Golflogix

Executive Summary: GolfLogix is poised to launch a direct-to-consumer, performance tracking product called the xCaddie. Based on my analysis, I recommend that GolfLogix do the following: (1) market the “xCaddie Complete” as a fully-functional, performance-tracking product priced at $300, (2) cultivate and leverage its relationships with distributors to place xCaddie in pro shops and golf stores, and (3) encourage adoption by promoting use of xCaddie during lessons and through extensive trialing. Analysis: Company: GolfLogix’s key competitive strengths are: (1) understanding the increasing role of performance analytics in golf, and (2) its relationships with distributors. First, GolfLogix offers novel performance tracking technology that “few solutions” can match. More specifically, the xCaddie is a portable product with a relatively simple interface that allows golfers to statistically analyze their shots and club choices. Second, as an example of how important distributor relationships are, GolfLogix’s partnership with Steve Goodwin yielded product rollouts at 8 golf courses in Massachusetts over a four- month period in 2002. However, GolfLogix also suffers from several challenges: (1) it is young and does not have brand or product recognition among golfers, (2) adoption of new technology is uncertain, given golf’s rules and conservative customers, and (3) with only $2 million in funding, an extensive push into direct-to-consumer sales will stretch the company’s resources.

Competition: High-tech, cart-mounted and PDA-based systems are the biggest competitive threat for GolfLogix. Both solutions offer real-time data including a map of the golfer’s course position, which is a major concern given that GolfLogix’s post-game printout is its second “most liked” feature. These products are sold in several channels: cart-mounted systems sell to golf courses for about $3,125 per cart, while PDA-based systems sell directly to consumers for $350-800. Neither of these systems currently offers the robust performance tracking that GolfLogix offers; however, there is no reason why they could not introduce similar technology if the Complete System becomes successful. Both solutions are priced above the recommended $300 xCaddie price, which is a competitive weakness. On the other hand, their availability in pro shops and golf courses makes golfers less likely to purchase their own xCaddie. Low- tech solutions do not represent a major threat to GolfLogix, because by definition they only measure

1

MGMT411 Sample major writeup: Golflogix

distance and do not employ performance tracking or other analytical technology.

Customer: The average golfer spends approximately $824 on the sport per year.1 Although the “prototypical golfer was still male, over 40 years old”, growth among younger golfers and women accelerated

...