Altius Golf’s Strategic Plan
Evelyn Gracie was appointed as CEO to help the company’s profitability and sales remain stable.
Evelyn Gracie and Austin Kai, her chief marketing officer, devised a plan.
Elevate Technique was the term given to this strategic plan.
The golf ball market in the United States was $483 million in retail sales in 2012, with 17.6 million units sold.
They wanted to concentrate on the international market, as it is where they had dropped its most sales, as per their approach.
Victor TX, Victor, and Elevated were the three varieties of golf balls offered by Altius.
uVictor TX: There are two types of golf balls. One had the ability to travel large distances, and the other had the ability to feel the grass. The cost per dozen would be $48.
Victor: There will be two sorts in this ballpark: one that is good at covering ranges and the other that is good at being handled. It would be worth $39 for a dozen.
Elevated: This is a brand-new product on the market, priced at $27 a dozen and available in four varieties:
Swing is quick.
Swing is in the middle.
Swing slowly.
Offering that deviates from the norm.
As this is a low-cost product, the Elevated version may only be available in off-course markets.
Retailers that previously received a 15% profit for exhibiting and selling Altius items will now receive a 20% margin for selling Elevate.
Elevate will be exhibited with Victor TX and Victor, which are well-known and appreciated by the players, in addition, to retaining the company’s prestige and relevance.
During the recession, golfers reduced their expenditure on golf balls, and this tendency has had a negative impact on the golf business.
Competitors offered similar offers, whereas Altius provided all of these attributes in various kinds and sorts.
When compared to other golf balls, Altius Golf balls are more pricey.
For failing to fulfill USGA regulation standards, Altius Golf’s goodwill may be harmed by USGA terms and conditions.
The number of professional players has reduced throughout the recent recession.
Altius Golf focuses its marketing efforts on Victor TX golf equipment, which is built for professional golfers.
Altius has invested a lot of money in promoting their Victor TX range, which has been a huge success. However, the golf industry’s tendencies have shifted, and the current emphasis is on moderate-cost, golf equipment.
Elevates gross margin will be about 64 percent, which is 6% less than Victor TX.
Elevate would be sold at $27 per unit, which is 44% less than Victor TX’s debut pricing.
The firm will have a retail price of $27 for Elevate Golf Balls, as per the calculations (Alternative 1), and the company will offer a retail portion of 20% to the merchants.
Our estimates show that the production cost will be $5.4 after subtracting the manufacturing margin which the firm would gain.
If the production expenses are lower than Gracie’s quoted price of $7.75, the corporation will profit more.
Altius has 55 percent of the market share in the business, and its revenues are $265.65 million (alternative 2) greater than any other competition.
In comparison to any other firm, the profit is also bigger. According to our study, Bantum is the closest rival.
Implement a promotional effort to promote the innovative product to the target market that Altius is looking to attract.
Continue to be active in USGA, R&A, LPGA, European tours, and PGA tournaments by using Victor TX and adhering to their regulations.
Always focus on reputation and respect in order to preserve the stats of a professional golf ball provider.
Generating golf player superstars, as they have done with other sports. It aided them in increasing public interest in golf.
The industry’s Elevate marketing campaign must be continued, according to an examination of the golf industry and Altius Golf’s marketing plan.
To capture a larger portion of a rising industry, the company must offer comparatively low price and user-friendly designed golf balls.
In order to retain profitability, the corporation must focus on growing the number of units sold.
Marketing and knowledge of the low price, and the reliability of the equipment, will play a role in increasing the number of low-cost golf balls sold.
Conclusion
The recession has harmed the industry. However, it is rebounding, giving firms in these areas a fantastic opportunity to capture market share.
Altius Golf is the industry leader, but it is losing market share as people become more interested in other games and sports.
Strong rivals that are gaining market share through pricing tactics and product variety.
They are creating various sorts of golf games in order to expand the set of participants as well as appeal to a younger age, allowing businesses to establish themselves in a new market.
To deal with the crisis, the company’s CEO and CMO devised an Elevate plan, which will be a golf ball that would appeal to the younger generation.
This might lead to success, and people may begin to use the Altius brand’s products to play golf once more.
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