Reference no: EM13719561

Golf Technologies Inc. (GTI) relies on high-level scientific testing to design golf clubs that provide larger "sweet spots" resulting in fewer miss-hits and maximum yardage. In the last year, they discovered a technical breakthrough. Their newest designed clubs, for the same level of energy, hit the golf ball one-half club length longer than any existing clubs on the market. Harvey Pennick, CEO, is very excited about this new breakthrough and believes the new clubs will create a new level of excitement and enthusiasm among players. Pennick is well aware that many club manufacturers tout "new, scientific breakthroughs" with each year's new model clubs. He also knows that consumers have become fairly immune to these "breakthrough" claims made each year. He believes he must do something different to convince the potential buyers that the new line of GTI clubs actually does have a larger sweet spot and they actually do hit the ball farther. Armed with objective tests that prove these claims, Pennick and his marketing staff believe they need a highly credible golfer to be used in their promotional materials (television ads, magazine ads, infomercials, and special event promotions). The credibility of the message in GTI's promotions will be critical if golfers are to really believe this breakthrough in club design.

Pennick's staff present the two golfers whom they believe are the best known: Tiger Woods and Phil Mickelson. Both golfers are considered among the best golfers in the world and have very high name recognition. However, both these golfers have current exclusive contracts with other club manufacturers. Both contracts have buy-out clauses, so if GTI is to hire either one of them, it will be very expensive both to buy out the existing contract and to offer enough money to attract either of these world-class golfers. GTI will need only one of these golfers to be their new spokesperson.