Guthy-Renker is the largest direct-response television company in the USA, with annual sales of more than $1.5 billion and an average annual growth rate of 25 per cent over the past decade.
The company was originally launched as a television direct marketing company by Bill Guthy and Greg Renker and has since broadened its focus into every area of electronic marketing. It makes its products – including the acne treatment Pro-Activ solution, Windsor Pilates and a number of celebrity skin care ranges such as Cindy Crawford and Victoria Principal – available to US and international consumers through broadcast television, cable, satellite, telemarketing, direct mail and retail channels.
Guthy-Renker opened an operation in Australia six years ago and has experienced enormous growth, especially with Pro-Activ solution, which is now one of the largest selling acne treatments in the world. The popularity of many products is helped by celebrity endorsements from Alicia Keys, Sean P Diddy, Jessica Simpson, Elle McPherson and Vanessa Williams.
Infomercials promoting the range of products are the backbone of the company’s marketing activities in Australia and New Zealand.
“The major benefit of infomercials lies in their accountability and a long-term sustainable brand life,” explains Guthy-Renker’s Mark Boyle, Managing Director Australia and New Zealand.
“When consumers respond to a direct-response television commercial by picking up the telephone or, in the case of the Internet, logging on to place an order, we are able to measure the response and gather demographic information. An infomercial provides a level of measurement that general advertising is incapable of delivering.”
According to Mark, the industry is brutal when it comes to performance and metrics. “If a product doesn’t work then it won’t last long.”
Fortunately, Guthy-Renker hasn’t been faced with the issue of axing products. Instead it is faced with handling enormous growth, which has made the company examine all of its internal processes to ensure that it can meet its promises to customers.
One area to come under intense scrutiny is the company’s back end, where the fulfilment of all mail order products occurs.
Its back-end improvements are a significant increase in its warehouse capacity and upgrade of IT infrastructure.
“Our aim is to improve the speed of delivery to customers and increase the efficiency of our product turnaround,” says Mark.
Guthy-Renker relies on Australia Post’s Parcel Post service for the majority of its deliveries to customers.
“With thousands of items going out every week, we needed a reliable and economical parcel service that could reach customers all over Australia,” says Mark.
Guthy-Renker also uses Australia Post for sending parcels to New Zealand using the Direct Access service. Direct Access enables parcels to be shipped in bulk to New Zealand, where they are then distributed by New Zealand Post.
For more information visit www.guthy-renker.com.au
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