Callaway Case Assignment Essay

Callaway play bon ton (CGC) has maintained top market shargon and superior golf game equipment since 1982. In 1998, sales began to fall and market fecundation posed siz competent strategy questions to the senior management of CGC. CGC is in invite of a red-hot strategic vision for the future. metalworker Marketing Consulting Group is recommending that CGC develop an online merchandising campaign and a new putter line to address the need for continued growth and innovation. CGC enjoyed large market share and utmost profits from 1982 to 1998.Ely Callaway, CGCs founder, accomplished this with his vision If we make a truly to a greater extent satisfying ontogeny for the average linksman, not the professionals, and make it pleasingly antithetical from the competition, the company will be successful. Callaways early strategy from 1988-1997 include new club designs such as S2H2, Big Bertha, and titanium shafts high end legal injurys and a large budget for research and developm ent (R&D). CGC was able to sell more units of equipment at the highest prices due to leading-edge technology. Callaway had a one price policy to all on and off course retailers.CGC also had a marketing plan that included endorsement of pro golfers television and time advertisements and training to retailers on point of sale knowledge. In recent years, the golf equipment industry has seen an increase in competition with many new startups and saturation of products in the marketplace. The industry has also experienced a decrease in demand for high-end premium equipment and an increase in close-out programs. Product life-cycles have start out very short, with most companies introducing new products on a yearly seat and sales of products declining sharply after only 2 years on retailer shelves.Golf equipment consumers tend to bribe new products on spoken recommendations and the average consumer has a handicap of 18 and purchases new clubs every two to three years. Recommendations In order to compete in the golf equipment industry, CGC essential develop new strategies to keep the company growing and moving forward. Smith Marketing Consulting Group is recommending that CGC establish an online alliance with consumers and retailers and develop innovative place equipment as a new strategy going forward.Although CGC has voiced stockpile about using the Internet to sell products, the future for most retailers and manufacturers mustiness include the Internet to stay successful. Based on short product lifecycles and high R&D budgets, CGC should capitalise on the efficiencies of the Internet to continually produce innovative products and allow consumers access to these products in the shortest quantify possible. CGC maintains excellent recognition through word-of-mouth advertising and pro golfer endorsements.Although CGC is fearful of consumers not wanting to delay satisfaction to have products shipped, the decently marketing tool of word-of-mouth advertisement will allow CGC to capitalize with online retailing without consumers needing to physically see the products. CGC should consider a website that would allow the consumer to purchase equipment online, but the order would be picked up at local retail store. This would maintain CGCs relationships with on and off course retailers, yet divert consumers with the ease of shopping from home.An online retail shop will allow CGC to increase market share, maintain superior products and commitment to innovation. Secondly, CGC should focus R&D on innovative putting products to compliment the CGC woods and irons. Putting equipment presently accounts for the lowest sales percentage at CGC, but studies show consumers are much more likely to purchase putters than any other club. Therefore, strengthen the CGC line of putters will increase sales and profits. Smith Marketing Consulting Company appreciates the opportunity to work with CGC and we strongly feel these recommended strategies will greatly hit the company.