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Despite an inevitable decline in sales as CGC neared the upper limits of its pricing range, CGC gleaned profound profits by entering a price-elastic market and offering avant-garde products. As shown in Exhibit 1, CGC can continue to increase profitability and brand awareness by adjusting production and marketing methods.
Market Mapping
In terms of market mapping and subsequent positioning, CGC did not opt to sell technologically-advanced golf clubs to those already able to afford it. Similarly, the company did not price clubs so amateurs could afford them. In the words of CGC’s Ely Callaway, the company chose to make superior clubs for amateurs and sell them at premium prices...
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