Not Available In Stores!

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Catching up here a bit, so forgive this being a few days late but reader John sent this WSJ story on the Orlimar infomercial scam success.

For starters, the storyline tends to be very simple and repetitive because viewers can't be expected to start watching from the beginning or sit through an entire spot. Mr. Bernhard focuses on thorough, frequent product demonstrations that solve some sort of problem.

At a minimum, he advises, there should be at least three "calls to action," industry lingo for getting customers up off the couch to order the product. Credit-card orders, rather than cash-on-delivery, are imperative to cash flow, Mr. Bernhard adds, noting that it is a selling bonus if customers hear they can't get the product anywhere else -- the classic "not available in any store" line. "That's maybe a cliché, but it's very important," he says. "You want to have a product that's specially-devised for television."

What is more, customer testimonials -- even ones by vaguely recognizable names -- paired with a charismatic host can add an extra punch.

For instance, Richard Karn, the next-door neighbor Al from the situation comedy "Home Improvement," is currently hosting a successful infomercial selling a collapsible ladder by Wing Enterprises, a small company based in Springville, Utah. Chuck Norris hawking the Total Gym exercise machine is another popular product.

For his part, Mr. Ortiz, 54, has been through building a brand -- and selling it in front of the camera -- before. As a teenager, he helped develop his father's company, Orlimar (a compilation of letters from his family's last name and two of their first partners). The business, based in northern California, didn't take off until the late 1990s when Mr. Ortiz developed the TriMetal Fairway Wood.

To advertise the club, now well-received by professionals and civilians, Orlimar executives designed the company's first infomercial.

They spent about $200,000 to create a 30-minute infomercial and around $150,000 in January 1998 for the first month of air time on the Golf Channel. Simultaneously, they conducted a limited print-advertising campaign. Up against industry giants Callaway and Titleist, the company couldn't interest retailers.

The return on the infomercial investment was visible from the start, Mr. Ortiz says. On a microlevel, he could see that the time sales orders were placed over the Internet or telephone coincided with the time the infomercial aired. The company reinvested their earnings of $300,000 from the first month to buy air time for another 30 days.

Before long, the company was spending upward of $1 million a month. Sales exploded as a result of the infomercial -- rising to $105 million in 1999 from $1 million in 1997. In all, Orlimar spent about $12 million on air time, and customers began seeking out the club at retail outlets, prompting chains to place large orders.

 

"We work for the greater glory of IMG."

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IMG head Teddy Forstmann sits down for a New York Times story by Richard Sandomir, and displays great humility...

“I know God gave me an unusual brain,” he said. “I can’t deny that. I know that he did. I don’t think you could work harder than I’ve worked.”

Later, he said: “I have a God-given talent for seeing potential.”
This one's good too...
“I have a pretty good record of not being wrong too often,” he said.
This caught my eye...

 

To date, his three acquisitions have been modest: two television production houses, and Tennis Week magazine and its Web site, which puts IMG in the position of covering players it represents. It does the same with fashion magazines that chronicle some of its modeling clients.

Just what golf needs, an IMG house organ! Playing tunes like this...

"This is not a golf or tennis or media business. We work for the greater glory of IMG.”

The Zen Caddy!

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I wish I could make up stuff like this...

Groundbreaking new service...Zencaddy.com keeps golfers focused and relaxed anytime,anywhere with tips only a phone call away

COLUMBUS, OH (November 2, 2006)--  Zencaddy.com announces it has launched a new free service for golfers--receive zen inspired golf tips on your cell phone while you play.  The recorded tips were designed to help golfers play better by simply refocusing and relaxing in real time.  Zencaddy.com conducted interviews with many PGA tour caddys to find out how they help their player relax.  We took their best advice to form our recorded messages.  The old saying is golf is 90% mental...now golfers can put the power of zen to work for them.

"We are pleased to launch this new service for golfers.  The goal of zencaddy is to make golf fun again ," says Peter Moon, founder of Zencaddy.com.  "Many of the PGA tour caddys mentioned that golfers take the game too seriously.  By listening to the recorded messages, golfers can learn how to refocus and relax and get back into the zone.  Great players like Tiger Woods and Vijah Singh rely on their caddy and their training to instantly refocus. Now this is available to every golfer."

The service is free and the signup process is simple.  Go to www.zencaddy.com  and register online.  An email will be sent to the subscriber with the toll free number to access the recordings.

The Scorecard Readers

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Thanks to reader Ken for this release on Callaway reaching out to an older demographic that clearly has too much disposable income.

Callaway Golf Eyewear, a licensee of Callaway Golf (NYSE: ELY), is pleased to announce the introduction of the Callaway Golf Eyewear Scorecard Readers. This patented collection of rimless reading glasses feature unique spring-hinged, stainless steel temples, black frames, and fold easily into either a fliptop case or standard clamshell case.

Today baby boomers are realizing that their vision isn't the same as it was when they were younger. As a result, the need for reading glasses is on a steady increase. There are more than 76 million baby boomers--those born between the years of 1946 and 1964. In addition to baby boomers, people getting LASIK Surgery to correct their farsighted vision - Myopia - still need to wear reading glasses for their nearsighted vision - Presbyopia, all resulting in a need for a more fashionable high-end reading glass. "People don't want to buy the drug store reading glasses that their grand parents wear". "They are looking for something more hip, more fashionable," said Marcel Schiro, VP Sales and Marketing of Callaway Golf Eyewear. No more carrying that big bulky pair of reading glasses for the past 18 holes writing in your score on your scorecard. The patented, Callaway Golf Eyewear Scorecard Reader, folds conveniently into a case—smaller than your average cell phone.

CaddyCam Is Here!

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CaddyCam.jpgThanks to reader Brian for this David Helwig story on the latest and greatest invention to make the blind shot a little less painful...for those who might get hit.  Somehow, I don't see one of these popping up on the 4th at Fisher's Island anytime soon.

CaddyCam, the first-ever wireless solar powered monitoring system that allows golfers to view a remote blind spot from the tee, removes the threat of striking other golfers who may be playing ahead on the same hole.

The CaddyCam monitoring system can also be used to see a detailed view of the pin placement on an elevated green.

The CaddyCam monitoring system is comprised of two units.

The camera unit is an aesthetically pleasing ten foot pole structure on which the camera and transmitter are mounted as well as the solar panel.

The location of the camera unit is typically to the side of the fairway in a location that does not interfere with play.

The monitor unit is also a ten-foot pole structure that supports a mounted receiver, solar panel, and an enclosed color LCD monitor for viewing.

The monitoring unit is conveniently positioned by the tee box or cart path.

What, it's not wireless transmitted to the cart GPS screen? Disappointed!

Now, wait. Maybe this is the key to making blind shots acceptable again? Granted, some of the mystery isn't there, but imagine a group being able to report to their playing partner where his shot came down? ;)

Restoration Clubware

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This Businessweek story explains Callaway's huge stock drop yesterday.

The stock price tumbled 11.3% to $12.51 per share on the New York Stock Exchange in afternooon trading Tuesday.

Callaway, which is in the midst of a restructuring announced in September, 2005, noted challenges such as lower sales at key golf retailers during June through September, and a related decrease in wholesale re-orders. The company had introduced no major new products during the quarter; the FT-3 driver, Fusion fairway woods, X-18 driver in Japan, and HX-56 golf ball hit the market during the same period of 2005.

Sales of the Top-Flite and Hogan products have not performed to expectations. "We are in the process of restoring these brands, targeting a formal re-launch of Top-Flite in 2007," George Fellows, President and CEO of Callaway Golf, said in a press release.

Restoring the Top Flite brand?  From cheap bottom of the barrel rock hard balls to...?

Skinned?

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Marcel Honoré writes about the city of Indian Wells pursuing the Skins Game for its newly refurbished Golf Resort at Indian Wells. Look at what they will have to pay to host the likes of Stephen Ames and Fred Funk:
Under the terms of an agreement with International Management Group, the city would pay $1.4 million, $1.47 million, and $1.54 million to host the game during the next three years.

"Thank You Troops"

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David Westin follows up on Ping's rapid response to its military discount debacle, with the entire episode proving that it pays to have well-compensated executives who can quickly address the P.R. disasters created by those very same well-compensated executives.

In a ground-breaking move, active-duty and reserve members of the U.S. military now can receive rebates on Ping golf equipment.

It is the first time Karsten Manufacturing Corp., which makes Ping clubs, has offered a discount of this nature. The Phoenix, Ariz., company was established in 1962.

The company announced its "Thank You Troops" rebate program Tuesday. It is retroactive to Monday, said Bill Gates, Ping's director of distribution and associate general counsel.

According to Bonaventure Discount Golf owner L.D. Waters, who has been in the business since 1955, this is the first time a golf-equipment company has offered a mail-in rebate.

Mr. Gates said the mail-in rebate is a dollar amount based on the purchase price. For instance, he said there would be a rebate of $80 on a set of eight Ping irons.

The cost of that set at Bonaventure Discount Golf is $748, so the rebate is 10.6 percent off the retail price.
That's 10% coming out Ping's pocket now, instead of the retailers! A small price to pay for protecting the brand!

Okay, see if you can read this without laughing:

 

According to a statement from Ping Chairman and CEO John Solheim, the rebate is a continuation of Ping's support of the military.

"For the last year, we've been looking for additional ways to support the troops," Mr. Solheim said in the statement. "On three occasions we've sent hundreds of free clubs for the troops to enjoy during their limited leisure time, but we wanted to provide them additional benefits.

"The reaction of some individuals to the issue reminded us it was time to do more," Mr. Solheim added.

Mr. Solheim disputed some media reports that the military was targeted because of the discounts, but added that "a lot of good is coming from the issue. We have the highest admiration and respect for those fighting for our country."

But this is peculiar...

According to Mr. Gates, Ping wanted to go the mail-rebate route because "we don't know what the retailer may be charging for the product. We want instead to provide the rebate from Ping directly. So it doesn't matter what they're charging out there."

Well, it does matter. That's what prompted this little debacle. 

"we're looking at different options, different ways to determine the best way as a corporate citizen..."

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It is fun how quickly things turn in the Internet age. In the old days, Ping would have had two weeks to milk this brand building campaign, but here they are on Monday already doing their research as a "corporate citizen" to "demonstrate that appreciation" for how stupid they were for military personnel.

David Westin follows up his initial story with this Augusta Chronicle piece titled, "Ping works on plan for military."

Karsten Manufacturing Corp. is formulating a plan that will show its support for active-duty military personnel who buy the company's Ping golf clubs, a company official said.

The Phoenix, Ariz.-based company came under fire last week for cutting off the accounts of two Augusta-area golf shops that discounted Ping clubs. The discounts were limited to the military.

"Right now we're looking at different options, different ways to determine the best way as a corporate citizen to demonstrate that appreciation to military personnel," said Bill Gates, Ping's director of distribution and associate general counsel.
Ping plans to respond with a plan for the military as early as this week, Mr. Gates said.
"We're going to have something we're going to roll out to fully show our appreciation (for the military)," he said. "We look forward to the opportunity to work with military leaders for the best way to communicate this appreciation."
Where does one learn to speak like that? Is there a school?
An e-mail to The Augusta Chronicle pointed out the area's military ties to the Masters Tournament, noting that "Arnie's Army," the name for Arnold Palmer's fans, came from Fort Gordon servicemen who followed him at Augusta National Golf Course.

In the golf business, a pro shop at an area country club that still has a contract with Ping dropped its prices on three styles of Ping putters by as much as $45.

Other media picked up the story.

"We certainly understand that," Mr. Gates said of residents' concerns. "We have had some calls. We understand people feel very passionate about this issue, and we do, too."

Ping has said from the outset that it cannot make changes in its pricing policy for a particular group.

Mr. Gates said the new plan will not be "an exception to the policy. Right now, we need to maintain the consistency of our policy. But there are other things we can do that ... will show our appreciation to the military."

Mr. Gates defended Ping's record with the military, saying Karsten Manufacturing Corp. holds jobs for those stationed overseas, employs veterans and has sent free Ping clubs to Bosnia, Afghanistan and Iraq in the past.

"We have never targeted the military in any way," he said. "We've had hundreds of closures of accounts that had nothing to do with the military."

 

Putting Ping's Position In Perspective

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To put Ping's brand-protection position into perspective, I pulled out my copy of John Strege's USGA award winning book When War Played Through (Golf During World War II), and enjoyed this passage related to support of Augusta area troops back then:

Soldiers had undertaken the task of building a nine-hole course at Camp Gordon in Augusta, Georgia, to go along with the practice range and putting green that the Augusta Natonal continued its support of the camp by providing the expertise required to build the nine-holer, which became the Enlisted Men's Golf Course.

Reporting A Tournament Win...

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Callaway, Nike, Taylor Made and Titleist report their PGA Tour wins, ball maker Volvik reports their Ladies Member-Member wins.

You'd swear this is fiction, but it's on the Golf Business Wire:

Volvik Golf Balls report's a tournament win with their industry leading Crystal golf ball. The U.S.A. exclusive distributor, FLGolf, Inc. told golf writers of the event today.

The ladies 18 hole Member-Member Golf Tournament was held at the Maryland Golf and Country Club in Bel Air, MD on August 17th and 24th. Play consisted of four nine hole rounds.

The first two rounds played on the 17th had Linda Burns of Bel Air, a golf sales rep for Golfstream Shoes, and playing partner Jan Haddy, of near by Baldwin took 16 ½ points out of an available 20 points. In the second round Linda and Jan took ten more points to win their flight.

A sudden death playoff between four flights as played from the 17th hole a 488 yard par 5 hole. Linda and Jan shut out the other teams with a net birdie to win the overall win.