...Marketing Brand Extension – Bridgestone The purpose of this paper is discuss the brand market extension of Bridgestone corporation into the realm of making golf clubs. Bridgestone golfing products currently include Golf Balls and golf gloves and apparel (Bridgestone, 2014). The brand has a solid reputation as being a top performer not only among the professional golfers but also with the average weekend golfer as well. The proposal of Bridgestone corporation is to start making their own line of golf clubs. There have been many organizations that have successfully entered into the golf club market after being successful in the golf accessories market. The branding extension should allow for the transition and eventual success in this market. Problem and objectives It has been proven that today’s markets are very competitive. Many organizations are under pressure to launch new product to keep their consumers happy and keep the organization going in the right direction. This is no easy task, approximately 35% of new products fail. Brand extension is designed to limit the failure by introducing goods and services that consumers can relate to other products and this will make them more effective in the market. Extending the brand Bridgestone has extensive experience in manufacturing golf balls, gloves and apparel. It is not currently set up to develop and manufacture golf clubs at this time. There are several options for this. Develop and manufacture their own...
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...a retail store that specializes in the distribution of golf supplies to the everyday recreational golfer. The Golfsmith chain operates with 75 retail stores in 21 different states providing not only golf but tennis equipment as well. Carl Paul founded Golfsmith in 1967 with the intention to create a retail service that helped golfers improve their games with custom club fitting as well as market all sorts of equipment in the golf industry. The golf industry is a large one where technology is always evolving along with the techniques and strategies to being a successful golfer. Golfsmith is one of the few chains that can cater to the various needs of golfers throughout the country. The chain defines its core purpose as “To inspire people to play better and live life more.” The golf market is more of an exclusive one compared to other sports such as basketball or football. Golf is a sport more played by wealthier consumers that reside in suburban neighborhoods. Therefore the marketing strategies of a chain such as Golfsmith can be narrowed down to specific demographics. About 85% golfers tend to be white males that fall into the age 18-65 ranges. Over half of the golf consumer market are some sort of manager, professional or executive and have some sort of college degree. The average household income for a golf consumer is over $80,0000. Also, 90% of them tend to be homeowners. These statistics show that golf is an expensive sport played by the more wealthier and...
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...1. 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...
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...Situational Analysis: Arena Park Golf The following information I have composed from the city of Cape Girardeau, specifically on economic climate, demographics, demand trends, technological trends, competitor analysis, regarding Arena Park Golf. This is for a class project that involves a situational analysis of Arena Park Golf and the surrounding area along with some history of golf. Opened in 1998, Arena Park Golf is a golf store located in Cape Girardeau, Missouri with approx. 3,000 square feet of retail space dedicated to golf clubs, golf clothing or other golf equipment essential for the avid Missouri golfer. There are also a public and private golf courses in Cape Girardeau, which shows a market for golf not only in the city but the surrounding area. The history of golf’s built environment in the U.S. has reflected the changing face of the game in terms of the number and type of golf courses built, as well as the demographic profile of those playing the game. Since 2000, the golf industry has experienced significant declines in the key barometers of its economic wellbeing as defined by: the decline in the number of golfers and rounds played and the decrease in the number of golf courses. During the 20th century, there were three “boom” periods of accelerated golf course development that peaked in 1930, 1970 and 2000. The first boom in the 1920s built private golf courses for the upper class. The second boom in the 1960s built public golf courses for the burgeoning middle...
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...into Callaway establish a strong product portfolio. In 1987, Callaway became the first golf company to use computer controlled milling machines to produce innovative club designs. These clubs helped eliminate/reduce the impact of variables such as directional control, distance, etc. during the game thus making it easy to play. Callaway consistently produced innovative products at an impressive rate thus appealing to its present customers at the same time attracting new customers. Examples include: 1988 Introduced S2H2 technology 1991 Big Bertha club design is launched ruled the market in the 90s 1993 Big bertha Heavenwood club introduced 1994 Big Bertha stainless steel woods and Irons are introduced ACQUISITIONS: In 1997, Callaway acquired Odyssey which was one of the leading manufacturer of golf clubs at that time. This move of Callaway had several advantages: 1 This acquisition added more variety of clubs to the product portfolio. 2 Increased market share which is directly proportional to the increase in customer base 3 Reduced competition 4 More manufacturing capacity with Callaway can use Odyssey’s establishments GREAT CUSTOMER RELATIONS/ENDORSEMENTS: Callaway established great rapport with many leading golf players of the time by working closely with them and preparing custom clubs. Many players used Callaway’s clubs with some endorsing the brand and won major golf championships. Examples include: 1 1990 Don Bies becomes the first PGA tour player to...
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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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...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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...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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...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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...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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...S ECCO A/S — GLOBAL VALUE CHAIN MANAGEMENT w Professor Bo Bernhard Nielsen, Professor Torben Pedersen and Management consultant Jacob Pyndt wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2008, Ivey Management Services Version: 2008-03-10 Despite the summer, the weather was hazy on that day in May 2004 as the airplane took off from Hongqiao International Airport, Shanghai. The plane was likely to encounter some turbulence on its way to Copenhagen Airport in Denmark. The COO of the Danish shoe manufacturer ECCOA/S (ECCO), Mikael Thinghuus, did not particularly enjoy bumpy flights, but the rough flight could not overshadow the confidence and optimism he felt after his visit to Xiamen in southeast China. This was his third visit in...
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...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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...Club Fitting, The Importance Of Page Break Impossible; it is impossible for a golfer to maximize the potential without two key components. First component is understanding how to properly position and accurately move to body. Simply having an understanding of the fundamentals of golf and the ball flight laws will not give any golfer the best possible opportunities to succeed. Knowledge of what the body does during the golf swing and how to maximize the potential of those body parts will allow the coach and golfer to assess and train for maximum performance. While possessing these fundamentals will increase the ability of the golfer to make their best possible swing, maximum potential can't be reached if the perfect swing is swinging incorrect equipment. Proper and accurately fit equipment is the second and equally important key to maximizing potential and player ability enhancement. (1)"Fitters say the reason a lot of people hit it sideways is because they haven't been custom-fit. Trying to figure out the swing with clubs whose length, weight, lie angle, shaft flex or grip size don't match the body encourages players to make unnatural compensations that prevent them from developing proper mechanics." Meeting with and interviewing the potential student or fitting client will allow the fitter to have the most accurate ability to assess what the client can and can't do. Physical disabilities will effect what the golfer can do and what the fitting professional should...
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...choice is to look for a golf course home. These are a few signs that you might love living in a home that is overlooking a golf course. 1. You Want to Enjoy Beautiful Landscaping For one thing, if you want to be able to enjoy beautiful surroundings and gorgeous landscaping, you will probably love living in a home on a golf course. Many golf courses are beautifully designed, and those that are well taken care of usually look quite nice. Moving to a home on a golf course can be a good way to make sure that you always have a nice view when you walk outside or look out of your window. 2. You Love to Play Golf Obviously, if you are someone who loves to play golf, you will probably love living on a golf course. You might get a free or discounted...
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...Goals 5 Competencies and Competitive Advantage 5 5. Situation Analysis 5 SWOT Analysis 5 Industry Analysis 6 Competitor Analysis 7 Customer Analysis and Target Markets 7 6. Marketing Program 7 Price Strategy 7 Promotion Strategy 8 7. Sales Forecast 8 8. Implementation 8 Marketing Organization 8 Marketing Activities 8 9. Evaluation 9 Appendix A – Non Member Revenue Projections 10 Appendix B – Income Statement 11 Appendix C – Golf Courses Available on E6Golf Software 13 Appendix D – Marketing Budget 14 Appendix E – Marketing/Activities Plan 2014 – 2015 15 Bibliography 16 1. Executive Summary The following plan outlines the marketing strategy and tactics for introducing virtual golf to Fox Haven Golf and Country Club (FHGCC), a golf course currently operating in High Level, AB. This is the only golf course in the High Level area, the closest other courses being in La Crete and Fort Vermillion, both over an hour’s drive from High Level. FHGCC will build and open a 10 room Virtual Golf Centre at its current location. FHGCC will target this new venture at its current membership of approximately 120, while opening its doors to new golfers and those wishing to remain active over the long winter months. 2. Current Business Operations FHGCC is an 18-hole, par 72, parkland style golf course and driving range. Although small in length (6648 yards from the back tees, 5492 yards from forward tees), it provides a challenge for golfers of all abilities...
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