Case Analysis Callaway Golf Company Essay

When it comes to the factor ins contributed to Callaway golf game Companys success, the tremendous effort it made on modify technology was one thing. With Senior Executive Vice President care Richard Helmstetter, who is the Chief of New Products as well, Research and Development has always been the lifeblood of Callaway golf Company (CGC). Helmstetter believes that If you can make something sufficiently good, what it costs doesnt matter. CGC was consistently be on the leading position of technology, which differentiated their products from others and light-emitting diode to the results that CGC sell more units of equipment at the higher price than any other of its competitors in the market. The consumer behavior in golf equipment industry was another factor that led to CGCs success. First, golf was unlike almost any other sport, the equipment vie a significant role in golfers performance. Therefore, golfers always seeking for an edge that would help improve their plays.Average golfers, who were the segment CGC targeted, were adequate to tell the noticeable differences when they used premium equipment. The advanced technologies CGC had with their products perfectly fitted the behavior. Second, when do a purchase, most golfers accepted word-of-mouth recommendations. The form of advertising worked for CGC since golf was played in groups of people who spent hours together, and whenever one player had a good shot with a new club, it impressed others. The last factor that contributed to CGCs success was the support mechanisms it provided to its sellers. As CGC achieved product differentiation with always updated technology, it was important for retail salespeople to understand the product and technology well.To accomplish the goal, CGC supplied its retailers with brochures, informational videos, pocket-sized product guides, and training. CGC also provided product advertising, endorsements, warranty programs and most importantly, the closeouts to help its retail channels. Closeouts occurred when a new-product introduction or when CGC would like to get rid of its fund and it helped the retailers to bring down the average cost of the remaining inventory as well. As a result of these support mechanisms, CGC was placed in perish three for excellence in customer service.