1. Prepare a competitor analysis table for Victor? Conclusions.

PARTICULARS ALTIUS PRIMERA MERIDIAN BANTAM CARLSBAD

Revenue 1450.656 394.2 84.096 454.644 244.404
Market Share 55.20% 15.00% 3.20% 17.30% 9.30%
Objective Leader Challenger Niche Follower Follower
Flight BCE Seraph
Range of VictorTX, Aerial Merion Celeste
Products Victor Arc Riviera Pegasus
Wing Canterbury PegasusX
Non-
conforming
Important Professional
Asymmetri
Features Grade balls
c Dimple
pattern
Matches
VictorTX: customer
Maximize skill
Distance, Feel ARC and Reduce
Important
around greens Wing: slices and
Benefits
Victor: Maximize Assists hooks
distance, mishits,
Maximize control slower swing
speeds
Loyalty Status High Medium Low Low Low
Premium Premium Premium Premium
Segment
Premium and and and and
Description
Economy Economy Economy Economy
Save
Providing a
High quality and beginners
golf ball that
credibility to from
matches the
Value enhance embarrass
skill of the
Proposition Professional or ment and
play.
Experienced frustration
‘Your play,
golfers of bad
your ball’
swings
Price Points $45
Distribution Off-course Off-course Off-course
On-course Off-Course
channel On-course On-course On-course
Channel
management
Promotion
Outlay $35 Million $15 Million
Penetrated
Unmatched major off Caters to Caters to
prestige and Competitive course all all
Strengths credibility prices retailers segments segments
Cannot be
Relatively sold on-
Bad penetration in
lesser course as it
off course
spending in is sells non-
markets
advertising conforming
Weaknesses balls
Asymmetri
Popular choice of Provides ball c dimple
professionals fitting patterns to
Special
which makes the expert and reduce
Strategies Used
player feel like launch slices and
one monitor hooks, for
beginners

* Assuming the remaining 3.2% is Meridian’s market share.

2. What will you recommend as Benefits and features of the new

product under Elevate?

FEATURES:

 TWO-PIECE: These balls have both cover and a core. This is usually a better fit for
beginners and casual players as it helps generate distance.
 RUBBER CORE: This is one of the few materials they use in a two-piece ball that
helps in reducing the swing of the ball making it suitable to the target market of
Elevate.
  SURLYN COVER: A surlyn cover is one of the two materials used in manufacturing
a two-piece ball. This assists the overall benefit of less spin and straighter shots
possible.
 Non-conforming balls

The above two- piece ball will maintain a lower construction cost while meeting the
benefits that Elevate has to offer its customers who are beginners and casual players
of golf.

BENEFITS:

 Straighter shots with less spin

 Covers maximum distance
 Fast, medium and slow swing speeds
 Affordable and cheaper price for casual players while adding prestige and
privilege of using a premium brand.

3. Will you keep Victor name or some other name for the new product
line, keeping in mind the existing brand’s popularity, brand strength
and perceptions? Reasons.

We will not want to maintain the name Victor to the new segment, as it will undermine
the value of the Victor products in the premium segment. Adding to this, Victor is
already positioned in the market as an expensive and professional brand and hence
attracting beginners and casual players who are price sensitive will be a challenge.
However, a name in association with Victor will make the player feel privileged due to
the brand value and its popularity. Hence the following are a few suggested names
 Elevate by Victor
 Victor-El
 Victor’s Elevate

4. Which all segments will you find most attractive? Reasons.

The attractive segments are Loyalists and Agnostics.

  Loyalists have remained more or less the same just moving from a share of 69%
of the Altius’ total customers in 2006 to 68% in 2011. This segment has
customers who are less likely to switch to other brands and is less price-
sensitive. Considering the situation of the economy where people are cutting on
expenses and golf is treated as a discretionary purchase, retaining this segment
is important. This segment contributes towards the maximum part of Altuis’
revenue.
 Agnostics are those who are beginner casual players. This segment is highly
price-sensitive and is very likely to switch to other brands with a change in price.
But the segment has grown during the period 2006 to 2011 from 12% of Altius’
customer base to 17%. This reflects a high scope for potential new market.
Elevate is also a product that can attract this particular segment.

5. What will be 3-4 factors on which the new product line can be built?

 Price: Lower price providing accessibility to casual and non-golfers gradually

turning these participants into loyal customers
 Size, Distance and weight: makes the game casual for recreational golfers
and easier for new participants. Elevate ball is easier to drive for distance
 Provides easy entry point into intimidating game and is fun to play
 Premium quality despite lower price since it belongs to premium brand
Altius.
 Customer segment: Positioned to target the price sensitive Agnostic and
Enthusiastic segment

6. What will be the 2 Value propositions? Draw a perceptual map

showing competition.

Beginner Market
Product Price (1-5) Friendly (1-5) Share
Victor TX 2 1 38.64%
Victor 1 2 8%
Elevate 4 5 9.0%
Arc 3 3 9.0%
Flight 5 2 2.0%
Aerial 5 3 2.0%
Wing 5 5 2.0%
 Riviera 3 4 3.70%
BCE 3 1 1.7%
Merion 4 4 8.0%
Canterbury 1 3 4.7%
Pegasus 5 4 4.3%
Seraph 3 2 1.16%
Celeste 4 3 1.14%
Pegasus X 2 4 2.68%
Merdian 5 5 2.47%

MORE BEGINNER FRIENDLY

6
PERCEPTUAL MAP Victor
TX
5 5 5 Victor

Elevate

4 4 4 4 4 Arc

Flight
HIGH PRICE

LOW PRICE
3 3 3 3 3 Aerial
0 1 2 3 4 5 6
Wing

2 2 2 2 Riviera
V
BCE

Merion
1 1 1
Canterb
ury
0
LESS BEGINNER FRIENDLY

7. What will be your distribution channel plan? On-course channel or off-

course channel or both? Margins?

Elevate should be sold in off-course retail stores as this line also has
non- conforming balls. Usually the retailers on-course do not sell non-
conforming balls as they are not to the USGA standards. Also, until now
Altius with its Victor range was able to achieve almost a 100%
penetration into the on-course market but have almost no presence in
the off-course market. Elevate will help in overcoming this issue.
 Usually Altius offers only a margin of 15% on its Victor even when its
competitors are offering about 20%. However, Altius in case of Elevate
should offer at least about 20% margin because
 It is new in the market and will be catering a price sensitive
market
 This will help Elevate to be placed on shelves along with Victor TX
and Victor which will help improve the sales of Elevate due to the
brand value Victor line has to offer.
Altius is planning to offer Elevate at a retail price of $27. Hence with a
margin of 20% ($5.40), Altius will be able to retain $21.60 from sale of each ball.

8. What will be the cost and price structure of the new product?

COST-PRICE STRUCTURE OF ELEVATE:

Price $27
Cost $7.75
Retail Gross Margin % 20%
Retail Gross Margin $5.40
Manufacturer Margin $13.85
Manufacturer Margin % 51.2963
Manufacturer retains $21.60

9. What will be your theme of Promotion? Budget?

The theme of promotion would be affordability and fun associated with using
Elevate for golf.

35% of golfers, 53% of non-golfers and 45% of lapsed golfers had cited high prices as
their top reason for not playing golf. The success of Meridian and Primiera’s non-
conforming balls was based on the fact that it was easier for non-golfers to play the
otherwise intimidating game.

Therefore, we would promote Elevate as a ball that makes golf game fun, easy to
learn making it accessible to large sect of people who avoid due to difficulty of the
sport. The promotion would be aimed at young participants or new generation of
 golfers who would gradually become loyal customers as they ace the game and
move to Victor TX.

10.Will you alone or be part of popularizing the new way of playing golf?
If yes, what will be your budget for that?
11.What will be your expected sales of the new product in 2013?