I. Introduction
As member of the Cleveland Golf sales team I will be selling the CG-2 model golf irons. The company my prospect works for, Dick’s Sporting Goods, is looking to expand on the different types of golf clubs they sell. Dick’s is looking for a club to meet the needs of better than average golfers who are serious about the game. Dick’s is also looking at the model X-18 irons made by Callaway. During the sales call I will explain to Dick’s Sporting Goods how carrying Cleveland’s CG-2 irons will increase their sales and keep their customers happy. In order to be completely informed for the prospect I have researched the golfing industry, my product, and my competitor’s product.
II. General Industry Information
- History: Golf originated out of Scotland sometime in the mid 15 th Century. In those days the Scots played golf in its most basic form: take a club, swing it at a ball, move the ball from starting point to finishing hole in as few strokes as possible. Throughout the years golf continued to be played and the game continued to improve in Scotland. In 1744 the first rules of golf were written down in Edinburgh. Golf as it was then played would be easily recognized by any modern golfer today.
Golf being played in eighteen holes wasn’t the standard until the early 1900’s. Some golf courses had twelve holes and others had nine holes. Although there was a variation in course length most courses had eighteen holes because the most famous golf course of all, St. Andrew’s, had eighteen holes.
In golf, a score of one under par is called a “birdie” and a score of two under par is known as an “eagle.” These terms were formed because American slang of the 19th Century, the term "bird" was applied to anything particularly great. Saying “bird” in the 1800’s was the same as saying “cool” today. So on the golf course a great shot- one that went into the hole one under par- became known as a “bird,” and was later transformed into today’s “birdie.” The term “eagle” for two under par simply followed “birdie” because an eagle was perceived to be even greater than a birdie.
- Sales: The golf club industry brings in approximately $3.9 billion a year.
- Product Innovations: In the early days of golf people carved their own clubs and balls out of wood. After the all wooden club, the next major innovation in the game of golf was putting a metal head onto a wooden shaft. Next came steel shafts and metal club heads.
In the past then years or so golf club technology has increased dramatically. The games law-maker’s have had to keep a close eye on both clubs and balls to ensure that advancements in technology doesn’t ruin the game of golf. Clubs such as the Calloway ERC (which causes a trampoline affect on the golf ball) have been banned. Here is a list of some recent major innovations in the golfing industry:
- Graphite shafts (on both irons and woods)
- Customized club fitting
- Titanium club heads for drivers
- Adjustable perimeter weighting for drivers
- Hybrid of forged and cavity backed clubs for irons
- Major Competitors: The golfing industry is highly competitive with several major companies. Cleveland’s major competitors are Callaway, Nike, Taylor Made and Titleist.
- Trends: The game of golf has had a tremendous increase in popularity ever since Tiger Woods became famous. Golf is a popular game not only in the US but all over the world and it is growing in countries such as Korea, Japan, India, China, Germany, UK and South Africa. Within the last 5 years, the golf industry has seen a significant growth rate of 5-15% annually at various regions of the world. The Golf market in India and China has been forecasted to grow over 25% annually in the next five years.
III. Company Information ( Cleveland Golf)
- Number of Employees: The Cleveland Golf Company employees over 350 people.
- Sales: Approximately $23.3 million.
- Offices: The Cleveland Golf Company’s headquarters is located in Huntington Beach, California. They have a sales force dispersed all across the United States, as well as approximately two dozen international distributors.
- History: The Cleveland Golf Company was founded in 1979 by Roger Cleveland. At first, the company was known for manufacturing beautiful replicas of classic golf clubs from the 1940’s and the 1950’s. In 1990 Cleveland Golf was acquired by the French company Skis Rossignol S.A. Cleveland Golf has grown tremendously since 1997 when a new company president, Greg Hopkins, took over. In 2005 Cleveland Golf was acquired by the Huntington Beach Company, Quicksilver. Cleveland Golf offers a variety of onsite services such as custom fitting of clubs in pro shops all across the country. Today, Cleveland Golf Company is widely known as one of the top producers of golf clubs, and the outright number one producer of wedges.
- Years in Business: 27 years.
- Product Lines: Cleveland makes many different types of golfing equipment including: drivers, fairway woods, hybrids, irons, wedges and putters.
IV. Product Information for CG-2 irons:
- Features: The Cleveland CG2 irons are a revolutionary set of golf irons. The thing that makes the CG2 irons so ground-breaking is the metal that they’re made out of. Using a process unique to CMM material, microscopic carbon spheres are infused within the structure of the metal. These carbon spheres reduce density and therefore significantly reduce vibration giving a pure, soft feel. The last time there was this big of a jump in club technology is when people stopped making their clubs out of wood, and started making them out of metal.
- Benefits: The CG2 irons are designed for the low to mid handicapper who is looking for a club that offers the forgiveness of a cavity back and the workability of a blade. The CMM material allows for a lower and deeper center of gravity; essentially making it easier to get the ball into the air.
- Marketing Mix:
Product: Cleveland CG-2 golf clubs
Price: Retail price $799
Promotion: Cleveland offers custom tailored fitting for their CG-2 irons. This means that when a customer purchases a set of CG-2’s a Cleveland representative will analyze the customers swing using a computer. With the information gathered, the representative suggests the optimum shaft type, shaft flex and club length for the customer.
Cleveland Golf also has “Demo Days.” During Demo Days a Cleveland promotional bus travels across the country visiting different golf courses. On these visits players can demo any of Cleveland’s products. If they player likes the product he/she tried they have the option to purchase right on the spot.
Another promotion that Cleveland is running is that when a customer purchases a set of Cleveland irons he/she gets a free pair of airline tickets. The customer has over 40 locations to choose from including London, Paris, Orlando, and Hawaii. In addition to the airline tickets, the customer receives a free golf bag when he/she purchases a set of irons.
Distribution: Cleveland’s CG-2 irons are available all across the United States in golf pro shops. At courses that don’t have pro shops Cleveland brings the Demo Days bus and players can purchase clubs right off the bus. The biggest mass merchandiser of CG-2 irons is Golf Smith. Golf Smith has store locations across the country, catalogs, and an online store. Cleveland also has 26 international distributors.
V. Competitors Company (Callaway Golf):
- Number of Employees: 3,000
- Sales: $934.6 million per year
- Offices: Callaway Golf’s headquarters are in Carlsbad, California.
- History: Callaway Golf Company was founded in 1983 by Eli Callaway. He started the company in Cathedral California, and a few years later moved to company to Carlsbad California. In 1991 Callaway released the revolutionary Big Bertha driver. It was the first wide body, stainless steel wood ever.
- Years in Business: 22 years.
- Company Type: Callaway is a public company, NYSE symbol: ELY
- Product Lines: Callaway makes many different types of golfing equipment including: drivers, fairway woods, hybrids, irons, wedges and putters.
VI. Information on Callaway’s X-18 golf clubs
- Features: The Callaway X-18’s are a stainless steel, cavity backed golf club. The club head has a perimeter weighting. Also, the club head features a patented 360 degree undercut channel.
- Benefits: The perimeter weighting and cavity backed design allow for a lot of forgiveness and make it easy to get the ball up in the air. The 360 degree undercut channel makes a hallow area just behind the face of the club. This allows for even greater forgiveness.
- Marketing Mix:
Product: Callaway X-18 golf clubs
Price: $899
Promotion: Callaway Golf offers custom tailored fitting for all of their golf clubs. Callaway uses a similar procedure to Cleveland golf in which the customer’s swing is analyzed by a computer to find out the optimum club specifications. Callaway also has Demo Days where customers can try new clubs, and have the option to buy on the spot.
Distribution: Callaway sells their equipment in golf shops all across the United States. They also have an online store where customers can personalize their orders. Finally, customers can purchase Callaway products from the promotional Demo Days bus.
VII. Table of Advantages/ Disadvantages of Cleveland CG-2 irons Vs. Calloway X-18 irons
|
Cleveland’s CG-2’s |
Callaway’s X-18’s |
Price |
$799 |
$899 |
Club head material |
Carbon Metal Matrix (CMM) |
Stainless Steel |
Club head classification |
Hybrid of cavity backed and forged |
Cavity backed |
Center of gravity |
Low center of gravity |
Perimeter weighting |
Club workability/forgiveness |
Workability of a blade with the forgiveness of a cavity backed |
Very limited workability, forgiveness of a cavity backed |
Clubs available |
1 iron through pitching wedge |
2 iron through pitching wedge |
Special features |
Reduced club head density |
360 degree undercut channel |
Highlights
Pros
- CG-2 irons cost less
- CG-2 irons are made out of Carbon Metal Matrix, which is superior to stainless steel
- CG-2 irons have both the workability of a blade and the forgiveness of a cavity backed
- The CG-2 line has a one iron available
- CG-2 irons have reduced club head density, offering a purer feel
Cons
- The competitor’s X-18’s have perimeter weighting offering greater forgiveness
- The competitor’s X-18’s have patented “360 degree undercut channel” technology
VIII. Prospect Information
Company Name: Dick’s Sporting Goods
Physical Address: Dick’s Sporting Goods operates 255 stores in 33 states. I will make my sales presentation at the headquarters of Dick’s, at 300 Industry Dr., RIDC Park West
Pittsburgh, PA 15275.
Secretary’s Name: Marla Smith; enjoys tennis
Contact Name: George Phillips, Vice President of Operations
Responsibilities: George is responsible for overseeing the operations of the entire company. He is also in charge of deciding whether or not Dick’s will carry a new line of products. He is the decision maker, and the sales presentation will be made to him.
Phone Number: (284) 348 – 3820
Personal Information: George is married with five children. The children’s ages range from twelve to twenty-two. He graduated from the University of Michigan, which is also where he met his wife. His wife, Jennifer, is a financial advisor. George likes sports, especially racquetball and golf. George fits the profile of a driver perfectly.
Best Time for Appointments: Tuesdays and Wednesdays, anytime before 9:30 or after 1:45
Problems/Needs: Currently, Dick’s Sporting Goods doesn’t carry a set of golf clubs that is specifically aimed at the low to mid handicapper who wants a quality set of irons. Dick’s wants to increase their variety of golf clubs due to the dramatic increase in popularity the game has experienced over the past couple of years.
Key Influencer: Marty Miller is Vice President of Golf Operations at Dick’s. Marty is in charge of all the pro shops in Dick’s stores. He must sign off on all new purchases for the pro shops.
Target Market: Dick’s Sporting Goods carries sports equipment for almost every sport that there is to play. Dick’s targets middle income families who have active and athletic lifestyles. They have five main departments within their stores: general sports, footwear, apparel, golf and camping/hunting.
Current Product Lines: At present, Dick’s carries an assortment of sets of irons. They are also getting a bid from Callaway Golf.
Company Information:
- Sales: $2.1 billion
- Years in business: founded in 1948
- Number of stores: 255
- Number of employees: 16,900
IX. Target Market
My target market is Dick’s Sporting Goods. I will be making my presentation to George Phillips, who is Dick’s Vice President of Operations. In my presentation I need to focus on how Dick’s can increase their profits by getting a larger customer base. They will gain a larger customer base by being able to attract golfers with low to mid range handicaps. I will be selling the CG-2 irons to Dick’s.
Dick’s Sporting Goods has a target market of their own. Dick’s target market is middle income families who lead active and athletic lifestyles. Dick’s has created a store that carries five major categories of sporting equipment: general sports, apparel, footwear, camping, and a golf shop.
X. Objections and Responses
Stalling Objections
- True Stall
Buyer: That’s a lot of information to think about in one day. I’d like to think it over some more, and discuss your golf clubs with my supervisor.
Salesperson: I know that we looked deeply into the CG-2’s today. If it’s alright I would like to come back after you’ve had time to look everything over. How does setting up another appointment sometime around a week from next Wednesday sound?
Buyer: Sounds like a great idea to me.
- False Stall
Buyer: I think I need more times to think about your clubs. I’ll get back to you sometime next week.
Salesperson: I know that we covered some of the concerns that you had on the CG-2’s, is there anything you’re still worried about?
Buyer: Actually you’re right; I’m a little worried about the delivery time. Is your company capable of delivering the amount of product Dick’s would need when we needed it?
Salesperson: I understand your concern. I can show you some other stores of your size that we deal with, as well as testimonials of our accurate delivery time in the past. For example we do business with Golf Smith on a regular basis, and they’ve never had any dissatisfaction with any of our services.
Buyer: Oh, well that’s good to hear. Knowing that makes me feel much more at ease.
Money Objections
- Value
Buyer: I don’t think that the Cleveland CG-2’s are worth the price.
Salesperson: Why do you think that’s the case?
Buyer: Well, it seems that Taylor Made can offer a similar product at a lower price. For example Taylor Made’s RAC OS2 irons seem similar to your CG-2 irons, and the RAC OS2’s cost $100 less than yours.
Salesperson: I can see how you feel. Earlier though, you said your target market was intermediate to advanced golfers. The needs of this group of people can be met with the hybrid cavity backed and forged irons that CG-2’s offers. Further more, the CMM metal that Cleveland’s clubs are made of offer the softest and purest feel in golf. Also, Cleveland clubs are the preferred irons and wedges on the PGA tour.
Buyer: I can see why the higher price is worth it.
2. Financing
Buyer: I like the CG-2’s, but my company can’t afford to pay for them at this time.
Salesperson: Well, we can work with you. At Cleveland, we can finance your purchase over the next twelve to eighteen months; which ever program works best for you.
Buyer: Wonderful, financing is just what I needed.
Product Objection
Objection one:
Buyer: I don’t like the way your CG-2’s look.
Salesperson: Well, the look might not be your favorite, but the CG-2’s have some outstanding features that outweigh the look. First, they are a hybrid of cavity backed and forged. This allows the shaping of shots, while still keeping the ease of hit that the traditional cavity backed clubs offer. Also, the CMM metal that Cleveland’s clubs are made of offer the softest and purest feel in golf. Does that make up for your dislike of the look?
Buyer: It sure does.
Objection two:
Buyer: I don’t like how whippy the shaft feels on this set of CG-2 irons. I feel like if I hit the shot fat I would snap the shaft in two!
Salesperson: Well I can certainly understand how you feel. The particular shaft type that you are holding is the light flex. We offer four different shaft flexes: light, regular, stiff, and extra stiff. In addition to the four different shaft flexes, the CG-2’s offer two different shaft types: steel and graphite. Does that take care of all of the problems concerning the shafts that you have?
Buyer: That does more than just take care of my concerns. Having a total of eight shaft options is spectacular.
Objection three:
Buyer: I’ve never heard of this Carbon Metal Matrix before. Why would my customers want that instead of the traditional stainless steel club heads?
Salesperson: I can see how being unfamiliar with a product feature can be a little unsettling, but I assure you that Carbon Metal Matrix is the material of the future. This new metal, while not a composite, is infused with 17 times more carbon than traditional 8620 and 1020 steels. This creates a matrix that is 10% less dense than ordinary steel yet it maintains the hardness and manipulation properties of cast or forged carbon steel. The reduced density within the CMM metal dramatically dampens vibration offering a pure, soft feel never before achieved in any golf club. Does that answer all of your questions about Carbon Metal Matrix?
Buyer: Beyond a doubt it answers all of my questions. I had no idea how advanced Carbon Metal Matrix is.
Source Objections
Source- Company Size
Buyer: Everything looks good so far, I’m just concerned that Cleveland Golf isn’t a large enough company to meet our needs.
Salesperson: I can see your concern. Let me just restate that I can show you some other stores of your size that we deal with, as well as testimonials of our accurate delivery time in the past. For example we do business with Golf Smith on a regular basis, and they’ve never had any dissatisfaction with any of our services. Does that resolve your concerns about Cleveland’s size?
Buyer: Yes it does.
Source- Previous Rep
Buyer: A few years ago, I had a very bad experience with a representative from Cleveland Golf. I don’t like to do business with a company that doesn’t treat me right.
Salesperson: I sincerely apologize for that reps poor service. Two years ago, we implemented a much more extensive training program for all of our sales representatives. I personally guarantee that you will never have another issue.
Buyer: That sounds good to me.
XI. Role Play Scenario
I will be selling the Cleveland Golf brand’s CG-2 golfing irons to Dick’s Sporting Goods. As representative for Cleveland Golf I will be visiting the headquarters of Dick’s Sporting Goods, which is in Pittsburgh Pennsylvania. The prospect who I will be presenting to is George Phillips, who is the Vice President of Operations. I have a twenty minute appointment scheduled with Mr. Phillips at 9:00 a.m. on Wednesday, December 7 th.
During the sales call I plan on focusing on the features, advantages and benefits that the CG-2 irons have. One main point that I will make is that the CG-2 irons are a hybrid of cavity backed and forged. This offers forgiveness and workability. I will explain how the Carbon Metal Matrix that the club head is made of gives the golfer an incredibly soft and pure feel. I will also base the presentation on describing how the hybrid of cavity backed and forged club heads give the forgiveness while maintaining workability.
Primary Call Objective: For the prospect to carry Cleveland Golf’s CG-2 irons in one quarter of their 255 stores.
Minimum Call Objective: To set up another appointment with the prospect within six weeks if he is not ready to buy at this time.
Visionary Call Objectives: For the prospect to carry Cleveland Golf’s CG-2 irons in all of their 255 stores.
XII. Need Objectives
Situational Questions:
- How many lines of golf clubs do you currently carry?
- What is the price range of the different golf clubs that you currently carry?
- Do you carry a golf club that is a hybrid of cavity backed and forged?
- Are most of your customers high, middle, or low handicappers?
- How long have you been selling that particular set of clubs (the best sellers)?
Problem Questions:
- Do your customers ever ask for a club with more technology than traditional stainless steel?
- Do your customers ever ask for a club with both forgiveness and workability?
- Do your customers ever ask for a club which has a softer feel than stainless steel?
- If I could show you a club that attracts more low handicappers would you be interested?
- Do your customers ever ask for a set of irons that includes a one iron?
XIII References:
www.golf.about.com/od/historyofgolf/a/faq-golfhistory.htm
Cleveland Golf CG-2 golf clubs
Professional Selling Report
Sean Jagels
November 21, 2005
MW 4:00-5:15
