- Altius Golf is a leading manufacturer of premium golf balls in the US market. However, it saw declining sales following the 2008 recession as interest in golf waned. - To attract new and recreational golfers, Altius plans to launch a new brand called ELEVATE with more affordable golf balls priced at $27 per dozen compared to their premium Victor TX line at $48 per dozen. - This strategy aims to increase Altius' market share by targeting beginners and non-professionals through an affordable new product sold in off-course retail stores.

1. Altius golf and the fighter brand
prepared by:
hema sharma
priya saraswat
mba
Mody university of science and technology

2. Executive summary
• Altius Golf is a private firm in US which manufactures high quality Golf
balls.
• It is the market leader in the premium golf ball segment which professional
golfers use.
• After the recession in 2008, Altius and the golf industry in general
experienced a negative growth.
• With the decline in the people’s interest in golf the industry has seen a
decline in the no. of golfers.
• The company needs to acquire it’s position again and sustain it’s market
share through product development strategy.
• They plan to launch ELEVATE brand to target new market segment.

3. protagonists
Evelyn Gracie – CEO
Austin Kai – CMO
Board of directors

4. Market of Golf Ball in U.S.
• It is a Market leader of golf ball under the flagship of Altius victor TX line,
and the company had nearly 60% of industry revenues.
• Other competitors in the market were Primiera, Meridian, Bantam and
Carlsbad.
• The main business of Altius was of golf balls, from which they earn 60%
of revenue and 85 % of profit.
• Victor TX line positioned for professional .
• According to the USGA and R&A the golf balls must meet the size and
weight requirements and adhere to limits for velocity, distance and dimple
patterns.

5. •The appropriate ball for a golfer depended on skill level, swing speed
and playing style.
•The retail channels for golf balls was composed of two broads
categories i.e. on course & off course.
•The gross margin of Altius was 70% because of it’s higher prices and
economies of scales.
•Primiera gave more gross margin i.e. 20% then Altius to it’s retailers .

6. Exhibit 2 Golf Ball Market Share
by Manufacturer and Channel
(select data)
U.S. retail unit sales 2008 2010 2012
Altius 48.10% 46.90% 45.20%
Primiera 14.20% 16.30% 18.40%
Bantam 11.60% 11.10% 11.20%
Carlsbad 9.30% 8.10% 8.30%
Carnoustie 5.70% 6.00% 4.60%
Davis 4.20% 4.10% 4.20%
Sarazen 2.60% 2.50% 2.40%
Other 4.30% 5.00% 5.80%

7. U.S. retail dollar sales 2008 2010 2012
Altius 58.70% 56.80% 55.20%
Primiera 11.10% 13.20% 15.00%
Bantam 11.90% 11.30% 11.40%
Carlsbad 8.50% 7.70% 7.90%
Carnoustie 4.30% 4.50% 4.10%
Davis 3.30% 3.40% 3.10%
Sarazen 1.00% 1.10% 1.00%
Other 1.20% 2.00% 2.30%
Altius share, dollar sales 2008 2010
On-Course 68.00% 67.60%
Off-Course 50.80% 47.90%

8. Average retail
price per dozen
balls Altius Primiera Bantam Carlsbad
Premium Victor TXa Flight BCE Seraph
$48 $44 $45 $45
Mid-Range Victorb Aerial Meriona Celeste
$39 $35 $36 $36
Value — Arca Riviera Pegasusa
$27 $27 $25
Economy — Wing Canterbury Pegasus X
$18 $21 $19
Retailer gross
margin % (est.) 15% 20% 20% 20%
Manufacturer gross
margin % (est.) 70% 55–60% 55–60% 55–60%

9. Industry trends
• The golf industry started declining due to least interest in the sports in the
U.S.
• Nearly 25% of retail stores closed in the years immediately following the
recession.
• The sale shifted from on-course pro shops to off-course retailers.
• Consumer study showed that the reasons for not playing golf were high
cost, lack of time and difficulty of sport.
• To spread the awareness about sport,USGA took initiative “Tee It Forward”
and also introduced Golf 2.0 in 2012.
• Later on the equipment manufactures continue to introduce designs that
could make the sport easier and more accessible.

10. Strategy adopted by competitors
• The two main competitiors,Primiera and Meridian made
strategies to attract new and recreational golfers.
• Primiera started a campaign “Play Your Way Challenge” as
custom ball-fitting sessions around the country.
• Meridian went one step further by marketing non-conforming
balls.
• They used major off-course retailers as distribution channels.

11. The elevate strategy
• Their main objective was to increase market share , strengthen
their position and to promote sustained growth by introducing
cheap , affordable price golf balls.
• To increase sales of their product in off course retailer outlets
and providing them more gross margin percent.
• To attract, involve beginners ,Non professionals in its market
so as to increase its revenue by introducing medium price
Non- conforming balls.
• The company segmented their customers into 3 categories
 Loyalists
 Enthusiasts
 Brand agnostics

12. • They refreshed their brands and prices into 3 tiers :
Victor TX :$48 per dozen
Victor : $39 per dozen
Elevate : $27 per dozen
• The Elevate would be promoted with the Victor TX line.
• Elevate is fun, affordable, and keeps recreational golfers
coming back to the game.

13. recommendations
• Based on the analysis of golf industry and marketing strategy
of Altius Golf, it is recommended that the company should
continue the Elevate marketing strategy.
• In addition, it has to focus on low cost and user friendly
designed golf balls in marketing to gain the higher share of
growing market.
• The analysis of alternative reveals that Altius Golf can achieve
high market share of the growing golf industry by decreasing
its retail price and then focusing on increasing the number of
units sold in order to maintain its profitability.
• However, an increase in the number of low price golf balls
sold will depend on marketing and awareness of the low price
as well as quality of equipments among new golf players.

14. references
• Altius golf and the fighter brand :case

15. THANK YOU