The Proposed Licensing Agreement

PGA Tours will extend its marketplace achieve whilst increasing its licensing revenues. The Matrinic Corp. will extend its marketplace penetration inside PRC whilst increasing revenues from a broadened product or service base.

The right after sections of this post offer relevant details in assist with the Matrinic Corp. proposal to license PGA Tours branded solution for marketing within the People's Republic of China. Right after sections discuss the PGA Tour firm briefly and offer critical info on the Matrinic Corp. Following the organizational discussions, longer sections cover the golf marketplace in mainland China, the Matrinic Corp. plan for advertising and marketing PGA Tours branded solution in China, and financial projections, and also a sales forecast.

The founding of PGA of America, operator of PGA Tour, occurred in 1968, after professional golfers separated during the Professional Golfers Association (PGA), an organization dominated by golf professionals, instead of professional golfers. Members of the PGA Tour are golfers who play in the tournaments. The formation with the PGA Tour occurred after the PGA Tournament Division broke away from the PGA ("PGA, PGA Tour Not the Same," 2001).

Both Taiwan (Republic of China) and Hong Kong (as a Unique Administrative Country with the People's Republic of China Mainland China) have well formulated golfing communities that generate substantial revenues annually in the pay for of golf clothing, equipment, and related products. The thought of targeting Chinese communities as markets for golf-related merchandise, therefore, just isn't a advertising and marketing stretch for PGA Tours.

Most of China's golf courses are located in Guangdong Province in southern China, in addition to within the areas surrounding Shanghai and Beijing. The fastest growing area of gold exercising is in Shanghai. In addition to the development of golf courses for use primarily by the domestic market, high-quality tourist-oriented golf course development is occurring in Guilin, Dalian, Kunming, and Hainan. Analysts contemplate Shanghai being probably the most potentially lucrative industry in China for golf-related merchandise. The are 30 cities in mainland China with populations more than one-million, however; thus, markets other than Shanghai also preserve good ability for your marketers of golf-related product (Shen & Cao, 1999).

The Matrinic Corp. will function as a wholesale business to offer pro shops at golf courses and selected up-scale retail establishments. The Matrinic Corp. also will purpose as a licensing agent of PGA Tours to procure the manufacture of PGA Tours branded products in China. At the retail level, the Matrinic Corp. will operate in a range of venues. Initially, the firm will operate a retail store in Guangzhou. As industry problems warrant, additional company-owned retail operations will arrive into play. The Matrinic Corp. also will initiate retail distribution through mail order operations and Internet-based sales operations.

 

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