Callaway Golf Company ( CGC ) has maintained top market portion and superior golf equipment since 1982. In 1998. gross revenues began to fall and market impregnation posed big scheme inquiries to the senior direction of CGC. CGC is in demand of a new strategic vision for the hereafter. Smith Marketing Consulting Group is urging that CGC develop an on-line selling run and a new putter line to turn to the demand for continued growing and invention. CGC enjoyed big market portion and high net incomes from 1982 to 1998.
Ely Callaway. CGC’s laminitis. accomplished this with his vision: “If we make a genuinely more hearty merchandise for the mean golf player. non the professionals. and do it pleasingly different from the competition. the company will be successful. ” Callaway’s early scheme from 1988-1997 included new nine designs such as S2H2. Big Bertha. and titanium shafts ; high terminal monetary values ; and a big budget for research and development ( R & A ; D ) . CGC was able to sell more units of equipment at the highest monetary values due to leading-edge engineering. Callaway had a one monetary value policy to all on and off class retail merchants.
CGC besides had a selling program that included indorsement of pro golf players ; telecasting and magazine advertizements ; and developing to retail merchants on point of sale cognition. In recent old ages. the golf equipment industry has seen an addition in competition with many new startups and impregnation of merchandises in the market place. The industry has besides experienced a lessening in demand for high-end premium equipment and an addition in close-out plans. Product life-cycles have become really short. with most companies presenting new merchandises on a annual footing and gross revenues of merchandises worsening aggressively after merely two old ages on retail merchant shelves.
Golf equipment consumers tend to buy new merchandises on viva-voce recommendations and the mean consumer has a disability of 18 and purchases new nines every two to three old ages. Recommendations In order to vie in the golf equipment industry. CGC must develop new schemes to maintain the company turning and traveling frontward. Smith Marketing Consulting Group is urging that CGC set up an on-line confederation with consumers and retail merchants and develop advanced seting equipment as a new scheme traveling frontward.
Although CGC has voiced reserve about utilizing the Internet to sell merchandises. the hereafter for most retail merchants and makers must include the Internet to remain successful. Based on short merchandise lifecycles and high R & A ; D budgets. CGC should capitalise on the efficiencies of the Internet to continually bring forth advanced merchandises and let consumer’s entree to these merchandises in the shortest times possible. CGC maintains first-class acknowledgment through viva-voce advertisement and pro golf player indorsements.
Although CGC is fearful of consumers non desiring to detain satisfaction to hold merchandises shipped. the powerful selling tool of viva-voce advertizement will let CGC to capitalise with on-line retailing without consumers necessitating to physically see the merchandises. CGC should see a web site that would let the consumer to buy equipment online. but the order would be picked up at local retail shop. This would keep CGC’s relationships with on and off class retail merchants. yet please consumers with the easiness of shopping from place.
An on-line retail store will let CGC to increase market portion. keep superior merchandises and committedness to invention. Second. CGC should concentrate R & A ; D on advanced seting merchandises to congratulate the CGC forests and chainss. Puting equipment presently accounts for the lowest gross revenues per centum at CGC. but surveies show consumers are much more likely to buy putters than any other nine. Therefore. beef uping the CGC line of putters will increase gross revenues and net incomes. Smith Marketing Consulting Company appreciates the chance to work with CGC and we strongly experience these recommended schemes will greatly profit the company.
