TaylorMade, the next Titleist?

[liquidrage]

By choice.
Just as some buy new computers, phone or cars every year as well.

Most don't buy a new car every year, but they still update car models every year. Because even if the guy that has a 1 year old driver won't buy one this year, some other guy with a 4 year old might want one. Sure, some buy "it" every year, but not most. If an 05 3 series was 100% the same as the 09 there's less incentive to buy new and more to buy used.

Golf equipment generally has good size markups because they aren't a high volume sales item. Every Sports Authority I've ever been too has oodles of TM drivers and woods. Not so much other brands. There's this year's stuff with the big markup, like a R11 for $300, and last year's Burner for $129. My point is, Taylor Made and to a less extent Nike are more stocked at the big retailers like Dicks and Sports Authority then say Srixon or Titleist are. The bigger stores are more able to carry excess volume and sell "last years" with a small markup, while the more money the company has the more stock it can produce and sit on some of it's own inventory to sell last years stuff at cost.

I would love to know how much Dicks and SA sell compared to the rest of the retailers, but I'd be shocked if those weren't the two biggest sellers of golf clubs in the country. And TM and Nike are sure up in their stores more then the other brands.

 

[JB]

Most don't buy a new car every year, but they still update car models every year. Because even if the guy that has a 1 year old driver won't buy one this year, some other guy with a 4 year old might want one. Sure, some buy "it" every year, but not most. If an 05 3 series was 100% the same as the 09 there's less incentive to buy new and more to buy used.

Golf equipment generally has good size markups because they aren't a high volume sales item. Every Sports Authority I've ever been too has oodles of TM drivers and woods. Not so much other brands. There's this year's stuff with the big markup, like a R11 for $300, and last year's Burner for $129. My point is, Taylor Made and to a less extent Nike are more stocked at the big retailers like Dicks and Sports Authority then say Srixon or Titleist are. The bigger stores are more able to carry excess volume and sell "last years" with a small markup, while the more money the company has the more stock it can produce and sit on some of it's own inventory to sell last years stuff at cost.

I would love to know how much Dicks and SA sell compared to the rest of the retailers, but I'd be shocked if those weren't the two biggest sellers of golf clubs in the country. And TM and Nike are sure up in their stores more then the other brands.

Like I said, "some". Just as with computers, phones, clothes, and everything else.

You could say the exact same thing in reverse about Titleist if you look at Green Grass shops. Titleist still dominates the green grass side of things.
As for the TM & Nike thing.
While Dicks is the biggest retailer currently, Nike is not even close to #2 in club sales, so it is certainly more than just stocking clubs that take it to the next level.

But I dont see it that way at our local stores.
I see hot items heavily stocked. Right now Callaway, TM, Nike, and Cleveland are all heavily stocked at our local stores.
But they would be foolish not to overstock on TM drivers, because they are outselling everything else by a huge margin. Demand is there.

 

[TRyan]

JB,

Do you think Taylormade has to come up with another big innovation soon to keep demand up? White drivers will only be unique for so long.

 

[JB]

JB,

Do you think Taylormade has to come up with another big innovation soon to keep demand up? White drivers will only be unique for so long.

No, I dont actually.
The R9 was a huge innovation for many.
The R11 was too.
But look at the TP irons. Not a huge innovation, yet people are buying them like crazy.

 

[ddxu]

JB,

Do you think Taylormade has to come up with another big innovation soon to keep demand up? White drivers will only be unique for so long.

Couldnt one turn this and say someone else needs to come up with another BIGGER innovation to catch up / pass TM? TM will just keep taking marketshare until someone else slows them down.

 

[TRyan]

Couldnt one turn this and say someone else needs to come up with another BIGGER innovation to catch up / pass TM?

I think so dubble. If someone was to come up with a new paint scheme or some other crazy thing and marketed it well we could be talking about them in the next few years. My whole thing is that I think its difficult to project golf sales over a long period of time. You cant factor in things like innovation.

 

[TripleBogieTim]

I would have just loved to been in on that board meeting when somebody stood up and said....I know we will paint all our putters and drivers white!!!

 

[Buckjob]

i think TM makes clubs that help the average golfer more than titlelist does and you figure most of the golfers are average. so they sell more clubs cause they fit better for those people. Plus everyone is looking for distance and TM clubs are long. I don't completely agree with this cause ive always hit long but id gladly give up my distance for accuracy and a better short game. But when i bought new irons and driver this year i did end up buying TM cause thats what i was hitting before and the transition to the new clubs was a lot easier. I think they will keep a lot of their customers when they come out with the next new thing.

 

[TRyan]

i think TM makes clubs that help the average golfer more than titlelist does and you figure most of the golfers are average. so they sell more clubs cause they fit better for those people. Plus everyone is looking for distance and TM clubs are long. I don't completely agree with this cause ive always hit long but id gladly give up my distance for accuracy and a better short game. But when i bought new irons and driver this year i did end up buying TM cause thats what i was hitting before and the transition to the new clubs was a lot easier. I think they will keep a lot of their customers when they come out with the next new thing.

I agree with this 100%


Tap tap taparoo

 

[Kujan]

TM clubs are hard to resist. They have the best website, commercials and magazine adds. They know how to create demand. It's almost hypnotic!

It's taken me some time (i.e. trial and error) to be more objective about what clubs to put into play.

So I don't see TM becoming the next Titleist. They're the loudest kid on the block!

 

[arydolphin]

Sounds like TM is the apple of golf!

I had never thought of it, but it's a pretty good analogy.

Couldnt one turn this and say someone else needs to come up with another BIGGER innovation to catch up / pass TM? TM will just keep taking marketshare until someone else slows them down.

The other golf companies have to step their game up. It should be interesting to see what happens, especially when a company like Callaway comes out yesterday and says that they're going to step up their advertising and tour involvement. Looking at the marketing campaigns that are out right now, I thought that Nike would be in the best position to challenge Taylormade for the younger market as they were also making technology a focal point of their advertising, but they still have a long way to go to catch TM.

 

[cramer18]

The biggest thing to look at is Taylormade knows how to market their products. They emphasis #1 Driver on tour, they give you a look into the world of their tour van, they give away in contest more product than anyone I know. If you saw they gave away about 80 drivers on father's day. This puts them in the consumers eye more and more. I know that when you walk into pro shops and retail golf businesses you see those white heads first. They are reaching out to the contemporary golf equipment audience in the same way Puma is reaching out to the young contemporary clothes buyer. Giving them something new that hasn't been seen lately or at all, helps you stand out. When the technology can back up the look, then your just going to sell things like crazy. As long as they do not stray away from their current demands on themselves as far as advertising and their products, they will be a leader not an elitist.

 

[hartattack52]

The biggest thing to look at is Taylormade knows how to market their products. They emphasis #1 Driver on tour, they give you a look into the world of their tour van, they give away in contest more product than anyone I know. If you saw they gave away about 80 drivers on father's day. This puts them in the consumers eye more and more. I know that when you walk into pro shops and retail golf businesses you see those white heads first. They are reaching out to the contemporary golf equipment audience in the same way Puma is reaching out to the young contemporary clothes buyer. Giving them something new that hasn't been seen lately or at all, helps you stand out. When the technology can back up the look, then your just going to sell things like crazy. As long as they do not stray away from their current demands on themselves as far as advertising and their products, they will be a leader not an elitist.

Exactly. If someone was watching golf for the first time, the first thing they would see was all the pros playing with white drivers. They would automatically know it is Taylormade. They most likely wouldn't be able to identify other companies as easily.

 

[TRyan]

I know that when you walk into pro shops and retail golf businesses you see those white heads first.

This to me is the biggest factor. People are drawn to something new and these white heads are that new thing. They stick out like a sore thumb for sure, to some people its a good looking club, to others its hideous, but its noticeable either way.

 

[Caper]

I find it very rare that I actually play with someone who does not have TM in their bag. Mostly drivers and woods. So many TM head covers all over the place for all age demographics. It looks to me that they are definitely top dog. Usually 1/2 of the foursomes I play in have TM drivers.

 

[9-Iron Man]

The biggest thing to look at is Taylormade knows how to market their products. They emphasis #1 Driver on tour, they give you a look into the world of their tour van, they give away in contest more product than anyone I know. If you saw they gave away about 80 drivers on father's day. This puts them in the consumers eye more and more. I know that when you walk into pro shops and retail golf businesses you see those white heads first. They are reaching out to the contemporary golf equipment audience in the same way Puma is reaching out to the young contemporary clothes buyer. Giving them something new that hasn't been seen lately or at all, helps you stand out. When the technology can back up the look, then your just going to sell things like crazy. As long as they do not stray away from their current demands on themselves as far as advertising and their products, they will be a leader not an elitist.

Some very good points in here.

 

[TRyan]

I find it very rare that I actually play with someone who does not have TM in their bag. Mostly drivers and woods. So many TM head covers all over the place for all age demographics. It looks to me that they are definitely top dog. Usually 1/2 of the foursomes I play in have TM drivers.

I would agree with this for sure. I don't currently have any TM, but I used to carry almost all TM.

 

[Thechosen1]

Maybe it's the quality of the products or the marketing that both sides use. I mean those new Titleist irons are coming out soon, rickie fowler has actually hit them yet you've heard nothing about them.(except for on THP) compared to the R11 or burner 2.0s everyone was anticipating what they were doing. You just don't hear much about Titleists drivers/irons compared to TMs stuff only their balls.

 

[Wicked Cool Bearded Man]

Interesting point and question. I don't think this will happen based solely on the marketing and attitude TM has. I don't feel like they want to exclude anyone from using their products. On the contrary, I feel like TaylorMade wants to include as many people as possible in the use of their products. Titleist IMO has never felt that way. This is not saying that I don't feel that they both produce solid products, but the feeling is different. One is exclusive, one is inclusive.

 

[Shanked It]

I'll keep buying whatever works the best for me within reason. as of right now TM driver and irons are it.

 

[d_in_la]

I hear what you're saying. However, I wouldn't say the R11 line is for the average hacker. It's been proven time and time again that the characteristics just aren't for most of us. Yes they have the SF2.0 which would suit more of us better, but from what I understand (JB, please correct me if I'm wrong) the R11 has vastly outsold the 2.0.

The majority of us need a high-spin driver which the R11 is not. So TM's big release this year isn't for the majority of the players out there (much like Titleist's gear). Again I say this for the sake of the discussion.

Nine, I certainly didn't mean that TM only makes clubs for the average joe golfer. (Crazy about the R11, btw.) The point I'm going for is that TM is Nissan/Infiniti and Titleist is Audi. (I'm not making any statement about quality, just target audience.) Titleist makes a high end product. TM covers the entire market and in some areas does so with mass-market product. However, TM is also a good competitor in the upper range. As Titleist gets people chomping at their market share, they will likely have to expand a little into other categories - for example the AP1/AP2 GI irons.

 

[JB]

Nine, I certainly didn't mean that TM only makes clubs for the average joe golfer. (Crazy about the R11, btw.) The point I'm going for is that TM is Nissan/Infiniti and Titleist is Audi. (I'm not making any statement about quality, just target audience.) Titleist makes a high end product. TM covers the entire market and in some areas does so with mass-market product. However, TM is also a good competitor in the upper range. As Titleist gets people chomping at their market share, they will likely have to expand a little into other categories - for example the AP1/AP2 GI irons.

Im not sure I understand this one.
With the exception of the SuperLaunch irons, I am not sure that TaylorMade makes something that Titleist does not make, in the SGI irons (and those are not even in their 2011 line). What part of the entire market is Titleist missing? They both offer larger head cavity backs in AP1 and Burner. They both offer a full line of hybrids. What makes one a high end product and one an entire market product? Their prices? Those seem pretty similar as well. As for people "chomping up their marketshare", not sure I understand that one. TaylorMade is already ahead of Titleist in that regard in both irons and drivers. When the Burner line took over as the best selling iron in the US, that gave the company the lead in iron marketshare. They were already ahead in drivers by a pretty large margin.

They market and sell their products differently.
Titleist has always been about green grass accounts and TaylorMade has in the past been about golf stores and big box. Maybe that makes them a high end product?

 

[d_in_la]

JB, hmm, I'm doing a horrible job of communicating this! :doh:

Yes, labeling Titleist as purely a "high end" product isn't fair to the great TM products. (I quite like TM, actually) I was trying to put a spin on the question of if TM's future is the same as Titleist, I was throwing into the conversation and it might be possible that Titleist may change course and expand product line - but as you point out so well, maybe the better way of expressing that isn't segment, but about how they get their product to stores and market those product. (Not to mention how parent company holdings might affect that.)