...CUTCO CASE The tactic of direct selling is one that isn’t a popular approach in sales, unless you’re part of the small division that thrives on it. Direct selling is face-to-face selling from a fixed business location and therefore, a form a nonstore retailing. There is less public awareness of most direct selling firms as they do not advertise as much as major retailers. Almost all direct sellers are independent contractors and according to a survey of district sellers conducted for the District Selling Association in 1997, a substantial amount of workers worked because they either likes and/or used the product or service themselves or because they enjoyed the social aspect of direct selling. The majority of direct selling firms are small, privately owned firms created and operated by entrepreneurs, many of whom often want a low public profile. The most popular form of one-to-one direct selling is network or multilevel marketing and is used by about 95% of all independent contractors. Direct sellers in this multilevel program are not only rewarded for the sales they personally make but the sales from the people they recruit make. In 1949, the first CUTCO cutlery was produced by ALCAS Cutlery Corporation making this the 63rd year CUTCO Corporation has been in operation. After a period of aggressive growth and a series of reorganizations and acquisitions, ALCAS Cutlery Corporation changed its name to ALCAS Corporation in 1990 and morphed into a family consisting of six interrelated...
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...Tonya Willis March 21, 2012 Professor Dawn Anderson MKT-251 Cutco Corporation 1) What is direct selling? • Direct selling is face-to-face selling away from a fixed business location. Direct selling is a form of non-store retailing. Direct selling firms do very little advertising. The majority of direct selling firms are small, privately owned firms created and operated by entrepreneurs, many of whom often want a low public profile. 2) How would one respectively characterize CUTCO Corporation and Vector Marketing Corporation? • Vector Marketing Corporation are direct sales firms that market Cutco Cutlery, a line of kitchen cutlery, accessories and sporting knives of the highest quality. A Pennsylvania corporation with its administrative offices in Olean, NY, Vector is a wholly owned subsidiary of CUTCO Corporation, which has been Manufacturing Cutco Cutlery for 61 years. Handcrafted in the United States of the finest materials, Cutco products have a Forever Guarantee that protects the consumer investment. As the sole distributor of Cutco, Vector has offices across the United States and Canada. Cutco is steady growing company that reaches a large segment of the world either through websites or television commercials. Vector annual sales are over $209 million dollars. Currently Vector has over 200 offices in the U.S. and Canada. • Vector Marketing Corporation belongs to the Direct Selling Association, whose...
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...Factual Summary: 1. CUTCO cutlery has always been marketed through direct selling via Vector Marketing Corporation. This is viewed as an advantage because it allows the quality and performance features of the product to be explained and demonstrated directly to potential customers. Direct selling sets CUTCO apart from its competitors, who have traditionally used department stores and mass merchandisers to market their products. The people actually selling CUTCO cutlery are independent contractors who effectively operate their own business. The sales representatives are paid a commission on the products they sell but do not receive a salary from the company. For the most part, the sales representatives are recruited college students who sell CUTCO on their summer vacations. 2. Vector established a system of multiple mailings of a variety of catalogs to more than 4.6 million CUTCO customers throughout the year. In 2011, catalog mailings generated more than 120,000 orders and approximately $18 million in sales. 3. A closed customer site was created in 2000 to allow only existing customers to view prices and place orders. The site was limited to existing customers as a way to prevent hurting the field sales organization. As part of the direct marketing efforts of the field sales representatives, sales on the site have grown every year. In 2011, approximately 56,000 purchases of CUTCO products were made online with revenues of $8.7 million. 4. In 2006, CUTCO launched its pilot...
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...Users can Collect posts into a printable, sortable format. Collections are a good way to organize posts for quick reading. A Collection must be created to tag posts. More Help Thread: CUTCO Discussion Anna Knowles Posted Date: Post: Status: RE: CUTCO Discussion Anna Knowles Author: Morgan Whitaker February 22, 2016 8:10 PM Published How do you think utilizing other sales methods will impact the direct sales? Do you think there is a large chance of cannibalization? If so, how can CUTCO avoid that? Pampered Chef offered its products for sale at Target in the past, but since the independent sales people build their own businesses and their incomes from sales of the same products, most of them were extremely upset with Pampered Chef, because they were essentially taking money right out of their sales' people's pockets. Pampered Chef ended up pulling its products and reverting to direct sales. Do you think the risk of upsetting and/or cannibalizing the direct sales force is worth the increase in revenues that would be realized by selling through other channels? What are some of your ideas for an approach that would allow CUTCO to capture that untapped revenue without negatively impacting its direct sales? (Post is Unread) Thread: Post: Author: CUTCO analysis CUTCO analysis Posted Date: Status: February 22, 2016 8:05 PM Published Ivan Martinez 1. I personally cannot recall buying a product though a direct selling method. But one ...
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...Anderson Cutco Corporation 1.) What is direct selling? Direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location, marketed through independent sales representatives who are sometimes also referred to as consultants, distributors or other titles. Direct sellers are not employees of the company. They are independent contractors who market and sell the products or services of a company in return for a commission on those sales. There are several well know direct sales companies for example, Mary Kay, Avon, and Lia Sophia. Seventy percent of direct selling takes place in a residence. Around sixty five percent takes place on a face-to-face basics. Party Plans is also a popular form of direct selling, with around twenty eight percent of directing selling is through group sales. 2.) How would one respectively characterize CUTCO Corporation and Vector Marketing Corporation? Vector Marketing is a multi-level marketing group which builds its work force through advertising via newspapers, direct marketing, word-of-mouth, posted advertisements, letters and various mediums on the internet. Their fliers advertising "student work" are a common sight in many high schools and college campuses across the United States and Canada. Students are hired to market Cutco products (mainly kitchen knives) to customers, typically their friends and family members via one-on-one demonstratio 3.) How is CUTCO cutlery marketed? CUTCO is marketed...
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...CUTCO & Vector Marketing 1. What is direct selling? Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Modern direct selling includes sales made through party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.” While direct sales proves to be quite effective for Cutco, the industry also has its negatives. Many times there is very little advertising and because the company is not well known, it may lack legitimacy. 2. How would you respectively characterize Cutco and Vector Marketing? CUTCO cutlery has always been historically marketed through direct selling. This is viewed as a distinct advantage by the company because it allows the quality and performance features of the product to be explained and demonstrated directly to potential customers. Direct selling sets the company apart from its major competitors. These sales are made through in-home presentations in which sales representatives validate and prove the superiority of CUTCO cutlery through demonstrations. 3. How is Cutco cutlery marketed? Vector Marketing Company & Sales Representatives In 1985, CUTCO acquired Vector Marketing Corporation to have greater control over its sales efforts. organized into six geographical regions...
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...Case Analysis for Cutco Corporation Define the problem How the company could grow revenues to $500 million for the next five years with the ultimate goal of reaching $1 billion annually in a decade. Decision Factors (alternatives and uncertainties) 1) Recruiting Approaches: Recruiting is an obvious driver of Vector’s revenue growth. Additional investment is required to improve the recruiting approach. * Most of Cutco Revenue comes from Direct Sales * Use of Social media for recruiting * Recruiting students for winter and spring vacation beside summer vacation * The process is costly and time consumable. 2) International Expansion: Given the state of the present global economy, it is important to capture international market and gain some shares to make more revenue. * Cutco should gain shares in countries which are having decent GDP per capita and are U.S product friendly * International brand awareness is required * There is a high risk based on the company previous experiences 3) Supplemental Sales channels: The company should use the Internet channel beside catalogs more frequently to increase revenue. * Online shopping trend has been growing significantly * It could have negative consequences for the direct selling program * Low cost to implement this alternative Relevant Information Consumer trends: * People buy from the individuals they like, and there is no better way to make a solid first impression...
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...CUTCO & Vector Marketing 1. What is direct selling? Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Modern direct selling includes sales made through party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.” While direct sales proves to be quite effective for Cutco, the industry also has its negatives. Many times there is very little advertising and because the company is not well known, it may lack legitimacy. 2. How would you respectively characterize Cutco and Vector Marketing? CUTCO cutlery has always been historically marketed through direct selling. This is viewed as a distinct advantage by the company because it allows the quality and performance features of the product to be explained and demonstrated directly to potential customers. Direct selling sets the company apart from its major competitors. These sales are made through in-home presentations in which sales representatives validate and prove the superiority of CUTCO cutlery through demonstrations. 3. How is Cutco cutlery marketed? Vector Marketing Company & Sales Representatives In 1985, CUTCO acquired Vector Marketing Corporation to have greater control over its sales efforts. organized into six geographical regions...
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...Strategic Issue CUTCO must select a strategic focus for the decade ahead and must also make a decision as to whether to continue the retail sales pilot program, halt it, or expand it. Analysis and Evaluation Direct Sales Industry While direct selling has proven to be quite effective for CUTCO, the industry has positives as well as negatives. Because there are no brick and mortar stores and very little advertising, the industry and subsequently the companies that operate within that industry are not well known at time and can be “invisible.” However, this type of selling does provide a more personal approach for the customer. Direct sales companies do sometimes offer websites but they are generally limited to providing customer service and contact information versus many other websites that allow customers to shop and purchase products. CUTCO/Vector Corporation Marketing Strategy From the first product produced, CUTCO cutlery was designed to be the finest cutlery in the world. Cutco cutlery has always been historically marketed through direct selling primarily via Vector Marketing Corporation. He people actually selling CUTCO cutlery are independent contractors who effectively operate their own business. The sales representatives are paid a commission on the products they sell but do not receive a salary from the company. These sales are made through in-home presentations in which sales representatives validate and prove the superiority of CUTCO cutlery through...
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...career goals how will use personal selling in your major and future career? Give specific examples and outline the benefit of being able to sell yourself or an idea. I am currently a junior at the University of Toledo double majoring in professional sales and marketing. My career goals are to intern with a company that will allow me to advance my skills along with train me in hands on situations that will further my education and skills within the company. I am currently a sells representative and office assistant of a multimillion dollar company, Cutco and have reached 7,000 dollars worth of sales in my first month on the job. After these four weeks I had hit three promotions and am now currently making 30% commission along with ½% of all office sales for being an office assistant. These skills I have learned with Cutco have taught me how to make appointments and how to promote our products and show them the value of the Cutco. I have also learned how to build rapport with customers along with selling myself as a person. The major part of sales is to sell you to the customer and from there the product should be able to sell itself. When you sell yourself you are allowing the customer to trust and believe in you and the product you are promoting. Also selling yourself adds value to your reputation. We all know that a first impression is a lasting one so when you meet someone for the first time you never know whose life you’re about to impact. Also with good rapport and reputation...
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...a travesty every time I open the door for someone, and they don't even bother to say thank you. In inbound marketing, it is important to always say 'thank you.' Heck! It's important to say thank you if you're a barista at Starbucks and your customer drops the nickel you give them as change from their grande latte in your tip charge. Saying thank you is another way to add value to a person. It shows them they are appreciated. And when something is valued, it must be appreciated. Your car appreciates in value when it gets a new paint job; People appreciate in value when you say thank you for their small and large acts of kindness. Just be civil and say thank you. We're not monkeys. Always be smiling A few years after my days of selling Cutco I took another sales position. Do you remember that really slick infomercial guy Kevin Trudeaux who happened to find a cure for everything in the world? Yes, I sold some of his products. But that's not the...
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...BRITTANY J. CORBETT address Email: OBJECTIVE: To secure a professional internship with a Physical Therapy Practice. SUMMARY OF QUALIFICATIONS: My years of academic studies and experience as a student athlete in volleyball and track and field have helped me develop the technical knowledge, skills, and discipline required to make a significant contribution in a professional Physical Therapy Practice. I am a hard worker who is committed to positive outcomes; I am well-organized with strong communication, analytical, and problem-solving skills; I can work independently and in a team; and, I am honest, loyal and discreet. I am seeking "hands-on real world" professional work experience in Physical Therapy to achieve my career goal of becoming a Certified Physical Therapist. EDUCATION Florida International University (Bachelor of Science Degree) Miami, Florida Anticipated Graduation: Spring 2018| Concentration: Sports Fitness | GPA: 3.6 Tallahassee Community College Tallahassee, Florida 6 sem. Hrs. | GPA: 3.6 | Fall 2013 and Spring 2014 HONORS AND DISTINCTIONS Florida International Dean’s list (2014-Present); Invitation to join FIU Honors College (2014); National Honor Society (NHS); Selected works of Art/Photography displayed at the LeMoyne Art Gallery (2012-2014) Tallahassee, Florida ; Florida State University Schools Directors Award for Academic Excellence (2013) LEADERSHIP AND AFFILIATIONS Florida International...
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...Lecture 8: Legal and Regulatory Risks of International Business Regulatory Risks * Potential difficulty in compelling overseas counterparty to fulfil obligation under contract only one risk. * Even more serious risk: international business activities attracting criminal liability. Money Laundering * Few would defend open laundering of domestic crime * But historically, more relaxed approach taken to property derived from overseas crimes. The attitude has been taken: * “What happens in X, stays in X” * Definition of “criminal property” in UK extends to property derived from act committed abroad which would be a crime if it were committed in UK. * Proceeds of Crime Act 2002, s.340(2)(b) * Very limited “double criminality” rule – essentially it states that the Secretary of State may if she chooses put in a double criminality rule or may not. If it would attract a maximum prison sentence of 1 year or less then in order for the proceeds to be covered by the AML rules – it must also be a crime in the jurisdiction where it was committed. But if it’s more than a year- no double criminality. * US Federal laws definition of predicate offences for purpose of money laundering similarly extends “unlawful conduct” to include list of overseas crimes * 18 U.S.C. §1956 (§ - section) - up to 20 years * Definition applies also to wider “money spending” offence in §1957 – up to 10 years. * ML – with intent to disguise the origin, to facilitate...
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...THE POWER OF INFLUENCE AND TEAM-WORK IN A MULTI-LEVEL MARKETING ORGANIZATION INTRODUCTION: In the world of business there are many different approaches taken in order to influence the sale. Some businesses take the big box store approach selling and advertising their merchandise through a larger entity such as a Wal-Mart, Home Depot or Best Buy. Some take an exclusive approach selling their merchandise only through exclusive retailors such as Nordstrom’s. With these types of businesses there is always a middle man between the manufacturer and the final customer. In a direct marketing organization the middle man (the retailor) is shut out. In the direct marketing approach a sales associate serves as the representative for the company and goes directly to the customers to deliver the necessary product to them. Many different kinds of business take this approach from painting services to health supplements. This form a business is similar to that of the old traveling salesman who goes from home to home hopefully selling a product that will help sell itself. Typically advertising is not done by this individual but by word of mouth among the friends of the buyers. Many sales people conduct social “mixers” where they have groups of friends gather in a party like setting to show the product. This allows the salesman to create a mob mentality with the sale helping the group sell themselves and maximizing his/her earning potential without using an unreasonable amount of time....
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...Chapter 1 Case Study: Harmonix Embrace Your Inner Rock Star Little more than three years ago, you had probably never heard of Harmonix. In 2005, the video game design studio released Guitar Hero, which subsequently became the fastest video game in history to top $1 billion in North American sales. The game concept focuses around a plastic guitar-shaped controller. Players press colored buttons along the guitar neck to match a series of dots that scroll down the TV in time with music from a famous rock tune, such as the Ramones’ “I Wanna Be Sedated” and Deep Purple’s “Smoke on the Water.” Players score points based on their accuracy. In November 2007, Harmonix released Rock Band, adding drums, vocals, and bass guitar options to the game. Rock Band has sold over 3.5 million units with a $169 price tag (most video games retail at $50 to $60). In 2006, Harmonix’s founders sold the company to Viacom for $175 million, maintaining their operational autonomy while providing them greater budgets for product development and licensing music for their games. Harmonix’s success, however, did not come overnight. The company was originally founded by Alex Rigopulos and Eran Egozy in 1995, focused around some demo software they had created in grad school and a company vision of providing a way for people without much musical training or talent to experience the joy of playing and creating music. The founders believed that if people had the opportunity to create their own music, they would jump...
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