Cutco (Part 2)

Sales are made through?
in-home presentations in which sales representatives demonstrate the superiority of CUTCO cutlery by cutting food items as well as rope and leather.
Presentations are prearranged through?
referrals and appointments, there is no “cold calling” or door-to-door selling
What is considered to be a key to company success?
The in-home presentations
How is the product delivered?
Through UPS or the U.S. postal service
To motivate sales representatives, Vector employs a variety of tactics, such as?
promotional activities, events, and competitions (receives awards, trophies, scholarships etc.)
Only one other direct selling company uses college students as its primary sales force to market books/educational material during summer vacation?
the Southwestern Company in Nashville, Tennessee
Differences between Vector and Southwest (1)
Vector trains small groups of sales representatives at district or branch offices, Southwestern simultaneously trains everyone at HQ
Differences between Vector and Southwest (2)
Vector sales representatives use a referral system for sales leads, Southwestern sales representatives focus on door-to-door presentation
Differences between Vector and Southwest (3)
Vector sales representatives
typically sell in their home cities, Southwestern sales representatives typically are assigned to sell in a city away from their home.
Why did Vector initiate a catalog mailing in Sep-Dec?
Because over 90 percent of Vector’s sales reps only sell for one summer, the customers they create often lose contact with CUTCO products and the company
Vector wanted to use the Internet to do what?
as a vehicle to recruit college students to be sales representatives and promote cutlery
Results of the Internet (1)
recruiting Web site (www.workforstudents.com)
-successful
Results of the Internet (2)
customer-oriented Web site (www.cutco.com) focusing on customer service and product information.
Unwarranted Result of the Internet
customers are now offered the opportunity to make their “catalog purchases” online using a Web site restricted to prior CUTCO purchasers (www.cutco-online.com)
Even though the test was successful, Vector executives agreed that while meeting customer expectations was important…
they were adamant that the company would not do anything with the Internet that would harm its direct sales operation. Believed that CUTCO products required personal demo.
Other Marketing Initiatives
Booths at county fairs and shows (Success from displaying and selling CUTCO cutlery at such
events)
-Realtor program wherein real estate agents purchase CUTCO cutlery for gifts to home buyers or potential customers
The Vector Customer (1)
married homeowner with one or more older children, relatively affluent, and holds a managerial
or professional employment position.
The Vector Customer (2)
-avg. income 50,000-100,000
-At least a bachelor’s degree
-40-59 years of age
-Enjoys reading/traveling/cooking/gardening
Direct Selling (1)
face-to-face selling away from a fixed business location. It’s a form of non-store retailing.
Direct Selling (2)
-There are no physical stores
-push marketing strategy
-direct selling firms do very little advertising
Party Plan Direct Selling
represents a combination of group selling and entertainment
Ex: The Longaberger basket party or the Tupperware party
The most popular form of one-to-one direct selling is?
network or multilevel marketing; Rewarded for the sales that they personally make and the sales that people they recruit make, and the sales of people in turn recruited by the individuals they recruited, and so on
Direct Selling customers
Affluent females between ages of 35-54 years of age, somewhat more education and larger household income
Most direct selling websites are?
limited to providing customer service and contact information