Catalina Marketing

2518 WordsApr 1, 200111 Pages
History Catalina Marketing Corporation was founded in 1983 by five friends, Tom Mindrum, Mike O 'Brien, George Off, Mike Scroggie and Brian Yeatman, while on a boating trip to Catalina Island in Southern California. The five friends were remarkably similar, though different. All five had experience in the consumer research field. All five had strong areas (whether research, computer technology or sales) at which they excelled. All five were looking for a new line of work that would be challenging and most importantly, paid well. The five came up with an idea to use the new scanner technology at grocery stores to gather information and print a coupon for a rival product. The five friends knew it would not be easy to found…show more content…
All employees pitched in to work were needed including the CEO. It was not uncommon for a sales person to deliver coupon paper and unload data from the PC hard drive during a routine visit (there was no such thing as modems at that time). Catalina spent all it 's resources on technology and equipment for expansion stores. After proving to be successful handling popular South California grocers, Ralph 's and Boys, Catalina signed more grocery chains to their list of customers. Eventually, Catalina Marketing had manufacturers calling them. A former Anaheim sales manager remembers receiving a phone call from a Proctor & Gamble representative saying, " Look, I don 't know what your company does, but I know our company has got to do it. So how do I start a program?" Price Catalina Marketing clearly has the market advantage when it comes to pricing their product. Since Catalina has gone through the effort to patent their software and hardware, it is nearly impossible to compete with the services they offer. Catalina Marketing charges retailers a one fee for installation of thermal coupon printers, a PC and all hardware necessary to connect the PC to store 's existing scanners. Retailers agree to use the "Checkout Coupon" program for a minimum of five years. In return, Catalina pays retailers a small fee for each coupon printed and supplies them with coupon paper at no cost. This
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