Callaway Golf Clubs

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Callaway Golf Clubs
Term Paper Assignment
Webster University
Marketing 5000-02
Fall I 2010

Rashad A. Myers

Executive Summary
Callaway is a premium golf equipment company which focuses on increasing the overall experience of playing the game for those that use its products. The company will increase market share and profits by focusing on specific target markets over the next 12 months.

Environmental Analysis
Socio-Culturally, Callaway is affected by the fact that the majority of its customers are Caucasian and male. Further, this demographic is largely made up of male baby boomers, and this segment is aging rapidly, with many giving up the game due to health reasons. Also, children are not taking up the game with the
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Then, in 2009, they brought out the X-22 series of irons. Callaway purchases its raw materials from vendors, so from that respect, there is a level of dependency on suppliers. If their prices go up, then Callaway would need to raise theirs also, or their profit margins would be squeezed.

Social Media represents an opportunity for Callaway to interact with customers in a significant way. They are able to listen to what is being said about them, react to this feedback, and communicate new products, promotions and events. International sales represent 50% of Callaway’s revenues. Callaway looks to replicate their domestic success worldwide. Due to the growth in popularity of the sport of golf over the past 13 years, primarily due to the success of Tiger Woods, there is a growing market for clubs among young, learning golfers. Again, the Tiger Woods effect can be seen as gold is no longer a suburban, primarily Caucasian sport. Golf has been introduced to children and people of all walks of life, and should continue to gain in popularity. Callaway has put itself in a position to add to its brand identity with its Lamborghini partnership. Lamborghini and Callaway joined forces on a composite formula called Forged Composite. The composite is a third less dense than titanium, which translates to a lighter, thinner club head, which translates to increased club head speed, ball speed and

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