Callaway Strategy 1988 to 1997Research and DevelopmentSince its initial existence, research and development and innovative products have been CGC's lifeline. When Callaway purchased the company, its first initiative was to develop original products. Innovation and superior performance products are important in golf because equipment is believed to have a significant impact on player performance. Additionally, innovation was important because CGC needed to be the technology leader to sell its products at premium prices and continue to exceed customer expectations. The industry has also been characterized as driven by new product development because manufacturers tried to bet each other on the next "best club", so CGC had to manufacture products that were differentiated from its own existing products and those of its competitors. Helmstetter wanted to invent products before consumers knew they needed them. To cultivate an environment of modernization, Helmstetter assigned a team of scientists, engineers and golfers to work on RCH's 400 tough questions. In trying to answer RCH's questions, the team was able to create the following new products: S2H2- introduced in 1988. This club redistributed weight in the hitting area of ​​the club head by eliminating the hosel. Big Bertha metal tonewoods introduced in 1991. The innovative Big Bertha feature was that it provided a larger "sweet spot". The oversized head made contact with the ball easier, so in turn made drivers more widely used by average golfers and revolutionized the way clubs were made. Great Big Bertha Titanium: Launched in 1995. Titanium clubs increased the moment of inertia by moving the material away from the center of the clubhead. Technologically superior products strengthened CGC's high-quality brand and prevented customers from switching brands. CGC's advertising targeted "average golfers," defined as golfers who played a minimum of 10 rounds per year and generally had handicaps greater than 18. They also purchased new ones. equipment approximately every two to three years and purchased premium equipment to improve their performance. Other market segments included novice, casual, and expert or enthusiast golfers. Beginners and occasional golfers played one to seven rounds a year and were not targeted because they were price sensitive. Experienced golfers kept their equipment for extremely long periods of time and when purchasing new equipment their purchase was primarily based on brand. Even expert golfers were not targeted because they relied more on their skill than the performance of their equipment.