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Measuring the Game of Golf
New Products Create Strategic Questions
MBA 760 Marketing Strategy: GolfLogix Case Study
GolfLogix has a premium product in the golf market and is facing a difficult decision on whom the product should be marketed towards: golf courses or individual consumers. Sales with golf courses are finally beginning to look favorable for the company after three years. Does offering the product directly to consumers put the product at risk of being a fad that will soon become obsolete? On the other hand, why not promote the product directly to consumers and pursue growth in both areas? These are questions that our group will address in order to come up with a recommendation for the company.
GolfLogix sells specialized GPS systems that help golfers easily know the distance to the hole on every shot. Since its founding in May 1999, GolfLogix has limited its product offering to only two products – a basic system that gives distance only, and a premier system that allows golfers to also record the exact location of their ball before and after each shot, as well as which club was used. Additionally, the premier system allows golfers to access a report after each round of golf that shows their progress throughout the course. In order for the system to work, GolfLogix has to map out each course that adopts its system, which can take anywhere from four to twenty hours, depending on which system is being adopted.
Currently, GolfLogix systems are offered exclusively to golf courses through a monthly lease program. The basic system can be leased for approximately $1,500 per month for three years, and the premier system can be leased for approximately $2,000 per month for three years. During the first quarter of 2002, after three years and nearly $2 million in investments, GolfLogix had its first taste of success by leasing 15 systems, with many additional courses requesting a 30-day...
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