Naalehu, HI (PRWEB) July 6, 2006
Thom Reece, CEO of Online Marketing Group, a Hawaii based direct marketing consultancy specializing in small business operating systems, announced the completion and release of his firms newest case study of the emerging manufacturing-to-consumer (M2C) business model.
"What we found in our M2C study was pretty dramatic", said Reece. "Historically the home-based business industry has been comprised of distributorship or network marketing companies which rarely manufacture their own products. Since product production is out-sourced to private label manufacturers under contract, product quality, availability, and price often suffer. This places added financial strains on the marketing company which affects their ability to survive, let alone succeed." added Reece.
The same operational cost issues, that put pressure on entrepreneurial start-ups, has created real opportunity for the same private label manufacturers who supply product to distributorship type home businesses.
Established manufacturers already have the investment in plant, equipment, and production expertise, along with economies-of-scale working to their benefit. Adding a new distribution channel to their marketing plan, in the form of a home based business opportunity, is proving to be a savvy and profitable move.
Entrepreneurial distributors and consumers are actively seeking supplier companies who can supply efficacious products at lower price points. This price advantage allows for respectable profit margins while maintaining lower than retail price levels to consumers. In short.. the perfect home based business model.
This same pricing advantage allows for the aggressive use of free sampling to promote individual products. This is especially useful to home based entrepreneurs who often lack professional sales training and marketing skills.
A leading proponent of this new business model is M2CGLOBAL based in Dallas, Texas. M2CGLOBAL is a subsidiary of a thirteen year old private label manufacturer who supplies product to such mega-retailers as Costco, Sam's Club, 7-Eleven, etc.
This experience supplying mass market retailers, give such companies as M2CGLOBAL an insight into market conditions and consumer buying behavior that sets them apart in the home-based business industry.
Through the effective utilization of these advantages M2CGLOBAL has been, for example, able to sell over six million energy drinks in the first year of product release, using free product sampling as the key driver of it's sales promotions...through independent home-based distributors.
The complete 325 page "M2C CASE STUDY(tm)" is available in ring binder hard copy + CDROM form for $750 from Online Marketing Group, Market Research Division, P.O. Box 1084, Naalehu, HI 96772. 808-929-7377 http://www.M2CCaseStudy.com
To view the M2C business model in operation visit: http://www.OpportunityUniverse.com