Callaway Golf Company Case Study Analysis Of A Business

Calloway Case Analysis Danielle Wahl 2/8/2013 Page | 2 Target Market: Callaway’s current customer is the “avid, average, amateur golfer”, golfing five or more rounds a year, with some sort of skill level, though not advanced. Golf for them is a sport and a pastime, yet not a lifestyle. These individuals buy Callaway to improve their game and to impress those they are golfing with. They like Callaway because it is known for its innovative ideas and it is a well-recognized and respected brand. Over time though, the majority of this market has gotten older, and has experienced an increase in their disposable income which should have a positive effect on Callaway, though sales have decreased over time. This leads us to believe that the problem lies somewhere in the marketing and sales representatives in the field. Marketing Myopia (Customer Needs and Wants) Callaway’s customers need dependability and durability in their golf supplies. They also need clubs designed to improve their game rather than their skill. With the focus being on prestige and impressing their friends, Callaway’s main goal needs to be making the golfer look good. Callaway’s customers also want to look good and be known for their prestigious, highly desirable golf gear. They want to be recognized by their friends as skilled but also as “cool”. They want to be able to afford the latest and greatest club while still being able to hold a steady game of golf. SWOT Analysis Strengths: Callaway has many positive, internal strength that will benefit it in accomplishing the development of new products, redesigning their retail partner relationships and also refocusing their marketing plan. First of all, Callaway’s trusted brand name and reputation has been strengthened over time. This is considered a strength

Case | HBS Case Collection | August 2000 (Revised September 2005)

Callaway Golf Company

by Rajiv Lal and Edie Prescott

Abstract

Describes a situation faced by Mr. Ely Callaway, the 80-year-old founder, chairman, and CEO of Callaway Golf Co., in the fall of 1999. After a decade of stunning success with the marketing concept, Callaway suffered a significant loss and witnessed a steep decline in sales in 1998. Mr. Callaway had built a $800 million business by making a truly more satisfying product for the average golfer, making it pleasingly different from the competition and communicating the benefits to the consumer. The results in 1998 forced Mr. Callaway to reconsider the marketing program that had successfully supported the product until now.

Keywords: Marketing Strategy; Crisis Management; Communication Strategy; Product; Business Strategy; Change Management; Competitive Advantage;

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