Acushnet Holdings Corp. (GOLF): Business Model Canvas [11-2024 Updated]
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Acushnet Holdings Corp. (GOLF) Bundle
Acushnet Holdings Corp. (GOLF) stands as a leading name in the golf industry, renowned for its premium brands like Titleist and FootJoy. This post delves into the company's Business Model Canvas, exploring how it effectively harnesses
- key partnerships
- innovative products
- customer engagement strategies
Acushnet Holdings Corp. (GOLF) - Business Model: Key Partnerships
Collaborations with professional golfers for endorsements
Acushnet Holdings Corp. has established partnerships with numerous professional golfers to enhance brand visibility and credibility. Notable endorsements include players like Jordan Spieth and Justin Thomas, who are key figures promoting Titleist golf balls and equipment.
Partnerships with retailers for distribution
Acushnet collaborates with major retailers such as Dick's Sporting Goods and PGA Tour Superstore for distribution of its products. In 2024, the company reported net sales of $2,011.9 million, with substantial contributions from retail partnerships in the United States, accounting for approximately $1,201 million of net sales .
Supplier agreements for raw materials
The company maintains strategic supplier agreements for critical raw materials, including high-quality rubber for golf balls and synthetic materials for apparel. Effective supply chain management has allowed Acushnet to control costs and ensure product quality, contributing to a gross profit margin of 54% for the nine months ended September 30, 2024 .
Strategic alliances for technology development
Acushnet has formed strategic alliances to enhance its technological capabilities, particularly in product innovation. For instance, collaborations with engineering firms have resulted in advancements in golf club design and performance. This focus on technology has helped Acushnet maintain its competitive edge, with adjusted EBITDA of $392.1 million for the nine months ended September 30, 2024 .
| Partnership Type | Key Partners | 2024 Financial Impact |
|---|---|---|
| Endorsements | Jordan Spieth, Justin Thomas | Increased brand visibility leading to higher sales |
| Retail Distribution | Dick's Sporting Goods, PGA Tour Superstore | $1,201 million in U.S. net sales |
| Supplier Agreements | Various raw material suppliers | Gross profit margin of 54% |
| Technology Alliances | Engineering firms | Adjusted EBITDA of $392.1 million |
Acushnet Holdings Corp. (GOLF) - Business Model: Key Activities
Product innovation and development
Acushnet Holdings Corp. invests significantly in research and development (R&D) to drive product innovation. For the nine months ended September 30, 2024, R&D expenses totaled $51.5 million, an increase from $47.3 million in the same period of 2023, reflecting a focus on enhancing product offerings and introducing new models. The company has launched several new products, including the Pro V1 and Pro V1x golf balls and the GT drivers and fairways, which have contributed to increased sales volumes.
Marketing and promotional campaigns
Acushnet's marketing efforts are bolstered by a significant allocation towards advertising and promotional expenses, which increased to $45.4 million for the nine months ended September 30, 2024, up from $38.5 million in the prior year. The company leverages professional endorsements and tour sponsorships to enhance brand visibility, particularly for Titleist and FootJoy products.
Manufacturing and quality control
Acushnet maintains stringent quality control measures across its manufacturing processes. The cost of goods sold (COGS) for the nine months ended September 30, 2024, was approximately $924.9 million, with efforts to optimize manufacturing costs contributing to an improved gross margin of 54.0%. The company has also implemented restructuring initiatives to enhance operational efficiency.
Sales and distribution management
Sales management is critical to Acushnet's operations, with net sales reaching $2.01 billion for the nine months ended September 30, 2024, compared to $1.97 billion in the same period of 2023. The company employs a diversified distribution strategy, with significant sales growth in the United States, which accounted for $1.20 billion of total sales. Acushnet's global reach includes substantial markets in EMEA, Japan, and Korea, despite some regional sales declines.
| Activity | Details | Financial Impact |
|---|---|---|
| R&D Expenses | Investment in product innovation | $51.5 million (2024) |
| Marketing Expenses | Advertising and promotional campaigns | $45.4 million (2024) |
| COGS | Cost management in manufacturing | $924.9 million (2024) |
| Net Sales | Total sales across all markets | $2.01 billion (2024) |
| Sales in the U.S. | Primary market focus | $1.20 billion (2024) |
Acushnet Holdings Corp. (GOLF) - Business Model: Key Resources
Strong brand equity (Titleist, FootJoy)
Acushnet Holdings Corp. boasts strong brand equity, particularly in its Titleist and FootJoy brands. Titleist is recognized as the leading golf ball brand globally, with a market share of approximately 25% in 2024. FootJoy is a leading brand in golf footwear and apparel, contributing significantly to the company’s overall revenue. In 2023, Titleist golf balls generated approximately $646 million in net sales, while FootJoy golf wear accounted for around $482 million.
Research and development team
The company invests heavily in research and development (R&D) to maintain its competitive edge. For the nine months ended September 30, 2024, Acushnet's R&D expenses increased to $51.5 million, up from $47.3 million in the same period of 2023. This investment focuses on product innovation, including the development of new golf ball technologies and club designs.
Manufacturing facilities and supply chain
Acushnet operates multiple manufacturing facilities, primarily located in the United States and overseas, ensuring efficient production and distribution. The company reported a gross profit of $1.09 billion for the nine months ended September 30, 2024, with a gross margin of 54.0%, reflecting effective cost management within its manufacturing processes.
| Facility Location | Primary Function | Capacity (Units/Year) |
|---|---|---|
| New Bedford, MA | Golf Ball Manufacturing | 50 million |
| Thailand | Golf Club Manufacturing | 1 million clubs |
| China | Apparel Manufacturing | 2 million units |
Skilled workforce and management
Acushnet relies on a skilled workforce to drive innovation and operational efficiency. As of September 30, 2024, the company employed approximately 3,600 employees globally, with significant experience in the golf industry. The management team has a proven track record, with an average tenure of over 15 years in their respective fields. Additionally, Acushnet's total compensation expense for the nine months ended September 30, 2024, was $24 million, reflecting the company's commitment to attracting and retaining talent.
Acushnet Holdings Corp. (GOLF) - Business Model: Value Propositions
High-performance golf equipment and apparel
Acushnet Holdings Corp. is recognized for its high-performance golf equipment and apparel, particularly through its leading brands, Titleist and FootJoy. For the nine months ended September 30, 2024, net sales reached approximately $2.01 billion, representing a 2.2% increase compared to the same period in 2023 . The company maintains a gross profit margin of 54.0%, up from 53.0% in the previous year . This performance is driven by strong sales in Titleist golf clubs and balls, which showcased increases of $30.9 million and $30.5 million, respectively .
Trusted by professional golfers
Acushnet's products are trusted by numerous professional golfers, enhancing its credibility and brand value. The Titleist brand has been the #1 ball on professional tours, with over 70% of players on the PGA Tour using Titleist balls. This endorsement not only solidifies customer loyalty but also attracts new customers seeking professional-grade equipment.
Innovative product designs and technology
The company has a strong focus on innovation, investing approximately $51.5 million in research and development for the nine months ended September 30, 2024, compared to $47.3 million in 2023 . Acushnet continues to introduce advanced technology in its products, such as the Pro V1 and Pro V1x golf balls, which have seen increased sales volumes . The latest generation of Titleist golf clubs also reflects this commitment to innovation, contributing to an 18.2% increase in sales for the Titleist golf clubs segment .
Commitment to quality and customer satisfaction
Acushnet emphasizes quality and customer satisfaction, which is reflected in its consistent financial performance. The company reported a net income of $215.4 million for the nine months ended September 30, 2024 . The commitment to quality is further demonstrated by the increase in average selling prices across all product categories .
| Segment | Net Sales (2024, in millions) | Net Sales (2023, in millions) | Increase/Decrease (%) |
|---|---|---|---|
| Titleist Golf Balls | 646.0 | 622.1 | 3.8% |
| Titleist Golf Clubs | 595.3 | 549.8 | 8.3% |
| Titleist Golf Gear | 188.7 | 184.6 | 2.2% |
| FootJoy Golf Wear | 482.8 | 500.2 | -3.5% |
Acushnet Holdings Corp. (GOLF) - Business Model: Customer Relationships
Direct engagement through online platforms
Acushnet Holdings Corp. leverages various online platforms to enhance customer engagement. The company's e-commerce sales accounted for approximately 15% of total net sales in 2024, demonstrating a significant digital presence. The net sales for the nine months ended September 30, 2024, reached $2,011.9 million, with online sales growing in line with this trend.
Sponsorships and events to build community
Acushnet actively engages in sponsorship and events, particularly in the golf community. The company sponsors over 150 professional golfers globally, including top players on the PGA Tour, which enhances brand visibility and loyalty. Events such as the Titleist Performance Institute workshops attract thousands of participants annually, fostering a strong community connection.
Personalized customer service and support
Acushnet emphasizes personalized customer service, providing dedicated support through various channels. The company has invested $6.9 million in enhancing its customer service infrastructure in 2024. This includes training programs for customer service representatives and implementing advanced CRM systems to manage customer relationships effectively.
Loyalty programs for repeat customers
Acushnet's loyalty program, Titleist Loyalty Program, offers exclusive benefits to repeat customers. As of September 2024, the program had over 300,000 active members, contributing to a 20% increase in repeat purchases year-over-year. The program includes personalized offers, early access to new products, and exclusive event invitations, driving customer retention.
| Customer Relationship Strategy | Key Metrics | Financial Impact |
|---|---|---|
| Direct Engagement | 15% of total net sales from e-commerce | $2,011.9 million total net sales (2024) |
| Sponsorships | 150 professional golfers sponsored | Significant brand visibility and loyalty |
| Customer Service | $6.9 million invested in service infrastructure | Improved customer satisfaction and retention |
| Loyalty Programs | 300,000 active members | 20% increase in repeat purchases |
Acushnet Holdings Corp. (GOLF) - Business Model: Channels
Retail partners (sporting goods stores, specialty golf shops)
Acushnet Holdings Corp. collaborates with a network of retail partners, including sporting goods stores and specialty golf shops. In the nine months ended September 30, 2024, net sales from the Titleist golf clubs and golf balls segments alone contributed significantly to overall revenue, with Titleist golf clubs generating $595.3 million and Titleist golf balls $646.0 million, representing increases of 8.3% and 3.8% respectively compared to the same period in 2023.
E-commerce platforms (company website, third-party sites)
Acushnet has expanded its online presence through its e-commerce platform, driving sales growth. The total net sales for the nine months ended September 30, 2024, reached $2.01 billion, a 2.2% increase from the previous year. E-commerce sales are crucial in reaching a broader audience, especially during peak shopping seasons.
Direct sales to corporate clients
The company also engages in direct sales to corporate clients, including bulk sales of promotional and custom-branded golf products. This segment contributes to brand visibility and customer loyalty, although specific financial figures for this channel are often integrated within broader sales categories.
Golf tournaments and events for brand visibility
Participation in golf tournaments and events is a strategic channel for Acushnet to enhance brand visibility. They sponsor numerous events, showcasing their products to a targeted audience. In the nine months ended September 30, 2024, Acushnet's promotional expenses, which include these sponsorships, increased by approximately $6.9 million.
| Channel | Sales Contribution (in millions) | Growth Rate (%) | Notable Events |
|---|---|---|---|
| Retail Partners | $595.3 (Clubs), $646.0 (Balls) | 8.3% (Clubs), 3.8% (Balls) | Increased partnerships with key retailers |
| E-commerce Platforms | $2,011.9 Total Net Sales | 2.2% | Enhanced online marketing strategies |
| Direct Sales to Corporate Clients | Integrated in overall sales | N/A | Corporate branding initiatives |
| Golf Tournaments | Part of promotional expenses | $6.9 million increase | Major sponsorships and events |
Acushnet Holdings Corp. (GOLF) - Business Model: Customer Segments
Avid golfers seeking performance products
The primary customer segment for Acushnet comprises avid golfers who prioritize performance and quality in their golf equipment. These customers are typically willing to invest significantly in high-performance products such as Titleist golf balls and clubs.
For the nine months ended September 30, 2024, net sales in the Titleist golf balls segment reached $646.0 million, which reflects a 3.8% increase compared to the same period in 2023. This increase was driven by higher sales volumes of premium models like Pro V1 and Pro V1x.
Casual golfers looking for quality gear
Casual golfers represent another significant customer segment for Acushnet. This group seeks quality gear but may not require the same level of performance as avid golfers. They are typically more price-sensitive and value the balance between quality and cost.
In the nine months ended September 30, 2024, net sales in the FootJoy golf wear segment were $482.8 million, a 3.5% decrease compared to 2023, indicating that while this segment is important, it faces challenges in maintaining sales volume.
Corporate clients for promotional products
Acushnet also targets corporate clients interested in promotional products, including branded golf gear for corporate events and gifts. This segment has the potential for high-volume sales as companies seek to enhance their brand visibility through high-quality golf merchandise.
For the nine months ended September 30, 2024, the overall net sales for Acushnet increased to $2,011.9 million, reflecting a 2.2% increase from the previous year. This growth is partially attributed to sales from corporate clients.
International markets with growing golf interest
Acushnet is actively expanding into international markets where interest in golf is growing. Regions such as Asia-Pacific and Europe are critical as they offer opportunities for growth in customer segments that appreciate premium golf products.
For instance, net sales in the EMEA region were $263.9 million for the nine months ended September 30, 2024, showing a slight decline of 1.0% compared to the previous year. However, the company continues to focus on enhancing brand presence in these markets.
| Customer Segment | Net Sales (9M 2024) | Net Sales Change (%) | Key Products |
|---|---|---|---|
| Avid Golfers | $646.0 million | 3.8% | Titleist Golf Balls |
| Casual Golfers | $482.8 million | -3.5% | FootJoy Golf Wear |
| Corporate Clients | Part of $2,011.9 million | 2.2% | Branded Golf Gear |
| International Markets | $263.9 million (EMEA) | -1.0% | Titleist and FootJoy Products |
Acushnet Holdings Corp. (GOLF) - Business Model: Cost Structure
Manufacturing and raw material costs
For the nine months ended September 30, 2024, Acushnet Holdings Corp. reported a cost of goods sold (COGS) of $924.9 million, compared to $926.3 million for the same period in 2023. The gross profit for the same period was $1,087.1 million, reflecting a gross margin of 54.0%, up from 53.0% year-over-year.
Marketing and advertising expenses
Marketing and advertising expenses increased to $6.9 million during the nine months ended September 30, 2024, a rise of $6.9 million compared to the prior year. Overall selling, general and administrative (SG&A) expenses totaled $715.6 million for the same period, up from $674.7 million in 2023.
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| SG&A Expenses | 715,558 | 674,720 | +40,838 |
| Advertising and Promotional Expenses | 6,900 | — | +6,900 |
Research and development investments
Research and development (R&D) expenses for the nine months ended September 30, 2024, totaled $51.5 million, up from $47.3 million in 2023, indicating an increase of $4.2 million. This increase was primarily attributed to rising employee-related expenses and additional costs associated with product introductions.
Operational costs (administrative, logistics)
Operational costs, including administrative and logistics expenses, have seen a notable increase. For the nine months ended September 30, 2024, administrative expenses rose by $13.0 million, contributing to the overall increase in SG&A. Additionally, the restructuring costs related to footwear manufacturing amounted to $7.0 million.
| Operational Cost Type | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Administrative Expenses | — | — | +13,000 |
| Restructuring Costs | 7,000 | — | +7,000 |
Acushnet Holdings Corp. (GOLF) - Business Model: Revenue Streams
Sales of golf balls, clubs, and gear
For the nine months ended September 30, 2024, Acushnet reported net sales of:
| Product Category | Net Sales (in millions) | Change from Previous Year |
|---|---|---|
| Titleist Golf Balls | $646.0 | +3.8% |
| Titleist Golf Clubs | $595.3 | +8.3% |
| Titleist Golf Gear | $188.7 | +2.2% |
| FootJoy Golf Wear | $482.8 | -3.5% |
The total net sales for Acushnet for this period was approximately $2,011.9 million, representing a 2.2% increase compared to $1,969.0 million in the same period of 2023.
Apparel sales through FootJoy
FootJoy's golf wear segment generated net sales of $482.8 million for the nine months ended September 30, 2024, which is a decline of $17.4 million from $500.2 million in the same period of 2023.
The decrease is attributed to lower sales volumes and unfavorable manufacturing overhead absorption. Despite this, FootJoy's average selling prices increased across all product categories, contributing to some resilience in revenue.
Custom logo products for corporate clients
Acushnet also generates revenue through custom logo products targeted at corporate clients. While specific figures for this segment were not disclosed, the overall brand strength of Titleist and FootJoy supports a robust corporate sales channel, particularly for promotional events and corporate gifting.
Licensing and partnerships in international markets
Acushnet has established various licensing agreements and partnerships in international markets, which contribute to its revenue streams. The company reported a 3.1% increase in total net sales on a constant currency basis, indicating the effectiveness of its international strategy.
For the nine months ended September 30, 2024, net sales by region were as follows:
| Region | Net Sales (in millions) | Change from Previous Year |
|---|---|---|
| United States | $1,201.0 | +6.9% |
| EMEA | $263.9 | -1.0% |
| Japan | $108.7 | -8.0% |
| Korea | $226.2 | -6.3% |
| Rest of World | $212.1 | -3.2% |
The overall increase in net sales demonstrates Acushnet's ability to leverage its brand effectively in various markets, offsetting declines in specific regions.
Updated on 16 Nov 2024
Resources:
- Acushnet Holdings Corp. (GOLF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Acushnet Holdings Corp. (GOLF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Acushnet Holdings Corp. (GOLF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.