Callaway Golf Company - Marketing Strategy from 1988-1997

Calloway’s strategy from 1988 to 1997 was to provide quality golf equipment and accessories to the average golfer, at a premium price, have product different from competitors, and stay ahead of the game with response time in providing up to date technologically advanced golf clubs.

The Callaway Golf Company evolved from a small golf club manufacturer established in California to the world's largest manufacturer and marketer of golf clubs in the world. The company's growth began in 1988 with the introduction the S2H2 driver to the market. The new driver revolutionized the golf-playing experience by delivering a product that leads to a better experience while playing, and leads to future brand loyalty. Every club the company made since then incorporated the S2H2 concept.

From 1988 to 1997, Callaway Golf Company was successful for two main reasons. One was its approach of research and development that lead to product innovation. The other reason relied on its successful marketing strategy.

CGC targeted "average golfers" defined as golfers that played a minimum of 10 rounds per year. Statistically they purchased new equipment roughly every two-three years and purchased premium equipment to boost their performance.

Beginners and occasionally golfers were not targeted because they were price-sensitive. Experienced golfers kept their equipment for extremely long periods of time and were also not targeted because they relied more on their skill then the performance of their equipment.

Advertising: the Callaway Golf Company advertising consisted of television ads, magazines, endorsements, and word of mouth as a strongest advertising avenue. Most average golfers made purchase decisions based on word of mouth recommendations. This worked well because golf is played in groups of four that spend several hours together playing. Also this gave players the opportunity to try out their friends clubs. CGC endorsed professional golfers in all 5 major tours. They used...