Callaway Golf Case Anaylasis

Companies currently operating within the golf industry, specifically Calloway Golf, must change their current marketing approaches and strategies to withstand the recession and threats facing the industry. Although Calloway has a strong R&D department that tends to remain competitive with products and technology, there have been little results in reference to scores. It is imperative that if companies are going to market a product that will help golfers drive further and straighter that the results depict this so that not to damage the brand name of a product. Secondly, due to the decline in equipment sales and the number of golfers, prices are dropping and companies are outsourcing to maintain the volume needed to remain competitive. Companies must be cautious and aware so that counterfeiting may be reduced. This reduction would also allow companies to reduce their pricing and have more sales without the competition of these cheaply priced knock-offs. In the instance of

Looking at the market we can see that Golf Companies have suffered after the 2008 recession. However, in 2012 golf ball market was $483 million in retail sales from 17.6 million units which was 4.1% growth from 2011, showing that there has been improvement in the market performance from companies that had lower prices for golf equipment as people were willing to spend on their product. However Altius could not regain

Callaway's strategic success in 1988 to 1997 is highly credited to its R & D facilities. Their approach toward innovation and technology provided a cutting edge against the other competitors in the market. The way Callaway was able to continue their differentiation features was through their highly

The 1980s and 90s were boom times but all goods things eventually come to an end. There will no doubt be good times again but right now individuals, businesses and communities have to adapt to economic realities in which people have less disposable income for some of the things they used to spend money on. One of these is golf. The number of gold courses grew throughout the United States in the 80s and 90s and the same was the case in Japan. Today, however, there aren't enough players anymore to support the number of courses, so many have closed. This creates the opportunity for development in places where middle-aged, mostly white males used to drive silly little carts and hit a little white ball with a club.

What is the market opportunity you see for the future? Who is Callaway’s target audience? Is it big enough to help turn sales around?

It establishes logos by showing that serious golfers can turn into PGA Tour players with these irons… not exactly, but it can be done. According to Psychologist Jib Fowles, author of “Advertising’s Fifteen Basic Appeals,” this advertisement demonstrates the need to achieve, dominate, and attract attention (421-423). The need to achieve relates directly to the headline of the ad, “Improvements You Can Feel. Advanced Performance” (16-17). In the ad, Titleist wants people to feel dominant with these irons and destroy the golf course because of all the improved technology packed into such a small club head. Everyone wants to feel the need for attention and Titleist does just this. Possessing these irons means that golfers want the biggest and best clubs out on the market with the latest design.

Callaway Golf Company (CGC) excelled in designing, development, manufacture and marketing of Golf clubs and accessories. Established in 1982, the publicly traded company recorded a steady growth in sales from $5million in 1988 to $800 million in 1997. This was possible due to clarity in vision of its CEO Ely Callaway, which was aimed at making a satisfying product which was uncommon and enjoyable for the average player rather than professionals. The revolutionary clubs were sold to professional as well as average players at premium prices driven by the high performance delivered by them.

Callaway Golf Company is considered a leader of the golf equipment industry through its development of technologically advanced golf clubs that compensated for the most amateur players with poor swings and helping them achieve a better golf game with the introduction of Big Bertha in 1990 and launched Callaway Golf Company forward at great speed into notoriety of the golfing community (Gamble, 2000). This analysis will thoroughly dive into the many parts of the case of the Callaway Golf Company.

With the product differentiation being one key to Callaway’s success, the next focused on the consumer knowledge of the piece of equipment. New technology is good for the golfing community, but if no golfer is aware of the product or how to use it to its fullest potential, the customer will quickly become dissatisfied. The CGC used television, golf magazines, trade publications, and word of mouth as its primary forms of advertising. The company also endorsed professional golfers on all five major tours (PGA, LPGA, Senior PGA, European PGA, and NIKE) as a vehicle to promote its products. CGC used these professional endorsements more as a validation of the effectiveness of the product in its marketing campaign.

founder of Callaway Golf Company turned the most-feared club into the most-loved almost overnight. The driver became the fastest-selling club at retail. Many innovations have followed. From woods, irons, and putters to golf balls and golf accessories, Callaway Golf has consistently used ingenuity, quality construction, and technology to make the finest premium products in the industry.

The decision for an individual manufacturer to adopt PI’s technology will be determined by the potential increase in sales as golfers replace performance degraded balls with their brand. It is reasonable to assume that individual manufacturers are hesitant to pioneer this technology because there is no assurance that a performance degraded golf ball would be replaced with their own. The data indicate that golfers are comfortable using used balls, or value brands. By removing approximately 50% of the used balls from circulation, numerous golfers may utilize the lower cost alternatives to fulfill their required quantities.

Unfortunately, the golf industry is out of balance with the number of courses (supply) outweighing the number of golfers looking to play a round of golf (demand). Course owners struggle to attract rounds. In order to stay competitive in today’s market, you need to have differentiators that set you apart from your competitors. This module enhances the golfer’s experience at those courses that have it and they have a decided advantage over the competition with all other things being equal. If you are looking to attract more rounds, use the Golfer Experience Module to make the round more enjoyable resulting in more rounds and revenue.

* Golf course owners tend to be highly brand loyal and are unwilling to risk switching to a new product.

We have carefully looked at our external and internal environments. The external analysis looked at the market and the competition, while the internal analysis examined Callaway’s performance, as well as its customers. We also performed a “SWOT” analysis, enabling us to identify our strengths, weaknesses, opportunities, and threats. This analysis lends to the view that it is imperative that we change our existing strategy and focus on other markets. It is not suggested that we ignore our existing markets, but rather that we expand our customers and potential customers access to custom club fitting. I firmly believe that by pursuing this avenue, and by implementing and controlling the proposed fundamental marketing strategies and marketing mix strategies, we will be able to achieve the stated objectives.

Collaborators need to focus on directly supporting Tiger and his golf game, ensuring he is performing at his optimal level to result in the increased likelihood of wining more tournaments. Companies who have hired Tiger as the face of their product brands need to create a direct correlation between the intangible benefits of Tiger’s brand – credibility, customer loyalty, and dependability.