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Introduction

Altius Golf is undisputed leader in the golf ball manufacturing market in spite of a
long term decline in the number of golfers and huge drop in sales resulting from
financial crisis. The firm has incorporated new generations of advanced, superpremium golf balls that allow customers to emulate professional golfers. Due to lack
in innovation and high priced products, the company has been losing market share
to its rivals. The CEO therefore wants to launch a new product called Elevate to
foster the next generation of golfers. With Elevate, the firm will introduce a ball that
is more forgiving and easier to drive for distance and offer it at a price 40% below
the company's flagship brand. Elevate will be available through "off-course"
channels such as golf specialty stores and big box retailers instead of "on-course"
pro shops where the firm typically sells its products. The board of directors is
divided on whether to support the decision.
Why has Altius Golf lost market share? What will happen if Altius maintains status
quo?
With the recessionary trends setting in after 2008 financial crisis, the golf market as
a whole has seen a downward trend.
Its quite obvious that, the company which has priced its product
aggressively is bound to suffer in terms of sales units. The three most prominent
reasons pertaining to loosing of market share by Altius are as follows:
The consumer survey has clearly revealed that, 35% of non Altius customers cited
cost factor for not buying their product. Moreover, a fifth (20%) of current Altius
customers have are willing to try a non-confirming ball, the segment which Altius is
yet to explore.

The 2008 Global recession had taken a toll on the golf industry. According to USGA,
23% of women and 36% of children had quit golf in last five years. Investment in
golf course real estate fell over 40% after 2008 downturn. This inconsequently led
to retail outlets closing at an alarming rate- 25% in immediate years following
recession.

The competitors have also played a major role in skimming the market share of
Altius. Product innovations, marketing campaigns and more competitive pricing
helped other
manufacturers chip away at Altiuss market share. This is substantiated by the two
major
rivals Primiera who introduced ball-fitting expert with a launch monitor that allowed
golfers to compare their speed and trajectory performance. The campaign
generated excitement among retailers which resulted in gaining market share and
new customers. Meridian, which came up non confirming balls too swayed some

market share of 2 points in 3 years. Both of these gained the share at the cost of
Altius.

The current situation clearly dictates that Altius is losing its market share due to its
competitors.
Theyre are moving with the industry trends and are trying to offer balls and other
golf equipments which are easy to use and helps new golf users to hit the shot as
they require, while Altius Golf is still offering equipments which are for professionals,
although golf professionals value the equipments of Altius but the industry trend
shows that recent recession period has decreased the number of professional golf
players and hence the revenue of Altius. The marketing positioning of Altius itself
seems peculiar which was based on how many professional tournaments had been
won with its balls.
Additionally, Altius Golfs balls are expensive as compared to competitors golf balls
and new golf players are not willing to spend more on expensive golf equipments.
While its next generation balls were picking up sales, the fact that it is shedding
market share of its core product points towards alarming situation of status quo.
What should Altiuss objectives be? What trade- offs it must manage?
With Altius staying just focussing with the manufacturing top of the line golf balls,
their business would only continue to drop. Fortunately the brand value of Altuis
was recognised and respected very much by many top notch golfers of the country,
but this does not mean that they had a lot of profits. Focusing on the low price golf
equipments, such as Elevate golf ball and changing the marketing strategy from
targeting proficient golf equipments to low cost golf equipments and more fun
oriented golf equipment for new golf players will enhance the profitability of Altius.
This is because golf industry is vitalizing by the efforts of USGA, through the
encouragement of new golf players to play golf with relaxed rules. Therefore, it is a
good time to mark new players through widespread marketing of low cost and nonconfirming golf balls, which enables new golf players to hit the ball perfectly. The
new golf ball Elevate being sold below the 40% of its premium Victor TX brand,
enables Altius Golf to capture a new generation of golf players. Other competitors
were becoming very competitive; they were providing the best service to elite
players and also were reaching the casual players with cheaper products, hence
reaching more golfers than Altius. Maintaining the current strategy will make Atius
obsolete pretty soon. In a business, trade offs are quite common. You tend to be
having a core competency at one aspect but not all, this does not mean you stick to
the former. Hence Altius must enter the not so costly markets. This might mean that
the 70% profits have to reduce by at least 10% and utilised in trade offs. This 10 %
has to be used to reach the broader recreational market. Altius can very well get
back to producing and being the producer of top quality balls. But on the long run
they should create an impression which made them look concerned for the game as
well as increasing, motivating players. Altius Golfs balls are expensive as compared
to competitors golf balls and new golf players are not willing to spend more on
expensive golf equipments. Also there could be a possibility of creating a group for

searching lost balls which were costlier when sold , repairing them and selling them
as a low cost but high quality balls for the casual golfers. They could market this by
bringing up the environmental aspects involved while using the materials used for
making the balls. Altius Golfs competitors are moving with the industry trends and
are trying to offer balls and other golf equipments which are easy to use and helps
new golf users to hit the shot as they require, while Altius Golf is still offering
equipments which are for professionals, although golf professionals value the
equipments of Altius but the industry trend shows that recent recession period has
decreased the number of professional golf players and new golf players are being
encouraged to play golf.
Should Altius implement Elevate strategy or not ?

Altius's main focus of Elevate strategy was:1. Their main objective was to increase market share , strengthen their position and
to promote sustained growth by introducing cheap , affordable prized golf balls.
2. to increase sales of their product in off course retailer outlets and providing them
more gross margin percent.
3. To attract, involve beginners ,Non professionals in its market so as to increase its
revenue by introducing medium priced Non- conformed balls. Altius should
implement Elevate strategy for the given following reasons:1. As mentioned in the case 35% of golfers do not buy Altius for high price ,
45% of lapsed golfers, 53% of non playing golfers cited high costs as their
reason for not playing Golf, so if they could be provided affordable , medium
priced golf balls then there would be tremendous increase in market share
and revenue for the Altius.
2.There is remarkable percentage increase the number of Agnostic (mainly
casual/infrequent golfer ,beginners) who were price sensitive and likely to
purchase on promotion.
3. Off course selling :-Initially Altius had mainly focussed at on course selling
where Professionals /Frequent players buy from the outlet which has been
located inside the golf ground campus. They are not so much emphasizing on
off course selling .This benefit is being carried away by its competitors such
as Primiera and Meridian who gave comparatively high margin to the off
course retailers. Altius should focus on Off course selling .
4. Success of Non Conformed balls in the market :- As mentioned in the case
Selling Non -conformed balls proved to be a success story for Meridian who
gained 2 points of market share in Off course channel in just three years as it
was widely used by beginners and non professionals .It is also found out that
20% of Altius customers ,26% of all current golfers and 48% of lapsed or non
golfers would be willing to try a Non-conforming ball. So in order to target
that customer segment Altius should also bring Non-conformed balls in to the

market to increase its market share and to regain its share of 3.5 points
which it had lost over past five years to some extent.
5.Competition:- Since Altius market share, revenue ,profits are unmatched
with any of its competitor specially in the case of premium segment of ball ,
but its competitors are growing steeply just because of selling cheap,
affordable and medium priced balls, it would be a sign of danger for Altius in
long run. In order to sustain in the market and to grow in future, Altius should
enter in to the market with low priced products. 6. Sales of goods and
products also depends upon interest of retailers. A retailer would give
preference for selling those product which would give him in turn give more
margin/profit. Primiera gave retailers gross margin of 20% which is more than
how much altius are giving to retailers. Altius should also increase the
percentage profit margin to retailers which is also a part of Elevate strategy.