Essay on Callaway Golf Company Marketing
Callaway's marketing strategy from 1988 to 1997
Since 1982, Callaway Golf Company (CGC) evolved from a small golf club manufacturer established in California to the world's largest manufacturer and marketer of golf clubs with sales of $842.9 million in 1997. The company's extraordinary growth began in 1988, two years after Richard Helmstetter became CGC's vice-president and chief of new products. Helmstetter led the development of the S2H2 driver. By making the S2H2's hosel hollow and short, CGC delivered a product that put more feel into the player's swing and transferred the freed-up weight into the striking area of the clubhead, thus giving players more distance in their swings. By the end of …show more content…
The figure below shows how Callaway's innovative approach made its products appealing to users.
In 1998, CGC generated 63% of its sales in the United States. The company sold to on-course and off-course golf retailers with no single customer accounted for more than 5% of revenues in 1998 within the United States. 65% of CGC business was done in off-course retail shops. One-third of off-course shops sell two-thirds of products, and two-thirds of on-course shops sell one-third of products. CGC relied more heavily on off-course shops because they are generally better financed than on-course shops.
CGC used television, golf magazines, trade publications, and word-of-mouth as its primary forms of advertising. The company also endorsed professional golfers in all major tours as a vehicle to promote its products.
Finally, Callaway was successful in offering products for every kind of golfer at every level of golf from beginner to pro. Because its clubs provided a more enjoyable golf-playing experience to beginners, the rate of them who continued playing golf after playing for the first time incremented and a new customer base was developed.
In 1998, Callaway reported a loss of $26.6 million. This underperformance was the reflection of