Taylormade Marketing Plan Essay
The center of gravity was also lowered, which made it easier to launch the ball in the air. Adams, being the son off professional golfer, wanted his golf clubs to stay true to what golfers perceived as an authentic golf club in looks and feel. Dam’s believed in four principles that his company should follow; provide innovation with authenticity, always be passionate about the game, and pledged to be competitive – to work hard to establish itself and grow (Tailored, 2013).
Following these principles Tailored has become the leading metalloid carrier for professionals on the major golf tours. In 1997, Tailored transitioned from an independently owned company to a co-brand of Tailored-aids when aids Group purchased the company. Following the acquisition, the company shifted its focus to become the leader in drivers amongst its competitors (aids Group, 2013). Tailored is based in Carlsbad, California, and is a subsidiary of the German based parent company aids Group.
Tailored has its international corporate headquarters located in Millrace, Victoria, Australia. Tailored Performance Labs is located in San Diego, California. Tailored Performance Labs custom fits golf clubs to individual customers by utilizing the latest in motion capture technology to provide customers with “Golf ultimate fitting experience”
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Goals & Objectives: * Maintain status as #1 golf brand on the world’s professional golf tours * Use innovative and performance enhancing designs for new clubs * Keep strong brand recognition * Develop new relationships with retailers in unsaturated markets * Progress Tailored Marketing Plan By Originating golfers trot recreational to avid users to products Toolmaker’s core objective is to create high performance products for the golf marketplace, with an emphasis on innovation. Maintaining its leadership in the industry is vital to increasing brand exposure and relationships it has developed with its consumers.
Toolmaker’s short term goal is to remain profitable and increase its sales. Toolmaker’s long-term goals rely on sustaining its market leadership in the golf industry. To achieve these goals and objectives Tailored is implementing a plan that coordinates product development, marketing, branding and retail into a global marketing team. Tailored professionals and customer service personnel are located around the world, which help to strengthen brand image by developing relationships with new and emerging golf markets.
Tailored will continue to stay true to building its relationships and brand image with smaller retail outlets and locally owned shops where avid and recreational golfers frequent. Situational Analysis: Strengths Innovation and Design Toolmaker’s fundamental objective is to create the best performing golf products in the marketplace. Tailored makes the best performing products, because of its commitment to innovation and technology. This segment accomplishes its leadership position by introducing at least two major product innovations every 12 to 18 months (aids Group, 2013).
Tailored Performance Labs has separated Tailored from its competitors, through the use of customizing clubs for golfers. Toolmaker’s RI driver is the #1 used driver on the VGA Tour and its new Racquetball Stage 2 driver is quickly catching up (Wall, 2013). The wide use of professionals using Tailored drivers has helped to ensure brand awareness for recreational and avid golfers. Tailored has been committed to be the innovative and design oriented company in the industry since its inception.
In 2005 Tailored introduced the RE driver, which was the first golf club to have movable weights for a more customizable club (Leatherier, 2012). Later came one of the most popular drivers in history, the RE. The RE gained a lot of notoriety when many VGA professionals adopted it as their driver of choice. The cutting edge design of placing four weights in the club head provided for the ultimate customizable driver. The RE released in a variety of options and price points that provided tremendous profit for the company.
Superstar Technology and Flight Control Technology are the newest innovations Tailored has introduced, leading the way once again in technology and design. Distribution Tailored works closely Witt retail partners who are able to adjectively showcase he performance advantages and modern design that Tailored demands (aids Group, 2013). Tailored selectively chooses its retailers to more effectively sell its products. Being part of the aids Group allows Tailored to use the wide distribution channels and infrastructure that aids brand currently operates to grow its product line in new emerging markets.
Tailored focuses on strategic accounts to create and make available state-of-the-art floor displays that showcase products and communicate key messages, which allows it to better position its clubs and balls among the top-selling golf products (aids Group, 2013). Tailored is also focusing on smaller golf shops and privately owned retailers to gain a more personal approach with consumers. Leadership in Metalwork and Irons Tailored is viewed as the #1 innovator of metalwork by consumers and professionals.
Tailored has had to endure new competitors entering the market, such as Nikkei, but have continued to dominate the market due to its advanced technology and design that its metalwork are known for. Tailored has gained a 30% market share of metalwork and a large lead over its competitors in the USA (aids Group, 2013). The brands prime focus moving into the future is to gain more of a market share outside of the USA and continue to be the most used metalwork on the VGA Tour. Being the most used metalloid brand on the tour is not a testament to Just its popularity, but to its performance.
Professional golfers use the best performing equipment that is available and being the #1 metalwork on the VGA Tour is proof to the excellence that Tailored provides. Weaknesses Product Selection Toolmaker’s club selection is one its limiting factors as the company grows. Toolmaker’s products are more segmented towards professional and avid golfers. Tailored commands a premium price due to its innovative technologies that are present in the design of its products. The brand will need to introduce more products geared to the recreational golfer or middle-class segment.
Tailored already possesses the supply chain channels necessary to introduce these new products. However, Tailored will need to be careful when introducing these products as to not dilute the brand or lower the value of its existing top-of-the-line club selection. #2 in Irons on the Tour Being ranked second on the VGA Tour in irons might be acceptable to our imitators, but at Tailored being second is not adequate. Titles is currently the #1 played irons on the tour and while Tailored is known for its metalwork, there is no real excitement over I TTS irons.
Tailored NAS been touching solely on technologies to further its metalwork design, but will need to divert some of those resources into providing industry leading irons. Opportunities Capitalize on Strong Market Position Tailored-aids Golf is comprised of three major brands in the golf community; Tailored, aids Golf and Seaworthy. Tailored will need to capitalize on the rand recognition of these brands. Tailored is the leader in metalwork, among the leaders in irons and is quickly gaining ground in golf ball sales.
Aids Golf and Seaworthy are leaders in the golf apparel segment. Tailored will need to capitalize on its strong brand and keep its focus on creating the newest technologies and designs to keep leading the way. Recreational Golfers Tailored pricing strategy is to dominate the market in the mid to high-end price segment. This price segment is more for avid to professional golfers, which Tailored is more geared toward. A great opportunity exists to enter the low to id-price range segment, as Tailored currently does not have a great product selection in that category.
Tailored can enter this market through the introduction of new lower cost club selection. Another strategy would be that Tailored can attempt to move recreational golfers (infrequent and only plays occasionally) up the consumer escalator to avid golfers (frequent players) by expanding their desire to play more through effective marketing. These light consumers who only play golf once a month or less will need to be converted to medium to heavy consumers (avid golfers), which is the segment we are currently Argentina. Threats Counterfeit Clubs A major threat to the golf industry today is counterfeit clubs.
Aids Group is pushing the United States to more strictly regulate the importation of counterfeit clubs, along with other countries. Counterfeit clubs pose a threat to the brand itself, by introducing products that do not meet the strict quality that Tailored demands. Tailored has taken steps to combat these counterfeit clubs by hiring Marionette, a company that monitors online auctions for counterfeit clubs (World Golf, 2006). Tailored is also part of the Golf Anti-Counterfeiting Working Group, ho works with other golf companies to spot fakes and educate the consumer (Tailored, 2013).
Competing Brands and Consumer Trends Being the #1 driver on tour makes Tailored a prime target to its competitors. Competitors such as Nikkei, Galloway and Titles are constantly improving their product selection to gain some of Toolmaker’s market share. The competition also has more products that cater to the recreational golfer in the low to mid-price ranges. Tailored wants to keep its premium brand recognition, so entering the lower priced markets might not be a viable option. Segmentation, Targeting and Positioning (STEP)
Segmentation The golf market can be broken down into behavioral demographic, as well as an economic demographic. The behavioral demographic is further broken down into avid golfers, recreational golfers and non-golfers. Also an economic demographic is present, with golfers who want and are able to afford premium level golf clubs versus lower or middle-class consumers who are more interested in price level. In the USA avid golfers play 8+ rounds a year and include 13,216,000 golfers within this segment. Recreational golfer’s play 1-7 times a year and includes 14,184,000 golfers within this segment (Golf 20/20, 2013). Targeting
Tailored is currently targeting avid golfers, who are looking for the extra performance that Tailored is known for. With over 13 million possible customers the avid golfers market is the easiest for Tailored to target, due to the knowledge of golf that they possess. Avid golfers have developed a psychological need for golf and upgrade their equipment to the newest and best performing options available. Tailored already has great brand awareness and having the #1 driver on the VGA Tour ensures avid golfers attention to the brand. Positioning Tailored positions itself to suit the avid golfers with its leading performance ND design.
Tailored Performance Labs, which use motion capture technology as stated in the executive summary, provide golfers with an extra edge of customization. The brand leading the way in golf technology firmly separates it from competitors, who would have to invest heavily in research and development to match Toolmaker’s advances. Market/Product/Customer Analysis: The passion that avid golfers enjoy is the driving force behind the sales of Toolmaker’s products The market tort Toolmaker’s products is expected to grow, as the economy steadily improves.
Tailored will need to maintain its position as the deader in metalwork innovation and design. The brand’s irons will need to improve if it is to achieve its goal in obtaining the #1 rank on the VGA Tour. Also, as Tailored focuses on developing better golf balls new marketing strategies will need to be implemented to get some attention on its new technologies. Golf consumers are heavily influenced by what equipment professionals are using, so maintaining visual recognition on the tour is imperative.
The avid golf market is mostly dominated by individuals with a higher than average income. Aligning Tailored with other luxury items will help gain brand awareness from new and merging markets. Marketing Strategy: Toolmaker’s marketing strategy will need to continue its focus on leading the industry in innovation and design, along with capturing emerging markets. Another focus will be on converting recreational golfers to avid golfers. Toolmaker’s research and development team will need to keep its strategy of releasing two new products every 12-18 months to maintain this lead.
To capture emerging golf markets Tailored will need to utilize its professional staff and marketing teams to provide on-site golf club testing venues at untapped markets, along with existing markets to maintain brand awareness. Sales staff on site will provide additional sales for people who want to purchase the products immediately after testing them out. A trade-in program can be implemented to help turn recreational golfers into avid golfers, by offering discounts on new products when they trade-in their old equipment.
Another strategy to help gain a share of the recreational golfer market is to provide a product guarantee to help ease the stress of purchasing Toolmaker’s more expensive, but higher quality equipment. Financial Projections: Last year Tailored-aids Golf grew its sales by 20% (aids Group Investor Relations, 2013). Golf consumer market draws about $4 billion from equipment, $1 billion from apparel and $20 billion from green fees (cost of a round of golf and cart) (Black, 2012). The number of golfers dropped to 26. Million in 2011 compared to the middle of the decade, but the number of golfers is expected to increase with steady improvement of the economy. Sales of clubs, balls, shoes and other equipment rose by 1. 3% in 2011 to $2. 41 billion, reversing a steady slide since 2007 (Black, 2012). Sales are expected to gradually rise in the coming years barring any declines to the economy. Tailored will be able to capitalize on the slowly increasing sales expected in the future by implementing its marketing strategy.
Implementation Plan: Tailored will first need to send its professional representatives to the target markets to set-up demonstration booths and build relationships with current and new retailers. Advertising campaigns focusing on being the #1 driver on the VGA Tour will help supplement consumers Witt additional motivation to engage in these promotions. Positioning other Tailored products beside its metalwork will help gain additional interest from consumers to help increase sales. Tailored employees will provide promotional events such as, trading in customer’s old equipment for credit on new products, to help increase sales.
Tailored will maintain high visibility on the VGA Tour to keep its brand recognition and keep the interest of its target market, the avid golfers. Evaluation and Control Metrics: To evaluate the success of this marketing strategy Tailored will first need to compare sales figures from past months versus sales a year later after the plan has been implemented. Products will then need to be evaluated based on the sales performance in the different markets. Following this plan should see an increase not only in sales, but also brand awareness due to the marketing activities.
Surveys can then be conducted in selected target markets to evaluate possible improvements or provide additional data on the target markets purchasing habits. Gathering more information will help to provide further data when new marketing strategies are formed. Tailored will also work closely with its retailers and have them observe the buying habits of consumers in their stores. This will provide data on where consumers spend most of their time to provide future information on which displays ere most effective, or where to set up new displays to capture the interest of more consumers.