2. Lew Klein 1-20-11
ANALYSIS
I reviewed websites, blogs, advertising (TV, print), public
relations and product reviews of the top golf companies and
manufacturers. I conducted store visits in the Chicago area
to review product offerings, displays and prices, and to ask
store personnel their opinion of top brands. I also reviewed
on line golf etailers.
3. Lew Klein 1-20-11
MAJOR GOLF COMPANY COMPETITORS
Titleist (including Vokey wedges, Scotty Cameron putters)
Callaway (including Top Flight golf balls, Odyssey putters,
Ben Hogan clubs)
TaylorMade
Ping
Cleveland
Cobra
Nike
Adams
5. Lew Klein 1-20-11
STRENGTHS, WEAKNESSES, OPPORTUNITIES
STRENGTHS: Titleist is the self-proclaimed, “No. 1 Name in Golf”. The first
thing you think about Titleist is that they are the leading name in golf balls,
particularly the Pro V1 line used by the pro’s and better players. Along with
Wilson they also have a top line of forged, tour grind irons. Reading their ads
and website, it is clear they want to become one of the leading driver
manufacturers as well. Scotty Cameron putters are also the choice of many
pro’s, whereas Vokey wedges have a solid following too.
WEAKNESSES: No real holes in the Titleist line; all their products are solid with
the professional or experienced player in mind. Very traditional technology
without any gimmicks, they also keep their product nomenclature very simple
and easy to understand. Upscale, not very flashy. Sort of the Cadillac of golf
companies.
OPPORTUNITIES: While Titleist may be the number 1 name in golf balls, there is
no clear number 2 in the minds of consumers.
6. Lew Klein 1-20-11
STRENGTHS, WEAKNESSES, OPPORTUNITIES
STRENGTHS: In a nutshell, Callaway spends more money in marketing than
almost any other pure golf company. First known for their Big Bertha drivers,
Callaway promotes itself as the, “No. 1 Irons in Golf”, with their Diablo line
leading the way. In fact, they have 6 lines of irons. Recently their advertising
and website has been promoting their line of drivers (5), leading with soon to be
released Razr Hawk line. Among club manufacturers, Callaway is the leader in
high-end, country club style. Odyssey putters have a strong following among
pro’s and club players. Top Flight is still a well known golf ball brand. Nice
displays at store level. Excellent distribution among golf courses, country clubs,
pro shops and sporting goods retailers.
WEAKNESSES: Callaway has gone beyond car metaphors to actually partner
with one, Lamborghini. Although aspirational, they may alienate the lower to
lower/middle golf club buyer (how many “Average Joe’s” can buy a $250K car?)
OPPORTUNITIES: New Razr Hawk irons look eerily similar to Wilson’s new Di11
irons.
7. Lew Klein 1-20-11
STRENGTHS, WEAKNESSES, OPPORTUNITIES
STRENGTHS: Undisputed No. 1 name in drivers. Soon to release the next
generation “R” driver, the R11 (assume to replace the R9 of matching drivers and
irons). One version will be in white as well. Also well known line of Burner
drivers (and matching irons). Excellent floor display for drivers. Excellent
distribution network. The Lexus of golf club companies.
WEAKNESSES: Top line of drivers seem to be somewhat over-engineered;
adjustability is an expensive add-on that the average golfer will do just once (but
will pay for the privilege of doing it). Burner line is a little long in the tooth
(although great name recognition). Irons have not been as successful as drivers.
Balls and putters nothing really to speak about. Store locator cumbersome.
OPPORTUNITIES: Top of the line driver market is hard to crack, what with
TaylorMade, Titleist, Callaway and Ping leading the way. More pro’s and club
players are mixing and matching drivers with hybrids, irons, wedges and putters
from different manufacturers these days. Wilson can still be the preferred iron in
the bag to compliment these drivers.
8. Lew Klein 1-20-11
STRENGTHS, WEAKNESSES, OPPORTUNITIES
STRENGTHS: First known for their putters, Ping started out as a pure, golf
engineering company (think early Porsche or BMW). Names like Ping Eye2, Anser,
Zing & Pal became synonymous with high quality if somewhat unattractive clubs.
It prided itself on custom fitting every golfer to their game. Today, the early
brand names are gone as Ping has become a sophisticated, stylized full-line golf
company (everything except balls). Ping caters to the professional and better
club player, and most of their distribution is through country clubs, golf retailers
and pro shops. Their recent advertising suggests they want to promote their line
of drivers.
WEAKNESSES: None really at the high-end, unless you don’t want to have clubs
fitted to your swing. Ping does not market to low or low-to-middle level golfers.
You move up to Ping as you get better. Some of the cache associated with early
brand names is gone. Much more homogenized in approach to design. Not as
unique as they once were.
OPPORTUNITIES: Wilson’s Di11’s are very competitive with Ping’s middle range
of irons (G15’s). Look is similar too.
9. Lew Klein 1-20-11
STRENGTHS, WEAKNESSES, OPPORTUNITIES
STRENGTHS: Initially known as a sports apparel and shoe company, Nike has
entered team sports and golf in a big way. Ability to spend Oprah-like cash on
marketing, Nike has quickly made a name for itself buying players, developing
clubs and creating advertising. One of the first (if not the first) to offer a square-
head driver. Huge distribution associated with clothing line, including Nike
Town.
WEAKNESSES: Style over substance? Nike talks the talk regarding R&D (the
Oven?), not sure it backs it up. Lacking lineage, Nike overcompensates with tech
“speak”. Clubs don’t look nearly as advanced or fresh looking as Callaway or
Wilson; they look a few years behind in design and this may catch up with them.
Unclear as to the damage to reputation caused by Tiger Woods.
OPPORTUNITIES: Wilson is a similar sporting goods generalist, but product
based, not shoes and clothing based. Put Wilson’s 100-plus years experience
against Nike’s 15(?) years in a head-to-head comparison and let the best clubs
win. With Nike’s success, can Under Armour be far behind?
10. Lew Klein 1-20-11
STRENGTHS, WEAKNESSES, OPPORTUNITIES
STRENGTHS: None of these companies are exactly “niche” players, however they
all have specific strengths attached to their names. Cleveland was initially known
for their wedges, however they make an excellent line of drivers as well. Adams is
perceived as the “inventor” of the hybrid club category; now they also have a
complete line of matching IDEA irons. By being attached to players like Tom
Watson, the demographic of their customer skews older. Cobra, a big name in the
‘90’s, is trying to recover by launching a limited edition “white” ZL LE driver (not by
coincidence, being used by one of the more flashy players on tour, Ian Poulter).
Very interesting “Club Selector” feature on website.
WEAKNESSES: No real weaknesses, other than market share and stronger
competitors. Adams is the one company that sets itself apart from the rest by going
after the growing baby boomer generation.
OPPORTUNITIES: Although Cleveland may lead in wedges and Adams may lead in
hybrids, there is no clear number 2 in either of these categories. With groove
changes affecting wedges the most, may be a good time to “reboot” the line with
Wilson’s early dominance in wedge technology.
11. Lew Klein 1-20-11
FINAL THOUGHTS
As we discussed, Wilson needs to increase distribution. Furthermore, Wilson
needs to define distribution by mass merchants (Target, Wal-Mart), sporting
goods stores (Sports Authority, Dick’s, Golfsmith etc.) and golf pro shops. Selling
Di11’s or FG irons to Target may not may engender Wilson to upscale buyers,
while selling lower lines to sporting goods stores may weaken the brand
experience.
Wilson plays on a fairly level playing field with Titleist, Callaway and Ping when
it comes to the quality and playability of its irons. Wilson has yet to capture the
imagination of the playing public with its drivers, hybrids and putters. Wilson
advertises enough to get better quid pro quo PR, test drives etc. As mentioned
before, there is no clear No. 2 driver, hybrid, wedge and ball company (from a
public perception). Being No. 2 is not a bad thing.
As Cobra shows with its Limited Edition driver, standing out in the crowd is a
good thing. Plus, one driver can sell for as much as a full set of irons. Wilson
could look into jump-starting their driver sales by producing a “Special Edition”
DXi. With advances is paint technology today, perhaps a modern take on
“persimmon” woods? What was once old is now new again.
12. Lew Klein 1-20-11
FINAL THOUGHTS
Balls. Everyone uses them, everyone loses them (or beats them up). It’s the
old razor blade to razor analogy. It’s a crowded field with well known brand
names as well as newer entries (Srixon, Bridgestone). Wilson’s line of Staff and
Ultra golf balls are as good as anyone's, but it’s never easy to decide which ball
is right for a player. Plus, a player can’t really test hit balls without paying for
them. Possibly develop an on line calculator that determines which ball is right
based on swing speed and control issues. Potential customers who use the
calculator and provide their email address get a $5 coupon off their next box of
Wilson balls (for a limited time only based on acceptable financial exposure).
Wilson has done a nice job with promotions in the past. Although great for
incremental sales, they do very little to increase distribution. Target sporting
goods stores Wilson doesn’t sell through (such as Golfsmith) that are part of a
bigger shopping center, and set up a tent sale in the parking lot (or set up
temporary kiosk’s/stores in indoor areas) for several days. Let users try clubs,
provide list of local retailers, or allow a local retailer to sell on site. Create buzz.
13. Lew Klein 1-20-11
FINAL THOUGHTS
Leverage other, well known Wilson athletes. If they have no other product
allegiances, have clubs fitted for Evan Longoria, Tom Brady, Roger Federer,
Serena Williams etc. Many of these athletes play very competitive golf,
including pro-am events. For a slight additional fee added to their endorsement
contracts, plus free clubs, they may be more than willing to participate.
Speaking of players, how about raising the profile of female golfers at Wilson?
A huge demographic, and with the advent of so many European and Asian
female pro players, a logical step in Wilson’s international strategy. This
assumes endorsing them would be considerably less expensive given the status
of the LPGA.
Final, final thought; increase Wilson’s international footprint on line. In terms
of languages, countries and/or websites, Titleist has 15, Nike 14, Callaway 11,
TaylorMade 11, Ping 9, Cobra 7 and Cleveland 5. Wilson has 4, with the only
other language being Japanese. Research studies show that Hispanics and
Asians are very brand conscious and very brand loyal. Imagine being the
preferred brand in China. Determine risks (cost) versus rewards, and
benchmark other international companies, including parent company, Amer
Sports.
