Callaway CEO Steps Down

[AHA]

This is an interesting development. Sad to hear that they are struggling. Like TC said, I think they have some of the best stuff (clubs) on the market right now. I hope they make the necessary changes/hard decisions and right the ship.

 

[JB]

Here are some stats for you guys.
4.12 of every 10 drivers sold right now is white (as of April 15)
White driver was the most successful driver launch by a golf company in years.

Recession and golf go hand in hand, but the numbers do not lie.
People preferred paint and advertising to Lamborghini.

 

[Beowulf]

Would the amount of clubs sold be more? Maybe, but only by a small margin.
But that is not the goal of a company. It is to make money. With a higher margin and a VERY small dropoff, they do that.

That is like saying would Pro V1 golf balls sell more if they were $20. Of course they would, but the company would earn less.

That is the key right there. I am certain there is numerous studies done to reflect what the maximum allowable retail should be set at to achieve the targeted gross and net profit margins. They don't just give away MBA's.

 

[SloFX45]

Forget te consumers: what's about the Pro Players? How many Callaway Pros will make the full switch? Even if it's only half of the bag. I agree that Callaway needs to come out with something to grab the consumers on the sale end, but it's also the players that game these equipment that supports the advertising. They need to grab some exciting players to promote Callaway. I also agree that the design is outdated. Let's see how they move forward. Would anyone be surprise to see Callaway up for sale buy 2013? Or sooner?

 

[Hawk]

Have to say that their ad campaign sucks this year. Add that to a line of clubs with a weird name and it's not a surprise to me that they are struggling.

 

[JB]

JB,

I dont know you from Adam, but I have to believe the majority of amateur golfers you see are using clubs from pre 2007, most even earlier. When I go to a driving range I would say well over half the people are using "older" clubs, and a lot of the same can be said for the golf course. Just my findings, may not be true of everywhere.

I understand the economics of it, but JB my point is that of all the people that consider themselves golfers (play at least a couple times a year) maybe half have bought a new club in the past year. A lot of golfers have been using the same clubs since college etc. I understand they do research on this stuff, and even if they R11 was 100 bucks cheaper or the superfast was 100 cheaper, I dont know if these people would buy it.

I am just simply saying more golfers than you think are using older clubs

Im going off your 1st post. The bolded section is just not true. Like I said above, I am sure that geography plays a very large role in the matter.

 

[TRyan]

Forget te consumers: what's about the Pro Players? How many Callaway Pros will make the full switch? Even if it's only half of the bag. I agree that Callaway needs to come out with something to grab the consumers on the sale end, but it's also the players that game these equipment that supports the advertising. They need to grab some exciting players to promote Callaway. I also agree that the design is outdated. Let's see how they move forward. Would anyone be surprise to see Callaway up for sale buy 2013? Or sooner?

If things keep up I would not be suprised to see this at all. Callaway needs to do something fast.

 

[coolbreeze]

Here are some stats for you guys.
4.12 of every 10 drivers sold right now is white (as of April 15)
White driver was the most successful driver launch by a golf company in years.

Recession and golf go hand in hand, but the numbers do not lie.
People preferred paint and advertising to Lamborghini.

What a stat that is! Almost 50% of this years drivers sold are white, and we are talking about his being the "year of the driver". That says so much about Marketing, and I would be willing to bet that 3 of those 4.12 drivers are R11's.

 

[TRyan]

Im going off your 1st post. The bolded section is just not true. Like I said above, I am sure that geography plays a very large role in the matter.

JB,

You may be right. I just don't know how to prove it. Like you said geography probably plays a big role in this, as well as the fact that as a college student if I want to continue to play golf 2-3 times a week I have to go to less expensive courses to do so.

 

[Hawk]

Bag make-up definitely changes depending on the course and with the age of the player.

 

[Kmac]

What a stat that is! Almost 50% of this years drivers sold are white, and we are talking about his being the "year of the driver". That says so much about Marketing, and I would be willing to bet that 3 of those 4.12 drivers are R11's.

I think you are probably right about the R11's. Amazing for a driver that really isnt all that forgiving too.

 

[lemmiwinks]

I'm one of those guys that bought new irons and a driver earlier this year.
I was down to the Razr X and the SuperLaunch.
Went with the SuperLaunch because of the price difference.
I bought the SuperFast 1.0 because, again I'm a cheap SOB and it was $140.
I got a driver, a new cart bag and a box of balls for the same price as one of the "new" drivers.

I'm with Dev - give me last years models at a basement price and I'm good to go.

 

[JB]

Forget te consumers: what's about the Pro Players? How many Callaway Pros will make the full switch? Even if it's only half of the bag. I agree that Callaway needs to come out with something to grab the consumers on the sale end, but it's also the players that game these equipment that supports the advertising. They need to grab some exciting players to promote Callaway. I also agree that the design is outdated. Let's see how they move forward. Would anyone be surprise to see Callaway up for sale buy 2013? Or sooner?

If things keep up I would not be suprised to see this at all. Callaway needs to do something fast.

I would take that bet.
The cost cutting measures they have done over the last 18 months have made quite an impact and they will reinvest those into marketing according to the new interim CEO.

 

[Spank818]

Is it disparaging, yes. But I don't think it's all doom and gloom. Think of it as a GM in football quitting or getting fired. It doesn't mean they're gonna pull a Cleveland Browns. I'm sure there will be a fire sale and a restructuring. Plus there will be a shift in policies and an overhaul. Clearly the stockholders are not happy with the direction the company was headed so a change needed to happen.

I'm expecting a stagnation for the Callaway brand for the next full year at least until they get their philosophies straightened out under new management. Hopefully they'll come back from all of this stronger than ever because it's always good for the consumer when the larger OEM's compete for market share.

 

[Canadan]

I think marketing has a ton to do with it.. At my club they've only sold a few TMs this year, and at least one has been returned. That said, I am almost confident TM doesn't have a demo day (at least has not to this point) and companies like Callaway, Adams, Nike, and even Mizuno are represented by the pros who work there and have all scheduled demo days and made good quality sales from it.

Then again, the pro shop is stocked with Vokey wedges, Scotty Cameron / Odyssey putters, and seeing a white club on the course is about as rare as seeing a wooden wood. I am not saying this is nationwide by any stretch, but JB noted that this could a geographical thing and I think this is a perfect example. I am thinking you're seeing the same thing I am seeing Dev.. The white craze hasn't hit my area of the golfing world, but I am sure it will eventually.

 

[Aries0321]

+1 Do you know how many more drivers for example would be sold if they were $199 instead of $299? I am not only talking about Callaway but all OEM's. Sometimes they just price themselves out of people's ranges and they just go with a cheaper option.

Ask Wilson Staff how this concept worked for them a few years back. It is possible to price your product too low. If too low, your product is not thought of as affordable or cheaply priced, but rather cheaply made. Having the latest equipment for many is a status symbol.

 

[Aries0321]

JB,

I dont know you from Adam, but I have to believe the majority of amateur golfers you see are using clubs from pre 2007, most even earlier. When I go to a driving range I would say well over half the people are using "older" clubs, and a lot of the same can be said for the golf course. Just my findings, may not be true of everywhere.

I believe your defining amateur golfers too broadly. The amateur golfer targeted by golf manufacturers are those, as JB stated, will to buy a better golf game.

 

[Aries0321]

I agree with you but you didnt answer my question. Would they sell more of both if they were $100 cheaper?

The SuperFast 2.0 would marginally sell more. The R11, as TM lowers the price, but before their next driver release, would sell much better. But the sales percentage would not be more than when sold at $400.

 

[JB]

Check out multiquote man.
It will make things much easier.

 

[Aries0321]

Check out multiquote man.
It will make things much easier.

Apologizes for breaking protocols. I was just reading through the thread.

 

[SW]

Like Hawk said before, in my eyes it comes down to advertising. TM is the king of that right now and everyone is digging to catch up. For instance, the "one of these things is not like the other thing" add was annoying after the 327th time, but you saw it constantly, on the contrary rarely did I see a RAZR Hawk ad. The "unstopable 8" promotion was everywhere, conversely the only physical add I've seen for Callaway irons this year is a small door ad at PGA SS.

Callaway has a great product, I just wish the marketing was there to put clubs in golfers hands. Lastly, I hope all is well with Mr. Fellows and this isn't something serious healthwise.

 

[JB]

Apologizes for breaking protocols. I was just reading through the thread.

Its not protocol, as I said, it will be easier for everybody including you. Click the tab next to the post you want to reply to and then you can reply to all of them at once rather than having 5 responses in a row. Thought it would be far easier for anybody wanting to reply to multiple posts in a thread.

 

[TC]

I think Callaway does a fine job of marketing, I just think they do it in a more traditional manner. You'll always see full page ads in Gold Digest and GOLF magazine, but times they are a changin'. I like to see them advertise digitally and I think being a part of the Morgan Cup will help Callaway moving forward, but I'd love to see them more involved with forum testing. I know THP is a small portion of the pie but I believe it's a portion that can move the needle. Callaway needs to start catering to a younger demographic.

 

[SW]

Ok that makes sense. I never really pay attention to adds in GD but you are correct there are a few in it. I just think that there is not a big push behind the ads, not that the adds aren't good. Heck the print add about the RAZR Hawk diet now including sheep just might be one of the best I've ever seen.

I think Callaway does a fine job of marketing, I just think they do it in a more traditional manner. You'll always see full page ads in Gold Digest and GOLF magazine, but times they are a changin'. I like to see them advertise digitally and I think being a part of the Morgan Cup will help Callaway moving forward, but I'd love to see them more involved with forum testing. I know THP is a small portion of the pie but I believe it's a portion that can move the needle. Callaway needs to start catering to a younger demographic.

 

[Singlestick]

Callaway seem to be a love or hate brand. Either people have bags full or nothing at all.