb – A5-Treasurer Board terms are three years. DEMA will next conduct Board elections beginning in December 2011.

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DEMA’s 2011 Board of Directors – Contact List

Stephen Ashmore Tabata USA (TUSA) stephena@tusa.com Jim Byrem, President Ocean Concepts Scuba jim@oceanconcepts.com Scott Daley Body Glove International scottd@bodyglove.com Bonnie Borkin Filippi Bonnier Dive Group bonnie.borkin@bonniercorp.com Werner Kurn Ocean Enterprises Inc. wkurn@oceanenterprises.com Tom Leaird Scuba Educators International tomleaird@sbcglobal.net Jeff Nadler Professional Association of Diving Instructors jeff.nadler@padi.com Keith Sahm, Vice President Sunset House ksahm@dema.org Neal Watson Neal Watson Productions neal@nealwatson.com Tim Webb Caradonna Dive Adventures tim@caradonna.com

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Committees DEMA Committees are an opportunity for volunteers to participate directly in the activities of the Association and to have an impact on the effectiveness of DEMA. Committees generally include Board members and other interested volunteers from within the diving industry or from fields related to the activities of a given committee. In accordance with the Bylaws, committees are advisory to the Board of Directors and DEMA Staff. They bring a wealth of experience directly to the Association. In 2011 there were a number of standing committees helping to provide input to the Board of Directors and Staff of the Association. Having opinions and insight from the diving community is critical, and the learning curve works both ways; many volunteers learn to understand the inner workings of a large non-profit trade association, including the nuances of providing the best for all five stakeholder groups simultaneously. DEMA's 2011 Committees DEMA Show Committee Neal Watson, Chair Tim Webb

Finance Committee Tim Webb, Chair Tom Leaird

International Growth Committee Neal Watson, Chair Stephen Ashmore Werner Kurn

Legislative Committee Jim Byrem, Chair Jeff Nadler Al Hornsby* Dan Orr* Nominations Committee Werner Kurn, Chair Jim Byrem Scott Daley Tom Leaird Keith Sahm

Membership Committee Jeff Nadler, Chair Tom Leaird Stephen Ashmore

Industry Marketing Committee Scott Daley, Chair Bonnie Borkin Filippi Werner Kurn Laura Walker* Manufacturers Committee Stephen Ashmore, Chair Scott Daley

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 (nrussell@dema.org) or contact a current member of the DEMA Board of Directors using the contact information found at the following link: http://www.dema.org/displayboard.cfm.

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Show Committee – Neal Watson, Chair Since well before DEMA Show 2003, DEMA has worked to determine the needs of the Industry with regard to the DEMA trade show. Working with members of the Board of Directors, members of the industry at large, and DEMA Staff, the Show Committee determined the best overall time of year and locations for conducting the Show, and since 2005, the DEMA Show has been on a venue rotation between Las Vegas, Nevada and Orlando, Florida. The Show will continue to be held in the fall, and the Orlando/Las Vegas rotation will continue through at least 2013. DEMA Show Venue Selection – an overview: Since venue changes usually require an advance window of three to five years, the Show Committee is always looking into new venues to hold DEMA Show. Most recently DEMA has reviewed proposals from locations such as Reno, New Orleans, San Diego, Denver, and many others. Criteria for selection of a show venue include many details but in general, the selection criteria include: Attendee popularity A city or metropolitan area with cultural or entertainment attractions and special event venues appealing to the diving professional. There should be a variety of restaurants and other entertainment within a 10 minute walking distance of the host hotel/convention center A major airline destination for North American and international travelers. The city should have a substantial number of direct flights coming into the city, and be a hub for at least one major airline Current Trade Show News Network Labor rates for the city must be within 10% of the median current rates for past DEMA cities. There must be an available convention facility that meets DEMA‟s exhibit and meeting space needs. The convention center must be in a location convenient to major hotels, the international airport and city points of interest. The minimum conventions center size is 350,000 – 400,000 gross square feet. A minimum of 30 meeting rooms in the convention center, capable of holding at least 50 – 100 people while using classroom style seating. Desirable hotels convenient to the convention and exhibit facility for 10,000 – 12,000 attendees. Hotel facilities should accommodate a minimum of 1,500 – 1,800 rooms peak night pick up, with 8,500 total room nights required within DEMA‟s block. This number of hotel rooms must be within a 5-mile radius/15 minutes travel time (whichever is less) of the convention center. Hotel room rates within the block cannot exceed $180.00/night. DEMA staff and Board members are always looking for ways to maintain and increase the value of exhibiting and attending DEMA Show. Additional benefits have been developed for members to attend the show including significant member discounts for exhibits-only and seminar entrance. Exhibitor programs include the Image Resource Center which focuses on the photography and video industries. This area showcases companies which are in a unique position to help the entire Diving Industry acquire more customers through the use of videography and photography. Companies specializing in photography and video are exhibiting in this area, and almost all are Page 7 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!

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DEMA Show Venue and Timing – A Primer Almost every year Orlando and Las Vegas are rated in the top five cities for conventions in the United States. These two cities are diverse in their appeal, and they fit the needs of the diving industry very well. Every year more than 30% of DEMA Show Attendees are NEW to DEMA SHOW. This means that they are coming into the industry (or haven‟t been to DEMA Show in at least five years), and are open to new products, new services and new education. When on the East Coast of the US (Orlando) more attendees come from the East Coast and Europe. When on the West Coast more attendees come to DEMA Show from the western side of the US and Asia. Site selection and timing of DEMA Show are based on the benefits to exhibitors and attendees, including hotel room pricing and proximity to the convention center, exhibitor rates for labor, and other factors. DEMA Show Attendees and Exhibitors have indicated through surveys and stakeholder meetings that Las Vegas and Orlando were among the best cities for them in which to attend and exhibit at DEMA Show. Establishing a location rotation with Las Vegas and Orlando is a reflection of DEMA customer‟s needs. As a result, DEMA Shows are being held in the following venue rotation: 2011: Orlando, Florida – November 2-5 2012: Las Vegas, Nevada – November 14-17* 2013: Orlando, Florida – November 6 - 9 *NOTE: DEMA Show is moving to the Sands Exposition Center in 2012! In addition to these customer-selected venues, surveys and stakeholder meetings clearly indicate that there is a variation in timing preference; one that is dependent on the stakeholder and their business cycle, as well as their particular geographic location. Information gathered from retailers and others that have participated in DEMA‟s stakeholder meetings, surveys, and other sessions, has indicated that there are two keys to encourage DEMA Show participation: hold the Show at a time when there is as little direct interference as possible with the varied stakeholders‟ businesses, and make sure that the Show is conducive to conducting business. DEMA has continually focused on augmenting the benefits to attending the Show. Initiatives have included specific buyer registration procedures and documentation and the production of solid educational opportunities that provide opportunities for attendees and exhibitors to learn new methods to grow their business. These benefits are in addition to the buying and selling opportunities and the chance to see new equipment as well as network on a face to face basis, all of which have been and will continue to be the hallmark of DEMA Show. Timing the Show to meet the varied geographic and business cycle needs for our industry has proved challenging. Conducting the Show in early to mid-October creates conflicts with many retail businesses who are taking customers in the water through the end of October. The former late-January timing of DEMA Show (staged in January during its first 25 years) caused just as many conflicts with other types of businesses in different parts of the country and world. Through surveys and stakeholder meetings it became clear that the timing for DEMA Show which produced the least amount of business interference for both exhibitors and attendees is the period from the end of October through the first several weeks in November (just prior to the US Thanksgiving holiday). DEMA Shows have now been booked as close to this time frame as possible in the venues requested by DEMA exhibitors and attendees.

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Bringing in Young Professionals DEMA recognizes the importance of encouraging early participation in the industry by younger diving professionals and those who are relatively new to the diving industry. Many instructors and professionally-certified diving leaders do not fully engage in the industry until sometime after first becoming certified at the professional level. Many of these relatively new certified individuals may not see the full extent or professionalism of the industry until they come to their first DEMA Show. Since individuals certified at the professional level (ie: instructors, divemasters, dive control specialists, and assistant instructors and others with professional credentials) have long been permitted to attend the trade-only event, DEMA developed a pilot DEMA Show-based education program in 2007 to encourage these typically-younger professionals to attend. This program has continued since that time. It is important to recognize that admitting new professionals does NOT change the documentation requirements for admission to DEMA Show. The “Immersion Program” consists of a one-day pass to DEMA Show, offered at a lower registration price and good only for Saturday, November 5. CREDENTIALS AND DOCUMENTATION ATTENDEE NON-BUYER OPTION 1 (Dive Store Staff, Travel Industry Professional, Non-Exhibiting Manufacturer or Other Industry Professional The Following Credentials are Required: Valid printed business card to include name of business under which the attendee registers, attendee name and position AND ONE of the following: Tax ID # for the dive-industry business under which the attendee registers. Copy of current (last 12 months) business license with name of business under which the attendee registers. Please note: If current license was sent in with your 2010 DEMA Membership payment you may skip this step. If unsure, please send in a copy. Paycheck stub issued to attendee by company under which attendee registers. Must include company name and attendee name and be dated within 90 days of DEMA Show 2011 International Identification - business registry information used in the country of origin or which permits buying in the US ATTENDEE NON-BUYER OPTION 2 (Instructor, Assistant Instructor or Dive Master/Con, Etc.) The Following Credential is Required to Register: Training Agency-issued certification card including name and level of professional certification achieved. Instructors, Assistant Instructors, Dive Control Specialists and Dive Masters are NOT automatically qualified to receive a “Buyer” designation and are therefore ineligible to receive pricing information unless they can produce “Buyer” documentation. DEMA hopes to encourage recently-certified diving professionals to attend DEMA show for the future. As with all who register for DEMA Show, these pros are required to provide appropriate documentation before entry is permitted, and they are provided only with Show credentials that are appropriate for their level of certification and qualifications.

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Magnet Exhibitor Program This program was new for DEMA Show 2010 and placed interested DEMA-member exhibitors in strategic, pre-determined locations around the DEMA Show floor, using incentives to encourage exhibitors to participate. The program was designed to take advantage of the fact that trade show sales floors function in a manner similar to “shopping malls” which place magnet stores (in the case of DEMA Show, magnet exhibitors) in specified areas, helping to direct the flow of attendee traffic, for the benefit of all exhibitors. The program has continued in 2011 and 2012. The Magnet Exhibitor Program: 1. Helps insure that major exhibitors exhibit at DEMA show, in turn helping to attract more and better qualified show attendees 2. Assists all exhibiting companies by helping direct attendee traffic throughout the show floor 3. Provides additional return on investment to companies investing in DEMA Show through exhibit space purchases of 800 net square feet or more. Any DEMA-member exhibitor, exhibiting at DEMA Show 2011 is eligible to participate in this program by selecting space for the 2012 show during space selection or at any time thereafter. Selection is based on magnet space availability, their commitment to taking 800 net square feet in one of the designated Magnet “zones,” and their seniority space selection points. Exhibitors that select at least 800 net square feet in exhibit space within these zones are eligible for the Magnet promotional pricing. The Magnet Exhibitor Program provides benefits to all exhibitors: 1. By creating “zones” on the show floor in which “Magnet Exhibitors” are placed, attendee traffic is directed throughout the show floor to each of the zones. Traffic direction maximizes the exposure received by the other exhibitors in the path of and near the magnet zones. 2. By changing the flow of traffic, all exhibitors have a greater opportunity for “face time” with potential and current customers. When exhibits are designed carefully to attract these potential customers and get them to dwell longer, more time and more interaction becomes possible, resulting in a better show for all. 3. The program also provides more opportunities for exhibitors to select their space in close proximity to a major exhibitor. This helps to increase visibility for all exhibitors, as more attendees will be directed around the show floor. With a different “flow” to the show, more attendees are likely to see more exhibitors. The result has been a renewed interest in DEMA Show, including additional educational opportunities for all.

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For Magnet Exhibitor companies there continue to be direct and essential benefits of exhibiting at DEMA Show, including: “Face time” with customers and potential customers Attracting new persons to the industry and retailing (remember, more than 30% of all DEMA Show attendees are “first time attendees” EACH YEAR) Support of current retailers through seminars and other contact opportunities Show Only Sales Future sales/sales orders Enhanced brand image Evidence shows that a majority of retailers/attendees come to DEMA Show because they want to see new products and services from all their vendors, and they expect these vendors to support them at the show. However, in recent years some companies have altered their sales cycle and process by using a field sales force to introduce products and services to their professional customers prior to DEMA Show. While it is understandable that the marketplace has changed in the last few years, the result is that some major exhibiting companies do less selling at DEMA show, which impacts their dollar ROI. This program changes the cost/sales equation for exhibitors that wish to purchase substantial exhibit space at DEMA Show. Magnet zones are designed to attract attendees to various areas of the show floor, and as such are not placed directly near the front show entrance. This means that additional space is available for non-magnet exhibitors near the entrance, and in locations near areas of interest, such as the demonstration pool, retailer resource center, image resource center, etc.

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The “Be A Diver� Adventure Sports Festival! This is an international consumer event designed to grow recreational diving by bringing in a NEW DIVING AUDIENCE while engaging with current divers. More information to come!

WHEN: April 26-28, 2013 WHERE: Greater Fort Lauderdale Convention Center, Fort Lauderdale, Florida About: The Be A Diver Adventure Sports Festival is a celebration of diving, adventure sports, water sports and outdoor lifestyles and includes events, exhibits, seminars and other activities to promote diving and other crossover activities. Goals: 1. To promote sustainable growth in safe recreational diving and snorkeling. 2. To create more divers by reaching a larger audience outside of the diving industry. 3. To increase the sales of diving equipment and travel to current customers and sell to new divers It is All About Reaching a Larger Audience Drawing customers who are attracted to the lifestyle which recreational diving offers. Tap into feeder markets such as swimming and snorkeling Re-activate previously-certified divers Engage the families and young household members of previously certified divers Host diving and other activities for current divers, including high potential growth activities such as Free diving, Technical diving, and Spearfishing Engage national and international consumer and trade audiences

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2011 Finance Committee – Chair Tim Webb (Board Treasurer) The Finance Committee provides oversight to all budgetary activities of the Association, approves the budget for the fiscal year, and reviews all Association financial transactions. DEMA‟s financial standards are developed using Generally Accepted Accounting Principles. In addition to following these high standards, DEMA also retains the services of an outside professional accounting firm to conduct annual audits of all financial activities of the Association, as well as periodic evaluations of financial data. The association‟s audited financials are posted on www.dema.org for member review. Giving Back to the Industry One of the most important objectives of the Association is the opportunity to place money back into the diving industry for promotional purposes. Since January 2003, DEMA has carefully placed money into successful promotions that were then evaluated for their return on the investment, using standard financial evaluation techniques. DEMA considers funding many different projects and allocates funds to these projects taking the following into careful consideration: Projects Managed Directly by DEMA (Board or Staff) – This is the most common type of project, usually involving extensive committee and Board discussion, plans and evaluation prior to implementation. Projects of this nature may be proposed internally or by an outside entity, but are managed by DEMA Staff with Board supervision. As such: 1. 2. 3. 4. 5.

Projects are under direct control of DEMA Board. Project costs can more be more easily evaluated and controlled Project success can be more easily and accurately measured Compliance with anti-trust regulations can be more easily monitored 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 14 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 Manufacturer’s Committee – Chair: Stephen Ashmore The Manufacturer‟s Committee represents all member manufacturers. Representatives on the Manufacturer‟s Committee come from the DEMA Board and can also include non-Board members. The Manufacturer‟s Committee monitors and allocates monies from the Manufacturer‟s Fund, which was established in 1994 when DEMA was re-organized to include all stakeholders in the Diving Industry. The Fund is composed of 5% of the gross receipts from DEMA Show each year and is used at the discretion of the manufacturers to promote recreational diving. The allocation of the funds follows a Board-approved process, and the Manufacturer‟s Committee has been supportive of many different initiatives over the years. The Manufacturer‟s Fund allocated $113,000 in promotions for the industry during 2011. Programs supported include: Be A Diver Pool Tour Funding Manufacturing Sales Index (MSI) Be a Diver Marketing Campaign including the creation and promotion of DiveCaching PSYTE Funding/Retail Retention DEMA Member Promotions

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Legislative Committee – Jim Byrem, Chair Each year DEMA establishes a Legislative Committee which includes DEMA Board members and DEMA Member volunteers. The Committee works directly with staff to review issues and bills, and provides input to government officials and organizations through the DEMA staff before legislation can negatively impact recreational diving. Legislative advocacy can be complex and require substantial amounts of time, but can be well worth the effort. Legislative advocacy provides DEMA Members with a direct voice in helping keep dive sites open and protecting the underwater environment. When DEMA has the opportunity to act or comment on potential legislation which may have a far-reaching impact, DEMA Members have the added bonus of receiving notifications regarding those changes to federal, state or local laws. The goal is to provide such notification in time for Members to also participate in actions affecting these issues.

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

In addition to the opportunity for Members to provide input to government officials at the local, state and federal level through DEMA, just the act of “taking a seat at the table” means the diving industry has a voice when new policies and regulations are discussed. Without this effort, diving is not kept top of mind when policy decisions are made. Like any trade association, not every DEMA legislative effort is successful, but many are. Following are the major legislative efforts undertaken during 2011: Written and spoken testimony on Coastal and Marine Spatial Planning before the Interagency Ocean Policy Task Force and The White House Council on Environmental Quality Personal meetings with Legislators from Florida and California regarding implementation of Coastal Marine Spatial Planning and its impact of recreational diving Proactive steps regarding the implementation of new fishing/lobstering license requirements for dive operators in Florida Creation and distribution of a Public Service Announcement to the diving and boating industries regarding the use of the Diver‟s Down Flag Support for continuing moratorium on Goliath Grouper harvesting Protecting coral reefs from sewage outfalls Page 16 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-orderstewardship-ocean-our-coasts-and-great-lakes). The federally-mandated policy will have a longterm 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 17 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-9012c3ced1a4fd21&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. Col./FL Rep. Allen West and Tom Ingram

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 miniseason. 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 miniseason, 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 Page 18 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 Diver‟s Alert Network (DAN) and in partnership with the National Safe Boating Council, the PSA will be redistributed annually to help keep boaters and divers aware of the need for dive flags. The PSA can be viewed here: http://www.youtube.com/watch?v=-uIUF9Iccyk.

Support for Continuing Moratorium on Harvesting Goliath Grouper In February DEMA joined with a group of concerned citizens to express the opinion that current moratorium on harvesting goliath grouper in Florida should be maintained until more data from thorough stock assessments could be gathered to determine if the goliath grouper stocks remain vulnerable to overfishing. The DEMA position was taken in recognition of the FWC‟s own appraisal of its recent study, which indicated that a significant number of data gaps were found, resulting in some unverified assumptions used in the research. An FWC survey also found that 49% of Florida dive centers favored continuing protection at this time. The moratorium on goliath grouper harvesting in Florida remains in effect. Protecting Coral Reefs from Sewage Outfalls In 2008, with DEMA‟s backing, Florida lawmakers set a timeline for South Florida to stop pumping 300 million of gallons of sewage a day into the ocean by the year 2025, and to treat most of the region‟s wastewater to reuse for other purposes. In April several Miami lawmakers introduced a new bill that would delay the deadline imposed in 2008 to stop dumping sewage into the ocean until the year 2030. Due to intervention and commentary provided by DEMA, together with the Professional Association of Diving Instructors (PADI) and others in opposition to the new bill, Florida‟s Senate Committee on Community Affairs approved a strike-all amendment that maintains the 2025 deadline. DEMA‟s position was and is that dumping wastewater into Florida‟s oceans has damaged beaches, marine life and coral reef, and that the pipes needed to be closed down as soon as possible to reduce ocean pollution. The dive industry will continue to support the campaign against contaminating Florida‟s water – any water - with sewage.

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Promoting Recreational Diving – Promotions Committee, Keith Sahm, Chair DEMA is a non-profit trade association. Money earned by DEMA through your DEMA Membership and through your participation in DEMA Show is what drives all promotions, research, legislative activity and presenting opportunities for face-to-facce customer contact at the DEMA Show.

LOCAL DIVING AND DIVER RETENTION What is DiveCaching? It‟s all about diving adventure and fun! It‟s an underwater “treasure” hunting game and activity for snorkelers and certified divers that can be organized by any group of divers or by professional dive centers. Divecaching is ideal for keeping your customers involved in both local diving and dive travel, and for divers who may have been out of the water for a while this is a great, fun reason for them to take a refresher scuba course and get back into diving!

DiveCaching combines certified scuba diving skills or snorkeling skills with some high tech equipment and simple underwater search techniques, while looking for a hidden “cache” of goodies. The premise is simple; divers hide a “treasure” or cache underwater, they post the location of the hidden cache online, and other divers search for it. When the cache is found, the finder logs their visit to the cache by recording their name on an on-site visitor‟s log book or slate, and puts the cache back where they found it. Sometimes the finders enhance the cache by placing additional items in the cache container. Other times the finders simply put the cache back in the hiding place unchanged for the next DiveCacher to locate. After returning to the surface, the diver‟s visit to the cache is logged online.

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

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For divers there can be many rewards for DiveCaching and everyone has their favorite reason for participating; some thrive on the fun and adventure of the hunt; others enjoy exploring a new dive site or returning to one that they have not visited in a while. Still others enjoy practicing their diving skills, using new diving equipment, or using skills in navigation, buoyancy control or search, or just simply being with friends and family. Some, especially the younger DiveCachers will love the “treasure!” DiveCaching is an underwater form of “Geocaching,” a decade-old land-based activity with more than 5 million participants worldwide. There are already some underwater geocaches listed on the Geocaching.com website, and more are being listed every day. Because it‟s an activity which can be done on land AND underwater looking for geocaches both in and out of the water is a great activity for customers with family members who are not yet divers. DEMA introduced DiveCaching in May 2011as a means for DEMA members to reach out to current diving customers and keep them diving. DiveCaching is ideal as a FUN diving activity that can take place LOCALLY but divers can also participate in DiveCaching when they travel.

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

How will DiveCaching help your dive center? When divers hide caches in their local dive lake, quarry or river it will encourage more local diving participation by current customers. Divers working or living in resorts can also hide underwater geocaches in these locations making it possible to play the game anywhere in the world; there is almost no limit to the type of caches and hiding places. Divers can play all manner of games that promote both diving and DiveCaching once containers are hidden and logged on geocaching.com, and stores can develop their own games. DEMA will also provide suggestions to member stores. Divers will want to upgrade equipment and get additional training to participate. Consider promoting additional training in buoyancy control, search and compass navigation as a starter, but don‟t forget underwater photography, drysuit diving and training for low visibility diving. DiveCaching can also help acquire new customers. Families with non-divers can participate in land-based geocaching while their families are looking for caches underwater, encouraging more Page 21 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. Rank: Open Water Certifications States Rank: Geocaching.com (DEMA Certification Census) CALIFORNIA 1 1 FLORIDA 3 2 TEXAS 2 3 NEW YORK 4 4 ILLINOIS 7 6

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DEMA has created a series of DiveCaching “How To” videos to help get your customers involved in this fun activity. See them on YouTube (BeADiverCampaign Channel) or on Geocaching.com/DiveCaching. Check out the introductory video here: http://www.youtube.com/watch?feature=player_embedded&v=mb9OafeqlCM

Environmental initiatives are also possible with DiveCaching. “Cache In Trash Out” (CITO) is the geocaching community‟s environmental initiative, and when searching for caches underwater or on land cachers can pick up any garbage they encounter and carry it out of the area. Similar to beach cleanups and other diving-related environmental efforts, this one also helps keep our dive areas clean. CITO events should be considered by every dive center! DiveCaching is a fun activity for all divers and dive centers should get involved to bring their current customers in for more diving fun! For more information on DiveCaching log onto www.DiveCaching.org and www.geocaching.com, or contact DEMA at info@dema.org.

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DIVER ACQUISITION DEMA‟s Be A Diver Campaign

DEMA launched the Be A Diver campaign in April 2008. The main and continuing goal of the Be A Diver campaign is to provide a means by which DEMA Members can promote the FUN of diving. The Be A Diver campaign has many different elements and works in a manner that is complementary to other marketing campaigns, but can also stand alone as an inexpensive and complete promotional campaign for DEMA Member stores. In what remains one of the toughest US and world economies in recreational diving‟s short history DEMA Members have exclusive access to a complete and economical toolbox to use in customer acquisition. In addition to the availability of advertisement materials for DEMA member use, DEMA has also provided a website – BeADiver.com – which lists every retailer in the US. DEMA members receive preferential listings, and their website URL, phone number and distance from the zip are provided to consumers in alpha order under the Retail Store Locator. In addition, for a small fee there are preferential store listings based on the potential customer‟s actual location. Non-members receive an alpha listing as well, following the DEMA members‟ store listing by zip code. For purposes of the Be A Diver listing, DEMA defines “retail dive store” as DEMA member retailers which meet all of the following criteria: 1. Teach scuba diving 2. Sell scuba diving equipment 3. Provide diving equipment service Page 24 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 What‟s in the Toolbox? Like any good promotional campaign, to be successful, all of the promotional materials in the Be A Diver campaign must be used together. The components of a good promotional mix include: Advertising – such as radio, television and print ads through various media. Sales Promotions – Sales promotions involve the use of media and non-media pressure applied for a pre-determined, limited period of time at the consumer, with the objective of stimulating trial or increasing consumer demand, or to improve product visibility and availability. Publicity (PR) – The classic definition of “Publicity” or “PR” states that it is non-paid-for communications of information about the company or product, generally in some media form.” While the actual appearance of the product or service in the media may be considered “free,” most publicity activities do have a cost associated with them. PR firms charge for follow up, “stunts” cost money to create, and even writing press releases can have a cost. Still, these can be very effective when used in conjunction with other promotional activities and getting the attention of the media can provide a store with far more visibility than not having it. The Be A Diver Pool is a form of publicity. Personal Selling – Diving is a relationship business, and notwithstanding the sales that take place on the web, getting people to come to a store and purchase equipment or learn to dive is still largely dependent on the face-to-face selling skills employed by dive store staff. All employees should be versed in selling techniques and willing to participate in the sales process. Given that more than 60% of all divers look to their diving instructor for guidance on what they should buy, this is especially important for the instructional staff. All of these elements within the Be A Diver campaign are available to DEMA members FREE OF CHARGE to help capture the attention of the target customer. The Power of a Brand Using the Be A Diver brand helps DEMA members by tagging onto a brand already known outside of the diving industry through television commercials, internet and print advertising. Reaching the potential audience in the DEMA Member‟s area becomes more effective when using a brand already synonymous with the fun of diving.

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Example Advertising Components of the Be A Diver Campaign Using the highly visible brand BeADiver SAVES MONEY AND TIME for DEMA Members. Results for 2011 As members, more than 600 retailers in the US and internationally have access to the Be A Diver brand materials, and many are using them as part of their entire “promotional mix,� along with advertising components from their training organizations and other vendors.

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The Be A Diver Pool Tour One of DEMA‟s main goals is to help promote sustained growth in recreational diving. The Association has provided significant amounts of media attention to the Industry over the last several years. One of the MOST productive tools for the diving industry in terms of media exposure has been the Be A Diver Pool, a 16,000 gallon, 4‟deep portable swimming pool supervised by Dave Reidenbach and used to grab media attention in good potential diving markets. The pool is staffed by Dave and by volunteer instructors from DEMA Member retail stores who take advantage of the unique opportunity to display their banners, distribute informative materials and promote their location to a new customer base. Potential consumers are also provided the chance to have unique face to face contact with their neighborhood dive professional and all of their scuba diving questions immediately answered. The grass-roots interactive opportunity is a valuable resource to participating DEMA member retailers as they continue to get new business through their involvement. The Be A Diver Pool has received tremendous media exposure, and to make it more appealing to companies outside of the diving industry, DEMA has been working with an independent auditing company since 2005 to audit all media coverage of promotional projects, including the Pool. This is the only objective way to determine the amount of exposure and the value of the promotional projects to the Association. Through July 2011 the Pool has generated the following media exposure: Media Category Media Impressions* Dollar Value* Broadcast Exposure 10,829,571 $2,011,867 Print and online 12,801,836 n/a TOTAL 23,631,407 $2,011,867 + print and online DEMA‟s highly visual Be A Diver Pool Tour is seen on television, various forms of print media, and on the web. The Pool Tour has also been successful in generating significant exposure and sales for those retailers that use it as part of their promotional mix.

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Marketing Data and Analysis At the heart of “marketing” is the understanding of the customer, how we communicate with them and what message will generate the greatest response in a cost-effective manner. Most everyone in the diving industry has some idea of their own customers; retailers see the equipment and training they sell to customers; manufacturers have an understanding of who purchases their products through warranty registrations and information from their retail dealers. Training organizations can easily check their own certification information for demographic details, places where they live and more. The question for the Industry and for DEMA is how to pull all this information together to enable additional sales, more traffic, greater retention and more fun. Having marketing data from all sources in the diving industry, including data from actual divers is critical. DEMA participates in several ongoing research projects each year, but also has additional customized data available for DEMA Members to use. All members of the diving community can benefit from this type of data. Fast Facts: Recreational Scuba Diving and Snorkeling There are between 2.7 to 3.5 million active scuba divers in the US with as many as 6 million active scuba divers worldwide There are about 11 million snorkelers in the US and about 20 million snorkelers worldwide Profile of the most active divers in the US – the divers who spend the most on equipment, certifications and training combined (n=308,000 divers; Published 2007, affirmed, 2009): o Age – Between 38 & 53 years old – Mean: 45 Median: 46 o 76% are male o Household Income – 56% make between $75,000 and $100,000 o Occupation – 80% are White-Collar/ Professional/ Technical/ Management o Home ownership – 93% own their own home o Mortgage amount – Median of $148,000 o Marital Status – 71% married o Presence and age of children – 17% have kids under 18

Certification Census Thanks to the three participating certification organizations data has been made readily available regarding the number of new divers certified each year since 2003. The Census includes data on Open Water-level diver certifications only, as defined by the Recreational Scuba Training Council (RSTC). This statistic is a measure of growth for the Industry at large, and is indicative of the health of the sport. The cooperative effort between all of the currently reporting certification agencies includes reporting their certification information to an independent, third party auditing firm. Although not all training organizations currently participate with this program, all are invited to participate. Open Water certification numbers are reported to DEMA in total only after the third party auditing firm does a thorough review of the data, removes any duplication that appear across Page 28 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-bystate data is available to DEMA Members.

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Manufacturing Sales Index (MSI) For more than 20 years DEMA has gathered and reported data on sales at the manufacturing level. The data is reported by those manufacturers that voluntarily participate in the program and is gathered by a third party administrator on a monthly and quarterly basis. The individual manufacturer‟s information is kept confidential and only the aggregate is reported to participating companies. Data from the ongoing manufacturing research program is used by manufacturers to compare their sales with those in the Industry, to help understand market share information, and to help determine trends. MSI – Domestic Domestic US Shipments 2007-2008-2009 To Date 16,000 14,000

10,000 8,000 6,000 4,000 2,000

EM BE R TO BE N R O VE M B ER D EC EM BE R O C

LY

US T

AU G

SE PT

NE

JU

JU

IL

M AY

CH

AP R

Y UA R

M AR

JA

NU

AR Y

0

FE BR

Shipments

12,000

Largest Single Group of Customers Who Bought Diving Equipment (n= 101,000 equipment customers) Income Equipment Compared to Purchaser 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 US Purchaser 35 – 54 57.6% 43.0% 55 - 64 17.6% 13.3% Marital Status Equipment US Purchaser 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 US Purchaser Married Couple and Family 78.9% 51.7% Married Couple-Children under 18 40.9% 23.5% Married Couple – no child under 38.1% 28.1% 18 Average Household Size 2.91 2.66 Housing Equipment US Purchaser Owner Occupied 94.1% 66.5% Owner Occupied, Single Detached 89.0% 53.6% 2009Median to year structure built 1974 1966 Date Median Home Value $359,016 $161,077 Educational Attainment Equipment US 2008 Purchaser High School Graduate Only 11.7% 28.6% 41.0% 21.9% 2007Associate or Bachelor’s Degree Masters, Professional or Doctorate 27.3% 8.9% Occupation Equipment US Purchaser White Collar 86.2% 60.5% Blue Collar 13.8% 39.5%

Understanding The Diving Consumer For a variety of marketing programs the place to begin is in understanding the current customer and their buying habits. DEMA has conducted studies at a national level in the US, but diving is a diverse activity and each geographic region is different in terms of diving season, and equipment and training needs. DEMA Members have at their disposal the ability to analyze their own local customers using a very sophisticated marketing information system which provides data regarding the Member‟s actual customer “lifestyle” including: Income Occupation Education Age Group Quarters Race, Hispanic Origin, and Ethnicity Dwelling Type Immigration Geographic Mobility Home Language Place of Work and Commuting Household Structure & Family Status Mode of Travel Employment Industrial Classification Page 30 of 35


How Much Money Does Scuba Diving And Snorkeling Bring to Florida? 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 diverelated expenditures drive an economic impact of $3.6 million in local output and additional jobs while generating $1.4 million in local income.

“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. Geodemographic 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 31


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). “Top Activities” in which Active Divers The two primary advantages to using this type of program Participate (Including Snorkeling and are; Scuba) it provides an understanding of where the customers Profile TGI* are generally located, making it possible to focus 162.71 television, local print, internet and radio marketing Participate in Skiing Downhill Participate in Snorkeling/Skin Diving 159.13 efforts; Participate in Tennis 158.48 it makes it possible to purchase the addresses of these potential customers using zip codes and use Participate in Golf 155.69 the household data to determine where to find the Participate in Scuba Diving 152.21 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.

Participate in Bicycling-Mountain

145.70

Participate in Bicycling-Road

141.34

Participate in Racquetball

139.13

Participate in Sailing

138.66

Participate in Jogging/Running

137.49

Participate in Weight Lifting

137.24

Participate in Yoga

137.03

Participate in Water Skiing

135.40

Participate in Backpacking/Hiking

134.67

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

In addition, this “lifestyle” marketing information system helps retailers locate customers, and map the area around the retail store to determine the best potential for reaching additional customers. The data from these individual store analyses can save DEMA members money by avoiding non-productive target neighborhoods, and can even be used to plan the best areas for cable TV and radio ad coverage, as well as providing data for the sale or purchase of the store.

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EXAMPLE NEIGHBORHOOD DATA

Pitney Bowes MapInfo速 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

679,675

33.28%

17,395,555

15.11%

3.91%

220.22

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

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Membership Meetings During 2011 DEMA conducted a series of “2020 Vision Sessions,” conceived as a way for DEMA Members to provide input as DEMA creates its future strategic plans. Member input is always valuable, especially with the changing role of associations. Brainstorming sessions were set up at Beneath the Sea in Secaucus, New Jersey and the Scuba Show in Long Beach, California. DEMA Members and members of the Diving Industry discussed some of their ideas regarding the Diving Industry and where it is headed in the next 3 – 5 – 10 years. In brainstorming sessions such as these there are no wrong or right answers – just ideas. What is more critical is to gather this information and make it available for both Industry members and the DEMA Board of Directors so that it can be useful for all. Input was based on the needs of the Industry, not on DEMA‟s role or actions (DEMA‟s role is and should be determined by those Industry-wide needs). The session participants were split into groups and provided with ground rules. A series of questions were asked and the participants recorded their own discussions and reported their response back to all. The prompts used to facilitate the discussion were: 1. 2. 3. 4.

What five things do you see changing (or want to see change) in the Industry? Of these items, what do you see are PRIORITIES? Brainstorm – how does the Industry get there? Discussion

In addition to the face-to-face sessions, DEMA also started a 2020 Vision Session Group on LinkedIn.com for those that attended the face-to-face sessions. Face-to-Face Meetings Some of the ideas presented during these sessions are likely to be familiar. As happens, some ideas conflicted with each other – e.g., one group indicated the need for embracing the Internet, another group (in the same room at the same time!) indicated that they wanted to see less use of the Internet. Because of the time limits involved, it was not feasible to solicit comprehensive implementation processes from each of the participants during these sessions. This task will fall to the DEMA Board of Directors and DEMA Staff, once all sessions and final recommendations are completed. LinkedIn Group Comments posted on LinkedIn were also very interesting and gave additional insights into DEMA‟s role in the future. For example: Retailers and other small business owners are very independent. The general feeling is that the best ideas come from other retailers. Retailers have been “burned” by “research” from within the Diving Industry in the past, and are very careful about its use. Some of the ideas that were continually discussed included an ongoing concern about the aging diver population and the aging diving professional population. Page 34 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!

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2011 DEMA Annual Report  
2011 DEMA Annual Report  

The Diving Equipment & Marketing Association's (DEMA's) Annual Report, including information on DEMA's 2011 programs, events and activities....

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