Looking for a bigger slice

CHICAGO — After years of shrinking golf equipment sales, Wilson Sporting Goods hopes to restore the luster of its storied brand with a new product line and aggressive marketing. The company plans to release new clubs and balls under the Wilson Staff name beginning in August in its effort to return to the top of the industry. “That is a brand that, 20 or 30 years ago, was among the top two or three brands around the world,” said Wilson Golf global business director Angus Moir. “We believe that with the relaunch of Wilson, and the new products, we will get more of the premium business. That is the consumer we have lost.” The initiative follows a year of losses in the golf division and a reorganization of Wilson Sporting Goods’ U.S. operations. In addition to promoting Moir, who doubled golf sales in Europe during his five-year tenure, the company streamlined operations to eliminate delayed product shipments to retailers. For nearly 50 years most clubs used by professionals and amateurs were manufactured by the company. That changed in the 1980s and ‘90s, with Nike, Callaway, Titleist, TaylorMade and other companies introducing new innovative products like Callaway’s titanium Big Bertha driver, and promoting them aggressively. “Those have been the companies that have been aggressive in marketing, obtaining tour endorsements and product development,” said John Horan, publisher of financial newsletter Sporting Goods Intelligence. Horan said that Wilson, on the other hand, hasn’t done much to promote products like its recently introduced Deep Red II Maxx Driver, which has a large club head similar to the Big Bertha. Despite a 16 percent increase in worldwide golf equipment sales in the first quarter, Wilson Golf accounts for just 4 percent of the golf balls sold in a market dominated by Titleist, according to company figures. It accounts for 5.6 percent of the irons and 1.1 percent of the woods sold. Wilson is trying to take advantage of a renewed interest in golf. Total golf rounds played in the United States increased 5.3 percent in the first quarter of this year after slight declines the two previous years, according to the National Golf Foundation, an industry group. Wilson isn’t the only company hoping to capitalize, however. Carlsbad, Calif.-based Callaway, which is vying with TaylorMade to be the U.S. market share leader, has started promotional programs and is plotting a new advertising strategy. “Can you compete against three large companies that are focused on golf when you are smaller and have other priorities?” Horan said. That question may be answered in part by last year’s reorganization of the Chicago-based company. Wilson’s parent, Helsinki, Finland-based Amer Group, made the move after determining the previous setup was too old fashioned and too slow to react to market changes. Wilson’s Chicago headquarters functions were eliminated and independent divisions created. Team Sports markets baseball, basketball and football products and deals with colleges and pro teams. The racket sports and golf division were merged because both market products to pro shops and retailers such as Sports Authority, Wal-Mart and Target. Wilson has taken other steps, including moving assembly of clubs from its Tullahoma, Tenn., plant to China and outsourcing the assembly of its bags and its custom golf clubs. While those steps were designed to make the company quicker-to-market, Moir said company officials recognized dealers and customers will need time to get comfortable with the new line. “We do not want to offend the consumer by putting out a new line only 12 months after a (previous) new line. It’s getting the balance right,” Moir said. Wilson Sporting Goods continues to be a big player in other sports, with its bright-red cursive “W” plastered on basketballs, football equipment, volleyballs and tennis rackets. It has a firm grip in racket sports, far ahead of second-place Head. And in addition to its tennis rackets, used by Venus Williams among others, it is pushing to dominate in squash and badminton, sports popular in Asia, as well as racquetball.