GolfLogix has just launched the xCaddie‚ a GPS based device that aids golfers in estimating the distance to the next green. As things look up financially for the company with leases to golf courses and increasing awareness‚ the company ponders whether it wants to explore the retail channel. Through this case analysis‚ we explore the various paths before GolfLogix and recommend a course of action. Company & Product GolfLogix Inc.‚ a three year old company with just six employees‚ has introduced
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Submitted by Kavitha A Karthikeyan GolfLogix: Measuring the game of golf Brief overview about the company: GolfLogix Inc. was founded in May 1999 by two people with an innovative idea to the golf players. By 2000 it has 6 full time employees and after three years and $2 million in investments things were getting better for the company. GolfLogix has developed two different types of golf GPS technology in the form of handheld GPS receiver called “xCaddie” which produce distance to the green to
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target direct consumers. This strategy is primarily focussed on ‘avid’ and ‘core’ golfers with the aim of increasing sales by 400K XCaddie units in the first year. Alternatives: 1. The first option for Golflogix is to implement a strategy to market the product more effectively through golf courses without worrying about direct consumers. This will give Golflogix a freedom to market their product in one segment while still maintaining the revenue growth even if there is no surge in demand at
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CASE 1 GolfLogix - How does the xCaddie create value? Is it compelling? To start with I am going to talk briefly about GolfLogix and its different products. GolfLogix is a quite recent company which was founded in 1999 in Arizona (US). It was based on a simple concept‚ using the GPS to aid golfers to improve their game or to make it easier. For this reason‚ GolfLogix developed the xCaddie‚ a handheld GPS receiver. Nowadays‚ the company offers two different systems. The first one is
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developed a small‚ GPS-based device to help golfers track their play. With the fact that GolfLogix has two devices it is trying to sell: a distance-only device and a complete device‚ currently the company meets a problem that how best to distribute their devices: under the current leasing relationship with golf courses‚ whether should the company still need to market a direct-to-consumer version of the Distance Only xCaddie?Analysis:Retail channel: Advantages: 1)To increase adoption by individual consumers
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Recommendation: Golflogix should sell the Distance-only and Complete-System through the golf courses channel and not in retail to golfers. However‚ Golflogix can reduce their pricing on the Complete-System and generate revenue from an additional stream of subscription from golfers to the Complete-system. This not only generates additional revenue but also increases demand for the system and builds pressure on the golf-courses to provide the infrastructure for it. Analysis: Market numbers suggest
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Group 3 THE GAME OF GOLF • • • Invented in Scotland in 15 th Century Brought to the United States in late 19 th Century Clubs used to hit small hard balls into a cup on each of the 18 different holes on the golf course The players use a club to drive the ball onto the fairway. Starting point on each hole is from tee box Players drive the ball with the use of a club onto the fairway‚ hit an approach shot onto the green‚ and putt the ball into the cup Holes: range in length from over
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Golf Logix Case Write Up 1. How does the xCaddie create value? Is it compelling? The xCaddie provides the following value to the consumer: - Better Golf – Golfers know exact distance to the green‚ so they can choose appropriate club leading more accurate shots and lower scores Improved Pace of Play – Eliminates the search of yardage markers or sprinkler heads Affordability – Can be installed by all type of courses like high end‚ resort‚ private or public courses Portability – Size of the device
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