Callaway Golf aims to reinforce marketing strategies instead of investing in research and development
Callaway Golf is all set to reclaim its market share of the pre-recession times and its new CEO and President Chip Brewer is pitching for a more attractive and “s**y” disposition of the company among its clientele.
Brewer, who joined Callaway Golf in March last year has made some tough decisions regarding the downsizing of the company as well as selling several equipment brands to different competitors in the market.
Callaway Golf had to undergo serious fall out of the economic recession after 2007 and has almost suffered 70 percent decline in its market value in the proceeding years.
The Market value which was estimated to be a whopping $2.3 billion in 1997 has now fallen to a drastic $360 million, bearing a whole decade of losses on various fronts.
Brewer said, “With any turnaround it’s a common theme: Let’s be really good at a few things. We need to simplify and focus on core products and brands, and put our resources where they need to be, where there’s the strongest potential”.
Brewer not only downsized the existing workforce but also brought the company out of hefty lawsuits which included Acushnet Co., Which owned the Titleist Brand.
He added, “There’s not a problem with our product performance, it’s our market appeal. We need to improve the s*x appeal of the products...with a crisper marketing message and more aggressive presentation”.
Also in a surprise move, Brewer curtailed the operating expense of the company to $50 million and increased the marketing budget to $25 million.
Callaway also now offers customized equipment to its brand ambassadors as well as general public who would want to have personalized kit that includes selective colours of the clubs and their names engraved on the heads and shafts of the club.
Under Brewer’s able leadership, Callaway has taken its rights off from the once bustling Ben Hogan brand, selling them to Perry Ellis International Inc.
Also the company gave away its costly operations for the Top-Flite brand selling it to d**k’s Sporting Goods Inc., one of the two huge sell-offs this year.
Callaway Golf will now be concentrating strictly on specialized marketing tactics for its world renowned equipment and golf apparel.
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