Slide 1

Globalizing an American Catalog

Introduction Mail Orders historical roots were in Europe Catalog first appear in the Mid-fifteenth. Popularity in the united states after the Civil war ( Aaron Montgomery & Richard Sears ) Rapid increase growth after World War 2.

Con.Niche Catalog , likely to succeed in the direct marketing environment of segmented markets , benefits oriented promotions and scientific decision making .

Con. Purpose of the case study to demonstrate the applications of certain consideration in the globalization of direct marketing Illustrates tools and techniques of direct marketing used by a successful American catalog.

The Peruvian Connection began when Annie Hurlbut , aged 19 headed to south Africa. Annie spent most of her time doing research on woman who sell in market.She learned about the extraordinary properties of alpaca wool and began to export it as sweaters .

Within few months the new company was called the Peruvian connection . A sense of style enabled her to adapt the sweaters to north American style . Annie kept prices low by selecting and buying raw materials directly from the producers and maintain control over quality.

ObjectiveThe Peruvian Connection uses mail order as its primary distribution system.Customers range from enthusiasts to collectors,Authenticity and complete satisfaction is guaranteed.

StrategyTo send periodic mailing to customers.Seeks new customers via market segmentation.The customers generate sales revenues, and about half of this amount if from repeated orders.

ChallengeTo finding prospects to whom to mail.Accommodate various cultural differences:In payment preferences when fulfilling orders.Distribution as well as use of the telephone and the internet.

Question 1What economic, social, and cultural differences does the Peruvian Connection need to consider as it applies the tools and techniques of direct marketing to diverse international markets?

Question 2What are the main factors that led to the international success of the Peruvian Connection?

Question 3 If you were hired by the Peruvian Connection to expand its international direct marketing efforts, what additional information would you need to provide suggestions for market expansion?what are some of the avenues you might investigate and recommend for international market expansion?