Golflogix Case Analysis

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

Imagine the sun bursting through the trees for the first time of the new day, the smell of freshly cut grass still potent to your nose as you tee the ball up for a round of golf in the cool mist of a spring morning. "That is what brings you back every time, the smell of the air, the coolness of the whether and the beautiful surroundings that make every shot enjoyable." (Suess, PI) This is the game of golf in its finest and most exquisite time to many people and many people it has touched in its long history. Golf is a lifestyle and not just games to people that are avid in playing. The game of golf has a history that is rich in technological advances and personal accomplishments, which through time has shown to shape

Dan Shay and George Patton formed a partnership and began developing their dream golf range. Their dream range and financial expectations fell short after the initial construction and first year of business. Martha Rawles presented Dan and George with a marketing plan that exposed the weaknesses of their golf operation. The marketing plan revealed a strong need for an advertising plan and expansion to cater to a greater segment of the golf market.

The partners must do additional analysis prior to determining if they should invest in a new miniature golf venture in Golden City. Before establishing marketing objectives, advertising and promotional programs, plans for addressing demand fluctuations and considering alternate locations, they must determine if they can generate sufficient sales to fund operations. They have done market research which provides a good baseline for establishing the demand, course capacity and anticipated costs. Once they have analysed this data and established that the business is financially viable, they can address advertising, demand and location questions by developing a marketing strategy.

Golf ball manufacturers would be looking to achieve several key strategic goals, such as increased sales, increased market share and / or increased profitability, to adopt and implement PI’s technology. Accordingly, manufacturers are mainly concerned with the cost and implications on manufacturing, competitor reactions (and customer perception), the forecast growth in the new balls market, the share they could capture and the financial details of agreement.

A player's home course is special. He plays it so many times, he knows it inside and out. The hills, the hazards all become familiar to him. He is able to judge his progress one day against nearly

New golfers increased from 1.5 million to 3 million between 1988 and 1998, but most of them quit due to increased cost of playing which went up by nearly 50%, unavailability of courses and time involved in playing. The global premium equipment market declined post 1998 due to various reasons like decreased demand, Asian economic turmoil and saturation of product in the market place. To CGC’s benefit the competition on golf equipment

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.

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.

Since the age of four, when I was barely old enough to swing a putter, I have loved the game of golf. My dad, passing his love of the game down to me, would take me out every Sunday to Woods Edge Golf Course in Edgewood; he taught me the ins and outs and the dos and don’ts of the sport. One of the earliest memories I have of these trips to Woods Edge is being a mere couple of inches from driving the cart into a pond while dad was teeing off; this would definitely be considered a don’t in the world of golf. I received my first set of clubs for Christmas when I was eight and a year later, a pass to Pin Oak. Boy was I thrilled. I began to golf by myself and learn my own lessons through my experiences on the course. But as I grew as a golfer on my own, my dad was still there tweaking my swing in the back yard and taking trips to Edgewood with me. My dad is a big reason why I have a passion for the game of golf.

Helmstetter and his engineering team were very important to the execution of Callaway Golf’s competitive strategy. Callaway Golf Company consistently outspent its rivals in the industry on R&D which “allowed it to continually beat its competitors to the market with new innovations.” (P c210) In 1994, Callaway Golf opened the Helmstetter Test Center located a mile away from the main campus. The Helmstetter Test Center had two primary uses; it provided an ideal place to custom-fit clubs for the touring pros who used Callaway equipment, and it allowed Callaway R&D staff to test new products in the developmental stage. The development of new products at Callaway Golf Company not only included the research and development staff but also the sales and advertising staff. These teams worked hand in hand together. When the R&D would come up with a new product idea, the sales and advertisement staff would look over this idea and recommend changes based on the current market interests.

CO 5124 Data Analysis & Decision Modeling Tutorial : B By Madhumita Srinivasan (12772343) Submitted to Dr.Eddie Chng