Altius Golf Case

Key Problems

Altius Golf is currently the market leader in golf balls, thanks to the success of its Victor TX product line that has been built generation after generation, filled with innovations in the golf ball market in the past decade. However, since golf’s peak year in 2003, the number of golfers, recreational and avid has been steadily decreasing. Up until 2008, 50% of the total number of golf balls sold in the United States was an Altius Golf ball. When the financial crisis hit in 2008, it changed the way golfers spend. We see a shift in the market trend that is moving towards lower-priced golf balls and away from premium balls such as the Victor TX series. Also, Altius has been losing its presence in off-course retailers, going from 50.8% in 2008 to 45.5% in 2012.

In Altius’s recent consumer research, the company found that there has been an increase of 5% in agnostic golfers, these golfers are the ones who are the most sensitive to price and the most likely to try new brands. They also found that 35% of golfers did not buy Altius products solely because of the high prices, and 45% of lapsed golfers and 53% of non-golfers stated high prices as the single reason for not playing.

The recent problem with these premium balls is that they are too expensive and for the general population of recreational and beginner golfers, it seems way out of line to buy such an expensive ball. The problem is that golfers who admire the Altius brand, but were sensitive to prices had no way to translate their brand loyalty into purchases. When looking at the future of the company, the main problem is acquiring the loyalty of the younger generation to become regular customers for the Altius brand.

Situation Analysis

When looking through the customer’s perspective the most important aspects in purchasing a golf ball are: low prices, ball performance and the reputation of the brand. Nowadays there are so many options for the type of golf balls that the price sensitivity is a big factor in the purchase for the average golfer. Not to mention the recession that the United States is in the process of recovering from has left many golfers more price-conscious than before. The performance of the ball is very important because it will either make the round of golf either a pleasant or dreadful experience and this will directly impact whether they become a returning customer or not. The reputation of the brand is vital because with so many different brands out there the common golfer is skeptical on whom to trust and which ball is better than the others, therefore having the Altius name is priceless.

To the different channel partners on and off the course, the overall goals include: high sales, high turnover and customer loyalty. The ultimate goal in