Callaway Golf

Topics: Golf, Professional golfer, Club Pages: 6 (2223 words) Published: March 1, 2014
Wayne Mallette, director of performance management for Callaway Golf Canada is asked by the golf company’s managing director Steve Kaufman, to measure the functioning of the Mobile Performance Team (MPT). He is also expected to implement an effective plan of action that would guarantee that Callaway Golf Canada stay superior to its competitors for the rapidly approaching 2008 golf season. Callaway Golf’s main goal is to be of assistance to every golfer to help them improve their golfing skills. This does not inevitably mean that their products will resolve every golfers problem, it simply represents that they will do all in their power to help golfers enhance their abilities in the sport. One of the main strategies of Callaway Golf is focusing on resources and research to develop unique and new products of the highest quality, and maximizing sales by persuading customers that by solely purchasing and utilizing the product this will improve their golfing skills.. Another Callaway strategy is marketing and advertising by the use of endorsements from golf professionals. This strategy is used to increase sales by using their product in association with the celebrity players to demonstrate to customers that if the professionals are using Callaway’s products, then it must be first class equipment. However, Callaway Golf invests more in research and development than celebrity endorsements. They have found that this strategy delivers more benefits to the company with the consistent high financial improvement rate of its products and the continuous innovations of these products. Callaway’s customers consist of players from beginners to professionals and from a large variety of socioeconomic groups. To target its market more effectively, Callaway developed specific brands to appeal to each level of golf. The Top-Flite brand was geared towards beginners and the younger players who wanted the technological assistance along with an affordable price. This brand of equipment is sold at retailers such as Costo where the more price-conscious customers shop. The other brand Callaway developed is the Ben Hogan brand which is targeted more towards the high performance players who want to keep their equipment customary yet reliable. This brand is usually sold through the pro shops and golf retailers to insure that the products are reaching its target market efficiently. Callaway has become a very successful company in the industry. It is now one of the most popular companies with its unique innovations that have technologically changed the golf world. One of the company’s recent successes is the implementation of the MPT Program which was created by Mallette in 2004 to improve customer service which is the main priority of Callaway golf. As stated by Mallette himself “We feel that through identifying and delivering value-added services to both club professionals and individual players, service can be an area for us to differentiate ourselves from the competition moving forward”. How the program works is that there are 20 individuals that Mallette has hired who have both business and golf skills, to travel to the private clubs across the country. They demonstrate the Callaway equipment line and measure customers for custom equipment while working alongside golf professionals at the club. This program runs only from May until September of each year, costing the company on average $500,000 to operate the program on an annual basis. Rick Hazell, head golf professional at a prestigious private club in South-western Ontario positively stated the following “ In the three years that Callaway has been doing fitting days here, my sales with Callaway have increased more than 10 per cent each year. On the other hand, sales from my other suppliers are decreasing by an average of about 8 per cent per year”. That statement confirms that Mallette’s innovation of this program has proven successful, and has created a competitive advantage over other...
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