Topic > Callaway Golf Company Marketing - 1128

Case Write-Up: Callaway Golf Company Callaway Golf Company Marketing Strategy from 1988 to 1997 Since 1982, Callaway Golf Company (CGC) has evolved from a small golf club manufacturer based in California to the world's largest manufacturer and distributor of golf clubs with sales of $842.9 million in 1997. The company's extraordinary growth began in 1988, two years after Richard Helmstetter became vice president of CGC and responsible of new products. Helmstetter led the development of the S2H2 driver. By making the hosel of the S2H2 hollow and short, CGC has created a product that gives more feel to the player's swing and transfers the freed weight into the hitting area of ​​the clubhead, thus giving players more distance in their swings. By the end of 1990, CGC sales had reached $22 million. Callaway incorporated S2H2 technology into the driver that would revolutionize the golf playing experience: the Big Bertha. Introduced in 1991, this model virtually eliminated the hosel and provided a larger sweet spot that allowed the player to mis-hit the golf ball off-center of the clubhead and not suffer much loss of distance or accuracy. Both professional and average players could significantly improve their game by using the Big Bertha and thus derive more pleasure from the game of golf. As a result, CGC was able to price the club at $250 and go on to enjoy sales of 2.355 million units in 1994. In 1995, R&D used titanium to introduce Great Big Bertha drivers and Biggest Big Bertha. The primary factor contributing to Callaway's strategic success from 1988 to 1997 was its strength in research and development. CGC has developed products that have exceeded customer expectations. The Helmstetter approach to difficult questions has been the framework in... middle of paper... a suitable channel for this resale, because it provides a convenience to the customer that cannot be obtained if they were to purchase from a Callaway facility and at the same time at the same time reduces inventory costs associated with sales. This effort would differentiate Callaway, at least temporarily, and strengthen brand loyalty and retain a customer for life. CGC also needs a high-profile male endorser, as most golfers are men. The company should substantially increase its sponsorship budget in order to have figures like Phil Mickelson or Tiger Woods. Finally, the company could tap into, for example, the aging Chinese market, whose rising purchasing power offers favorable conditions for growth in the golf market. in that country. At the same time, the company should improve efforts in targeting youth nationwide. This approach creates brand loyalty at a young age.