Callaway Golf Case Study

TaylorMade selectively chooses its retailers to more effectively sell its products. Being part of the adidas Group allows TaylorMade to use the wide distribution channels and infrastructure that adidas brand currently operates to grow its product line in new emerging markets. TaylorMade focuses on strategic accounts to create and make available state-of-the-art floor displays that showcase products and communicate key messages, which allows it to better position its clubs and balls among the top-selling golf products (adidas Group, 2013). TaylorMade is also focusing on smaller golf shops and privately owned retailers to gain a more personal approach with consumers.

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

Through the years there have been many forms of golf clubs used to strike to object used as a ball. Because of the increase in technology the tools of golf have been defined and redefined over and over again. The very first types of clubs that were used were just regular sticks that a person would find. These clubs were fashioned

Marsden sat down with his swing coach to set up his objectives for his golf career. He realized he had a lot of work to do to reach that goal of winning a Green Jacket. Marsden’s father Jeff, had bought him a membership at Mattaponi Springs, where he would spend countless hours on the range and around the greens. Dyson had a routine he would do every day; he would hit eight perfect shots with each club in his bag. The young man then would move on to the chipping surface, he hit fifty perfect shots that had to land within three feet of the pin. Whenever he had nothing to do, he would be on the range practicing, if he didn’t answer the phone and you needed him he was at the range working. He would put in dedication into his golf game twenty four seven.

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.

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.

Fourteen clubs - four wedges, six irons, a rescue, a three wood, a driver, and a putter - this is golf. It is one of the most mentally challenging sports in the world. It can fool beginners who are deceived by its simplicity. Golf is often underestimated by those who have never attempted to play the sport. While it has often been known as a “rich man’s” sport, in recent years this perception has begun to change. There are a number of other generalizations made when talking about golf, yet these are most always from those who have never experienced, played, or followed the game. One should question how a critic with no knowledge of the activity could state whether or not golf should be considered a sport. Golf is a sport, regardless of what any critic has to say. Studies and experimentation, along with the experience itself, reveal all of the athletic aspects that make golf better than most sports.

The U.S. Golf Association (USGA) specified the characteristics of legal balls within tight parameters. These restrictions on size, weight, materials, texture, etc., seemingly left little room for product innovation. In fact, the USGA regulations specified not just what went into a ball, but how it could perform, stipulating to within 10-20 yards how far the ball could travel when hit by a certain type of club traveling at a certain speed, all verified under controlled conditions with robotic testing equipment. Nonetheless, new product introductions were rampant in the industry, with slight changes in surface coatings and dimple patterns, for example, being touted for their ability to add a handful of yards to a golfer’s shots, to give more accuracy, or to create greater control through faster spin on the ball. In addition, ball manufacturers spent millions of dollars on advertising campaigns for their balls. There were three basic types of balls, all conforming to the same general specifications. The oldest technology still in use was the three-piece ball, which consisted of a core, windings, and a cover; this ball was good for spin and overall control. The second, and most popular, type of ball was the twopiece ball, which eliminated the windings of the three-piece ball; this ball produced more distance. The newest technology was the “solid core, multi-layered ball,” which had taken the

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.

Behind any great company usually sits a great leader and entrepreneur. For Callaway Golf, this was no exception. Ely Callaway was known for his business philosophy: “Demonstrably Superior, Pleasingly Different”- he believed that “in business, in leisure and in life, you need to differentiate yourself, stand out, be exceptional, fill a niche, over deliver and always, always stand for your principles and deliver what you promise (Callaway Golf Company).” Throughout his career, Ely Callaway found business success- as president of Burlington Industries, and successful creation of both Callaway Vineyard and Winery and then Callaway Golf Company- utilizing focused differentiation strategy and blue ocean strategy successfully (Gamble, 2000).

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.

Ely Callaway founded Callaway Golf Company in 1982. In the early years, the company was named Callaway Hickory Stick USA, Inc. and specialized in hickory shafted putters and wedges. In 1988 the name of the company was changed to Callaway Golf Company. In the '90s, Ely Callaway and his company changed the golf industry in ways no one could have anticipated. Richard Helmstetter and his R&D department found a way to create a stainless steel driver that had a larger and more forgiving