Top Golf
What do you know about the brand Callaway Golf?
Callaway Golf bought a company called “Top Golf” for $2.6 billion dollars. “Top Golf” has 60 golf entertainment venues around the US.
What is special about these places?
From the commercial what else can you tell me about Top Golf?
This is always next to the tee off spot.
What do you think it is?
Do you think Top Golf was a good investment for Callaway?
Now Top Golf provides 40% of Callaway’s Total revenue.
38% of American Golfers didn’t play at a course in 2022. They played exclusively at driving ranges, golf simulators or top golf.
Q: Which type of golf, off-course only or on-course only, attracts …
older people?
women?
non-white people?
Could Top Golf be popular in other countries? Which country should they expand into first?
Would it be popular in Japan?
Some driving ranges in Japan have tried to copy Top Golf’s business model. Royal Green Mito (in Ibaraki) has placed sofas and other forms of entertainment at their driving ranges to attract young people, especially women
Actually Top Golf was founded in England, just outside London, because 2 guys thought golf courses were boring and unoriginal. The UK only has 4 venues (compared to over 60 in the US).
After the US, they targeted Australia. Now they also have locations in Colombia, Germany, UAE, Thailand and China.
Why do you think they targeted these countries?
How many golf courses do you think are in Japan?
In Japan do you think golf’s popularity is falling or rising?
How did the pandemic affect Golf’s popularity?
Japan has around 2,200 golf courses (almost half the courses in Asia).
The number of golfers was declining but during the Pandemic more people started playing Golf in Japan. Many courses say most of their customers are under 40 and a higher percentage are women.
Many Americans who have played a golf course in Japan say Japanese golfers play extremely slowly compared to Americans. Why do you think that is?
crowded
perfectionists?
older players
From 9:18
Callaway’s big challenge is to increase the number of young people who play golf and buy Callaway goods. What can they do to target young people?
This year Callaway signed a partnership with Good Good Golf, a youtube channel with young men playing golf.
What do you think of the videos?
In Top Golf venues Callaway sells a lot of golf goods and can create young loyal customers
Top Golf will open 11 new venues in 2023 including it’s first in China
Should I buy Callaway stock?
In Japan Callaway recently collaborated with Masaki Aiba.
Do you think this is a good idea?
Who is the target market?