The challenge for Golf logix is to increase sales by implementing a new strategy to target direct consumers. This strategy is primarily focussed on ‘avid’ and ‘core’ golfers with the aim of increasing sales by 400K XCaddie units in the first year. Alternatives:
1. The first option for Golflogix is to implement a strategy to market the product more effectively through golf courses without worrying about direct consumers.
This will give Golflogix a freedom to market their product in one segment while still maintaining the revenue growth even if there is no surge in demand at a consumer level. We believe the product is more appealing to experienced and regular golfers as it provides them a good medium to improve their game at the same time it also provides a change to the traditional golfing which might not be welcomed by all golfers. As stated in the case, the core and avid consumers use private and high end courses hence; Golflogix should target this market specifically.
Also, looking at the operating cost, it is less likely that low end municipal courses would have enough budgets to introduce a new system which is high in cost and comes with a lock in contract for three years. Having said that Golflogix has a free 30 day trial for a product which I think has its pros and cons, due to the high cost in setting up the complete system, Golflogix could lose thousands of dollars just from the trial and courses not moving in a contract.
For this reason, Golflogix has to change the target market to high end and private courses that have sufficient funds also change their existing strategy about 30 days free trial.
2. The second option for Golflogix is to target the consumers directly. This could be done in various ways, by marketing their product directly in malls, sport shops, online etc along with various marketing campaigns. The benefit of this option compared to previous is that the target market is much bigger hence the demand is likely to surge that will help Golflogix make quick money in a much shorter period.
Having said that, if the device is available freely in the market, it is likely that the product will be out-dated quite soon due to high exposure. Also, by targeting the direct consumers Golflogix might lose existing business with the courses which is another concern in a long term.
3. The third option for Golflogix is to target direct consumers along with the high end golf courses. This can be done by making the product available for purchase via Pro shop in the courses.
The consumer could try the product by leasing and if they like the product they also have an option to purchase it outright. This will mean that Golflogix will have broader coverage in terms of sales and the consumers will have higher flexibility of the product. Also, Golflogix could introduce incentive for the sales of the XCaddie to the courses, which in turn is additional revenue for the courses. This will motivate the courses to try the product and keep it for a long term.