Case Assignment: CUTCO Corporation
1) Direct selling is defined as any kind of selling that is made outside a fixed business location. Therefore, most of the company that use direct selling are not well-known, are small, privately owned or do not have physical stores. Direct selling is essentially a push marketing strategy, and the firms that use it do very little traditional advertising. Most of the direct sales take place in a residence and on a one-to-one basis.
2) CUTCO Corporation roots go back in 1902 with the creation of Aluminum Company of America (ALCOA). In 1948, ALCOA and W.R Case & Sons formed a joint venture to manufacture high-quality kitchen cutlery that would be marketed through ALCOA’S WearEver subsidiary. In 1949, the first CUTCO cutlery was produced. 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 and CUTCO international markets CUTCO products outside North America. CUTCO Cutlery Corporation manufactures 75 percent of other merchandiser’s product, and the other 25 percent is manufactured by a US supplier and several suppliers located in Asia. The ALCAS corporate vision was to become the largest manufacturer of high-quality kitchen cutlery and accessories in the United States. In 2009, ALCAS Corporation became CUTCO Corporation. The company employs more than 800 people at its dean headquarters and has revenues in excess of $200 million.
Vector Marketing Corporation is the largest independent distributor which operated in the eastern United States. Vector Marketing Corporation is an in-house CUTCO marketing capability that gave it complete control over it major market. With that capability,...