Altius Golf and Fighter Brand

1. What is the case situation? 

2. What are the trade-offs facing the company? 
3. What are the costs and benefits of launching a new product? 
4. Where does Altius Golf stand with respect to its competition? 

Answer 1)

 Market leader is facing challenges in market share .

 Golf overall decline after recession .
 On course is static , off course is declining .
 People are price sensitive
 Company focus on pro players and their share in the gold players are
decreasing .
 Whether to enter the value range segment and economy .
 CEO evelyn , Elevate strategy , but facing opposition from 7 board members ,
only 2 support .
 Market challengers are attacking market leaders.

Answer 2)

 Cannibalization .
 Premium brand image of the company can be trade off for the market share
in newer economy segment .
 Customer may think sub standard products re produced .
 Trade off between the standard followed for victor TX and the non-
conformity balls for a economy segment .
 Profit margin ( 20 % commission for retailer ).

Answer 3 )

 Selling Price for elevate = 27 per dozen

 Manufacturing Cost = 7.75 per dozen
 Retailer commission = .2*27 = 5.4 per dozen.
 Profit per dozen = 13.85 per dozen.

 Brand rejuvenation

 New users (first time , fun filled players) via new products. (Leader adopting
follower Strat)
  Market share can increase thru off course stores (availability of the brand is
more)

Answer 4)

 Attluis is still the market leader with a mature product , whereas the off -course is
decreasing due to the price competition of other players as well as the margin to the
retailer .
 The company is lacking behind to the competitors in the value and economy
segment .
 Primeria and meridian other competitors ( Play your way challenge ).
 Brand perception of the ATluis remains the same whereas the competitors have
increase .
 Price in premium is also higher than the competitors .
 Atluis is not alinging to the changes made by USGA ( Golf 2.0 and tee forward) for
promoting more golfers in US .