CASE 3.1 Goll Te chno Inc Pennick\'s staff presents the two golfers whom Golf Te

Question

CASE 3.1 Goll Te chno Inc Pennick's staff presents the two golfers whom Golf Technologies. Inc. (GT) relies on high-level scienti testing to design golf clubs that provide larger"sweet spor believe are the best known: Rory Mellroy and Brb Both golfers are considered among the best in ling in fewer missed hits and maximum yardage, In Watson and have very high name recognition. Howew last yeat, GT7 discovered a technical breakthrough in club the world design Its newest clubs, for the same level golf hall longer than any existing clubs on the marke of energy, hit the both these golfers have exclusive contracts with o GTI is to hire either one of them, it will be ex ufacturers. Both contracts have buyout clauses so et. CEO man expensive Harvey Pennick is very excited about this breakthrough an believes these clubs will create a new level of excitement and enthasuasm among players, Pennick is well aware that many out the existing contract and to offer enough mone buy t o attract one of these world-class golfers to be GTI's new club manufacturers tout "new scientific breakthroughs" with spokesperson each year's new model clubs. He also knows that consum ers have become fairly immune to these claims. He believes he must do something different to convince potential buyers that the newest GTI clubs actually do have a larger sweet 1. Assuming Pennick agrees with his staff on the choice of Mcllroy or Watson, what now is Pennick's decision in terms of decision alternatives? spor and really do hit the ball farther. Armed with objective 2. Assuming Pennick is not confident in his assumption tests that prove these claims, Pennick and his marketing staff about the consequences of the outcomes associated believe they need a highly credible golfer to be used in their with your decision alternative, what should Pennick promotional materials (TV ads, magazine ads, infomercials, consider doing? and special event promotions). The credibility of the mes- sage in GTI's promotions will be critical if golfers are tothe research objective. otions). The credibility of the mes- 3. If Pennick decides to conduct marketing research, really believe their claim of a breakthrough in club design

Explanation / Answer

1) Pennick should have the following decision alternatives:

A) Make contract with them with cost involved.

B) Try to negotiate with them that as per the earnings response of the customers, they will be given higher amount .

C) Provide them stock option of the company .

D) Pennick should contact for brand endorsement with no.2 position in industry.  

2) Pennick should consider the current impact on the business by selecting any one of the above alternatives. He should choose that one which promote its brand legacy and sustainable business practices in long run as compared to its rival companies .

3) As per my view , Pennick should consider the two objectives:

1) To analyze the impact of celebrity endorsement to brand extension and loyalty.

2) To know the market potential or influence of choosing second number star player on sales turnover and customer retention of the organization .

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