The remaining part of the case write up is about recommendations and the answers to the questions mentioned in the assignment.
Product development
CGC has devoted time, money and energy to the R&D and quality. The exhibit 1 shows that the Callaway Golf Ball Company had increased the expenditure of R&D in a steady way to 36.5M in 1998. It is important for Callaway Golf Ball Company to keep the leading position in the industry. So, the company decided to invest a lot in the R&D. It can be conclued from Exhibit 3that the sales of product types of metal wood decreased by 7% in 1997 and 8% in 1998, presenting the downside trends. However, the sales of other product types all went up, such as, irons, putter and accessories. From the above, i will strongly recommend Callaway Golf Ball Company to continue with the R&D to come up with creative and innovative products.
In terms of the promotion, Callaway Golf Ball Company can try to use prime-time., Although the cost is high, it will bring more benefits and profist to the company. Also, Callaway Golf Ball Company pay more attention to the function of television. Nowadays people have entered into digital era. That is to say, television can perfom better in advertisement.
Regarding the price, sometimes price is to signify quality, which is equated. In addition, price has a direct impact on the consumers’ decision. Perishability is an important key for services provided in the golf industry. The pricing element of marketing mix is widely used to assist demand management(Miller & L.K, 1997). When needs exceed supply, prices increase. Meanwhile, discount can be provided when needs decrease. As is known to us all, price can provide the marketer with a wonderful tool for managing demand as well as supply. The strategies for price differentiation usually contains rates for off standby, frequent user, peak and pay in advance. Within the retailers, consumers would wish to get the golf ball brand giving consumers the best margi, which can promote this or help increase sales in category of the golf ball, accessories and so on, or price a dozen golf balls at a discount e.g. 5% off or purchasing 4 sleeves can get one sleeve for free. Merchandise pricing is a vital lever to retailers salesprofitability.
Retail partnership
Callaway Golf Ball Company actually did not provide credit terms as well as volume discounts within the industry. So, Callaway Golf Ball Company should improve the relationship between retail partners to make it mutually beneficial by relaxing the payment cycle and providing volume discounts to satisfy the current needs within the industry
Marketing campain
Callaway Golf Ball Company should launch a useful and comprehensive website, which can promote selling and buying online. Generally speaking, there is a increasing trend of purchasing onlime. And there is a huge section and potential consumers shopping online(Hums & MacLean, 2009). So, Callaway Golf Ball Company should cater to these people to expand scales and profits. At the same time, launching a comprehensive website can promote marketing, which will contribute to the increase of sales of balls, accessories, bags produced by Callaway Golf Ball Companyand so on in the future.
Reference
Hums and MacLean, Governance and policy in sport organizations. Scottsd
