Module 7 Business Assignment 2

Cutco Corporation- Sharpening your Market Entry
1. The Cutco brand is affiliated with Cutco Corporation, Vector Marketing Corporation, and
Cutco Cutlery Corporation. It seems overly cumbersome for customers to understand that
Vector Marketing Corporation is selling Cutco knives! Meanwhile, Cutco is now the largest
manufacturer of high-quality kitchen cutlery in the United States and Canada. How would
you structure Cutco’s branding if you entered a new international market?
If it is entering the new international market, there are various techniques that need to be done.
The first one is determining your goal. Only if you know what you are going for can you attain
success. Make it clear why you are entering new markets and why this is the best strategy over
others like new product development or market expansion. You will have a clear focus for the
rest of your preparation if you can clearly define why, you are doing it and what success looks
like. The next would be the research on the new market. To successfully extend your brand into a
new market, you must first understand your new market- and your present product in respect to
your new market-better than all your competitors. Understand and define the pain issue you are
solving with your product or service as it relates to that new market while investing in research
and intelligence for new market development. Keep an eye on the competition. It is critical to
conduct a thorough competitor analysis to research existing organizations in your chosen new
market. You will have a better knowledge of the market and the environment in which you will
need to compete if you have a deep understanding of your competition, their brand promise, their
value proposition, and their offering.
2. Is Cutco’s Forever Guarantee a viable international strategy when considering

entering the vastly diverse markets that exist globally?
Cutco's commitment to great craftmanship and The Forever Guarantee are two things that have
never altered. The guarantee indicates that Cutco will always stand behind the performance and
sharpness of its blades. They also have a lifeline promise to replace their knives if they are
mistreated or abused. The concept of a lifetime guarantee is a nice one. It gives the impression
that Cutco stands behind their product. I could picture them doing this to keep their consumers
for an extended period. Taking this assurance global, on the other hand, would be a significant
commitment. The reason for this is that Cutco would have to set up manufacturing facilities in a
foreign country. Having manufacturing plants would make it simpler for worldwide customers to
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trust that Cutco could provide them with services that would last forever. If they don’t have
production sites in other nations, they risk people in other countries trusting other brands, who
might theoretically provide them with various products at a faster rate if they required a
replacement. Researching countries that use specific kitchen and table tools is another item to
think about before going global. This is crucial so that they do not waste money on materials that
will not sell well in the host country.
3. As mentioned, Vector Marketing Corporation is the exclusive marketer of Cutco products

directly to consumers via sales representatives located throughout the U.S. and Canada,
and Cutco International Inc. is responsible for international marketing. Do you think that
the direct sales model will work as a market entry strategy internationally? Where might it
work and where might it not potentially work?
Vector Marketing Corporation is the exclusive marketer of Cutco products directly to consumers
via sales representatives located throughout the U.S. and Canada, and Cutco International Inc. is
responsible for international marketing. This is because vector is a marketing firm with offices
all around the United States and Canada. This is the marketing firm in charge of Cutco’s
products. The products are sold directly to consumers by sales representatives, such as college
students hired over the summers break. Cutco International corporation oversees international
marketing, which includes anything outside of the United States and Canada. For the given
company, the direct sales approach has worked effectively so far. It is possible, though, that it
will not operate as effectively in other nations. Cutco, as a firm, would have to conduct research
and produce another means of marketing their goods than direct sales. Cutco would then have to
offer items in stores so that customers could see and try the goods for themselves. Direct sales
may also be unfamiliar territory for persons living outside of the United States and Canada. It
may appear intrusive to foreign markets, and it may not be regarded as much as the well-known
brand deserves. As a result, direct sales will be something the company does after a year in the
foreign markets, when they have matured, learnt, and become adjusted to the culture.
4. Given that Cutco’s product line includes more than 100 choices under the Cutco name
alone, is it realistic to think that Cutco can enter global markets with all its products, for
each market, every time it considers a new market entry?
Given that Cutco’s product line includes more than 100 choices under the Cutco name alone, is it
realistic to think that Cutco can enter global markets with all its products? Direct selling to
customers by brand salespeople across the United States and Canada may not be a successful
market penetration approach in a foreign market. A diverse range of products and services are
available in the global economy. While it may be successful in one country, the brand’s presence
in those other national or regional markets may differ, necessitating consideration of the brands
and goods’ coherence in other countries. When a brand identity has already been established and
consumers are familiar with it, direct sales will be successful. Consumers will appreciate items
from well-known brands. In locations where there is competition and firm names are unfamiliar,
direct sales will fall, and consumers will instead prefer branded brands and shop in a store. As a
result, the direct distribution strategy will fail in the market.
Reference
McGraw Hill Create eBook (2021) ISBN 9781307740349, Competing in the

Global Marketplace, 11th Edition, by Charles Hill and Tomas Hult, McGraw-Hill
publishing.
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Cutco Corporation- Sharpening your Market Entry

2. Is Cutco’s Forever Guarantee a viable international strategy when considering

3. As mentioned, Vector Marketing Corporation is the exclusive marketer of Cutco products

McGraw Hill Create eBook (2021) ISBN 9781307740349, Competing in the

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