Cutco Case Analysis

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Cutco Case Strengths· Products can be purchased individually or as a package.· 20-cutlery items account for 60% of sales.· Prices have increased 5% every other year.· Every product has lifetime guarantee and free product sharpening.· Alcas acquired Vector Marketing to re-create nationwide in-house Cutco sales and marketing infrastructure.· Expanded internationally in 1990 to Canada.· Cutco International operating margin was 2.5% in 1991.· Vector employs promotional activities, events and competition to increase corporate revenues and motivate sales representatives.· No door to door selling. First sales are to representative?s parents, relatives or friends.· 4.4M customers have been added to Vector?s database of customers.· All…show more content…
Total cost for this will be $200,000 for television premiums paid for product to be on their show. Our present customer service agents would be able to handle the inflow of calls from these spots.

4. Initiate year round sales force: This will allow for a more even flow of sales revenue. Presently, we have four geographic regions across the U.S. We will recruit a total of 500 commissioned based sales people across the country. Our recruiting efforts will continue via the web sites already being used. Each Vice President and Director will have final word on hiring for his or her district. The Vice President or Director will execute all training efforts.

Analysis/Evaluation of Alternatives Decision Criteria Status Quo Sell Products via Website Advertise on FoodNetwork Year Round Sales Force Profitability (6) 6 x 4 = 24 6 x 2 = 12 6 x 3 = 18 6 x 5 = 30 Divest channel conflict (5) 5 x 5 = 25 5 x 1 = 5 5 x 2 = 10 5 x 5 = 25 Long-term growth potential (4) 4 x 4 = 16 4 x 5 = 20 4 x 3 = 12 4 x 5 = 20 Continue core competency (3) 3 x 5 = 15 3 x 1 =3 3 x 1 = 3 3 x 5 = 15 Speed of implementation (2) 2 x 5 = 10 2 x 1 = 2 2 x 4 = 8 2 x 4 = 8 Cost of implementation (1) 1 x 5 = 5 1 x 2 = 2 1 x 3 = 3 1 x 5 = 5 Total 95 44 54 103 Recommendation I recommend that Cutco implement a year round sales force of 500 people across the U.S. Since Cutco has an effective recruiting Website, I would recommend using one of these Websites

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