Case of Cutco

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  • Topic: Cutco Corporation, Sales, Cutco
  • Pages : 3 (1132 words )
  • Download(s) : 159
  • Published : August 13, 2012
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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 companies including CUTCO Cutlery Corporation. CUTCO Cutlery Corporation manufactures the cutlery that Vector Marketing Corporation markets in North America (the United States and Canada) and CUTCO International markets CUTCO products outside North America. In 2009 ALCAS Corporation officially changed its corporate name to CUTCO Corporation; it was done to take advantage of the outstanding reputation of CUTCO cutlery and create a more consistent corporate brand umbrella. CUTCO...
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