Negotiation Role Play & Summary 2

Negotiation Role Play &
Summary 2
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Table of Contents
Stage 1: Pre-negotiation.............................................................................................................3
1. What is your client's BATNA? What is your client's reservation value?..............................3
2. What is the other party's BATNA? What is the other party's reservation value?..................4
3. What is the ZOPA range? What is your strategy for claiming the greater proportion of the
ZOPA?........................................................................................................................................4
Stage 2: Negotiation...................................................................................................................5
1. Enter negotiations with their counterpart for the endorsement contract................................5
2. Maintain a communications log that captures the date, method, items discussed, and
outcomes of each communication..............................................................................................6
Stage 3: Post Negotiation...........................................................................................................6
You must prepare a 1-page letter to your client advising the outcome of the negotiation........6
References:.................................................................................................................................8
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Stage 1: Pre-negotiation
Celebrity brand endorsements are a major business strategy undertaken by companies to
make their brand or product more appealing to the mass (Holtom, 2016). The given
individual is an employee of an AD agency, presently working as a representative of a
company who are trying to rope in a celebrity (for instance, Mr. A) to endorse their product.
After getting an email including the details regarding the contract from the CEO of that
company, the representative has prepared a pre-negotiation assessment before approaching
the agent of Mr. A. Crucial factors like BATNA, reservation values, ZOPA range are
reflected here.
1. What is your client's BATNA? What is your client's reservation value?
The term BATNA is of much importance when it comes to negotiation (Putnam, 2017). The
abbreviation BATNA stands for Best Alternative to a Negotiated Agreement (O'Neill, 2018).
BATNA answers an important question that is 'what would you do if you are not able to
convince your negotiation partner?' (Helseth, 2017). While negotiating with a company or an
individual, the representative should be well-equipped with BATNA in order to obtain an
alternative way if a negative outcome is received after the negotiation process (Sebenius,
2017). BATNA provides the representative of the contract with certain hope that failure in
this negotiation process is not a dead-end (Brett and Thompson, 2016). BATNA indicates
that the person is having one or more alternative ways to combat with a negative result
(Pinkley et al. 2017).
In the given context, the client is the respective company who wants to rope in Mr. A to
endorse their brand. The company is a well-known one, having millions of customers across
the globe. Being an international brand, the company is willing to have Mr. A to endorse their
product as he is a popular actor and is having millions of fan following. His movies are doing
well and he had received best actor award in 2017. The BATNA of the company is a cricketer
who is a rising star and yet to reach the popularity level same as Mr. A. Still the company is
unable to find another actor worthy of their requirements within their fixed budget, hence,
they are considering that cricketer as their BATNA. Also, the company can rope in veteran
actors who will be willing to do this as because of age they are not getting films that much.
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