The Matrinic Corp.

The Matrinic Corp., a subsidiary of the Martin Company, is seeking a licensing arrangement with PGA Tours, a subsidiary of PGA of America, to market PGA Tour branded golfing merchandising in the People's Republic of China. The Matrinic Corp., as a subsidiary of the well-established Martin Company, possesses unique advantages for the marketing of licensed, branded merchandise in the People's Republic of China. These advantages include long functioning relationships with Chinese companies, a preferential status related to Chinese customs duties, financial stability, and extensive experience in retail marketing.

Since being re-introduced into China less than 20 years ago following an absence of almost 100 years, growth in participation in golfing in mainland China has been rapid. The number of participants increased almost three-fold from 1995 to 2000, and this rate of growth should continue for an extended period.

The current target market for golf-related merchandise in the PRC consists primarily of successful business people under the age of 45. As participation expands, however, people from lower income levels will enter the target market. Age group extension in the target market, however, will occur primarily through the aging of present members of the target market, as older members of the country's population have been less accepting of the social changes stemming from China's economic reforms.

The proposed licensing agreement with PGA Tours

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many luxury pastimes in China, golfing is as much about showing off as it is about playing. Some spend $5,000 to $10,000 on Japanese-made gold-plated golf clubs" (Chao, 2002, p. 1. The initial target market for PGA Tours branded merchandise marketed by the Matrinic Corp. in China will included business men and business women in the 30-to-45 year old age bracket. The members of the target market will be successful entrepreneurs and higher-level managerial personnel in corporate organizations. This target market includes approximately 200,000 persons today who actually play golf. The overall target market, however, approximates one million persons. The proportion of the target market that plays golf will grow rapidly over the coming five years. Initially, the focus by the Matrinic Corp. will be on the members of the target market who reside in Guangdong Province, Shanghai, Beijing, and other urban centers on the southern coast of China. As the golf market in China expands, the Matrinic Corp. will expand its market focus. 5.3 Market Growth Potential and Competition Because golf, as an industry in China, is in its infancy, future growth will occur primarily through the expansion of the overall market for golf-related merchan

Category: Business - T