erchandise for marketing in the People's Republic of China. Following sections discuss the PGA Tour organization briefly and provide important information on the Matrinic Corp. Following the organizational discussions, longer sections cover the golf market in mainland China, the Matrinic Corp. plan for marketing PGA Tours branded merchandise in China, and financial projections, including a sales forecast.
The founding of PGA of America, operator of PGA Tour, occurred in 1968, when professional golfers separated from the Professional Golfers Association (PGA), an organization dominated by golf professionals, as opposed to professional golfers. Members of the PGA Tour are golfers who play in the tournaments. The formation of the PGA Tour occurred when the PGA Tournament Division broke away from the PGA ("PGA, PGA Tour Not the Same," 2001).
PGA of America sponsors the PGA Tour, the Senior PGA Tour, and the Nike Tour. PGA of America also owns the PGA European Tour (Yasuda, 1998).
The primary source of funds for the PGA Tour is television. Revenues from television contracts account for approximately 40 percent of the organization's total revenues. Other important revenue sources for the PGA Tour, however, are tournament ticket sales, tournament players' clubs, merchandise sales at tournaments, and the licensed sales of PGA Tour merchandise by merchants in all parts of the world (Johnson, 1997).
Licenses (for the sales of PGA Tour approved merchandise) contribute approximately nine-percent of PGA Tours total annual revenue ("PGA Secures $850 Million TV Deal," 2001). Merchandise licensing is the focus of this business proposal to PGA Tours from Matrinic Corp.
The Matrinic Corp. is a subsidiary of the Matrin Company. The Matrin Company has 30 years experience in the retail clothing and textiles industry. The Matrinic Corp. serves as a marketing arm for the Matrin Company. With the established status as a domestic manu...