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Inspiring Emotion for the Callaway Golf Brand Prepared For Butler, Shine & Stern by Lee Chapman, March 2008

Callaway Golf: Strategic Exploratory

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Calloway Golf Consumer & Brand Strategic Development

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Page 1: Callaway Golf: Strategic Exploratory

Inspiring Emotion for theCallaway Golf Brand

Prepared For Butler, Shine & Stern by Lee Chapman, March 2008

Page 2: Callaway Golf: Strategic Exploratory

You only get one chance to hit that specific shot.Greg Norman had a six stroke lead in the final

round of The 1996 Masters. He lost.

Page 3: Callaway Golf: Strategic Exploratory

Oversized golf drivers hit the ball straighter. Space-age materials make irons easier toswing. Ergonomically engineered putters roll the ball more precisely. Golf courses are moreplentiful and better-conditioned. Golf instruction is more accessible, at public and privateclubs - not to mention every night on a cable-television channel entirely devoted to golf.

There is even a better golf tee, revamped to let the ball soar longer and more accurately.

The only thing in golf that has not changed is the average score for 18 holes. Neither theaverage weekend player nor the world's best golfers have managed to get the ball in the

hole any sooner. The average 18-hole score for the average golfer remains at about 100, asit has for decades, according to the National Golf Foundation.

(International Herald Tribune, May 25, 2005)

Page 4: Callaway Golf: Strategic Exploratory

Odds of Shooting An Exceptional Tournament Score

The USGA's Handicap Research Team tells us that the average player is expected to playto his Course Handicap or better only about 25 percent of the time, average three

strokes higher than his Course Handicap, and have a best score in 20, which is only twostrokes better than his Course Handicap.

Source: USGA, 2008

Page 5: Callaway Golf: Strategic Exploratory

Golf has notnecessarily becomeeasier more than its

become more enjoyableto more people. Thegolfing experience is

more experiential

Source: Harris Poll, 2003

Source: Golf Digest, 2003

Page 6: Callaway Golf: Strategic Exploratory

The Challenge is what makes Golf a Sport and not a Game(It becomes personal)

Page 7: Callaway Golf: Strategic Exploratory

Behind or In Front of the 8 Ball?

Having conviction in yourgame and equipment

prepares the golfer forunforeseen situations

where he can only rely onhimself

Page 8: Callaway Golf: Strategic Exploratory

Indian or the Arrow?

Page 9: Callaway Golf: Strategic Exploratory

propulsion geometry stability precision element

INNOVATIVE

EASY? EASIER?

Page 10: Callaway Golf: Strategic Exploratory

PERFORMING-ENHANCING TOOLS HEIGHTEN THE EXPERIENCE

ADVANCED. INTELLIGENT

1973

TODAY

1985 1969 1989

Page 11: Callaway Golf: Strategic Exploratory

Every new succession of the Porsche 911 has traditionally been more of an evolution of the previousmodel rather than a complete redesign, but to imagine that engineers could build a 911 Turbo better thanthe 996 version nearly seemed impossible. It’s more powerful and faster than the previous 996, and every

bit as usable. In fact, the new 997 Turbo’s most amazing feat is the confidence-inspiring levels ofusability, which manages to flatter even the most average of drivers.

Source: Road & Track, 2007

“There is no substitute”

Page 12: Callaway Golf: Strategic Exploratory

3 jerseys7jerseys

The difference of 4 yellowjerseys over 16 years. The

equipment is more advanced andcycling even has regulated weight

restrictions. Is the Tour deFrance any easier today than in

1990?

Page 13: Callaway Golf: Strategic Exploratory

Summary

Golf is deceptively simple and endlessly complicated

The King, Arnold Palmer

Page 14: Callaway Golf: Strategic Exploratory

POSITIONINGS

Page 15: Callaway Golf: Strategic Exploratory

“Don’t Play”

When we say we “play” golf we really don’t mean what we say. Golf is tooinvolved to simply be “played”. When your on the range correcting,adjusting, finessing…trying to get your body to follow your brain, yournot “playing”. On each of those eighteen tee boxes there is noplayground, there are no kids laughing, just golfers, golfers who excelnot play.

Callaway Golf designs highly intuitive and precision hard and softgoodsenabling golfers to create and elevate their game; advancements inequipment has changed how golf is played from tee-to-green but makingpar is still as challenging as it ever was. And with all of theadvancements what innovations will endure making better golfers bettersportsmen?

Whether your choosing and pulling your club on the range or the course,you know its about that one shot, that single moment of concentration,your judgment and reasoning that will become evident. While golf mightbe classified as a “game” the individuals who pursue its excellence aredoing anything but…

Page 16: Callaway Golf: Strategic Exploratory

“Don’t Play” (2)

Kasparov doesn’t “play” chess. Lance didn’t “play” cycling. Claptondoesn’t “play” the guitar. There are no numbers, no jerseys, no time outs,no make-up-the-rules-as-you-go, and no quitting. Golf is not about that,its about dedication, time, effort, and results.

You “play” with Legos not Callaway Golf. Callaway Golf products arecrafted and designed to be used and applied with skill and deft to createsuperior results that have impact on and off the course. Callaway hasthe burden of delivering an exceptional experience in a very demandingsport. They’re not “playing” either.

So the next time you have to ask yourself am I “playing” golfing or is golfa sport or a game, look in your bag, hopefully there are tools and toys.

Page 17: Callaway Golf: Strategic Exploratory

“Step Up”

You’ve heard it before, golf is 90% mental and 10% physical. Regardlessof the equation, do you have the game, what it takes for 18 holes or anhour on the range chipping, not hitting drives, to step your game up?

When your hitting the ball great its easy to “step up”. You’ve seen itbefore, the one shot wonder, only to fail on his next attempt. Golf isabout “stepping up” during adversity, creating solutions to uniqueproblems…one shot at a time.

Callaway Golf “stepped up” golf with the Big Bertha, since then they’vecontinued to innovate within the sport of golf, allowing golferseverywhere to “step up” their individual games.

It doesn’t matter what the shot or the lie is, whether there’s a spike markon your line…you still have to make a move. If what’s in your bag is inyour heart, then “step up” and make it happen.

Page 18: Callaway Golf: Strategic Exploratory

It’s “The Shot”

Some people say Callaway makes playing golf too easy. Wrong! Callawayor any golf brand for that matter cannot make golf easier - there is onlyso much margin of error you can correct for. The rest is up to the golfer- his mechanics, course management, and technique.

What Callaway does brilliantly is make “the shot” more enjoyable fromaddress to follow through. The commonality amongst Callaway players,whether they have 72 “shots” or “100” is that each is closer to the truthof what a golf “shot” should be. Pure genius.

Why wouldn’t you want an innovative and progressive brand in your bag,one that makes the very essence of golf more memorable with each“shot”?

Page 19: Callaway Golf: Strategic Exploratory

“Honors”

It’s not given to you, you don’t inherit it, you don’t find it, and you don’ttake it. You earn it and humbly accept its responsibilities. Having“Honors” means you lead the way, set the pace, raise the bar, do what youmust do to keep the title.

Take nothing for granted, especially in golf. Callaway golf has earned“honors” from golfers around the world for its consistent innovation inclub and product design. A trusted partner for golfing excellence,Callaway has elevated and heightened golf through rigor and creativity.

Whether you’re getting “up and down” to save par, two putting from 50feet, or chipping it within inches, keeping “honors” is the jacket everygolfer everywhere relishes.

Page 20: Callaway Golf: Strategic Exploratory

“Play Through”

Golf has become almost too complex - too much innovation, too many tips,too much advice, too many new but the same products. It’s made the sportharder to master.

“Play through” the noise, the talk, the bs of golf brands that tell howthey’ll make your game better. First off, they don’t even know you oryour game, they’re one-size-fits-all approach has commoditized golf forthe masses.

Callaway Golf has the same spirit by redefining what golf is and means.Callaway “played through” convention, standards, and objections toengineer the sport of golf for the future.

“Play through”.

Page 21: Callaway Golf: Strategic Exploratory

“Forged from the Same Mold”

Vision. Intelligence. Creativity. These are the values that distinguishCallaway from other golf brands. From the carbon steel that’s forgedto make the X-20 Tour irons to the four-piece Tour IX ball, Callawayproducts are infused with the spirit of advancement in golf.

Its hard to be consistent, to have values, to have character and integrity.Callaway delivers on its promise to golfers by consistently raising thelevel of the sport to new heights.

As your game advances you’ll need a solid brand with reliable productsthat work in any situation. You need one brand with one mission, the sameas yours, to make you a better golfer. For that there is only one brand,Callaway.