 |
 # 201 |
Case Study |
| Cumberland
Ltd.
Situation
The second largest investment broker in the precious metals industry,
Secure
Monetary Systems -- which had led the call for federal regulation on
ways
gold and silver was brokered in the U.S -- was at an impasse.
Problem Like most of its clients, the SMS had done very well in the market. But, now it was dead in the water sitting on about $ 8 million after expenses with its fiscal year only three months away. It needed to find a way to reinvest its assets by September 31st, or the government would tax half of the Company's net worth. Hunter Finch was called to Dallas on June 3rd. Solution The agency was asked to develop a strategy and work plan that would guarantee 2 million catalogs in the mail no later than September 15, the ideal drop date for the Holiday |
mail order gift
market. The agency had insisted on
the 15th -- two weeks prior to the end of SMS' fiscal -- to buffer its work-in-progress from any unforeseen delays that sometimes occur. The agency presented a strategy and timeline the very next morning at breakfast. It recommended the catalog be launched as a d.b.a. of SMS, and gave the client six weeks to get samples together of everything it wanted in its first catalog. To accomplish this, Cumberland buyers would have to be appointed. They would need to split up to cover gift marts in LA, Chicago, New York, San Francisco, London and Paris. They would also have to convince the showroom wholesalers to sell their show room samples or the agency would not commit to putting them in the catalog. This strategy, in effect, would take the contracted lines off the market for any competitors, and guaranty there would be something to photograph in Los Angeles by July 23rd. To make this more attractive to wholesale showrooms, Cumberland Ltd. would pay for all first orders with cash in advance. Although this meant resources would be paid in advance of deliveries, Cumberland needed to be sure its investment was fully expensed by September 31st. On July 19th, six weeks later, the agency flew to Dallas from Los Angeles, shot Polaroids of all 170 collected items and then returned to California to begin laying out the catalog. Items were shipped to the agency for arrival four days later. In those four days, the agency had laid out a 24 page + cover catalog using its Polaroids as reference. The client flew in, approved the layout and supervised the photo shoot that lasted nine days as copy, pricing, and handling charges were being determined. The catalog went on press on September 8th, and 2.2 million catalogs were in the mail by September 15th. Cumberland Ltd. was off to a successful start. Results The first Cumberland Ltd. catalog did surprisingly well. Those that followed were more profitable. The best items moved fast. The slower items took more time. The company was dropping three major catalogs a year in its third year when it realized it was collecting odd lots of slower movers in its warehouse. It looked for another outlet, and eventually opened five gift stores in the Dallas area, which it used to rotate slower movers and test new potential products for its catalogs. |