Maxfli: Going for the Long Ball For decades, Maxfi (www.maxfli.com) has been one
ID: 1136135 • Letter: M
Question
Maxfli: Going for the Long Ball For decades, Maxfi (www.maxfli.com) has been one of the top names in quality golf equip ment. On December 31, 2002, TaylorMade-Adidas Golf acquired Maxfli to boost its mar- ket share in the golf bal segment from less than 1 percent to 7.5 percent. Maxti produces golf balls, clubs, and other golf accessories, in its early stages, Maxfli's approach to the Industry was similar to others: produce good products marketed through the traditional channels (e.g-, pro shops, golf specialty stores) and use PGA professionals to market its products. This was a standard formula, but one that was challenged in the 1990s as more nd more companies entered the industry. By 1998, Maxfli discovered that its growth in market share dropped below par. It lost sight of its target markets and the understanding of what people in those marketa needed. Maxfli began conducting exploratory research because it was unclear as to what direction to steer the company. Madli began exploratory research by conducting focus groups to uncover the motiva- o behind golf ball purchases. It wanted to understand how consumers identified golf balls (e.g, by brand name, manufacturer, or some unique identifie. The focus group research indicated that every golf ball needs an identifier. This identifier allows one golfer to tel another about the type of golf bals he or she uses. The ability to do this is important to most golfers. This signaled to us that we needed to not only get the Maxfli brand into peo- ple's minds but also to give them the nomenclature hook that alows them to be inside the games" Dennis Rooke, Maxfli's head of marketing, explains. The focus groups also revealed that golf was as much a mental challenge as it was a physical one. Therefore, Maxfli's goal became to quiet that little voice inside golfer's heads. It wanted to figure out what types of products golfers were looking for and present them in a way that eased their state of mind. Following the focus groups, in order to research deeper, Maxfli conducted a telephone survey. Maxfli used a Synovate national panel as a cost-effective means to generate a repre sentative sampla of golfers who could be accessed via the telephone. The sample was thern stratified by purchase points, where they played golf, and other variables. There are several different types of golfers and each category had to be represented or the findings to be meaningful and conclusve. The research showed that although many golters were qualit)y oriented, there was an even bigger segment that could be called the fashion crowd of golf Maxdli then wanted to find out if its brand fit the needs of the so-called fashion crowd Based on the research findings, Maxfli determined that it should offer all levels of golf balls and position its products with a youthful attitude. Each ball had its own identity so that it could be discussed among goliers. In golf, "the ball you choose says a lot about you." Maxfli used exploratory research in the form of focus groups and descriptive research in the form of a telephone survey to make sure its line of golf balls met consumer needs. In 2004, Maxfli undertook focus groups and surveys and found that the market for high-performance golf balls consisted of two distinct segments. Therefore, Maxfli decided to spit its high-performance golf ball portfolio into two lines with different prices3 and target market segments. Revolution, with three SKUs (stock keeping units) has a price range of $35 to $40 per dozen. Noodle (it's long and soft, also with three SKUs, has a manufacturer suggested retail price (MSRP) of $25. D-Tec with two SKUs rounds the golf ball lines. The balls, targeting different skill levels, are sure to be a success with the reliance on marketing research to which Maxfli is committed. For Maxfli, creating products that met consumer needs is the first step in maintaining a leadership position in the golf industry. Maxfli is continually looking for the edge that will pull customers to its products. Maxfli has been successful at solidifying its place in the market through good consumer research and creative marketing approaches. estions What was the research design adopted by Maxfli in determining a direction for the company? Was it appropriate? Discuss the role of qualitative research in uncovering the motivations behind golf ball purchases. Are focus groups the most appropriate technique for this purpose?Explanation / Answer
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