Conor Barry 2/9/15
Altius Golf Case
The current problem with Altius is that they have a decrease in market share, overall revenue from their golf balls and a decrease in profits. The main reason for Altius's decline in market share is because people who golf have become less serious and more price sensitive. Because of this customers are no longer purchasing golf balls from Altius, but from their competitors. Altius didn’t notice that serious golfers were playing less and casual golfing is on the uprise. If Altius does not change their marketing plan they will soon no longer be able to compete in this market. They need to move away from a premium ball and start to allocate efforts into a value line ball.
Altius needs to shift their focus and introduce a new series of golf balls into the market. Altius introduces their new value line ball called Elevate. Altius has a ...view middle of the document...
Once these golfers start to really get into the sport and they are starting to play at an advanced level, they would then probably be less price sensitive and move up to the Victor Tx line of balls. This cycle of turning casual golfers into serious golfers would really help get Altius’s market share back up by allowing them to gain control of the industry once again.
There are a few ways that Altius can implement the advisability of introducing Elevate. The company could have them on display at stores where they could put the balls see which fits their proper needs. They could also sponsor a day at a popular driving range so customers could really get to see what ball matches their swing. Lastly, they could do a multitude of celebrity endorsements.
With the new Elevate golf ball line, Altius is penetrating into the value price line category of balls. The past few years have shown a minor decrease in market share, going from 58.7% in 2008 to 56.8% in 2010 and finally falling to 55.2% in 2012 according to Exhibit 2 under U.S. retail dollar sales. Altius is penetrating into this previous untouched category for our company in hopes of regaining lost market share. Altius has turned out overall revenue of $226,623,600 leading to a gross profit of $158,636,520 in 2012.
There could be implications for Elevate, with the worst being the series failing completely. The cause of the series failing could come from competitors pushing their efforts to the same market as Elevate and becoming the more popular brand for that focus group of causal golfers. Another implication could come from bad publicity for a celebrity who is endorsed by Altius.
Although Altius has proven to be successful with only two lines of golf balls, I feel that this new value line of balls will appeal to a new demographic that has not yet reached by Altius. With this needed expansion to the market, Altius hopes to dominate the entire golf ball industry. Lastly, we will eliminate the loss of business due to lower-priced competitors with the Elevate series.