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

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Callaway – As Good As It Gets Callaway – As Good As It Gets Presentation Transcript

  • Callaway – As Good As It Gets?
      • Simon, Cora, Rodney, Denise
      • MBA – BMG 777J1
      • A Strategic Marketing Review
      • & Analysis
  • Agenda
    • Introduction & Background
    • Market Overview & Size
    • Callaway Analysis
    • Competitor Analysis
    • Key Success Factors
    • Results & Conclusion
  • 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
  • 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.
  • 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)
  • Market Overview Source: Euromonitor Growth in Market (Sports)
  • Market Overview Source: Euromonitor Growth in Market (Golf)
  • 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
    • 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
  • Porters Five forces analysis Market Overview POTENTIAL ENTRANTS SUBSTITUTES SUPPLIERS BUYERS COMPETITIVE RIVALRY
  • 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 ☺ ☹ ☺ ☹ ☹ ☺
  • Callaway Analysis Callaway operates in the Premium & Super Premium niche. There are 4 main areas. Product Segmentation
    • " 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
    • 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
  • 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
  • Product Life Cycle Callaway Analysis BB2 BB1 ERC II Hawkeye Steelhead III
  • Sales by product Callaway Analysis
    • 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
    • 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
    • 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
    • Marketing Strategy
      • ‘ Revolution in aerodynamics’
      • Global distribution
      • Premium and Super Premium Price
      • Promotion
        • corporate logo programmes
        • tours
        • merchandise
    Callaway Analysis - Golf Balls
    • 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
    • Positioning
      • Fun/ relaxed /traditional brand
    • Marketing Strategy
      • Mainly N. America
        • Europe, Japan (‘03)
      • Premium price
      • Promotion
        • exclusive fashion shows as launchpad
    Callaway Analysis - Accessories
    • 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
    • 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
  • 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
  • Results
    • Strengths
      • Marketing - Brand loyalty/ Product range /Sponsorships
      • Partnerships
      • R & D
    • Weaknesses
      • Pricing?
      • Large marketing budget required to sustain market leading position
    • Opportunities
      • Strategic partnerships e.g. accessories in different geographies
      • Raise profile outside US
    • Threats
      • Global brands entering market e.g. Nike
    Results
  • As Good As It Gets !