Retailers Case

One price for all retailers avoids channel conflict. Track retailer behavior to provide varying volumes of sales call. Adopt ways to improve relationship on one to one basis. Also, think of education on retail front. Sales people are the key figures for selling their products they should motivate them, by providing incentives, rebates commissions etc the sales people should make surprise visits, as a customer to see how their products are being displayed and to study the customer's behavior towards their products. They should provide the retailers with physical space for better inventory management, loss of sales were accounted, because there was no replenishment.

One area that I see will help them in gaining competencies is the Richard C. Helmstetter Testing Centre. Every pro and amateur can get in there to work on their skills, one can use them as an expert panel and use their ideas and experience to expand the product line and to test new products. The other area main area of core competencies is their expansion in golf balls. Thus in a way their pushing their brand and offering the convenience of buying the needed products under one brand umbrella.

Superior designs create a pull demand. Stabilize growth of R & D budget. Continue to strive for unanswered question, but work on improving the process to decrease costs and maximize value of each new offer.

They should also, put more money in their marketing campaign and like their rival Titleist, get popular golfers to endorse their products, put emphasis on their on-course sales.

Come up with a promotion message of differentiation to justify price premium. Media: TV, trade magazines, as validation: celebrity endorsements and voluntary rewards. Use integrated sales approach to retailers and focus on point of sales marketing. Initiate demo days at off-course locations too. Sustain value release upgrades every two years to prevent customers from switching. Reinforce product development with increased brand equity and greater push at point of sale.

Callaway in the past had taken quick action against companies that tried to knock off any of their products. This has got to continue if they wish to stay ahead in the industry. At the same time continually produce new and better products in the forefront of technology, because eventually there will be someone who will get hold of the technology and will make legal copy of their products.

...