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A Market Analysis for
Callaway Golf
Koree Kitchens
https://en.wikipedia.org/wiki/Callaway_Golf_Company
Full Sail University
Project & Portfolio II: Business and Marketing
November 19, 2019
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EXECUTIVE SUMMARY
This report provides an analysis and evaluation of the current state of Callaway golf and
the golf industry in order to determine what would be the best target market to expand their
company and product lines. Methods of analysis include the current market and products that
Callaway has, along with the trends of the golf industry as a whole. It is found that female
golfers account for 35% of beginner golfers and that 35% of junior golfers are female and would
be the best audience to grow their footprint with. It is recommended to introduce new product
lines that is tailored toward female golfers within the next year. Limitations include a lack of
information regarding current female market share and what would appeal to female golfers.
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OBJECTIVE
Callaway Golf company is looking for opportunities to expand their target market and
want to know the best area to expand their company in order to reach a wider audience.
RESEARCH METHODOLOGY
This report has a variety of methods used to obtain its information. The report features a
blend of external secondary research that is both qualitative and quantitative data. The data was
gathered throughout the month of November 2019 with information found as current as January
2019. Internal information was hard to come such as new product development as the key
sources of this information was found via the internet and tertiary sources.
RESEARCH AND KEY FINDINGS
Callaway delivers premium high-performance golf equipment to give you an edge.
Golfers who use Callaway can look forward to high quality equipment that will help them
become a better golfer. For 40 years Callaway golf has been developing cutting edge technology
for golfers around the world. Callaway sells products under the brand names Callaway Golf,
Odyssey, Strata, and TravisMathew (Callaway Golf, 2019). The three major product lines that
Callaway features are golf clubs, golf balls, and golf gear.
Sportsrec.com ranks Callaway as the premier golf brand with their main competitors,
TaylorMade and Titleist, ranking just behind them to round out the top 3 (Gordon, 2018). While
considered a premium brand Callaway’s online presence is lacking compared to its competitors.
Among their three largest competitors Nike, Titleist, and TaylorMade, Callaway has the lowest
number of twitter followers.
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Callaway has been a leader in innovation and new technology among the top golf brands.
In 2019 Callaway introduce 2
new clubs solely created and
designed by the new artificial
intelligence that was
introduced. This technology is
able to cycle through over
15,000 iterations of designs to determine which would be the best, cutting back on
thousands of hours previously used to test these designs (Simpson, 2019).
Recently Callaway has seen a steep increase in stock price with a rise of over 300%
during the last 5 years (ELY Stock Chart, 2019). The stock rising is an indicator of the growing
popularity of golf. According to
the national golf foundation the
golf industry has seen five straight
years with over 2 million plus
beginner golfers. Over the last
year the industry has grown by 2.6
million the highest growth the
sport has ever seen (Golf Industry,
2019). The growth of the female and junior golfers has also seen a steady growth reaching all-
https://www.golftec.com/blog/2019/07/equipment-launch-new-callaway-epic-
star-line/
https://www.barchart.com/stocks/quotes/ELY
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time highs in both categories. 35% of new golfers are women indicating a new market that needs
to be filled (Hennessey, 2019).
While Callaway has been very successful in retaining their current customers and have
appealed to the prototypical golfer, Callaway has lacked in entering new growing target markets
such the female and junior market. Callaway offers a variety of clubs for adult men but lack a
variety in women’s clubs and women’s appeal. Callaway offers 8 different driver clubs for men
as opposed to only 2 different options for women. The same goes for irons, wedges and woods,
while there is no specific option for putters that are geared towards women and what would
appeal to them.
CONCLUSIONS
Callaway has done a good job in growing their brands value with an increase in stock
price. Callaway is widely considered by golf industry experts to be the premier golf company
and have successfully implanted themselves as the go to company for golf amateurs and
professional across the world. Callaway has used their revenue from their company to invest in
new innovative technology to give them an edge over their competition.
The golf industry as a whole is in a good place with the growth of beginners at an all-time
high. The growth of the female and junior population is also growing at a rate that has not been
seen before. With the growth of the female
population in golf gives insight that a new
market is going to have to be fulfilled that
otherwise had not had too much focus
given to. Callaway has been behind the
curve in creating products that appeal to https://www.lolwot.com/10-of-the-hottest-female-golfers-in-2015
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these new growing markets and could benefit from targeting females to grow and expand their
product line and target market.
RECOMMENDATIONS
After evaluating the state of the golf industry and Callaway, it is recommended that
Callaway takes a strategic approach in reaching female golfers as a new target market for their
company. This could be done by rolling more products that appeal to female golfers. By March
of 2020 Callaway should introduce 2 new drivers that are specifically tailored toward the female
golfer that would include size and color. By growing the product lines for females, the company
can expand their target market and become a leader in this market share. It is also recommended
that a new apparel product line be created and introduced by July 2020. Further research should
be done that focuses on the current female golfers that chose Callaway as their company of
choice. This research should focus on determining what they look for in golf products and what
would appeal to them.
REFERENCES
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Callaway Golf Company. (2019, November 19). Retrieved from
https://en.wikipedia.org/wiki/Callaway_Golf_Company
ELY - Callaway Golf Company Stock Price. (n.d.). Retrieved November 22, 2019, from
https://www.barchart.com/stocks/quotes/ELY
EQUIPMENT LAUNCH: New Callaway Epic Star line. (2019, July 15). Retrieved from
https://www.golftec.com/blog/2019/07/equipment-launch-new-callaway-epic-star-line/
Gordon, J. (2018, December 11). Top 10 Golf Club Brands. Retrieved from
https://www.sportsrec.com/6625204/top-10-golf-club-brands
Callaway Golf Company. (n.d.). Retrieved from
http://www.fundinguniverse.com/company-histories/callaway-golf-company-history/
Hennessey, S. (2019, February 26). Encouraging golf participation trends for 2019-a 30-plus-
year golf executive dishes on an optimistic state of the industry. Retrieved from
https://www.golfdigest.com/story/encouraging-golf-participation-trends-for-2019a-30-
plus-year-golf-executive-dishes-on-an-optimistic-state-of-the-industry
Simpson, M. (2019, January 4). Callaway Golf uses artificial intelligence to create newest clubs.
Retrieved from
https://www.itbusiness.ca/news/callaway-golf-creates-golf-clubs-using-artificial-
intelligence/108092
10 Of The Hottest Female Golfers In 2015. (2015, November 17). Retrieved from
https://www.lolwot.com/10-of-the-hottest-female-golfers-in-2015
