Case study- Callaway Golf Ball Company

论文题目： Case study- Callaway Golf Ball Company
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Case study- Callaway Golf Ball Company

The founder established Callaway Golf Ball Company in 1982. And the world's largest manufacturer of golf clubs is committed to continuously innovate for all golf lovers, providing a variety of products and services and helping them improve these days. Callaway’s mission is to develop "more approachable product" for amateurs. This kind of customer value takes Callaway into the glory in the 1990 s. Callaway's mission is to develop "more approachable product" for amateurs.
This paper makes an detailed analysis of Callaway Golf Ball Company, starting with market frationize and behavior contributing to the 4Ps(product, place, price and promotion). After analyzing, some recommendations will be provided to help Callaway Golf Ball Company in establishing an influential marketing plan.  .
Since entering into 2000, due to the errors in the product development direction, Callaway advocacy has failed getting the customer value proposition and the company has the crisis for many years. So it is urged to start the journey of transferring the Callaway restructuring from a professional sporting goods company to a mass consumer goods company. 

Product: 

Callaway Company is classic when the launch of "Big Bertha" in 1991 happened. Prior to this, the No. 1 tee wood is usually on the players tee off bar the highest precision. Ball point deviates slightly from the ball which will deflect. However, the "Big Bertha" expanded the club in the sweet spot, increasing fault tolerance so that the player can hit a ball in the point deviating from the sweet spot (under the condition of eccentric ball). In addition, Callaway Golf Company noticed mang club members all over the world have not taken up golf because Golf seems very hard. So, the Big Bertha was invented, which converted many non-customers. 
Promotion: when Big Berthas was first launched in 1991, magazines and television were all used for the advertisement. At first, Callaway Golf Company treats R&D seriously. However, the phenomenon became rather relaxed to some degree at the end.

Place: 

Besides price and products, how to distribute goods and services customers are also vital, which shows concerns about that product is available the proper quantities at the right time and place. Inventory controls, se;ection of marketing channels and order processing are all involved in the distribution decisions. In the case of Callaway Golf Ball Company, producs are generally bought from a wholesaler for retail. There merchandise is sold and displayed to consumers 
Price:The price often ranges form different situations. The product itself meeting the needs of the market is also the beginning of success. During the period of setting wholesale prices pf products, the cost, the rare level and the impact on consumers are all considered.
The Callaway Golf Ball Company had a major strength which was regarded as the breakthrough R&D pioneering three revolutionary product designs. In addition, the products use the concept of S2H2. In terms of customers behavior, it can be hard to describe accurately. To be exact, emotions ranged from frausration to addicition for the game with high competiveness and blamed equipment for poor play. Therefore, it is necessary to update clubs. And everything is confusing. It is not clear which clubs are the best. Also, when some consumers take participate in some clubs, bags and accessories can be regarded as a symbol of status. 

Conclusion 

To be honest, Callaway Company should first change the perception and focus of the marketing. The reason is that the premium priced golf clubs of Callaway Companyhas not matched the hard economic struggles nowadays and the changing culture of Callaway Company threatens the profits and sales.Callaway Golf Ball Company owes the success in bussiness to the innovational culture. The company attaches importance to design and research by hiring talented engineers. 
The remaining part of the case write up is about recommendations and the answers to the questions mentioned in the assignment.

Product development

CGC has devoted time, money and energy to the R&D and quality. The exhibit 1 shows that the Callaway Golf Ball Company had increased the expenditure of R&D in a steady way to 36.5M in 1998. It is important for Callaway Golf Ball Company to keep the leading position in the industry. So, the company decided to invest a lot in the R&D. It can be conclued from Exhibit 3that the sales of product types of metal wood decreased by 7% in 1997 and 8% in 1998, presenting the downside trends. However, the sales of other product types all went up, such as, irons, putter and accessories. From the above, i will strongly recommend Callaway Golf Ball Company to continue with the R&D to come up with creative and innovative products. 
In terms of the promotion, Callaway Golf Ball Company can try to use prime-time., Although the cost is high, it will bring more benefits and profist to the company. Also, Callaway Golf Ball Company pay more attention to the function of television. Nowadays people have entered into digital era. That is to say, television can perfom better in advertisement. 
Regarding the price, sometimes price is to signify quality, which is equated. In addition, price has a direct impact on the consumers’ decision. Perishability is an important key for services provided in the golf industry. The pricing element of marketing mix is widely used to assist demand management(Miller & L.K, 1997). When needs exceed supply, prices increase. Meanwhile, discount can be provided when needs decrease. As is known to us all, price can provide the marketer with a wonderful tool for managing demand as well as supply. The strategies for price differentiation usually contains rates for off standby, frequent user, peak and pay in advance. Within the retailers, consumers would wish to get the golf ball brand  giving consumers the best margi, which can promote this or help increase sales in  category of the golf ball, accessories and so on, or price a dozen golf balls at a discount e.g. 5% off or purchasing 4 sleeves can get one sleeve for free. Merchandise pricing is a vital lever to retailers salesprofitability.

Retail partnership 

Callaway Golf Ball Company actually did not provide credit terms as well as volume discounts within the industry. So, Callaway Golf Ball Company should improve the relationship between retail partners to make it mutually beneficial by relaxing the payment cycle and providing volume discounts to satisfy the current needs within the industry 

Marketing campain 

Callaway Golf Ball Company should launch a useful and comprehensive website, which can promote selling and buying online. Generally speaking, there is a increasing trend of purchasing onlime. And there is a huge section and potential consumers shopping online(Hums & MacLean, 2009). So, Callaway Golf Ball Company should cater to these people to expand scales and profits. At the same time, launching a comprehensive website can promote marketing, which will contribute to the increase of sales of balls, accessories, bags produced by Callaway Golf Ball Companyand so on in the future.

Reference

Hums and MacLean, Governance and policy in sport organizations. Scottsdale,    Arizon: Holcomb Hathaway, 2009, pp,23
Miller, L.K, sport bussiness management.Gauthersburg,MD:Aspen, 2007, pp, 4