Golflogix

Executive Summary

GolfLogix was founded in May of 1999 by Todd Kuta and Scott Lambrecht. The GolfLogix system used Global Positioning System (GPS) technology and came equipped with a handheld receiver called the "xCaddie." The xCaddie made it easier for golfers to measure the distance between their current position and the green. This concept helped diffuse the frustrations of the golfers themselves and of the other golfers who were waiting on the course. In 2002, GolfLogix was faced with the decision of whether or not to keep focusing their target market on the individual golf courses or to start marketing directly to consumers. After researching the company, its competitors, and the industry, we were able to consider both options and make a decision as to what we felt GolfLogix should do. This paper will begin with a brief overview of the game of golf, followed by the introduction of the company. We will then discuss the product, place, price, and promotion of GolfLogix, which will be followed by an industry analysis and competitor analysis of the company. After discussing these areas of the industry and the company, we will discuss the target market and our conclusion based on the research we have conducted.

The Game of Golf The game of golf was developed in Scotland during the fifteenth century. Players would hit a pebble around a course of sand or rabbit tracks using a stick or a primitive version of the golf club. During the mid-fifteenth century, when Scotland was trying to defend itself from an English invasion, many people focused on playing golf, and other sports, to keep themselves from being enlisted in the army. Because of this neglect to join in on the military training, King James II banned golf as a sport. The ban was eventually lifted, and the standard 18-hole golf course was developed in 1764; stroke play was later introduced in 1759 (golfeurope.com). During the early nineteenth century, the game of golf was first introduced in the United States. Players would use wooden or metal clubs and would hit the balls into cups along an 18-hole golf course. The players would begin each hole from the tee box; from here, they would hit along the fairway and eventually end up on the green. Once the player reached the green, he or she would then putt the ball into the cup. Aside from the difficulties of understanding the game of golf, golfers also faced a number of shot hindrances on each hole. These hindrances included ponds, sand traps, and high grass, which would make it harder for the golfer to play the hole. Each hole had a number of strokes designated, "where the number indicated the benchmark number of strokes allowed for that hole." (Gourville 2) A hole was a Par 3, Par 4, or Par 5, with a Par 3 being the easiest and a Par 5 being the most difficult.

For an 18-hole course, 72 was the typical total par, which was the sum of the par for each of the 18 holes. If a player was under 72, he or she was considered to be "under par"; if a player was above 72, he or she was considered to be "over par". As time has passed, golf has proven to be an entertaining sport that is being played all over the world (Gourville 6). GolfLogix The concept of GolfLogix came into existence in 1998 when two friends, Todd Kuta and Scott Lambrecht, were playing golf with one another. Lambrecht, a newcomer to the game, had many questions concerning how to measure the distance between the ball and the green. He would also ask Todd questions concerning which club to use and the direction in which to aim the ball. After so many questions, Kuta became frustrated with the questions and began to think of how to solve the distance measuring problem that many golfers had around the world. With Lambrecht being familiar with the global positioning system, he felt the GPS system could solve many golfers' problems (Gourville 3). Founded in May 1999, GolfLogix used the GPS which aided golfers in playing the sport they loved. The GolfLogix system came equipped with a handheld GPS receiver, called the "xCaddie," which would allow the golfers to see the distance to the green from their current position, reducing both the frustrations from the golfers themselves and the frustrations of the other golfers on the course. The xCaddie was easy for the golfers to read and it enabled the golfers to view their distances in both yards and meters. The product also included custom features that would tailor to the different needs of the different golfers (Gourville 1).

After deciding they wanted to carry out the idea, the two men first had to find out if such a device would be legal in the United State Golf Association (USGA). They found that the standard rule for using a GPS was that it could be used for recreational golf but could not be used during tournament play (Gourville 3). By May 2002, GolfLogix consisted of six full-time employees and had managed to raise $12 million. Although the company seemed to have a great start in the industry, there were many measurement systems that were currently being used by golf courses all around the world, including the yardage markers, sprinkler heads, yardage booklets, and rangefinders (Gourville 4). The yardage markers are considered the most widely used tool for golfers to measure the distance between the green and their current position. The yardage markers are typically colored plastic or concrete plates that are embedded in the center of the fairway. The sprinkler head system involves marking the distances on the sprinkler heads. There are typically ten to twelve sprinklers per hole that help provide the golfer with a point of reference. The yardage booklets are used to indicate distances to and from landmarks. These booklets range in price from three to five dollars a piece. The fourth alternative to the xCaddie are the rangefinders, which allow the golfer to view a target and see these distances on a digital readout. These products usually range from $25 to $300 (Gourville 11). The xCaddie comes packaged for private, public, and resort courses. For golf courses or individual golfers, the product only requires one day for installation. It also comes equipped with both belt clips and mounts that may be attached to the golf carts or around the golfer's waistband.

The product allows for real-time distance to the greens and the hazard zones, and has a simple one-button operation. The xCaddie is also very durable for harsh weather conditions and waterproof in the case that it may rain during play (golflogix.com). The xCaddie increases the pace of play dramatically and players no longer have to search for the sprinkler heads or yardage markers to measure the distance to the green. The product is used on the world's most well-known golf courses all over the world. The system's flexibility