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Retailing down but now is the time to gain market share
TMaG says Burner 2.0 Irons are the start
By ED TRAVIS
TMaG says Burner 2.0 Irons are the start
By ED TRAVIS
In a splash not usual for the golf equipment business,
TaylorMade adidas Golf president Mark King was
featured in a live web cast Thursday afternoon to
announce the new Burner 2.0 irons. Using the web this
way, to make product announcements is a first for the
Carlsbad, Calif. company ranked second in sales behind
Acushnet Golf (Titleist, Pinnacle, FootJoy) with over $1
billion in sales.
Speaking in front of an audience of sales reps attending
the annual sales meeting, King stressed the innovative
approach of the Burner 2.0 iron model. While there is a
story about the updating of the Burner iron line introduced
last year the more important news is TMaG’s push to
become an even bigger player in the golf equipment
business using even more frequent model replacement.
According to King, TMaG will during the next year
announce products to replace every item in the enthusiast’
s bag from drivers to putters to balls to shoes and
apparel. Presumably this is not idle boasting since
TaylorMade in the past few years already has earned the
ire of some retailers, especially in the driver business
where they are dominant, by making frequent model
changes.
This strategy presumes to capitalize on the consumer’s
desire for “new and improved” but runs the risk of both the
company and shops being left with inventory of the
previous model clubs which can’t be sold or sold at full
price. Therefore by employing this approach from the
moment of introduction there is price pressure on every
item plus a need for additional promotion to push as
much product as possible in the shortest amount of time
before the allure of “newness.”
An equipment maker choosing to match TaylorMade’s
strategy is faced with making the investment for research
and development plus competing with the marketing
power of the TMaG brand backed by the global punch of
parent company adidas. So far no other company has
adopted this approach.
TaylorMade adidas Golf president Mark King was
featured in a live web cast Thursday afternoon to
announce the new Burner 2.0 irons. Using the web this
way, to make product announcements is a first for the
Carlsbad, Calif. company ranked second in sales behind
Acushnet Golf (Titleist, Pinnacle, FootJoy) with over $1
billion in sales.
Speaking in front of an audience of sales reps attending
the annual sales meeting, King stressed the innovative
approach of the Burner 2.0 iron model. While there is a
story about the updating of the Burner iron line introduced
last year the more important news is TMaG’s push to
become an even bigger player in the golf equipment
business using even more frequent model replacement.
According to King, TMaG will during the next year
announce products to replace every item in the enthusiast’
s bag from drivers to putters to balls to shoes and
apparel. Presumably this is not idle boasting since
TaylorMade in the past few years already has earned the
ire of some retailers, especially in the driver business
where they are dominant, by making frequent model
changes.
This strategy presumes to capitalize on the consumer’s
desire for “new and improved” but runs the risk of both the
company and shops being left with inventory of the
previous model clubs which can’t be sold or sold at full
price. Therefore by employing this approach from the
moment of introduction there is price pressure on every
item plus a need for additional promotion to push as
much product as possible in the shortest amount of time
before the allure of “newness.”
An equipment maker choosing to match TaylorMade’s
strategy is faced with making the investment for research
and development plus competing with the marketing
power of the TMaG brand backed by the global punch of
parent company adidas. So far no other company has
adopted this approach.
An equipment maker choosing to match TaylorMade’s
strategy is faced with making the investment for research
and development plus competing with the marketing
power of the TMaG brand backed by the global punch of
parent company adidas. So far no other company has
adopted this approach.
King did not say it in the web cast but TaylorMade clearly
is looking to take advantage of the slowdown in golf
equipment sales to take additional market share from the
competition. Every golf equipment maker has made cut
backs to compensate for declining sales and King is
upping the competitive pressure at a time when most
companies do not have the sales and profits to support
more investment.
TMaG already is the number one selling driver brand (a
position they took away from Callaway Golf six years ago)
and has increased its iron business to a very close
second behind leader Callaway. Challenging the ball
business leader Acushnet may be more difficult though
since Acushnet’s Titleist and Pinnacle brands have
roughly 60% of the market however TaylorMade’s
premium Penta TP ball is doing very well head to head
with the Titleist Pro V1 and TMaG seems to have more
focus and better marketing after dumping the Maxfli brand
and concentrating on their own branded product.
King’s web cast was more than just another product
introduction; it was a challenge to the other equipment
makers.
strategy is faced with making the investment for research
and development plus competing with the marketing
power of the TMaG brand backed by the global punch of
parent company adidas. So far no other company has
adopted this approach.
King did not say it in the web cast but TaylorMade clearly
is looking to take advantage of the slowdown in golf
equipment sales to take additional market share from the
competition. Every golf equipment maker has made cut
backs to compensate for declining sales and King is
upping the competitive pressure at a time when most
companies do not have the sales and profits to support
more investment.
TMaG already is the number one selling driver brand (a
position they took away from Callaway Golf six years ago)
and has increased its iron business to a very close
second behind leader Callaway. Challenging the ball
business leader Acushnet may be more difficult though
since Acushnet’s Titleist and Pinnacle brands have
roughly 60% of the market however TaylorMade’s
premium Penta TP ball is doing very well head to head
with the Titleist Pro V1 and TMaG seems to have more
focus and better marketing after dumping the Maxfli brand
and concentrating on their own branded product.
King’s web cast was more than just another product
introduction; it was a challenge to the other equipment
makers.
The new TaylorMade Golf Burner 2.0 irons are an updated version
of the popular Burner irons introduced last year. Design
modifications, according to the company, deliver more distance
and accuracy with enhanced playability and better feel. An eight
iron set will carry a street price of $699 with steel shafts and $899
with graphite shaft. Retail sales begin October 8.
of the popular Burner irons introduced last year. Design
modifications, according to the company, deliver more distance
and accuracy with enhanced playability and better feel. An eight
iron set will carry a street price of $699 with steel shafts and $899
with graphite shaft. Retail sales begin October 8.