Golf Logix Case Analysis

Group 3 THE GAME OF GOLF Invented in Scotland in 15 th Century Brought to the United States in juvenile 19 th Century social clubs designd to derive small badly lummoxs into a cup on apiece of the 18 different holes on the golf course The walkawayers use a club to drive the hunk onto the fair dash. Starting point on each hole is from tee thump Players drive the ball with the use of a club onto the fairway, hit an admittance iridescent onto the unripe, and putt the ball into the cup Holes range in length from over 100 to 500 yards or more Par 3, equivalence 4 or par 5 18 holes par was 72Along way hazards ponds, sand traps, and high-pitched grass Swing called stroke, counted towards the players total bell ringer Lowest score wins TYPES OF CLUBS Woods Club Driver 200-300 yards Iron Club 3-iron 7-iron 120-150 yards Wedges Pitching wedge 120 yards or less Putter 5-wood 9-iron moxie wedge Typically 14 different types of clubs are use vital ELEMENTS TO ACHIEVING LOW SCORE ? Hit the ball straight so as to avoid the various hazards around the course ? Advance the ball in desired direction ? space to target ?How far player could hit the ball with each golf club? ? Ability to putt the ball well golf game market 2000 26. 7 cardinal Americans vie 586 million round of golf (on 17,000 courses) 200,000-400,000 new links humannesss a year. The prototypical linksman was subdued male over 40 years old with an income over 70,000. The golf player segmented in 3 different ways 1. frequency of play 25% considered avid played 25 rounds or more per year. 50% considered core played 8-24 rounds per years. The remainder were considered occasional golfers. 2. xpertise typically measured by a golfer handicap (historical average of how more strokes a golfer took, relative to par, for an entire round) 3. type of courses public vs. private 80% of golfers played on public courses Expenses 1999, golfers spent over 22 billion, 50% of this were by avid golfers. golf clubs was the single largest expense aside from the courses fees, 1,000 for a high-quality assemble of clubs, 2,000 or more for some top of the line sets (depending on how many dates golfer played, good set could last anywhere from 5-20 years) Golf courses as of 2000, there was around 17,000 golf courses in the U.S. Golf courses look of courses 7,000 4,000 2,000 4,000 Charging fees Average of rounds per course/year Municipal and lower-end public high-end public courses resort courses private courses charging 20-50 per round 40,000 50-100 per round 30,000 100-200 a range 20,00-100,000 and annual 20,000-25,000 social status fee of 5,000-10,000 ? May afternoon, 2002 all 6 employees of GolfLogix held conference in Scotsdale, azimuth ? $2 million in investments ? Purpose of meeting to discuss merits and demerits of direct-to-consumer adaption of the Distance Only xCaddie ?Thinking ? Outsource production ? Market forthwith to players under GolfLogix name ? Likely retail fo r $300 ? Diane DiCioccio, Chief merchandising Officer disagreed ? Jeff Saltz, CEO agreed COMPANY STARTUP ? The GolfLogix concept came rough in 1998 ? During a round of Golf between Todd Kuta and Scott Lambrecht ? Basis of puzzle judging the distance to the green and choosing the right club for that distance ? solution to problem GPS guile ? Permission USGA (United States Golf Association) ? Founded in May 1999 ? $2 million spending executive alaries, facilities rental, development of xCaddie software, and GlofLogix website GOLFLOGIX Product Leasing Difficult initially First 4 calendar months of 2002, they had leased 15 systems Additional courses requested a 30-day trial Marketting TV infomercials Internet Mass merchandisers Consumer electronic Firms Golf Outlet Stores Walmart Best Buy COMPANY STARTUP (CONTD. ) ? proximo operating expenses $50,000 to $75,000 per month for at least 3 years ? merchandising xCaddie till date Pete Charleston and Saltz ? Future selling to Dis tributors ? First Steve Goodwin ? 1500 per month for Distance Only ? $2000 per month for entire system ? Recent leases call down 20-30% distributor markup GPS TECHNOLOGY Objective GolfLogix use of GPS technology to aid golfers example of customized handheld GPS receiver called xCaddie Manufactured by Garmin International trys the distance to the green to which the golfer was hitting Accuracy designed to be within two yards and being sold by Garmin to GolfLogix for about $200 per unit golfer will be able to determine which golf Records golfers progress around the course. lub to use to reach the distance provided Recording the stemma and ending of every shot and club used to make that shot by the xCaddie Information can be downloaded Information forwarded to Website to retain the records so that golfer can track progress over time Provide the golfer with statistics that will improve the accuracy of the shots GPS TECHNOLOGY GPS originally substantial by the U. S. Department of Defense to help determine the position of military machine troops, ships, vehicles, and missiles Consisted of 24 satellites, the system could pinpoint a GPS receiver anywhere on the globe with an accuracy of several feet to several yardsLocation determined by triangulation which elusive simultaneously measuring the distance and direction of the GPS receiver from four or more of the satellites GPS gradually became available to civilians free of charge in 1980 By 2000 estimated 1 million GPS receivers per year were being manufactured for commercial use in devices ranging from on-board map systems for cars (OnStar System) to marine navigation systems to handheld devices for hikers and campers GOLFLOGIX administrationS GOLFLOGIX SYSTEMS COMPLETE SYSTEM ? ? to a greater extent time consuming in terms of use.Involved the use of triple key items Xcaddie device, GolfLogix touch essay kiosk connected to the internet and a high quality printer. The system needed to know the locations and dimensions of the tee boxes, fairways, leafy vegetable and any hazards on the course. Involved a detailed aerial click of the course and 3 people taking 20-30 GPS location reading for each of the 18 holes. This took about 4 hours. Xcaddie unit ? ? ? A technician located at a GolfLogix shootice would then combine these datas and unveil a digital map with precise GPS coordinates for the entire course Lambrecht estimated time to map a complete system to be 20 man hours.The kiosk and printer had a combined cost of about $5000. The GolfLogix webiste nutriment cost was estimated to be $100,000 per annum. Kiosk connect ed to internet steep quality printer ? ? ? DEVICE FEATURES AND OPERATION Complete System Distance Only System ? ? Xcaddie Kiosk High quality printer More explaining on the part of the pro wander employee, about 5 proceeding. linksman needed to register his name and email using the touch screen kiosk. ? Has a scrolling feature no more complex than that of a cellular p hone. ? ?As the distance type, Xcaddie determined distance to the green Golfer would demand the appropriate club on the Xcaddie device and press enter which would allot a location reading for the golf ball. Golfer stows away Xcaddie device and proceeded to hit the ball as he normally would. Upon finishing his round, the golfer would connect his Xcaddie via a cable to the kiosk and received a three-page full phase of the moon color printout of his round. A golfer could track his progress overtime by dint of the information forwarded to a dedicated website (golflogix. com). ? The player would scroll to the hole that he was laying and the device would give exact yardage to the green. ? ? ? A pro shop employee could adequately explain how the device worked in about 2 minutes to first time players. ? LOW TECH DISTANCE SOLUTIONS ? Yardage markers were unreliable the far away the golfer was from the center of the fairway ? Sprinkler heads golfers still needed to pace off distances b etween their ball and the nearest sprinkler ? Yardage booklets limited availability to resort and high end public courses ? Range finders illegal under the rules of USGA and not accredited by erious golfers. High Tech Distance Solutions Cart mounted systems ProShot, ProLink, UpLink. Systems were high-priced to outfit. More than $250000 to outfit 80 golf carts. PDA based systems SkyGolf GPS, Golf GPS. GPS adapters came in a form of attachments to PDA systems, at additional cost. death penalty TRACKING SOLUTIONS Booklets for manual recording and PDA software both proved to be tedious, time consuming and distracting USGA handicap system was predominantly used to track scores, but provided no account for performance factors. THANK YOU