Callaway Case Paper
Callaway Golf Company should change their focus and perception of marketing because their premium priced golf clubs do not match today’s hard economic struggles that average golfers are in as well as the changing golf culture that is threatening their sales.
Callaway needs to focus on securing the customers that are loyal and who are true friends to their company. They can offer deals such as having discounts to customers that are repeatedly buying their products as well as gaining knowledge in the technology of their golf clubs to satisfy their customer’s expectations of their product.
Callaway Golf Mission Statement:
“Callaway Golf Company is driven to be a world class organization that designs, develops, makes and delivers demonstrably superior and pleasingly different golf products that incorporate breakthrough technologies, and backs those products with noticeably superior customer service. We share every golfer’s passion for the game, and commit our talents and our technology to increasing the satisfaction and enjoyment all golfers derive from pursuing that passion.” (CallawayGolf.com)
Callaway Golf Company is most well-known for their development of the Big Bertha. The production of this club made the driver go from a golfers least favorite golf club to being a club that every average and professional golfer needed in their golf bag. CGC was able to develop and innovate such superior products such as the Big Bertha because they had a very knowledgeable and committed staff of technicians and designers. Technology and the innovation of golf clubs is what put CGC at the top in the golf industry but their such frequent development of new clubs on the market is now back firing and hurting their sales.
Ely Callaway founded Callaway Golf Company in 1982 and they marketed and developed high-quality innovated golf clubs to not just professionals but to average golfers as well. Ely Callaway’s vision was: “If we make a truly more satisfying product for the average golfer, not the professionals, and make it pleasingly different from the competition, the company would be successful.” (Harvard Business School) Callaway’s vision worked perfectly in the 80’s and up into the 1990’s but over the last several years the golf industry has changed and the sales of Callaway golf club’s has declined. Callaway’s aim is to “Deliver the best performing products, products of which perform so well that they will literally put the joy of the game in your hands. Because the thrills of golf are out there and because we believe everyone with passion for the game deserves the confidence to go out and experience them.” (Callawaygolf.com) Callaway is delivering this message to every player from the average golfer to a professional but they have one problem that is setting the average golfer back from experiencing the passion and thrills of golf. With hard economic times in today’s day in age the average golfer is less willing to spend so much money on a premium priced golf club such as Callaway. The average golfer that I keep referring to is described as someone who golfs a minimum of 10 rounds per year, usually has a handicap of about 18, and buys new golf clubs every two to three years. (Harvard Business School) I think that Callaway has put more of their focus on staying on top in the golf industry and developing new products as fast as possible that they have forgotten the key aspect in how they became such a successful company. CGC has gotten away from satisfying every golfers’ needs. A golfer wants a reliable club that exceeds their expectations when they play. With CGC putting new clubs on the market so fast, they may leave the customer second guessing about how the quality is of the golf clubs that they just recently purchased and there clubs that are now discontinued. CGC needs to change their marketing plan and focus more on what kind of golf clubs...
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