Established in 1982, Callaway Golf Company is a leader in the golf equipment industry, creating some of the most technologically advanced golf clubs in the business. In less than a decade, Callaway’s sales went from $5 million in 1988 to well over $800 million in 1997. The main man behind the success of Callaway Golf Company is Ely Callaway, founder, chairman and chief executive officer. Over the course of the company history, other leaders in the company included Richard Helmstetter, who had previously been a successful manufacturer of Japanese billiard cues and joined Callaway. In 1996, the company hired Don Dye. Between 1996 and 1998, when Ely Callaway reassumed the role of CEO, the Callaway Company introduced a series of new products including the Biggest Big Bertha Titanium Driver and the Great Big Bertha Tungsten Titanium Irons. With the average golfer serving as Callaway’s target market, Callaway virtually revolutionized the game of golf the world over with the introduction of Big Bertha in 1991. While Callaway’s target market is the average golfer, it didn’t hurt that professional golfers were also using their clubs. For a golfer who uses a Big Bertha is like having a driver on steroids, leaving the golfer without a Big Bertha at a distinct competitive disadvantage. Selling clubs at a premium, Callaway provides the market with high performance clubs that are proven to deliver skill forgiveness, thus enriching the overall golfing experience. However, today is a new day. Callaway is no longer the only game in town when it comes to manufacturing highly quality, technologically advanced clubs. The competition has caught up to them and now Callaway needs to respond to the ever growing pressures born in a highly competitive industry. They must seek new opportunities and capitalize on their strengths if they are to remain one of the leaders in the field. Key Business Issues
There are two primary or key business issues that Callaway Golf Company must address. The first of these issues is the fact that Callaway is losing market share. The second key issue is that they need to gain new market share. Nothing complicated here, quite simple and straightforward are the issues. What is not as simple and straightforward are the marketing solutions necessary to remedy these issues. Situation Analysis: Identify & Assess 5C’s
The situation analysis begins with the identification and assessment of the five C’s of marketing. The five C’s of marketing analysis that are necessary for sound marketing decisions begin with customer needs in which the company wishes to satisfy. Second, are the Company skills. Company skills are the specific competencies the company possesses to meet the needs of the customer. The third of the C’s is competition. That is, who is the company competing with for market share? Collaborators are fourth among the five C’s. These are the people or entities that a company partner with the company to achieve their objectives. Finally, context is the fifth C. When we speak of context from a marketing analysis perspective, we are referring to the cultural, technological and legal factors that may inhibit or limit the possibilities for the organization. For the purpose of a marketing analysis relating to Callaway Golf Company, the following provides some identification and analysis in each of these five areas. Customer Needs
When it comes to customer needs, there are four major needs identified by Callaway in which the company is attempting to satisfy. These needs are not presented in any particular order of importance or priority. Much to the customer’s desire is / was the need for innovation. Over the years, customers came to know, expect and depend on Callaway’s cutting- edge technology to deliver new innovation when it came to golf club design. For years, Callaway was in a league all its own using...