Why would a company such as CUTCO Cutlery opt for the direct channel instead of the retailer channel for its consumer products? What other companies are similar to CUTCO Cutlery in its approach to direct retailing?

Cutco has positioned its brand as a high end, high quality and 100% made in the United States. By doing so, it wants to be viewed as a company that prefers traditional crafting and distribution sales methods instead of the mass market models. This is part of the strategy that can represent extra revenue by not paying distribution channels to wholesale or retail it's products.

However, they do use a direct sales approach that involves a marketing agency that's part of the corporation and who's in charge of developing a sales force to directly reach end customers. Vector Marketing recruits, trains, and manages Cutco Cutlery sales force, and while they can be seen as an external distribution channel, the company still controls the sales process from end to end. In some controversial cases, Cutco doesn't establish an employer-employee relationship with its sales force, which frequently is required to search and build their own client database. This strategy is complemented by the online store, which is also a direct channel operated by the company.

Many companies have been successful by using direct sales as their main commercial strategy. Avon, Tupperware, and Amway have been around for decades using door-to-door sales, catalogs, and a flexible workforce as part of their direct marketing and sales strategy.