Unable to create location groups?

After watching the Working With tutorial, I was hoping to be able to create various location groups in a dataset, such as by area, exploratory hole type or geology. Unlike the video tutorial, I don't have a Location Group button available for selection under the ribbon "Grid Tools". Additionally, in the "Data" ribbon, I can select location groups, but the option to create or edit location groups are greyed out and I cannot use this option. 

Is this a permission or access issue? Guidance to resolve would be appreciated.