Callaway 2001 Annual Report Download - page 6

In Six Sigma, we have copied a best practice as applied in some of
the great companies in the world. This is a learned, regimented
technique for identifying, analyzing, measuring, improving and
controlling the key variables within a process or practice that are
critical to success. We have invested in the human resource
element and presently have four “black belts” (experts) actively
working projects. Early results suggest this initiative may be the
best solution available to a mature company operating in a
mature environment to improve quality, yields and costs.
Regarding “brand loyalty,” we have installed Store-in-Store and
other Point-of-Purchase fixtures at key retailers around the
world, clearly differentiating the Callaway Golf Brand from the
clutter of golf retail. Our authorized retailers and consumers
alike are responding positively to these efforts to set Callaway
Golf apart from the rest of the industry.
An experiment is underway at Indian Wells, California, where the
city has built a Callaway Golf Fitting Center. The Center utilizes
state of the art fitting technology developed by us and made available
to all golf professionals and retailers in the greater Palm Desert
area to custom fit golfers with Callaway Golf clubs — enhancing
golfers’ performance by ensuring a fit with appropriate equipment.
Additionally, in 2001 we invested in portable Custom Fitting
Solutions with some of our authorized retailers who are head
professional golfers at major golf courses in the U.S., Canada,
Europe and Australia. These Fitting Solutions use sophisticated
computer-assisted technology, developed in concert with IBM, to
custom fit our irons and woods. We believe this strategy will
increase our percentage of custom fitted clubs and contribute to
share growth at on-course locations.
Finally, we have introduced Callaway-Connect, our e-business
solution for order entry, order status, and inventory availability.
The adoption of this leading edge practice is being received with
appreciation by our retailers, salesmen and saleswomen. It is
providing efficiencies and accuracy improvements allowing for
our sales relationship to be more productive. To our knowledge,
no one else in the industry has a system this advanced.
As we enter 2002 we are following the credo of developing and
introducing products that are “demonstrably superior and
pleasingly different” with the most extensive product offering in
the history of the Company.
The new C4 Driver –Compression Cured Carbon Composite –
is light and large and is the most forgiving driver we have ever
developed that conforms to USGA rules. We have dared to be
different, and our testing with amateurs and pros alike confirms
the C4 Driver is truly a breakthrough product. It will bring a
great deal of enjoyment to a wide range of golfers.
The new Steelhead III Metal Woods have incorporated all the
newest technology we have developed in metal woods into a
stainless steel product line that sells at a moderate price. It is the
latest in a rich heritage that started the revolution in “forgiving
drivers” with the original Big Bertha followed by Steelhead and
Steelhead Plus. We expect the “III” to live up to the expectations
these products have earned.
We are adding ERC Forged Titanium Fairway Woods that
complement the most publicized driver ever introduced by
ourselves or anybody else, the ERC II. While the ERC II Driver
was ruled non-conforming by the USGA due to its hot face, the
A truly global company, Callaway Golf conducts business in 107 countries
in 29 different languages. There are Callaway Golf subsidiaries in Europe,
Japan, Korea, Canada and Australia and authorized Callaway Golf
distributors in Mexico, South Africa, Argentina, United Arab Emirates,
Singapore, Hong Kong, Taiwan, China, Philippines, India and Pakistan.