Questions covered. 1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed? 2. What sales result would you expect for each item in the line if Elevate is introduced?

2. If Altius implements the Elevate strategy what
are the risks to the brand and how can they be
managed?
What sales result would you expect for each
item in the line if Elevate is introduced?

3. Product cannibalization.
Damage of brand image/reputation.
Failure of the introduction of new
product to the market.
Failure to maintain the position of the
market leader.
Decreasing sales due to declining
interest.
Lack of marketing the new product.

4. Product Cannibalization
As a result of introducing the
Elevate strategy significant
part of sales of Victor TX and
Victor may BE “stolen” by the
new product.

5. Altius is perceived as a serious, advanced,
super-premium brand and its balls are
specifically created for professional golf players.
Implementation of the Elevate strategy may
significantly harm the brand image of Altius and
people may start to think about the company as
a regular one, not different from its competitors.

6. The Goal of Elevate Strategy
Create a new line of golf balls which is , and
.
The Possible Perception of the market
The new line of golf balls is , and
.

7. New and unknown segment
Shift from professional level golf to
amateur level golf
Competitors know better

8. People don’t care about golf
Sales decline due to that
The introduction of new product
won’t increase sales, because the
problem is not the product, the
problem is that
.

9. People won’t be familiar about the changes
in Altius.
People will be confused about big
difference between the prices of golf balls
the Altius sells.
Every product should at least be introduced
to the market in order to avoid the negative
and confused reaction of the customers!

10. Implement appropriate marketing campaign in
order to introduce the new product to the
segment Altius wants to reach.
Maintain presence in USGA, R&A, PGA, LPGA
and European tours events and follow their rules
through Victor TX, in order to maintain the status
of professional golf balls supplier, never lose the
credibility and prestige.
Creating golf player stars, like they did that
through football and tennis, in order to increase
the interest of the public in golf.

11. Build a strong relationship with Off-course channel for selling new
product, as $ sales of this channel are steadily increasing from 2008.
On the opposite, the $ sales of On-course channel are gradually
decreasing.

13. 13

14. 14
68 % of the customers of Altius
consider them as , also
the most sold product of Altius is
Victor TX. We can assume that
the majority of people who buy
Victor TX are loyalists. Loyalists
are not price-sensitive and their
willingness to try a new brand is
very low!
Thus, introducing Elevate won’t
change much in the sales of
Victor TX .

15. 15
N
The sales of the Victor product
are less than the sales of Victor
TX. Consequently people who buy
that balls can be listed in the
categories and
. Those people are
price sensitive and their
probability to try new brand
fluctuate from moderate to high
levels. In addition, Victor mid-
range priced product.
Thus, with the introduction of
Elevate, the sales of Victor are
more likely to decrease.

16. In reality the cannibalization
isn’t that bad.
According to the calculations
BECR of Victor TX is 48%
BECR of Victor is 60%
As long as the cannibalization
rate from these products to the
new one is less than the above
mentioned numbers, the
company is staying profitable.

17. On-course shops would be less willing to give up limited shelf space to a value
offering and would likely object to a non-conforming ball.
The willingness to “push” new product is low
The willingness to “push” Victor TX and Victor is high
Off-course retailers revealed strong interest in seeing a lower-priced product from
Altius and openness to a non-conforming ball. In addition the profit margin of retailers is
being increase for the new product up to 20%
The willingness to “push” new product is high
The willingness to “push” Victor TX and Victor is medium

18. 18
Off-course retailers shelf before the introduction of new product

19. 19
Off-course retailers shelf after the introduction of new product (Please, take into account that this is just
an intuitive suggestion and is not based on any calculations)

20. 20
Off-course retailers shelf after the introduction of new product (1 year later) (Please, take into account that
this is just an intuitive suggestion and is not based on any calculations)

21. 21
Off-course retailers shelf after the introduction of new product (3-5 years later) (Please, take into account
that this is just an intuitive suggestion and is not based on any calculations)

22. 22
On-course shops shelf before and after the introduction of new product (Please, take into account that this
is just an intuitive suggestion and is not based on any calculations)

23. ANY QUESTIONS?