Altius Golf Case Study

1332 WordsMar 28, 20156 Pages
A. Current Situation What role has Altius Golf’s choice of channels of distributions played in its loss of market share? What other factors have contributed to its loss of market share? What will happen if Altius maintains the status quo? Altius Golf’s choices in its channels of distribution have played a major role in its loss of market share. There are two distribution channels when it comes to the golf market, on-course and off-course, which account for 40% and 60% of unit sales respectively which result in 45% and 55% in dollar sales respectively. Altius’ number one selling product the Victor TX retailing at nearly $50 per pack accounts for 70% of its total golf ball sales. Altius sells the Victor TX in both on-course and off-course…show more content…
D. Competitive Reaction What are the risks to the Victor brand that could be bought about by the launch of Elevate? How can Altius Golf use channels of distribution to help manage these risks? How else can it do to manage these risks? There are a significant amount of risks associated with launching Elevate. It is very important to take all of these risks into account before making a final decision. A risk that every company faces when introducing a new product into a preexisting product line is cannibalization. By introducing Elevate Altius may in fact cannibalize the sales of its other golf balls. If the amount of lost profit from Victor and Victor TX are higher than the profit gained from the introduction of Elevate than Altius is losing money and introducing Elevate was a mistake. Other risks include damaging their brand. Ferrari an Italian luxury sports car manufacturer for the rich and famous. If Ferrari started coming out with economy cars for the general public its current customer base would evaporate how can you claim to be a luxury brand and then start producing non luxury products. This is the concern of Altius executives, some believe that as they are an expensive golf ball brand that they are a luxury brand of sorts whose brand image could be damaged by introducing a non luxury product in terms of the Elevate golf ball. This however in my opinion this is a delusion Altius is not a luxury brand

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