Briar-Rose Jacobson
April 2, 2012
COM 530
Calloway Golf
Abstract
According to Lal and Prescott’s Harvard Business Case study on Callaway Golf Company, the average golfer is defined as someone that plays ten rounds (minimum) of golf each year. This is the audience that Callaway Golf Company (CGC) is targeting in their marketing strategy. They are also the consumers that are affected the most by the way that Callaway interactively communicates with them. Interactive media, not only being digital, is a leading marketing strategy used by many companies to not only draw in their initial audience but also gain the interest of perspective consumers. Being interactive gives people a way to be a part of the company in a way that changes how sales are engaged.
As the company has grown so has their products and the way they sell them. Overtime, companies have to accommodate to the market and fix developing problems. Even emerging difficulties from years ago can still be looked at.
Problem Statement
After examining Callaway Golf Company’s (CGC) market strategies through the Harvard Business School case study from 2005, it was found that although their history and reputation through word of mouth was what drove their business, Callaway needed to extend their form of marketing. There are a lot of opportunities that Callaway Golf can take a part of. One is making sure that everyone dealing with the sales of their products is educated about each individual product.
Including sales training to retailers ensures that employees are educated on each product; this will help to increase product sales. “Some retail salespeople who welcomed training complained that when a CGC field representative visited them in store the he stayed briefly, checked inventory, and did not instill in them any wisdom about CGC products. As a result, salespeople said they often felt undereducated about CGC technology and, therefore, could not justify the high prices to their customers” (Lal and Prescott 12). In short they went with what they knew by going with the retailers private-label products. Upping the education to retail sellers, including proper tools, training, and workbooks/pamphlets will help to give reassurance to the customer. Knowing that every salesperson is someone who knows the features and benefits of every product will reassure the customer and increase overall customer satisfaction, which in turn, will lead to an overall sales increase.
Also expanding their marketing could draw in a familiar and a new audience. At this point and time they are confided to television channels such as CNN, ESPN, and put print ads in certain sports magazines. Expanding their marketing to the more social channels of media and socialite magazines would be a way to gain audiences. Maybe the men and women who are interested in todays pop culture would also like to see an ad for a new products. If they at least get the opportunity to see the ad, then there is a larger possibility that they would try it out or even go to the website, creating more internet traffic for the company.
Key Issues Facing Calloway (In Todays Market)
With such online bidding sites like eBay and beezid.com, it is a lot easier to find golfing materials for pennies on the dollar. This is a threat to the companies new launch items as well as their clearance pre-owned site callawaypreowned.com. Most Americans today do their shopping online so that they don’t have to deal with the hassle of department and retail stores. Plus people like the fact that they can just have items shipped directly to their home.
Another issue Callaway faces in this market is that of the problem of Golf decreasing as a whole. All around the nation people are becoming less and less enthused about the Scottish originated sport. With not much news or a lot of marketing out there, there is no way for them to keep the audience interested.
Callaway’s Current (2011) Interactive Media Involvement
