Golflogix

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GolfLogix Case Study |

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Bus 468 Marketing Strategy |

3/22/2011 |

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Problem Statement

Speed up sales and visibility in all channels of the market by deciding the proper way to distribute xCaddie product to consumers.

Strategic Situation Facing Management in the Case

A. Customer

Golf has been in the US since the late 19th century and as of 2000, 26.7 million Americans play golf. There are approximately 17,000 public and private golf courses and 200,000 to 400,000 new golfers a year. You can segment the golf market three different ways; Frequency of golfing, you can be an avid, core, or occasional golfer. If you are avid you golf more than 25 rounds a year and core is from 8-24 rounds a year. Second would be the expertise and you would use the golfers handicap to help with that. About 205 of the golfers maintained an official average of handicaps. The final way to segment them is based off the courses played. They can either play at lower-end public, high-end public, resort, or private courses. New courses are being built of 300 to 400 a year, but in 2000 there were 7,000 lower-ends, 4,000 high-end, 2,000 resorts, and 4,000 private golf courses. The market will continue to grow and in 1999 golfers were spending over $ 22 billion in products. The demographics shown in Exhibit 1 give you a look at the different segments to consider.

B. Competitors

There are several competitors; low-tech and high tech. Low-Tech competitors would be the yardage markers, sprinkler heads, yardage booklets, and rangefinders. Then there are Cart-mounted systems and PDA-based systems for high-tech competitors. See Exhibit 2 for the strengths and weaknesses of the competitors. The competitors affected most by selling straight to the consumer. PDA based system will be hit the hardest because it will hurt them in the market as far as individuals who don’t already own a PDA. They would probably decrease the price of their system resulting in a loss. The...