GolfLogix: Measuring the Game of Golf Harvard Case Solution & Analysis

GolfLogix: Measuring the Game of Golf Case Solution

Problem Statement:

GolfLogix must decide how to best distribute the devices they have developed, sell them directly through the retail channels, sell them to courses, who will provide these devices to golfers an part of their green fee or for nominal rental charges or simultaneously sell the devices to both groups. The main issues in the whole situation are if it’s the right time to do it and does it have the ability to jeopardize the relationship with the golf courses which the company has made though the hard work.

Attractiveness of two Products for Different Customer Segment:

The two products that Golflogix is offering to its customers are the Distance only System and the Complete System. The distance only system is the simplest form product of a customized, handheld GPS receiver called an “xCaddie,” which indicates the distance to the green which the golfer is hitting, through which the golfer can get the exact distance to the green and can choose the most appropriate club to hit the shot for that distance.
The other product is the enhanced version of the simple “xCaddie” also known as the Complete System, which rather than just simply indicate the distance also has the ability to record the progress of the golfer around the course. Through the complete system golfer can record the exact location of the ball at the beginning and end of every shot as well as the club that is used to play the shot.

The data then can be downloaded to the kiosk in the course’s pro shop and in return the golfer receives a three-page color printout mapping the progress around the course along with the statistics on how often golfer has used the certain clubs and how far he hit the ball using those clubs, and how accurate his shots are. The information can also be forwarded to a dedicated website of GolfLogix where it can be combined with the data from previous rounds to let the golfer track the progress over time.
The golfers could be segmented in many different ways. The basis used for the frequency of play which shows that 25% of the golfers are considered avid golfers and played 25 rounds or more per year, another 50% are considered core golfers and played from 8 to 24 rounds per year and the remainders are considered as occasional golfers. Another basis for the segmentation is the expertise, which are typically measured by a golfer’s handicap. Handicap is the historical average of how many stokes a golfer has taken, relative to par for an entire round. Another basis to segment the golfers is to base on the courses they play, public versus private. About 80% of golfers play on the public courses, which requires a daily greens fee, and the remaining 20% belongs to the private courses, which requires a onetime initiation fee and a yearly membership fee...................

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