Special Situation Report:Date: March 18, 2005 Resort Clubs International (Pink Sheets: RTCB), has just restructured for fabulous growth and has the potential of an exciting investment opportunity! In a recent press release, RTCB's local membership program has just announced a strategic alliance with Festiva Marketing (www.festiva.net), a dining and entertainment card in Phoenix, Arizona. Resort Clubs International, Inc., the parent of Epic Golf Club and Private Club Alliance, caters to the middle income golfer, whereas, Festiva currently has about 6,000 members that can use dining privileges at over 500 restaurants in the Phoenix area. The significance of this alliance was summarized by Robert Johnson, the President of Resort Clubs: "With our company entering a new market we wanted to find a partner with compatible services to our program to offer a competitive program for our summer membership program." Festiva and Resort Clubs will cross-promote each other with a special combined membership program offering the benefits of both programs for a reduced fee. "These programs are about creating value to the consumer where they don't have to think about the purchase, they just do it," said Peter Burns, III of Festiva. Both companies will combine their media campaigns to create a major awareness campaign for three months leading up to the summer program start. "We are excited about this alliance and feel it is a win-win for both companies." This new strategy will compliment their already successful golf membership programs. We invite you to read this exciting story below. Also, please read the latest press release "Resort Clubs Int'l., Inc. Enters Into a Marketing Alliance With Festiva" of April 4, 2005 for complete details. Our Feature Profile:
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Company ProfileStockChartist.com, LLC would like to introduce Resort Clubs International, Inc. (Pink Sheets: RTCB). RTCB is the parent of Epic Golf Club and Private Club Alliance, based in Jacksonville, Florida. The Company is ten years old with a successful business model of providing additional revenues to golf courses through its various external-marketing programs. RTCB also creates a multi-club membership program for its members through its various private-labeled membership programs, which provides access to numerous courses for one low membership fee. One may think that this company is small since it trades on the Pink Sheets. Wrong conclusion, ... The Company has existing contracts with 23 golf courses in Northeast Florida and Southeast Georgia. The golf courses receive free advertising as part of the membership plan and share in the revenues of the membership sales. In addition, these contracts allow RTCB members to play at "member rates" when they travel. The contracted clubs share in the RTCB membership sales to offset the value given to the members. With the Company's unique profit sharing plan, they are able to create a financial loyalty with their contracted clubs. RTCB pioneered the external membership concept and is continuing to update its offerings based on the demands of the golf courses, consumers and market conditions. In addition, RTCB has recently created a relationship with The first TEE organization to create a marketing program that supports the development of junior golf. The initial pilot program is currently being marketed in Jacksonville, Florida as a test model for the other areas of the country. Through its 10 year history, RTCB has test marketed several new products to support the golf industry. One of these products has the potential of being quite big by entering the Time Share arena, and is called "ClubShare". This new product has just undergone a successful two-year test and results show the potential of entering a very lucrative market that is targeting the middle income golfer. What is unique about this program is that golfers are paying for membership rights to the property, while not actually buying any real estate, which can take a lot more time and paperwork. ClubShare will be introduced as the newest way for the 10,000,000 traveling golfers in the United States to have access to the best golf courses in the national golf resort areas. Why is this significant? Many of the larger golf resorts have overlooked the middle income golfer, which is the fastest growing population among golfers. These larger companies provide golf resort time shares at prices ranging from $12,000-$15,000, whereas RTCB's ClubShare price will be around $3,000-$3,500 per couple for a one-week annual vacation. The program will provide Time Shares of condos on or near golf clubs. A standard membership will last 5 years. Investment Highlights and Why the Company Warrants Investment Consideration
Target Markets
The Company has a two-tiered marketing program: (1) The local marketing program targets avid golfers who enjoy playing multiple courses. And (2), the national membership program, ClubShare, which targets the value-conscious traveling golfer who is interested in a being a member of a club when he travels to resorts golf areas. According to the National Golf Foundation the avid golfer accounts for approximately 22% of the golfing population of the U.S., but represents 70% of the dollar spent annually for golf. Corporate Strategy
The Company's strategy is to focus on the under-served golf markets in the U.S. The majority of golf resorts today cater to the affluent golfer and have not developed any marketing programs to attract the largest segment of golfers, the middle market. There is a need to create golf programs that provide both exclusively and reasonable price for the traveling golfer. The Company's national membership program is an expanded version of the national membership programs of some of the most exclusive clubs in the U.S. The original concept offered well-known personalities and dignitaries the opportunity to belong to the finest clubs in the U.S., even if they do not live in the immediate area. The membership allowed these people the opportunity to play "members only" golf clubs on a limited basis annually. The Company's membership program is structured into a two-tier offering. The premier program, the Trophy Club, is a 30-year right to use program that will align itself with 5-30 of the finest golf resort courses the U.S. with the intention of building a minimum of two golf villas at each course to accommodate a mixture of our members. Each member will be entitled to a week of golf and accommodations on an annual basis. This program is initially priced at $5,000 a person with a minimum of two per membership. The second tier program is a five-year renewable membership that is developed as a medium-priced product for those individuals that cannot afford the cost of the Trophy Club, but who are interested in quality golf vacations. This program will highlight quality private courses in resort areas that are looking for additional members, but do not have the funds to commit to a large marketing campaign. By working with the Company, the private courses can add new memberships without the cost of marketing. The member will receive seven days of cart-fee golf and onsite lodge accommodations at special member rates. This program is priced at $3,500 a couple and $2,500 for an individual for the the 5-year term. Highlights:
Industry Overview
The most significant point regarding the Company's competition in the ClubShare business is the lack of any competition. All other golf travel packages are designed to "capture" vacationers one time, with the hope they may return. The Company's memberships provide at least 5 annual vacation opportunities, not including renewals. It also offers additional benefits that provide year round membership, not just a one-time, one-week vacation. Share Information
Press Releases since date of profile:
ConclusionGolf has undoubtedly emerged during the past decade as the fastest growing sport in America. Millions of dollars are spent each year playing golf and golf vacations are a hot and growing trend. The synergy of the newly formed alliance between Resort Clubs International and Festiva Marketing creates a combined company that is poised for fabulous growth and the potential of an exciting long-term investment opportunity!
Contact Information
For information on Festiva, their web site is at: www.festiva.net
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