Marketing Management
Case Analysis
Altius Golf and the Fighter Brand
Group AE1:
Abhinav Singh (14S601)
Anima Tapadiya (14S607)
Dushan Garg (14S616)
Niharika G (14S628)
Raviteja Palanki (14S636)
Prem Sharath (14804)
Altius Golf and the Fighter Brand
Altius was losing market share due to several reasons a few of which have been mentioned below:
The number of golfers in the due course has fallen and new players are more price sensitive and the competitors are taking advantage of this. The price of premium golf of the competitors like Primiera and Meridian are significantly less than Altius which is giving them an edge over Altius as Altius premium brand “vertex TX” was the most expensive ball in the market. Altius was largely
…show more content…
Under the demographic variable, the group’s age and income are favourable for implementing the Elevate strategy. As the case mentions, if Altius doesn’t do anything, they will be stagnated in a maturing market where their core customer is ageing. So they have to come up with a new strategy that involves participation in the game by the children, recreational players and the youths alike. Also, USGA initiated a program that focused on making the game easier and more fun. Because of these factors, children and youths can have inclination towards the game and Altius can seize the market opportunity in this segment. As Altius’s premium product primarily targeted on the high-income group people, by implementing Elevate, they will be able to cover the other lower and middle income group people as well. This in turn will enhance the sales by covering a large group of people.
The current product line imposes a certain limitation on the psychographic variable in a sense that only ambitious personalities, e.g. professional golfers made use of the premium products. Going for elevate would remove the restriction by roping in the recreational players.
Considering the behavioural segmentation variable, the consumers’ preference is towards the economic product and benefits. Bringing the Elevate product will
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
The brand image of Altius is still positive and professionals are open to trying other brands so Altius should not worry about innovating. The elevate strategy also packages the balls in the same packaging so the brand is not undermined and the perception of the ball by customers is that it is of high quality and better. Furthermore the new Elevate line will only be offered in the off course channels so the professionals using Altius who get their equipment mainly in the on course channel don’t have to worry about the prestige of the brand as the only products offered there are the professional golf ball lines, hence Altius will make a clear distinction between who the balls are targeted for. In the qualitative analysis we see that the margin for elevate is higher than it is for competitors at 64% compared to their estimate of competitors being between 50-60%, even though it is lower than the normal 70% Altius enjoys it is necessary to cut down the margin now in order to penetrate the off course channel and target the new golfer segment.
• Consumers did not believe condition of the ball to have any consequence on their game. Also, they considered themselves visually strong enough to understand the condition of the ball. This consumer attitude posed a significant problem for PI as it challenges the basis of the concept itself.
Their target market is an average golfer, but they should also target good and experienced players, who are the
The main marketing objectives of the new course will be to manage demand fluctuation by promoting the business effectively and to attract customers by developing alliances with other local business. The marketing objectives will be measured in several ways. The partners will instruct their staff member to collect daily data on the number of players, and the time of day of that they played (morning, afternoon, evening). This data can be stored in a basic spreadsheet for simple analysis. The partners
1) Can you identify examples of decisions about each part of the marketing mix (product, place, promotion, and pricing) that are being made in the cookie program? The Product is Girl Scout cookies as well as the Girl Scouts themselves. Since 1912 Cookie sales have played a major role in supporting the Girl Scouts organization at the council and troop levels. Being able to target certain people can be tricky sometimes specially if you don’t know what you’re doing or what your target is. You have to be able to sell yourself as well as the product and who better to sell Girl Scout cookies then young girls. The Girl Scouts mainly target the middle and upper class
The founder, Ely Callaway’s vision is: “If we make a truly more satisfying product for the average golfer, not the professionals, and make it pleasingly different form the competition, the company would be successful.” However, this vision is change from other company’s visions; the difference being that the price is not mention.
Casper Sleep Incorporated as of June 2015 had sales that had hit an annual run rate of $100 million dollars. This was only 0.7% of the $14 billion in annual retail sales in the U.S. mattress market. In their quest to becoming the “Nike of Sleep”, the Casper team has the dilemma to choose a few options in order to strengthen their communication strategy to consumers. The first option is to retain current media vehicle us and expand growth in new geographic big cities. The second option is to begin nationally televised advertising in order to show their emotional benefits of the brand. The final option is to do television the Casper way and advocate a new quirky approach to
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.
The threats Altius includes consumers dwindling interest in playing golf in the U.S. The number of golf players peaked in 2003 and is now falling causing the sales of golf equipment to decrease, affecting Altius future sales. The number of golf rounds is decreasing as well to appeal to a more casual player affecting the sales of golf equipment. Investment in development of golf fields have decreased by 40% with about 25% of stores closing; consequently, Altius has fewer retailers due to 67.5% of sales happening on-course (Exhibit A). The recession greatly affected the revenues of Altius due to consumers reducing their spending on golf balls. After the recession, sales are still down and have not returned to pre-recession levels. The USGA
The weakness Altius is facing is due to offering and promoting their golf equipment as professional equipment used by professional golfers. The amount of professional golfers is decreasing, reducing the market that Altius is targeting. Primiera and Meridian have responded to the trends by offering golf balls that are easier
Mondelez International had strong market share positions in 2014, and due to the strength of its market share, it retained the top spot on the global market positioning, largely due to Mondelez having a strong number one market share in the Asia-Pacific region, Middle East/Africa region and European region. Mondelez only lost the top spot in Latin America in 2014. The company's lowest market share came in North America, coming in at number five. Who were the competitors one might ask that stuck it out until the end and managed to snatch these top spots from Mondelez?
Our group chose to investigate the marketing problem faced by both Apple and PC companies when trying to differentiate their laptops in consumers’ minds based on value-added attributes. The competition between the Mac and PC can be traced back before laptops were a consumer product and home-computers were at the forefront of technology. In the late 1990s it seemed as though almost everyone had a Windows 95 Pc but this began to change when Apple introduced the iMac in 1998. Upon the introduction of the iMac consumers now had a choice between a Mac or a PC, which was fueled by Apple’s “Get a Mac” ad campaign, in which actors John Hodgman and Justin Long played a PC and a Mac, respectively,
Prada operates throughout the world and it’s headquarter is in Milan, Italy. In 1913, Mario Prada founded the company. Currently, this company is operating with over 250 outlets throughout the world with Prada Mario and his brother started business with a leather goods shop in 1913 in Milan, Italy. The shop initially sold leather products only. Mario Prada was against the role of women in business; hence, the female members of the family were not entered in the company. Mario’s son showed no interest in his father’s business, so his daughter, Luisa Prada took charge of the company. She served the company for almost twenty years. In 1970, Luisa’s daughter joined and she took over for her