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

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