|
|
 Golfing
for Gold
"...Golfers--and especially avid golfers--are
an enticing marketing demographic. According to the National Golf
Foundation, the average household income of golfers last year was
$68,209, compared with $51,855 for the average U.S. household in
1998, the most recent year Census data is available. Devoted
golfers, those who play 25 or more rounds per year, rake in even
more of the green, an average of $70,254 per household, despite all
that time they spend on the greens. Golfers are now even more
appealing to marketers because of the game's growing popularity with
younger players and its special appeal to affluent males, which
makes it a unique marketing opportunity." [Source: "Tiger
Would-Be's." American Demographics 22(8) August 2000,
50+. In Business & Industry.]
| The Growth of Golf |
 Top |
"The vitality of golf is seen in the growth
of the number of players over the last 50 years, increasing from
about 3.5 million in 1950 to fully 26.4 million in 1998. though this
growth has come in waves, the game has grown more than seven-fold in
terms of participants since 1950, making it one of the most widely
enjoyed leisure pastimes in the United States." [Source: A
Strategic Perspective on the Future of Golf: An Executive Summary.
Prepared by National Golf Foundation and McKinsey & Company.
1999. Available on the National Golf
Foundation Web site.]
| Business &
Golf |
Top |
"Calvin Coolidge, who once remarked that 'the
business of America is business,' didn't quite get it right. As any
CEO will tell you, the business of America is golf.
"Golf and business have been inextricably linked for more than
a century. From the formation of private country clubs in the late
1800s to today's ritualistic sales meetings at Doral, Pebble Beach,
or Kiawah Island, executives seem to be as comfortable conducting
business against the serene backdrop of a rolling emerald fairway as
they are within the controlled confines of the office. After all,
they're also working on their swings. The ability to play golf,
understand its etiquette, and respect its traditions can boost a
career.
"Former U.S. Amateur champion Vinny Giles, who now represents
nearly two dozen professional golfers, explains the attraction this
way: 'There's a camaraderie that can be developed on the golf
course," Giles says. "You spend four hours with a person.
You get to know him and see him in a different environment than the
boardroom. There is a certain bond in the game, and everyone shares
a common purpose and a common enjoyment.'"
[Source: "Golf
and Business: A Perfect Couple." Business Week Online.
November 2001. See also: Golf
& The Business Life. Business Week & Golf Digest.
November 18, 2002].
| The Leader
Board |
Top |
| Company |
1997 Sales |
1997 Spending |
1998 Spending* |
|
|
|
|
| Titleist/Cobra/Footjoy |
$713 |
$19.4 |
$19.7 |
| Callaway/Odyssey |
575 |
23.0 |
25.6 |
| Spalding/Etonic/Hogan |
338 |
24.1 |
13.0 |
| Taylor Made |
257 |
18.1 |
15.2 |
| Wilson |
139 |
8.2 |
9.2 |
| Ping |
116 |
8.4 |
6.7 |
| Northwestern/Pro/Select |
101 |
NA |
NA |
| Nike |
100 |
4.6 |
12.7 |
| Izod Club |
100 |
NA |
NA |
| Maxfli/Dunlop |
88 |
3.9 |
4.0 |
| *
Jan.-Sept. only All Figures in Millions |
| Source:
Golf Pro Magazine; Competitive Media Reporting. In TableBase. |
| International Marketing |
Top |
"U.S. golf club manufacturers significantly
increased their reliance on foreign markets over the past decade.
This process accelerated between 1993 and 1998, as dollar exports
increased at a 17.8% compound annual rate and unit exports increased
10.0% annually (Table2-4). As a result, exports' share of domestic
shipments is estimated to be 18.6% of unit volume and 23.6% of
dollar sales during 1998. Japan has traditionally been the largest
foreign market for U.S. golf club manufacturers. However, Japan's
relative position has declined significantly between 1993 and 1998.
On the other hand, U.S. golf club exports to the United Kingdom,
Canada, and Germany soared over this period. Shipments to these four
markets are estimated to account for 78.2% of total U.S. golf club
dollar exports during 1998. Customers in these four markets
generally purchased high-priced clubs (Table 2-6)" [Source: SBI Market Profile: Golf Equipment
and Accessories. October 1998. In
MarketResearch.com
Academic.]
| The Golf Ball Battle |
Top |
"For most of the golf ball's magisterial
reign as the single best-selling good in sporting goods, there was
nothing much to this sphere but the sphere itself. It had a hard,
dimpled face, plastic gunk or rubber bands for innards, and a heart
of antifreeze or saltwater. Or no heart at all.
Three out of four golf balls came from
Massachusetts, home to ball-making superpowers Spalding, producer of
the Top-Flite brand, and Acushnet, maker of Titleists. Spalding
ruled the world market. Acushnet presided over the American elite.
They skirmished politely, battling back brand competitors like
Wilson and Maxfli, and swatting off pipsqueak upstarts. But theirs
was a relatively pastoral hegemony. Until now.
"The orb that the world's best golfer places
on his tee this weekend at the U.S. Open at Pebble Beach might not
rank up there with the asteroid that supposedly did in the
dinosaurs. But it's close, if you ask Nike and believe a lot of the
hyperventilation in the golf world. For the first time since he
officially announced his (partial) defection from Titleist on June
1, Eldrick "Tiger" Woods will formally and officially be
playing a Nike Tour Accuracy ball." [Source: "Rolling
Clones: Does Your Golf Ball Beep, Tick, Perform Some Special Trick?
-- Probably Not, But Tiger is Switching His Brand, and War is in the
Air -- Marketing With Moondust." By James P. Sterba. The
Wall Street Journal. 6/15/2000 A1. In Dow
Jones Interactive.]
| Truth in Advertising |
Top |
"Tiger Woods endorses Nike Tour Accuracy golf
balls in TV and magazine ads, but he really plays with custom-made
golf balls unavailable to everyday duffers, Nike acknowledged
Tuesday after being sued in federal court in San Francisco."
[Source: "Woods' Golf Balls Roll Into Suit." The
Washington Post August 24, 2000 p. D2. In Lexis-Nexis.]
| Callaway Golf Company |
Top |
"Thanks to
Big Bertha and its sisters, Callaway Golf has realized big sales and
great big sales. Led by a driver named after a WWI cannon, the
company's premium-priced golf clubs -- designed using computer
technology and aerospace-grade metals -- are popular with amateurs
and professionals alike. Its other drivers include Great Big Bertha
and Hawk Eye. Callaway Golf also makes fairway woods, irons, putters
(Odyssey, Bobby Jones), and Rule 35 balls. The company licenses its
name to makers of golf bags and accessories. Callaway Golf's
celebrity endorsers have included 1970s shock-rocker Alice Cooper
and Microsoft CEO Bill Gates. More than 40% of the company's sales
come from outside the US." [Source: Hoover's
Online Company Capsule].
| Callaway's
Competition |
Top |
"The market in which the Company does
business is highly competitive, and is served by a number of
well-established and well-financed companies with recognized brand
names, as well as new companies with popular products. With respect
to metal woods, the Company's major domestic competitors are Taylor
Made, Titleist, Cobra and Ping. In 1998, Orlimar and Adams emerged
as new competitors. With respect to irons, the Company's major
domestic competitors are Titleist, Cobra, Taylor Made and Ping. For
putters, the Company's major domestic competitors are Ping and
Titleist. New product introductions and/or price reductions by
competitors continue to generate increased market competition.
However, the Company believes that it has gained unit and dollar
market share for woods in the United States during 1999 as compared
to 1998. While the Company believes that its products and its
marketing efforts continue to be competitive, there can be no
assurance that successful marketing activities by competitors will
not negatively impact the Company's future sales." [Source:
Callaway Golf Company Form 10-K405. March 30, 2000. From EDGAR.]
| How to Analyze
a Leisure Products Company |
Top |
"An analysis of an individual leisure
products firm should begin with an understanding of the general
macroeconomic climate. A healthy economy is a key driver of consumer
spending. It's during periods of GDP growth and low unemployment
that personal income advances. When consumers have more money to
spend, discretionary spending on leisure products gets a boost.
Next, company-specific characteristics, both qualitative and
quantitative, should be addressed in order to evaluate the firm's
strengths and weaknesses compared to its peers.
The leisure products industry is made up of many diverse segments,
so an analyst must first determine which segment a particular
company belongs to and apply the appropriate analytical tools for
its specific operations."
[Source: "Leisure Products." By Maureen
C. Carini. Industry Surveys. April 27, 2000. In Standard &
Poor's NetAdvantage]
| Sporting Goods |
Top |
"In 2000, the Sporting Goods
Manufacturers Association (SGMA) estimates that sports equipment
sales at the wholesale level will be up about 3.6% from the $17.6
billion estimated for 1999. (Note: Variations in industrywide sales
numbers between the SGMA and NSGA are due in part to differences in
how the sporting goods industry is defined. Also, the SGMA focuses
on wholesale dollars, while the NSGA addresses consumer spending.)
As noted earlier, the NSGA has estimated that consumer spending on
sporting goods equipment was $19.2 billion in 1999. The biggest
categories were golf, $3.7 billion (up 2.0%); exercise equipment,
$3.1 billion (+8.0%); team good sales, $2.4 billion (+1.8%); hunting
and firearms, $2.3 billion (+5.0%); and camping, $1.2 billion
(+3.0%)."
[Source: "Leisure
Products." By Maureen C. Carini. Industry Surveys. April
27, 2000. In Standard &
Poor's NetAdvantage]
| Sample Mediamark Report |
Top |
Recreation - Spring 1998
Sports: Participated in Past 12 Months
Golf
Report base: Adults
Copyright 1998, Mediamark Research Inc.
Demographics and Media Habits
of Golfers (Excel File)
Golf Digest is published monthly by the New York
Times Magazine Group, 5520 Park Avenue, Trumball CT 06611. Phone
203-373-7000. Fax 203-373-7043.
Publisher's Editorial Profile
GOLF DIGEST is edited for golf
enthusiasts at all levels of ability - from beginners to
low-handicap players - to help them improve play and enjoy the game
more. Each month, it provides in-depth, "how-to"
instruction and tips by an unparalled team of teaching professionals
and playing editors, including major championship winners Ernie Els,
Justin Leonard, Se Ri Pak, Nick Price, Tom Watson, and Tiger Woods.
In addition, Golf Digest contains equipment coverage. regular
features in the magazine include golf travel, health & fitness,
player profiles, and course rankings, such as "America's 100
Greatest Golf Courses," the game's oldes ranking. Rec'd
10/18/99.
Advertising Rates
Effective January 1, 2000. (Issue/Card 54)
Rates verified June 21, 2000.
COLOR RATES
|
1 time |
3 times |
6 times |
9 times |
12 times |
| 4-Color |
|
|
|
|
|
| 1 pg |
$117,530 |
$114, 590 |
$111,650 |
$108,710 |
$105,780 |
| 1/2 pg |
$71,990 |
$70,190 |
$68,390 |
$66,590 |
$64,790 |
[Source: Standard Rate and Data
Service. SRDS Consumer Magazine
Advertising Source]
| Affluent Magazine
Readers |
Top |
Magazine Total Audiences - Spring
1998
Household Income
$75,000 or More
Report Base: Adults
Copyright 1998, Mediamark Research Inc.
Affluent
Magazine Audiences (Excel File)
|
