Product strategy
CGC has been the number one of the golf company right from the start. This result comes from high R&D budgets and focusing on high quality and performance of all CGC products. For its products, CGC has provided a variety of its golf club offerings from Metal Woods, Irons, Putters, golf balls and accessories and has continually developed from S2H2 to Big Bertha (the oversize woods) to Hawk Eye Titanium. CGC’s Metal Woods is recognized as the top of the line with the market share of almost 40%. CGC’s putter brand (Odyssey) is the number-one-selling in the market as well. CGC sets the price of its products quite high to create the image of premium and high quality products. However, CGC has never used the famous athletics to promote the products. Therefore, the customers do not have the high recognition of Callaway products. Furthermore, CGC’s price strategy, which is only one discount rate and no high volume discount, does not motivate all retailers to promote its products. The worst point for CGC would be its product training. CGC has a high quality technology that comes with high price. Customers need more clear information and knowledge in order to get cash from their pockets. Nowadays, CGC is stuck with its past success. There are so many new comers such as big sport brands (Nike and Adidas), private label brands and non US brands (Honma golf from Japan). CGC still keeps focusing on its quality without redefining the look of products to make its more colorful or trendy look.
CGC should keep focusing on its R&D competency and also needs to create more on customer need’s or customer satisfaction research besides the golf material performance especially on the lifestyle of new players, the beginner, the image and trend that coherent with consumer behaviors. With the new trend that match the consumers’ needs and the premium quality of the products, CGC should also re-define the segmentation to make a clear message to each segments such as...