New golf clubs are created by understanding physics and new technology that allows for greater forgiveness and distance in anyone's golf shot. The golf club has gone through a lot since the development of golf. Technology has allowed golfers to get the perfect club for their game that will help them improve their shots and score. Ping, a golf club manufacturer, shows all the aspects that are taken into consideration when a golf club is being made through this video (click the link in the new window). They talk about how their club design will allow for less spin and more distance and also about making the perfect golf club to fit every player.
Product innovation is a key strategy for all golf club manufacturers. They need to make their golf clubs better in order for anyone to stay competitive within this technologically advanced market. New designs are constantly being tested upon and improved. Constant improvement and development is the only way for a company in this industry to survive. However, even though product innovation is a key strategy for this market there are 2 other important strategies that can help anyone in this market to improve sales and gain a greater competitive advantage.
Customer relationship management is one of those strategies that golf club manufacturers lack. There aren't any Ping retail stores, TaylorMade retail stores, or Callaway retail stores, but only general golf retail stores. These retail stores are filled with customer service representatives who have to sell all types of golf clubs, and can recommend any type of golf club to any player. They should cut out the middle man and get closer to their customers. The closer they are to their customer the more they can learn about exactly what each person wants. They need to deliver their products to the customers with service that exceeds all expectations. Use computers to monitor a player's swing and having a specific club that fits perfectly with their swing. Each golf club manufacturer creates new advanced products that will help any player's game, but it's just not reaching the customers in the right way. Players in this market can achieve a great ROI by creating better benefits for establishing a retail store. For instance, they can create a golf range while having a retail store for a specific manufacturer in an area where there are a lot of golfers. They can create a unique experience for golfers to come to their range generating a return on investment right away even though a single golf club wasn't sold. It'll be like going to a car dealership where you can check out all the latest products from TaylorMade and test drive them at the same time getting advice to choose the right TaylorMade.
Another way manufacturers can achieve a competitive advantage is through operational efficiency. Getting their product to the market faster than the competitors. This can be hard to accomplish with so many new products constantly being manufactured. This relies heavily on their research and development team. They can, however, improve the manufacturing and shipping once the products have been designed. Sometimes making the perfect club isn't as important as getting it to the customer first.
Utilizing all three key strategies can be a difficult task in this market. A lot of these golf club manufacturers started with a single person who wanted to improve their golf score. Their idea and passion for the game led them to create their own set of golf clubs which was the start for many golf club manufacturers. The golf club market is very penetrable, but selling durable goods is a very tough business. Customers come to buy golf clubs once every 5 years or so, which is part of the reason for their high prices. Entering any market can be a difficult and daunting task, but once a market is identified as being vulnerable, penetrable, and worth taking the risk for, you can emerge as the leader if you attack the rest of the players where they are the weakest. If a player in the market is weak they will try to show strength and take you out of their market by making the same moves you do, but you will have a first move advantage. So while they try to keep up, you are constantly improving.
Companies need to start reaching their customers better by creating customized designs that are specially made for a specific customer. I believe the technology is there to allow this to happen while still keeping overhead costs low. Manufacturers do have special events where they invite golfers to test and try out new equipment while at the same time creating customized clubs for individuals. These events happen probably once a year, I've never been to one but I can imagine that the turn out isn't too bad. The idea is already there, but their business processes need to be changed which is why I highly doubt they will ever take this into consideration. Golf is known as being a very conservative sport, and I can imagine that the decision makers are very conservative as well being less likely to evoke changes to their profitable businesses.
Monday, April 21, 2008
Monday, April 14, 2008
Exciting Weekend
It was an exciting weekend for golf. The Masters Tournament was held over the weekend with Immelman coming out on top and Tiger Woods coming in second place. Immelman led the way the entire weekend and didn't let anyone catch up to his lead. It was very exciting watching Tiger climb the leader board, but just like last year he came in a close second.
The Masters is televised on CBS and is watched by many viewers. The TV ratings seems to have decreased quite a bit during the past 3 years. I think that the more Tiger Woods dominates the more boring watching golf becomes. I think that everyone just roots for Tiger to lose sometimes.
I guess it's more fun when someone actually challenges the number one golfer in the world and comes out on top.
I believe that the GolfChannel marketed its coverage of The Masters poorly. Their television show was very vague and showed very little highlights throughout the program. They should've used a different approach and try to target specific consumers through their online network.
If the PGA allows the GolfChannel to provide individual coverage throughout the tournament I believe that the consumer base could've been easily marketed to. If certain people watch certain players more frequently than others, they can be shown items that the professionals actually use throughout the tournament and create a specific marketing campaign that targets the specific individual.
By allowing to access this information not only through the internet but also through mobile devices, the people who love golf could've been tracked and monitored to show special characteristics about them. By creating an attributes map of the individuals we could market specific items, equipment, and accessories to all types of players.
It's critical understanding your consumer. The more information you can get from your consumer the better you can market to them. I've been talking about this type of tracking throughout my entire blog thus far, and now I really want to create a new golf medium where viewers and fans can come and watch their favorite players.
The Masters is televised on CBS and is watched by many viewers. The TV ratings seems to have decreased quite a bit during the past 3 years. I think that the more Tiger Woods dominates the more boring watching golf becomes. I think that everyone just roots for Tiger to lose sometimes.
I guess it's more fun when someone actually challenges the number one golfer in the world and comes out on top. I believe that the GolfChannel marketed its coverage of The Masters poorly. Their television show was very vague and showed very little highlights throughout the program. They should've used a different approach and try to target specific consumers through their online network.
If the PGA allows the GolfChannel to provide individual coverage throughout the tournament I believe that the consumer base could've been easily marketed to. If certain people watch certain players more frequently than others, they can be shown items that the professionals actually use throughout the tournament and create a specific marketing campaign that targets the specific individual.
By allowing to access this information not only through the internet but also through mobile devices, the people who love golf could've been tracked and monitored to show special characteristics about them. By creating an attributes map of the individuals we could market specific items, equipment, and accessories to all types of players.
It's critical understanding your consumer. The more information you can get from your consumer the better you can market to them. I've been talking about this type of tracking throughout my entire blog thus far, and now I really want to create a new golf medium where viewers and fans can come and watch their favorite players.
Monday, April 7, 2008
Golf Carts
I was playing golf over the weekend and I saw someone with a motorized golf cart. The cart was moving by itself and was controlled by a remote control. I was researching some models and found that the New 2008 Bag Boy Navigator was similar to the one I saw. It has a remote control and an on-board compass to keep the cart moving straight. I could see how this cart might be helpful for senior citizens, but I didn't see any benefits for any other types of players. This gave me an idea for a new product by combining some existing technology.
I wanted to make an artificial golf caddy. It would combine the motorized golf cart with a GPS system measuring distance from the pin and also use Doppler technology to measure how far your golf ball went. I also wanted this product to have an on-board ball locater that will keep track of where your ball went. After helping you locate your ball the golf cart will also suggest certain clubs and different strategies for your next shot. I also want to add a device that will keep your score for you while you play. This golf cart will actually simulate everything a real caddy does.
I wanted to market this motorized golf cart bundled together with a high-tech golf bag. So if you decide to not use the motorized golf cart, you can still detach the bag and still use some of the features. This golf product would be extremely expensive to manufacture and only the most dedicated of players who have a lot of disposable income would want to purchase this product. Is there enough market potential for this product to even be considered?
According to the Golf Economy Report:
Consumer Spending on Golf Equipment in 2000 ($ millions)
Low: $3,805 Best: $4,096 High: $4,388
There seems to be a lot of potential in the golf market industry for new products. Even though most of the spending is associated with golf clubs and balls, there has to be a great amount of money being spent elsewhere. Since golf clubs are a durable good the demand will tend to stay relatively constant throughout time without much change. Golf is gaining more popularity and the market base is increasing everyday. If people are willing to spend close to $2,000 for a motorized golf cart then why not bundle it with some unique features that some people might find very valuable. The cost might be higher than some of the motorized golf carts on the market today, but I want to target the the golfer with the deepest pockets--someone that is an early adopter of new products. If people like the product and the functions it could create positive network externalities that might help boost sales as well. A lot of people tend to recommend products for their friends, and one look at this unique product might make people want to purchase it as well.
I was thinking of something like this for my product...
Maybe the R2D2 is a bit too much...but you get the idea.
I wanted to make an artificial golf caddy. It would combine the motorized golf cart with a GPS system measuring distance from the pin and also use Doppler technology to measure how far your golf ball went. I also wanted this product to have an on-board ball locater that will keep track of where your ball went. After helping you locate your ball the golf cart will also suggest certain clubs and different strategies for your next shot. I also want to add a device that will keep your score for you while you play. This golf cart will actually simulate everything a real caddy does.
I wanted to market this motorized golf cart bundled together with a high-tech golf bag. So if you decide to not use the motorized golf cart, you can still detach the bag and still use some of the features. This golf product would be extremely expensive to manufacture and only the most dedicated of players who have a lot of disposable income would want to purchase this product. Is there enough market potential for this product to even be considered?
According to the Golf Economy Report:
Consumer Spending on Golf Equipment in 2000 ($ millions)
Low: $3,805 Best: $4,096 High: $4,388
There seems to be a lot of potential in the golf market industry for new products. Even though most of the spending is associated with golf clubs and balls, there has to be a great amount of money being spent elsewhere. Since golf clubs are a durable good the demand will tend to stay relatively constant throughout time without much change. Golf is gaining more popularity and the market base is increasing everyday. If people are willing to spend close to $2,000 for a motorized golf cart then why not bundle it with some unique features that some people might find very valuable. The cost might be higher than some of the motorized golf carts on the market today, but I want to target the the golfer with the deepest pockets--someone that is an early adopter of new products. If people like the product and the functions it could create positive network externalities that might help boost sales as well. A lot of people tend to recommend products for their friends, and one look at this unique product might make people want to purchase it as well.
I was thinking of something like this for my product...
Maybe the R2D2 is a bit too much...but you get the idea.
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