the cougar business consulting group 2003
TRANSCRIPT
Presented ByEMILY CLARK: Customer Strategy & Marketing Analyst MATTHEW DUGGAN: Corporate Finance Analyst JESSE JOHNSON: Strategy & Operations Analyst MAGED MARZOUK: Business Planning Analyst
INTRODUCTION
EMILY CLARKCustomer Strategy & Marketing Analyst
JESSE JOHNSON Strategy & Operations Analyst
MATTHEW DUGGAN Corporate Finance Analyst
MAGED MARZOUK Business Planning Analyst
CURRENT SITUATIONSOLUTIONS BENEFITS SUMMARYNEXT STEPSQUESTIONS
ALTIUS
IN MEMORIAM
DO YOU WANT TO JOIN THE RANKS?
CURRENT SITUATION
CURRENT SITUATION CONT.The Game and Altius
Golf participation has dropped by 19% from 2003 to 2012 (National Golf Foundation (NGF)
The cost of golf overall
Duration of a round of golf
Difficulty of golf
2008 Recession
Altius business trending downward
Unit and dollar sales of golf balls down 8% and 7% from 2008 to 2012, respectively; off-course dollar sales down 10% during same period
Market share has dwindled
SOLUTIONS
Two key strategies for INCREASING the market share of Altius Golf
FIRST: Introduce the Elevate ball to new recreational users
Partnering with golf driving ranges and practice facilities will introduce a new market to Altius
Selling these balls at large box retailers will also attract a new market to Altius
Customers at these facilities will develop a positive association between the sport of golf and the Altius brand and will be able to purchase the Elevate ball at their local large box retailer
The team at CBCG can facilitate these agreements easily
SOLUTIONS CONT.
Two key strategies for INCREASING the market share of Altius Golf
SECOND: Continue the industry leading sales of premier golf balls in the game; the Victor TX
Provide a subscription service allowing golfers the convenience of having the Victor TX delivered to their home or golf course pro shop of choice
A flat monthly or yearly fee would be charged to these customers
This is in keeping with the trend of consumers preference for convenience and automated offerings
This would encourage the more seasoned golfers to play golf more often
Continue to invest in R&D to Improve Victor TX
BENEFITS
Value segment “Tee it Forward”: 14 million new golfers by 2020 Price conscious: 35% ~50% lapsed golfers would try non-conforming ball
Off-Course ~5% decline Reputation is key to retailers; encouraged by sales prospects Subscription: convenience and ease
BENEFITS CONT.
BENEFITS CONT.
Value Capture:
“Tee it Forward”: 14 million new golfers by 2020
Represents $746 million in golf ball sales
Do you prefer $978 million or $725 million?
Elevate Strategy Status Quo
SUMMARY
STAYING THE COURSE >> NOT AN OPTION
BY 2020 ALTIUS WILL NO LONGER BE THE LEADER IN THE MARKET
TURNING THE SHIP AROUND >> THE ONLY WAY FORWARD
SOLUTIONS:
Introduce the Elevate ball to recreational users
Maintain the industry leading sales of the premier golf ball in the game, the Victor TX
BENEFITS:
Dramatic increase in unit sales reaching a market share of 57.2% by 2020 versus current market share of 45.2%
NEXT STEPS
1- Leverage relationships - Ken May (CEO of Top Golf) – Setup a meeting 2- Work with current Altius e-commerce team to introduce subscription services
3- Begin discussions with Altius manufacturer, to expand production to produce Elevate ball. Greater volumes will result in decreased production cost
4- Introduce big box stores to the Elevate ball to ensure seamless marketing and sales 5- Altius needs to continue R & D in its flagship product - Victor TX
QUESTIONS
Now We will Proceed to Q&A
ALTIUS ALTIUS ALTIUS