ALtius Golf
ALTIUS GOLF AND THE FIGHTER BRAND
SITUATION ANALYSIS
Altius Golf is a company leader in golf balls, it has been the market leader of golf balls for a very long time, but because of the global recession, its CEO and its chief marketing officer are trying to develop a new strategy by introducing a ball that is priced more than 40% below the company’s flagship Victor TX line and it would be sold primarily through the “off-course” channel, keeping it out of the most premium “on-course” retail outlets. Only two directors viewed the move favorably, agreeing that it was the right strategy to meet the broader growth challenges in the golf industry. The other five weren.t happy at all with the implementation of Elevate, the strategy, voicing concerns that the Elevate strategy would damage the brand, undermine the pricing architecture, and impair margins permanently.
One of the main facts to implement a new strategy is to watch out the industry trends. The most worrying trend for the golf industry, was declining interest in the sport in the U.S. This was reflected in both total golfers, and in degree of engagement, as measured by frequency of play. Also the investment in golf course real estate and development fell over 40% .As total golfers and their spending fell, retail outlets also closed at an alarming rate, with nearly 25% of stores closing in the years immediately following the recession. So the downturn accelerated longer-term trends in golf retailing. Consumer studies showed that high costs, lack of time, and the difficulty of the sport were the leading reasons for not playing golf and the USGA was aware of this negative trends so its efforts were focused on making golf more accesible; based on this two golf balls manufacturers, Primiera and Meridian, demonstrated the potential to make the sport more accessible, especially to new and recreational golfers, that shows that the world in changing so if Altius Golf want to keep up being the markt
SITUATION ANALYSIS
Altius Golf is a company leader in golf balls, it has been the market leader of golf balls for a very long time, but because of the global recession, its CEO and its chief marketing officer are trying to develop a new strategy by introducing a ball that is priced more than 40% below the company’s flagship Victor TX line and it would be sold primarily through the “off-course” channel, keeping it out of the most premium “on-course” retail outlets. Only two directors viewed the move favorably, agreeing that it was the right strategy to meet the broader growth challenges in the golf industry. The other five weren.t happy at all with the implementation of Elevate, the strategy, voicing concerns that the Elevate strategy would damage the brand, undermine the pricing architecture, and impair margins permanently.
One of the main facts to implement a new strategy is to watch out the industry trends. The most worrying trend for the golf industry, was declining interest in the sport in the U.S. This was reflected in both total golfers, and in degree of engagement, as measured by frequency of play. Also the investment in golf course real estate and development fell over 40% .As total golfers and their spending fell, retail outlets also closed at an alarming rate, with nearly 25% of stores closing in the years immediately following the recession. So the downturn accelerated longer-term trends in golf retailing. Consumer studies showed that high costs, lack of time, and the difficulty of the sport were the leading reasons for not playing golf and the USGA was aware of this negative trends so its efforts were focused on making golf more accesible; based on this two golf balls manufacturers, Primiera and Meridian, demonstrated the potential to make the sport more accessible, especially to new and recreational golfers, that shows that the world in changing so if Altius Golf want to keep up being the markt