TaylorMade - Really, this is the best you can do?

The marketing department at TaylorMade must have been drinking too much coffee! What on earth possessed them to take four of the most well known and photogenic players in golf (Jason Day, Sergio Garcia, Dustin Johnson and Justin Rose) and turn them into poorly made models as if they are from Thunderbirds? It may have seemed a good idea at the time and we get it - it's supposed to be funny - but it's not! The accents are appalling and the story line is weak. TaylorMade has access to the actual players on a weekly basis and they come up with this mess. Watch it soon, because it is going to get pulled. Let me know if you agree or if I am missing something.

TaylorMade - Awful...ier

TaylorMadeAdidasGolf (TMaG), the current undisputed golf-marketing champions have once again created a buzz with their "IER" campaign. Rather like technology, in marketing, just because it can be done, it doesn't mean it should be!

The awkward TV ads with the players clearly stifling their laughter and yet happily cashing the TMaG check, the dreadful "IER" hats, the dull print ads with simply the phrase "IER" added - all of it, just plain bad and not befitting or comparable with the other strokes of marketing genius they have pulled off in recent years. For example, the yellow bucket hat promotion earlier in the year was cool, contemporary and worked across different platforms. This is just plain terrible...ier!

A Tale of Two Golf Companies - TMaG & Callaway

Yesterday, industry giant, TaylorMadeAdidas Golf (TMaG is less of a mouthful) announced another stellar set of numbers. Proof positive that their aggressive marketing tactics, sponsorship of leading Tour players and sell though at retail show confirms there is life in the retail golf business. For the record, they reported iron sales in 2012 up 32%, with metal woods growing by 21% from the previous year. Footwear was up and even their golf bag sales grew 47%. In total, sales for the year were up $390 million at $1.7 billion - impressive numbers in a very tough market. Mark King, their head honcho said that sales of the new products, including the (ugly - my words - not his!) R1 driver, RocketBladez irons, and adidas Golf’s adizero footwear have also been very strong year to date. TMaG are hitting on all cylinders for sure, but these are really zero sum gains as the overall market is not growing - it would seem they are taking share from the other big boys in the market, Titleist, Ping, Cleveland, Nike and of course Callaway.

Speaking of Callaway, I read with interest that the have sold their only remaining ball plant in Chicopee, MA and become tenants. Probably a good idea and adding $3.9 million to the coffers won't do any harm - but on the day we are reading about TMaG's $1,7 billion it seems like a drop in the ocean. Callaway have a great product line up this year and the industry needs a strong number two to keep the number one on their toes. I expect to see a market share bounce back, perhaps in Q3 of this year as the first year of Chip Brewer's tenure rolls out and a terrific and simplified product line up sells through.

Titleist Going Solo?

Rumors run amok that pressure from certain key investors in Fortune Brands is going to force the NYSE quoted company to split their business into several parts. Fortune owns many great brands like housewares maker, Moen, liquor brands like Jim Beam and also the number one golf revenue generator, Acushnet. The brands within Acushnet are Titleist, Pinnacle, Scotty Cameron, Vokey Wedges and Footjoy shoes.

As an investor I'm all for unlocking value in a share price. The question is ...Who will buy Acushnet?

The suitors would naturally include industry giants, Callaway, Nike and TMAG. Let's have a brief look at these and see if there is a fit.

Firstly Callaway. I don't see this one. As much as Callaway would like to buy their nemesis, their market capitalization of $450M isn't going to support an acquisition of Titleist's reported $1B plus sales.

Nike and Titleist together. In England, we like to say "like chalk and cheese". In America you say "oil and water".  It means the same thing! The culture clash would keep HR busy for an eternity. Not going to happen.

TMaG (TaylorMade adidasGolf) is another potential candidate who would be anxious to get their hands on Titleist's hugely profitable golf ball business. They certainly have the money as the German giant, adidas generates revenues that the golf business can only dream about. As well as facing US monopoly issues, rather like Nike I just don't see the cultural fit.

The natural suitor comes from the East - Japan, Chaina, Taiwan, Korea. They have the money, especially with the exchange rate the way it is and they like "blue chip" brands like Acushnet. The company throws off a good amount of cash and it would be a great story for a Far Eastern company to own this prestigious US brand.

It's all conjecture at this time but good fun to speculate. Titleist and Footjoy under the Acushnet banner remain one of the great legacy brands of the game of golf and a company with deep(ish) pockets will pay for the privilege of adding it to their assets.

TMaG and Villegas - too much too soon.

What are TaylorMadeadidas Golf (TMaG) up to? Publicly announcing Camilo Villegas is under contract from 2011 to them while still under contract to Titleist in 2010 is just asking for trouble. And they got it when the litigious Titleist filed suit against them.

If they were looking for publicity by their actions they got that too - just the wrong kind! Not only that, watch the results of Villegas in the coming months while this plays out and it will be surprising if he shows up in the Top 10.

In the past, we have had players switch manufacturers from year to year. Of course this happens all the time, but there is a unwritten rule that the switch, usually mid season, happens quietly and without a huge fuss. Press releases come and go and the public see the player with new equipment and figure out what has gone on. BUT, to announce mid season while the player is under contract to another company is just underhanded and as the lawyers will argue damaging to the existing company's business. TMaG - cheap shot - actually, maybe an expensive shot!