...Altius Golf and the Fighter Brand 1. Why has Altius Golf lost market share? What will happen if Altius maintains the status quo? Debido al reciente periodo de recesión, los consumidores de equipos de golf han disminuido sus gastos en las pelotas de golf y esta tendencia ha afectado gravemente la industria, de igual forma ha disminuido el número de jugadores profesionales. Las pelotas Altius son caras en comparación a las de la competencia y los nuevos jugadores no están dispuestos a gastar en equipos costosos. Los requisitos reglamentarios de la USGA son muy estrictos en cuanto a tamaño, forma y material de las pelotas, lo que puede afectar el renombre de Altius por no adherirse a dichas normas. 2. What should Altius´s objectives be? What trade-offs must it manage? Deben centrarse en el equipo de golf de bajo precio, como la pelota “Elevate” y cambiar su estrategia de marketing que está enfocada a equipos profesionales de golf y ahora deberá ser a equipos menos costosos, más orientados a los nuevos jugadores que lo practican por diversión, así mejorará la rentabilidad de Altius. Esto se debe a que la industria del golf se está tratando de revivir con los esfuerzos de la USGA mediante el estímulo de nuevos jugadores que practiquen el deporte con reglas más relajadas. Por lo tanto, es un buen momento para captar nuevos jugadores a través de una amplia comercialización de pelotas de bajo costo y que sean no conforme a las normas USGA, lo que ha permitido a los...
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...SUNRU YONG Altius Golf and the Fighter Brand Introduction Evelyn Gracie, CEO of Altius Golf, took a deep breath before introducing the company’s new golf ball strategy to the board. Several years after the global recession of 2008–2010, the private-equityowned company’s revenues had not fully recovered, and there had been grumbling among some of the directors that the old strategy was no longer working. Gracie had been hired at the end of 2012 to turn things around. Over the last six months, she and Austin Kai, the chief marketing officer, had worked on a plan to shake up the golf ball market and strengthen Altius’s leadership position. Now Gracie needed to communicate to her board a clear, compelling vision, backed by a well-articulated rationale: As everyone knows, the long-term industry trends have been worrisome. The number of new golfers has fallen, and the few who take up the sport tend to be less serious and more pricesensitive. We have seen this magnified in our own business as lower-priced competitors have stolen market share. We believe Altius’s long-term success will come from fostering a new generation of loyal golfers, and this will come when we make our brand more fun, affordable, and accessible. If we can attract new and casual golfers into our brand, we will gradually migrate them to our flagship products. This thinking is at the heart of Altius Elevate. Gracie proceeded to outline the Elevate program in broad strokes. Previously, Altius had built ...
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...Altius Golf is one of the leading produces of golf balls. Since the 2008 recession the company has yet to recover their revenues. However, the overall market for golf balls has increased in sales 4.1% in 2012 but continues to fall short of pre-recession records. There are several factors that play a role in the decrease in Altius financial position. Consumer spending has decreased significantly since the 2008 recession that further implicates the struggle with continued interest in golf as a sport with decreasing interest since 2003. With the decrease in golf participants there is a significant imbalance of supply and demand for golfing equipment impacting all production companies. The new strategy Altius is using to introduce the Fighter Brand is both promising but also imposes possible problems. The approach Evelyn is presenting focuses on some of the main problems facing the golf equipment industry including providing lower cost but high quality golf balls to consumers. However the population in which the strategy focuses on is at a higher risk for market losses. Altius would be changing their targeted population from on-course to off-course golfers and as a result their competing market. Because Altius is known as a leader in golf ball production for high quality and high prices balls they would essentially be demoting themselves in the industry. The research indicates a difference in sales from on-course and off-course in both shares and dollars. Essentially...
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...15F250 Altius Golf and the Fighter Brand Altius Golf and the Fighter Brand Marketing Management- Case analysis 3 Marketing Management- Case analysis 3 Altius Golf and the Fighter Brand The case talks of the premium brand in the Golfers market. The case is set in the post-recession period, due to which the company’s market share has been on a decline. The market has seen no new customers over the period and a lot of the potential customers are turning out to be rather price sensitive. The low price competitors are taking advantage over the situation by introducing low priced golf balls and hence seem to be taking over Altius’s existing market share. Altius Golf needs to come up with a new marketing strategy to ensure that the decline in market share does not persist and the competitors are kept in check. Altius is losing its market share and if it continues with the status quo, it would further lead to decline its position in the market. As of now, Altius is only focusing on the professional golf equipment that are being sold in the on-course stores. As mentioned in the case, 35% of the golfers do not buy Altius products citing high prices and 53% of non-golfers do not buy any golf products because they are very much expensive. Hence it is necessary that Altius should focus on low-cost golf balls, i.e. they segment the market in two categories. 1. High-cost Golf balls and equipment 2. Low-cost Golf balls and equipment. Altius Golf has been losing...
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...SUNRU YONG Altius Golf and the Fighter Brand Introduction Evelyn Gracie, CEO of Altius Golf, took a deep breath before introducing the company’s new golf ball strategy to the board. Several years after the global recession of 2008–2010, the private-equityowned company’s revenues had not fully recovered, and there had been grumbling among some of the directors that the old strategy was no longer working. Gracie had been hired at the end of 2012 to turn things around. Over the last six months, she and Austin Kai, the chief marketing officer, had worked on a plan to shake up the golf ball market and strengthen Altius’s leadership position. Now Gracie needed to communicate to her board a clear, compelling vision, backed by a well-articulated rationale: As everyone knows, the long-term industry trends have been worrisome. The number of new golfers has fallen, and the few who take up the sport tend to be less serious and more pricesensitive. We have seen this magnified in our own business as lower-priced competitors have stolen market share. We believe Altius’s long-term success will come from fostering a new generation of loyal golfers, and this will come when we make our brand more fun, affordable, and accessible. If we can attract new and casual golfers into our brand, we will gradually migrate them to our flagship products. This thinking is at the heart of Altius Elevate. Gracie proceeded to outline the Elevate program in broad strokes. Previously, Altius had built ...
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...Case Study: Altius Altius has built and maintained its leading share in the golf ball market. Between the years of 2008 to 2010 the market was hit by a global recession, which sparked the first downturn in Altius’ overall market share. Within the years following the recession, there have been slight trends of growth but industry revenues are still far below pre-recession levels. The current strategy has an extreme amount of emphasis on associating the brand with professional golfers. Evelyn Gracie, the CEO, finds that although this strategy is highly important for Altius, it is becoming less and less effective in attracting golfers and their brand loyalty. As data and survey prove, this is mostly in relation to the declining interest in the golf industry as a whole. Gracie proposes to boost sales and revenue by implementing the Elevate program, a strategy known as a fighter brand. Based on what market trends show, this program hopes to foster a generation of new and casual golfers. BEHAVIOR ANALYSIS Emerging industry data show trends of consumers reducing their discretionary spending, having a negative backlash on the golf ball market. In a consumer survey, Altius segmented consumer attitudes into three categories: agnostic, enthusiast, and loyalist. Compiled data determined a 12% to 17% jump in agnostic consumers, a 19% to 15% fall in enthusiasts, and a 69% to 68% fall in loyalists. These figures imply an increase in casual golfers who are either beginners or price-sensitive...
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...Altius Golf and the Fighter Brand A. Current Situation The retail channel for golf is composed of two broad categories: on-course and off-course. Altius maintained a steady position in the on-course market with nearly 100% penetration of outlets, where no other competitor had a presence in more than 80% of on-course shops. Conversely, Altius’ market share in the off- course channel is clearly eroding, falling by more than five points between 2008 and 2012. Altius’ loss of off-course market share is attributed to the availability of a greater variety of less expensive golf balls in off-course channels. After the 2008 recession, nearly 23% of women and 36% of children had quit playing golf. This resulted in a significant drop in the number of golf players. As such golfers have cut spending on golf equipment, which badly affected the golf industry. Furthermore, investment in golf course and real estate development fell over 40% after the 2008 recession. This resulted in nearly 25% drop in the number of stores immediately after the recession. Thus, equipment manufacturers are experiencing greater pricing pressure as unit volumes are falling and buying power is consolidated among a small group of powerful retail buyers. Compounding the problem, 70% of Altius Golf sales are derived from Altius’ flagship product, Victor TX, one of the most expensive golf balls on the market. Since 2008, golf players are less willing to spend more on their equipment, and more willing to explore...
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...CASE ANALYSIS Course name: Marketing Management Altius Golf and the Fighter Brand FAS Group No: E2 Name of the Students Ashish Rakheja | 15F113 | Pankaj Deshpande | 15F134 | Sarthak Chandra | 15F144 | Shruti Shukla | 15F148 | Sreeda P | 15F153 | TERM 2 – 2015 T A PAI MANAGEMENT INSTITUTE, MANIPAL PROBLEM STATEMENT The recession of 2008 had badly affected the golf industry. The consumers of golf equipment were cutting down their spending and as a result the retail outlets closed at an alarming rate of 25%. The investment in golf course real estate and development sector also fell down over 40%. The sales shifted from on-course pro-shops to off-course retailers. USGA was aware of this and to halt this trend aimed at making golf more accessible. Altius Golf was an undisputed leader in the golf ball manufacturing market in spite of a long term decline in the number of golfers and huge drop in sales resulting from financial crisis. Due to lack in innovation and high priced products, the company has been losing market share to its rivals. The CEO, therefore, wants to launch a new product called Elevate to foster the next generation of golfers. With Elevate, the firm will introduce 4 balls that are more forgiving and easier to drive for distance and offer it at a price 40% below the company's flagship brand. It has now become necessary for Altius to relook into its strategy and come up with the “Elevate Strategy” to regain its market. However the question...
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