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Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
Callaway – As Good As It Gets
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Callaway – As Good As It Gets

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  • Transcript

    • 1. Callaway – As Good As It Gets?
        • Simon, Cora, Rodney, Denise
        • MBA – BMG 777J1
        • A Strategic Marketing Review
        • & Analysis
    • 2. Agenda
      • Introduction & Background
      • Market Overview & Size
      • Callaway Analysis
      • Competitor Analysis
      • Key Success Factors
      • Results & Conclusion
    • 3. Introduction
      • Golf, long a game
      • dominated by the country club set,
      • has gotten a boost in popular culture
      • thanks in a large part to
      • the appeal of
      • “ Mr Woods”.
      Keynote, 2001
    • 4. Background
      • Twenty years ago,
      • a tiny three person company in California began
      • making wedges and putters, that were different
      • from anything else on the market.
      Today that company is Callaway Golf, growing from the smallest golf club manufacturer in the world, to the largest clubmaker & force in golf ball manufacturing.
    • 5. Background “ To create golf equipment that is demonstrably superior & pleasingly different, and to help golfers of all skill levels to enjoy the game” Callaway’s Vision … a good walk spoiled (Twain) Golf is an easy game…. it’s just hard to play (Anon)
    • 6. Market Overview Source: Euromonitor Growth in Market (Sports)
    • 7. Market Overview Source: Euromonitor Growth in Market (Golf)
    • 8. Market Overview Source: Euromonitor
      • Consumer Profile (2001)
      • 26.6 million golfers
      • 88% male
      • 45% of sales by 44-64 yr olds - $1.75 billion pa
      • High per capita spend required at all levels - Travel, Social – 19 th hole, Sports holiday market
    • 9.
      • Key Industry Trends
      • Heavy emphasis on product innovation
      • Various performance enhancing technologies
      • Increased TV viewer-ship – US Masters, Ryder Cup
      • Relationships with key athlete icons who embody distinct lifestyles, with the construction of premium brand image.
      Market Overview
    • 10. Porters Five forces analysis Market Overview POTENTIAL ENTRANTS SUBSTITUTES SUPPLIERS BUYERS COMPETITIVE RIVALRY
    • 11. Callaway Analysis Competitors & Market Share 0.48 10.1% Others 0.68 14.2% Wilson 0.83 17.3% Nike 0.88 18.3% Titleist 0.92 19.2% Taylor-Made 1.09 20.9% Callaway RELATIVE MARKET SHARE MARKET SHARE Company ☺ ☹ ☺ ☹ ☹ ☺
    • 12. Callaway Analysis Callaway operates in the Premium & Super Premium niche. There are 4 main areas. Product Segmentation
    • 13.
      • " Callaway Golf... tries to design, create, build and sell the most forgiving golf clubs in the history of the game - giving more golfers more opportunities to hit a few additional "great" shots each round. "
              • Founder Ely Callaway , January 2001
      • Golfers - amateurs / professionals
      • Non-golfers
      • Sports people
      Target Market Callaway Analysis
    • 14.
      • Bags
      • Headwear
      • Gloves
      • Apparel
      Product Portfolio Callaway Analysis Golf clubs Great Big Bertha II Big Bertha Irons Odyssey 2-ball putter HEX Red/Blue Golf balls Accessories
    • 15. Boston Box Callaway Analysis Key Woods Irons Wedges Putters Other 2-ball ERC II Irons BB1 BB2 Wedges Steelhead III Hawkeye Dual Tri-hot Accessories Clothing Stars Problem child Cash Cows Dogs
    • 16. Product Life Cycle Callaway Analysis BB2 BB1 ERC II Hawkeye Steelhead III
    • 17. Sales by product Callaway Analysis
    • 18.
      • Target Market
        • Experienced / Amateur golfers
      • Positioning
        • Great Big Bertha II
          • 'club that changed everything'
          • ‘ most beloved titanium driver in the history of golf’
        • Odyssey Putters
          • 'improve your alignment'
        • Big Bertha Irons
          • 'They're back – More Innovation, More Forgiveness, More Performance'
      Callaway Analysis - Golf Clubs
    • 19.
      • Marketing Strategy
      • Product families
        • GBB2 / Hawkeye /Steelhead families
      • Global distribution channels
      • Premium price
      • Promotion
        • TV advertising
        • Arnold Palmer putters
        • Pro Tours – 50+ golfers
      Callaway Analysis - Golf Clubs
    • 20.
      • Target Market
        • all golfers
      • Positioning – Golf Balls
        • HX Blue /Red
            • 'Next Generation Aerodynamics'
            • 'for more spin' / 'for more distance'
            • technical superiority
            • performance in bad conditions
            • part of the Callaway brand and tradition
      Callaway Analysis - Golf Balls
    • 21.
      • Marketing Strategy
        • ‘ Revolution in aerodynamics’
        • Global distribution
        • Premium and Super Premium Price
        • Promotion
          • corporate logo programmes
          • tours
          • merchandise
      Callaway Analysis - Golf Balls
    • 22.
      • Target Markets
        • Avid golfers
          • apparel - Country range
          • gloves/headwear/bags
        • Traditional golfer
          • Classics apparel range
        • Sports people
          • surfers / patriot range
        • Social golfers
          • Club range
      Callaway Analysis - Accessories
    • 23.
      • Positioning
        • Fun/ relaxed /traditional brand
      • Marketing Strategy
        • Mainly N. America
          • Europe, Japan (‘03)
        • Premium price
        • Promotion
          • exclusive fashion shows as launchpad
      Callaway Analysis - Accessories
    • 24.
      • Part of Adidas Salomon Group
      • Posted revenues of US$5.4 billion in 2001, down 1.5% from 2000.
      • High visibility - apparel sectors e.g. Winter Olympic Games
      • Sporting goods e.g. Salomon skis, snowboards, and in line skates; Taylor Made golf clubs; and Mavic bike components.
      • Adidas products accounted for 79% of total sales, Salomon 12%, and TaylorMade 9% in 2001.
      Competitor Analysis - Taylor Made
    • 25.
      • Revenues increased by 5.5% in 2001, to reach sales of US$9.5 billion.
      • Tiger Woods
      • 4 regions (US, Europe, Asia Pacific, the Americas) - US is the largest market segment
      • experienced 1.8% increase in revenues in 2001. (9.2% increase in apparel sales and a 54.4% increase in equipment sales)
      • Sports clothing, equipment, and accessories and operates retail outlets.
        • (NIKETOWN & NIKE goddess stores)
      Competitor Analysis - Nike
    • 26. Key Success Factors
      • Industry leaders in R&D - cutting edge technology
      • Brand loyalty
      • Key distribution channels
        • Soneil International / Ashworth
      • Custom fitting
        • IBM partnership at on-course locations
      • Callaway - Connect
      • Most extensive product range in the industry
      • High profile pro-golfers promotion
    • 27. Results
      • Strengths
        • Marketing - Brand loyalty/ Product range /Sponsorships
        • Partnerships
        • R & D
      • Weaknesses
        • Pricing?
        • Large marketing budget required to sustain market leading position
    • 28.
      • Opportunities
        • Strategic partnerships e.g. accessories in different geographies
        • Raise profile outside US
      • Threats
        • Global brands entering market e.g. Nike
      Results
    • 29. As Good As It Gets !

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