Cutco Case Analysis essay

Cutco Case Analysis

Cutlery/ Direct Selling Industry
Sales force consists of 15 million direct sellers
2007 U.S. Industry sales were $30.8 billion; Global sales were $114 billion
Average annual growth rate is 3.2%

Company:
61st year in operation (2010)
$200 million revenues
Headquarters located in Olean, Pennsylvania
Over 500 products, ranging in price from $27 to $945 (Increases 5% every other year)
Numerous subsidiaries-

Trends:
Majority of sales force (90%) only employed for one selling season which results in the loss of customers
Competition’s products are mostly sold in department stores as well as mass merchandisers at a reduced price
Mergers and acquisitions
Target college students as their primary sales force
New and existing customers desire to make Web-based purchases

Problem Statement
In order to achieve revenues in excess of $500 million per year in the next five years and ultimately achieve revenues of $1 billion annually, CUTCO Corporation must implement a long-range growth strategy by selecting and focusing on a growth driver as well as a strategic marketing channel for the next ten years.

Alternative Evaluation
1. Acquiring a cutlery manufacturing company
Cost = $10-15 million
a. Advantage: Gain additional plant capacity required for growth expansion b. Disadvantage: The acquisition would divert attention away from the company’s primary activities. 2. Expansion of Internet recruiting and new Internet technologies

Cost = $5-10 million
c. Advantage: Improving recruiting procedures and gaining knowledge of new internet technologies d. Disadvantage: Cost of hiring and training additional sales force 3. Expanding brand recognition and preference through increasing through public relations exposure

Cost = $1-2 million
e. Advantage:
f. Disadvantage:
4. Reenergizing major international marketing efforts
Cost = $10-15…
Pl

Cutco Case Analysis

Cutco Case Analysis

Not ready? We are here to write this paper from scratch.

Place an order for this assignment or any other paper with us. We guarantee that the paper will be delivered within the specified deadline. We also have a personalized customer support and you will be able to communicate with your writer throughout the order preparation process. Thank you for choosing us.