...What are the defining characteristics of the golf equipment industry? Defining characteristics for the golfing industry focus mainly on innovative technology and name or brand recognition. Golf companies essentially sell the same products, so they need to differentiate their products through technological advances such as size, weight, swing velocity, and distances. Research and development is essential to any golf company wanting to stay ahead of competitors. Fortunately for them, golf as a sport attracts mostly upper middle class to wealthy consumers of the economy so the industry can focus on quality with the assurance of high-end sales. Unfortunately for them, because of the expense of golf, when the economy falls, so do sales of golf equipment. Due to the maturity of the market, golf companies are turning to different aspects of the economic market instead of focusing only on clubs and golf balls. International interest in the game of golf has helped to turn the maturing sport into higher profit margins when adding overseas sales, and a new focus on younger generations (and ultimately their large amounts of disposable income available to them through credit cards) has helped to promote the sport to confirm long-range interest in the golf equipment market. Golf companies commonly gain brand recognition by hiring professional golfers to promote their products because testimonials by well-known golfers can be one of the most effective forms of advertising for a company....
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...CASE 3: COMPETITION IN THE GOLF EQUIPMENT INDUSTRY 2009 Background There is no exact date as to when the game of Golf came into existence. The first known reference of golf was made in 1452. Golf has come into its own during the early 1950’s and 1960’s. The game was televised in America, which ultimately meant that more and more people would become exposed to the game. During the late 1990’s.it was estimated that more than 27 million Americans were playing golf. However, between 1998 and 2008, the number of people playing golf had declined from 27.5 million to 25.6 million players. The industry is currently in a state of decline. The recent recession and the onset of regulations from the USGA and the Royal and Ancient society have had a negative impact on the golf equipment industry. 1. The industry is defined by endorsements, branding, technological advances and regulation. - Endorsements – Leading golf brands have always struck endorsement deals with leading golf players. The value of the endorsements has increased significantly since 2000. During the 1990’s top players were receiving between $250 000 - $400 000. By 2007, the top golfers were earning at least $4 million. Tiger Woods has earned more than $80 Million in endorsements in 2009 alone. - Branding – Golf is characterized by brands such as Nike, Callaway, Titleist, TaylorMade, Cobra, Ping, and so forth. - Technological advances – Golf clubs today can hit a golf ball approximately 265m...
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...Decision on Amending the Rules for the Formation of Securities Companies with Foreign Shareholders I. Article 10 is amended to read: “The shareholding of foreign shareholders or the stake of foreign shareholders in a securities company with foreign shareholders shall not exceed 49% cumulatively (including direct shareholding and indirect control). “The shareholding or stake of one domestic-funded securities company at a minimum among domestic shareholders in a securities company with foreign shareholders shall not be lower than 49%. “After a domestic-funded securities company is changed into a securities company with foreign shareholders, the shareholding of one domestic shareholder at a minimum shall not be lower than 49%.” II. Paragraph 1 of Article 25 is amended to read: “Foreign investors may legally hold shares in a listed domestic-funded securities company through securities trading on a stock exchange or hold shares in a listed domestic-funded securities company with the approval of the CSRC by establishing a strategic partnership with the listed domestic-funded securities company, and the approved business scope of the listed domestic-funded securities company shall remain unchanged. The restriction that the shareholding of one domestic shareholder at a minimum shall not be lower than 49% shall not apply to the listed domestic-funded securities company provided that its controlling shareholder is a domestic shareholder.” III. Article 27 is amended to read:...
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...Assignment Questions - Golf Q 1. What are the defining characteristics of the golf equipment industry? What is the industry like? A 1. The defining characteristics of the golf equipment industry are product performance, innovative technology and name brand recognition. Golf companies essentially sell the same products so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years. The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts: golf and sporting goods. Golf companies usually gain brand recognition by hiring professional golfers to promote their products because this can be one of the most effective forms of advertising for a company. Companies are also focusing on creating new products for recreational players. For any company who wants to enter into this market would require significant amounts of investment. Q2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive...
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...Discuss the trends in the golf equipment industry and how it may impact a company’s strategy. Ans: According to new the United States Golf Association (USGA), Golf equipment manufacturers are forced to launch the equipment within the limitation. Therefore, the product differentiation is not quite high while recreational golfers do not enjoy playing due to lack of innovational equipment. Also, the USGA states that there are various factors that result in the declining of golfers such as: - Game difficulty: Golf equipment manufacturers are forced to follow the new USGA rules, thus, recreational golfers are suffered from the limitation of golf equipments. They cannot enjoy playing golf as much as before while new golfers face the difficulty of playing. - Time consuming for practice: According to the limited innovation of golf equipment, golfers need lots of time to practice while they also have take responsibility to their job and spend time with their families. - High golf fee: Some golfers realize that golf fee is high, as a result, they cannot practice frequently. 2. Discuss the importance of innovation, brand, performance, and price in the golf equipment industry. Ans: Good reputation and image can lead to brand loyalty. That’s why many brands use lots of advertising expenditure to promote their brands. As the leading sports brand in the world, Nike has a clear marketing advantage over its competitors. Nike spends some of their annual revenues on advertising to...
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...characteristics of the golf equipment industry? What is the industry like? The defining characteristics of the golf equipment industry are product performance, innovative technology and name brand recognition. Golf companies essentially sell the same products so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years. The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts: golf and sporting goods. 2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not? There has been a great advancement in the equipment technology. Despite these advances in equipment, the average handicap according to the United States Golf Association for both males and females has not changed much. With the improvement in equipment and a wide...
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...Executive Summary 3 Description of Business 3 Mission Statement 3 The Product 3 Market Analysis 3 Future Projections 4 Financial Overview 4 II. Market Analysis Summary 4 Industry Analysis 5 Market Trends 6 Barriers to Entry 6 Changing Forces 6 Customer Analysis 7 Competitor Analysis 7 Critical Success Factors 8 III. Business Implementation and Evaluation 8 Implementation Plan 9 Evaluation 9 I. Executive Summary Description of Business Increasing demand for accurate score keeping coupled with advances in golfing technologies and the ever expanding locations of golf courses have dramatically altered the golfing world by making golf courses more accessible and have leveled the playing field between novice and experienced golfers. However, unlike times past when scores were tallied based on personal integrity, there is now a way to keep a golfer honest about their score keeping. . This will be accomplished by partnering with local golf courses to promote this new technology during the initial roll out phase of the Integrity Glove (IG). The company will provide a select few North Texas golfers with an opportunity to try out the latest innovation in golf scoring equipment at their preferred course. Innovations that improve the accuracy of scoring will enhance the competition and enjoyment of the game for all parties involved. Scoring has traditionally been a function of human inputs. During a casual game a player would record their score on a traditional...
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...Running head: GROWING THE GAME Growing the Game Callaway Golf (Marketing Plan) Abstract This proposal discusses the promotion of and the expanding of the Custom Club Fitting service to more markets. This proposal will also discuss and give a brief overview of the company’s history, overall philosophy, the current market condition, the competition, performance, customers, a SWOT analysis, marketing strategies, and marketing mix strategies. The objective of this proposal is to develop and implement an effective marketing plan to expand Custom Club Fitting to more markets to increase performance in the market. Growing the Game Contents Executive Summary……………………………………………………………………… 4 I Introduction 5 a. Background 5 b. Purpose and Objectives 6 II Analysis of the Environment 6 a. External Analysis 6 a.a. Market 7 a.b. Competition 7-8 b. Internal Analysis 8 b.a. Performance 8 b.b Customers 9 III SWOT Analysis 9 a. Opportunities 10-11 b. Threats 11-13 c. Strengths 13-14 d. Weaknesses 14-15 IV Fundamental Marketing Strategies 15 a. Positioning Strategies 16 b. Competition Strategies 16 V Marketing Mix Strategies 17 a. Product 17 b. Price 17 c. Place 17 d. Promotion 17 VI Implementation and Control 18 a. Implementation 18-19 b. Control 19 VII Conclusion 19 Executive Summary Every golfer's...
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...Industry Report Jim Bob Cooter MANGT 595: Mo/Wed/Fri 1:30 3/4/16 Industry overview: use a maximum of 2 paragraphs to define the industry (e.g., major customer needs met), history, and average profitability. The overview should be as focused as possible The game of golf has been on this Earth for many many centuries. Starting in Scotland in the 15th century the game of golf most likely was brought to the United States when Europeans migrated here. According to an article on Livestrong.com titled “Early History of Golf in the United States”, we know that golf dates back as early as the 1600’s. The article states that two men in Albany, New York were documented being arrested for being drunk and breaking windows by hitting balls with their clubs. Jump ahead to 1744, the article states that shipping records document golf equipment being shipped from Scotland directly to the Savannah Golf Club in Georgia. This evidence tells us that the sport of golf arrived in the United States as early as the mid 1600’s. The golf industry continues to have it’s ups and downs, but the truth is that the future of the golf industry is looking up. According to a Forbes.com article titled “The State Of The Golf Industry In 2015”, CEO of World Golf Foundation, Steve Mona, was quoted saying that about 25 million Americans participate in the sport of golf as of 2015. Over 455 million rounds are played annually at about 15,350 golf courses around the U.S. The golf industry alone is practically...
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...Summary The purpose of this marketing plan is to present a new category-brand extension product designed by DeWALT Power Tools and manufactured by Calloway Golf. The new DeWALT IronDrive Pro category line of golf clubs will embody the brand reputations of quality, power, top of the line features, superior technology and durability that have made both DeWALT and Calloway leaders within their perspective industries. This product is a specialty niche set of golf clubs packaged in a branded walking golf bag and also will include club head covers, a club towel, and balls to complete the perfect golfing experience. Consumers who purchase this product will enjoy the industry leading golf technology of Calloway and combined with the industry leading power tool features and benefits provided by DeWALT. The target market for this product consists of males 20-65 years old, college educated, makes an annual salary of $40,000 or more, and purchases high end products. The ideal customer lives all across the United States, but in particular resides in the industry’s largest regions of the Mid-Atlantic, New England, East North Central, South Central, and West North Central regions. The customer will have some knowledge of around the house DIY projects and tools to complete the task. The value proposition for the DeWALT IronDrive Pro is a golf club designed with the power, speed, accuracy, and durability of DeWALT Power Tools infused with Callaway technology and control to make even the novice...
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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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...Alternative Strategies Healthy competition within the industry is apparent. The major issues lie with regulations, loss of consumers/interest, the recession, and the counterfeiting wars. All companies have strategies that are effective, but should be changed to adjust to the current environmental issues. Callaway currently has an effective strategy focusing on research and development and remains the industry leader. TaylorMade is focusing on out sourcing production in order to increase operating margin and is second in the industry. Titleist is focusing on their strong golf ball market. This is dangerous because if they were to start losing market share, the heavy reliance could negatively impact the company and they could lose millions. Ping currently focuses on its drivers and irons which are selling well, but because of their limited amount of product lines it remains fourth in the industry. Nike relies heavily on endorsements and is the younger company in the golfing industry. The following are three alternative strategies that can help the companies and industry as a whole live up to their full potential at this point in time. Blue Ocean Strategy All the golfing manufacturers could benefit from a blue ocean strategy. A blue ocean strategy is one in which “growth in profits or revenues is achieved by discovering or inventing new industry segments that create altogether new demand.” (Gamble, 2011) In the golfing industry competitors are constantly trying to beat each...
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...Callaway Golf Clubs Term Paper Assignment Webster University Marketing 5000-02 Fall I 2010 Rashad A. Myers Executive Summary Callaway is a premium golf equipment company which focuses on increasing the overall experience of playing the game for those that use its products. The company will increase market share and profits by focusing on specific target markets over the next 12 months. Environmental Analysis Socio-Culturally, Callaway is affected by the fact that the majority of its customers are Caucasian and male. Further, this demographic is largely made up of male baby boomers, and this segment is aging rapidly, with many giving up the game due to health reasons. Also, children are not taking up the game with the numbers that they used to. Instead, they opt for video games and other sports. Politically, Callaway is not affected by legislation. Callaway is certainly impacted by what is going on economically. Golf is a relatively expensive sport to play with any regularity, when you take into consideration the equipment costs and green fees. One of the first activities that are limited is recreational spending in a down economy. The company will suffer if people’s discretionary spending is limited for extended periods of time. Callaway is affected by Legal and Regulatory forces because its governing body, the United States Golf Association (USGA) can make changes to equipment any time it wants to. Callaway incorporates technology heavily in their...
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...Strategic Report for The Callaway Golf Company Innovation through Collaboration Scott Damassa Amy MacKinnon Alisher Saydalikhodjayev April 14, 2007 Harkness Consulting Table of Contents Executive Summary ................................................... 3 Company Background ................................................ 5 Competitive Analysis.................................................. 7 Internal Rivalry ................................................................ 8 Entry .............................................................................. 12 Substitutes & Complements ........................................... 13 Buyer & Supplier Power ................................................. 14 SWOT Analysis ..........................................................15 Strengths ....................................................................... 15 Weaknesses ................................................................... 15 Opportunities ................................................................. 16 Threats........................................................................... 16 Financial Analysis .....................................................16 Strategic Issues & Recommendations .......................21 References…………………………………………………………25 Harkness Consulting 2 Executive Summary Harkness Consulting has been asked by Callaway Golf to assess its strategic market position and to make recommendations for improving...
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...Callaway Golf Company — 2009 Case Analysis Peter Peter MGMT 637 Strategy Management Professor. Garcia, Edmundo, M.I.B.A Mitjans 1 From its initial existence R&D and innovative products had been the lifeline of CGC. When Callaway bought into the company his first initiative was to develop original products. Innovation and superior performing products are important in golf because equipment is thought to have a significant impact on player performance. Moreover, innovation was important because CGC had to be the technological leader to sell its products at premium price and continue to exceed customer expectations. The industry was also characterized as being driven by new product development because manufacturers were trying to bet each other to the next "best club" so CGC had to manufacture products that were differentiated from its own existing products as well as those of its competitors. The S2H2- introduced in 1988. This club redistributed weight to the striking area of the club head. The Big Bertha metal woods introduced in 1991. The innovative feature of Big Bertha was that it provided a larger "sweet spot". The oversized head made it easier to make contact with the ball so in turn made drivers more widely used by average golfers and revolutionized the way clubs were manufactured. The Great Big Bertha Titanium- launched in 1995. Titanium clubs increased the moment of inertia by moving material away from the club...
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