Callaway Golf Marketing

Summary:

* Callaway's growth and diversification have come from its development of advanced technology through its own research and design.

* CGC has developed golf clubs and merchandise for every kind of golfer at beginners' level of golf to pro.

* The golf industry is extremely competitive and demands that golf companies develop the best technologies that will appeal to the masses of golfers. Golfers tend to try any brand if it will make them play better.

* CGC is the #1 golf manufacturing company in the world. With its size, this gives them power and advantage over competitors as they enjoy large economies of scale.

* To promote its products, Callaway uses the following promotion mix: media advertising, sponsorship, special promotions, golf shows, and demo days.

* Another way Callaway promotes its products is by sponsoring professional golfers on all of the major golf tours. This builds a brand identity, awareness, and loyalty with its existing and potential customers.

* The company maintains premium prices because that gives them the highest profit margins and keeps the Callaway brand as a premium brand.

* After a decline in sales from 1998 CGC has had to reconsider the marketing program that had successfully supported the product in the past.

Strategic Recommendations:

* Sponsor golf tournaments in schools and universities as this will help to promote the game and use of CGC equipment at a younger age thus increasing brand awareness. Consumer interest is also getting younger and younger. CGC could sponsor Golf Camps during the summer months. Summer camps are very popular within America.

* Production of the product only occurs in America. Financially it may be more profitable to expand production into Eastern Europe where labour and production supplies are cheaper.

* Start a Callaway Online Shop - this would require moving marketing channels and selecting personalities for endorsements.

* Aim a specific marketing campaign at the baby boomer generation as they are nearing retirement and the total amount of golf played at retirement tends to increase dramatically. With the increasing number of baby boomers retiring and playing more golf, Callaway has the opportunity to increase its sales.