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History and Background of Recall InfoLink

Recall InfoLink is in the business of providing a set of web-based product recall services to companies who buy and sell consumer products. The firm was co-founded by two men: Roger Hancock and John Bushland in early 2008. Mr. Hancock was the former Director of Food Safety and Quality Assurance for Albertsons and John Bushland worked under him as a manager of Quality Assurance. Mr. Bushlands main job was to implement product recalls for Albertsons. As a result of his experience with product recall, Mr. Bushland approached Mr. Hancock with an idea to start a web-based product recall system that would streamline the difficult product recall process. As previously mentioned, this happened in early 2008. By November of the same year, the company was in start-up mode and was developing their recall system. Recall InfoLink went operational in July of 2009 when they began actively seeking clients to use their product. By November, their first client was signed and used their system to perform a true product recall. Presently, Roger Hancock is CEO and President of Recall InfoLink. Besides Mr. Hancock, the company currently employs: John Kirkpatrick - Director of Sales and Support Ike Sweesy - Senior Vice President of Operations Mark Battin - Senior Vice President of IT Systems and Support There is continuous discussion among the employees regarding product development. John Bushland is not actively involved in running the company but continues to remain a shareholder.

External Analysis
Demand Analysis and Trends Past and Current Demand Analysis Recalls happen daily regarding a variety of consumer products. They are costly to initiate and the costs increase the longer the recall process takes. Although sources vary, ConsumerReports.org has found that in 2003 the amount of recalls totaled 5,573. Below, the totals are broken down into those recalls instigated by each of the governmental regulatory agencies. According to the same ConsumerReports.org article: Food and Drug Administration (FDA) issued 4,628 recalls National Highway Traffic Safety Commission (NHTSA) issued 529 recalls U.S. Consumer Product Safety Commission (CPSC) issued 280 recalls U.S. Department of Agricultures Food Safety and Inspection Services (FSIS) issued 68 recalls The United States Coast Guard (USCG) issued 36 recalls Environmental Protection Agency (EPA) issued 32 recalls in 2002.

This data shows that there is a significant market for a recall system. With over 5,000 recalls a year, it is likely that some companies may need assistance in their respective recall departments. 1

Demand Trends Product recalls have been trending upward for the past several years. The following excerpt is taken from a 2004 Consumer Reports article that illustrates this point: In recent years, the number of recalls has risen substantially. Annual auto recalls have more than doubled since the early 1990s. Nearly 19 million vehicles were recalled in 2002--about 1 of 11 on the road. In 2003, recalls of products such as packaged food, drugs, and medical devices were up nearly 24 percent over 1999. And 2004 is on a record pace for household-product recalls. In all, more than 5,000 recalls were initiated last year, covering more than 60 million products. Although every source has different numbers cited for the actual product recall counts, the same story is found in Parija Kavilanzs CNNMoney article, Drug recalls surge: The Food and Drug Administration reported more than 1,742 recalls last year, skyrocketing from 426 in 2008, according to the Gold Sheet, a trade publication on drug quality that analyzes FDA data. Product recalls are only going to go upward with the various manufacturing issues, safety standards, and consumer expectations of product quality and safety. This implies that there will be increasing demand for an effective recall product. Target Market Since a substantial amount of the items bought and sold make it to an end consumer, there is a large market for product recall processes. This market can be split up in to five distinct segments for analysis: manufacturing, wholesaling, transportation and warehousing, retail, and accommodation/food service industries. The following sections take a closer look at the size, growth, and profit potential of each segment. Manufacturers (NAICS 31-33) According to the US Census Bureau 2007 Economic Census data website, the amount of overall shipments in the manufacturing industry totaled $5,339,340 million in 2007 and the manufacturing establishments numbered 293,919. When considering the large size of the manufacturing realm, it is easy to see the potential profitability of this segment. Below, the manufacturing industry is further broken down into sectors that are more profitable and easier to target: Food 26,729 establishments, $589,580 million in shipments Beverage and Tobacco - 3,233 establishments, $127,890 million in shipments Chemical - 12,937 establishments, $738,302 million in shipments Plastics and Rubber 13,615 establishments, $211,048 million in shipments Electrical Equipment - 5,741establishments, $129,283 million in shipments Computer Equipment and Electronics 13,352 establishments, $412,989 million in shipments Transport 11,767 establishments, $736,761

The information above shows that food manufacturers hold a very large portion of the manufacturing segment. By having well over 26,000 food manufacturers in the business, they represent a substantial amount of potential customers and income potential. Also, should a food 2

recall need to take place, there is a need for efficient and effective product recalls within this industry. However, these markets have been targeted extensively by other, previously established recall companies (i.e. Stericycle and Bell Tower Technologies). Another specific sub-segment of interest, as far as establishments and profit potential, is the chemical manufacturing segment. With just under 13,000 establishments, it represents another large portion of the manufacturing market. This segment includes the manufacturing of pesticides, fertilizers, and even pharmaceuticals. Again, with the nature of these products, a fast and efficient product recall is needed in the event that an unsafe product makes it further down the supply chain. Currently, the pharmaceutical industry is being targeted by Stericyle, but there is no known company looking to target other segments in the chemical manufacturing realm. When looking at computer equipment and electronics manufacturers, they also hold a substantial portion of this segment, as do the plastics and rubber industries. However, these industries do not have as great a need for an urgent product recall solution, so it may be difficult to target these segments. When looking at the segment in general, it is important to note that they are high in the supply chain, so if a recall starts here, these companies are only the start of a long process. Since they are well connected in their supply chain, it may be easier to standardize the recall to all members lower in the supply chain. Wholesalers (NAICS - 42) Wholesaling represents a very large industry with high dollars in shipments. This segment is usually broken down into two sub-segments durable goods and non-durable goods. Durable goods include the following types of products: motor vehicle, furnishings, sporting goods, household appliances, and toys. According to the Consumer Product Safety Commission, they had 12 deaths regarding childrens toys alone in 2009. (CPSC, 2010) The need for effective product recalls on consumer products can be urgent in this segment. Also since the segment is substantial with 253,023 establishments and $2,709,480 million dollars in shipments, there is likely a significant amount of recalls and a very good ability to pay. (Economic, 2007) Non-durable goods include chemicals and chemical products, drugs, textiles and textile products, apparel, footwear, groceries, and farm products. Throughout this segment, there is a huge need (as with their respective manufacturers) to have fast and effective product recalls. They also represent a very large potential market with 133,153 establishments and $2,753,810 in shipments. (Economic, 2007) Warehousing (NAICS48-49) When looking at the warehousing segment 2007 Economic Census Data, they represent 13,802 establishments and $21,843 million in shipments. (Economic, 2007) Both the establishments and shipments have increased from 2002 to 2007. The growth of this segment indicates more potential recall clients. Other segments may have more potential, but given that they are important member of a supply chain, they will be affected by product recalls. However, to reach this segment without reaching their supply chain members first may prove difficult. 3

Retail (NAICS 44) Again, on the 2007 Census website, the number of retail establishments was 1,122,700 and their sales totaled $1,122,700 million. This is a very large segment in both sales and establishments, and since retailers are at the end of the supply chain, a large amount of them are affected by product recalls. A further breakdown of the retail segment provides a clearer picture of each sectors potential and provides a clearer understanding of whom and how to target (Economic, 2007):

Food & beverage stores 146,476 establishments, $539,524 in sales Electronics & appliance stores 50,430 establishments, $108,989 in sales Motor vehicle & parts dealers - 126,027 establishments, $892,649 in sales Health & personal care stores 88,196 establishments, $235,602 in sales

The information listed above shows the largest of the food and beverage stores in the retail segment. These stores are involved in many mislabeled and contaminated food recalls on a neardaily basis. (FDA, 2010) The size and the amount of recalls are not the only factors that make this target market appeals, the need for quick and effective product recalls is also present. As previously mentioned, this segment is already being targeted by the competition so entering the market may prove difficult. Motor Vehicle and parts dealers are a large portion of the retail segment but they also have many internal controls that handle product recalls. For example, at Toyota, they have sophisticated just-in-time (JIT) inventory system that they developed in the early 1950s to make sure that materials are not ordered too soon in the production process. (Hines, 2007) Since companies in the motor vehicle and parts dealer segment have this system, it might prove to be difficult to penetrate this market. However, it does represent a very large portion of the retail market and safety and speed can be an issue in the recall process. Each of the retail categories listed above have the potential for safety or health defects. Recalls for these industries are governed by one of the six major consumer safety entities and, by nature, are inevitably going to have recalls. These segments, again, have a huge amount of profit potential especially if the recall is wide-spread or needs to happen as fast as possible. Food Services (NAICS 72) According to the 2007 Economic Census website, the amount of food service and drinking place establishments in 2007 was 566,020, and the amount in sales was $433,400,775 million. The food service industry has still displayed some growth in both sales and number of establishments from 2002 to 2007. One thing to note about the food service segment is the large number of establishments that exist; they reflect large potential for needing a product recall service. The amount of establishments coupled with the nature of the product consumed makes this an attractive industry for product recall.

Competitive Analysis Overview The marketplace for product recall services is still very early in the product life cycle. Most offerings of this service are simply a part of a larger package of management services. Only two companies, Recall InfoLink and Rapid Recall Exchange, offer product recall services exclusively. Because there are so few firmly established brands, the competitive environment is not overly intense. The recall service market is not fully developed and there is virtually no statistical information to be found concerning the service marketplace, which makes market share and growth difficult to determine. Expert Recall/Stericycle (ERS) claims to have completed more actual recall events than anyone else in the marketplace and Rapid Recall Exchange (RRE) boasts the highest number of clients enrolled in a single year of any company in the industry. However, this information is not reliable, as there are no quantitative data to compare it against from any other companies. It is the only data available on market growth and share, if it is accurate, ERS possesses the highest market share and RRE has the highest growth. Detailed information about product offerings and pricing strategies are well kept secrets within the industry. Uncovering this information is difficult for most companies without contacting a salesperson directly. A detailed breakdown of the offering from each company in the industry can be found in Table 2. Segmentation The market can be broken into many different segments, depending on how specific the product line is that a company wants to work with. However, four segments are used commonly: Medical/Surgical, Food/Beverage, Electronics, and Other Consumer Goods. The Medical/Surgical segment is it thought to be the most profitable segment. The leader in that segment is ERS. Bell Tower Technology (BTT) is the leader in the Food/Beverage segment (Product Recall Services, Bell Tower Technologies 2010). There is no sufficient information to determine a leader in the other two segments. The product recall service industry has low consumer awareness, so while there may be leaders in certain segments, there are no true overall industry leaders. Direct Competitors Bell Tower Technology (BTT): BTT dominates the food and beverage industry recall services. The website offers a live phone demonstration of services as well as simple request forms for other information. The dashboard is a large selling point for BTT, offering real-time information on processed returns, contacts, consumer complaints and injuries, and feedback from retailers. Parties of interest are contacted via e-mail, phone calls, and text messages. The model offers incredible speed and accuracy. BTT appears to offer very similar benefits to those of Recall InfoLink and should be considered their most direct competitor. Already possessing an established brand and market presence, BTT offers virtually the same benefits as Recall InfoLink does, and bundles it with other management services. Decision One (D1): Product recall services are not a significant portion of D1s service offerings. 5

Decision One offers a complete technology support program and recall services are just one small portion of the logistics services offerings. D1s penetration of the product recall market seems small, if not completely insignificant, and does not have a strong presence in the marketplace. D1 also places little emphasis on their recall service offering and do not use it as a key offering in their service package. Expert Recall/Stericycle (ERS): While product recalls are not the entire offering of ERS, they are very closely related to the rest of the services the company provides. ERSs total service offering is in handling all aspects of managing defective products. This includes retrievals, returns, recalls, and disposal of any products the distributor or manufacturer decides is unfit for use. ERS is the largest competitor in the recall market and excels in the highly profitable pharmaceutical market, mainly targeting biomedical and other hazardous goods. ERS also has the advantage of government endorsements, as much of the required documentation in recall processing is based on the work started by ERS. The services used through ERS can be as minimal as handling disposal, to handling the entire process from recall information distribution to PR services to follow up on events. ERS offers customizability of services that are unseen elsewhere in the industry, as they allow customers to choose which services they need, and order small parts of their service package if that is all they need. iCiX: iCiX offers product recalls as only a portion of their services. The company goal is to manage risks, compliance, and standards in all facets of management. iCiX appears to have decent awareness of their company overall but not much awareness and/or interest in their product recall service. A wizard-driven interface is the keystone of the product recall service. This program looks incredibly similar to that offered by Recall InfoLink and should be considered a significant threat to the company. A picture of the interface for the iCiX program can be seen in Table 1. Rapid Recall Exchange (RRE): RRE is probably the fastest growing company in the industry and has considerable awareness of their brand. RRE focuses exclusively on recall services and does not offer any other management or supply chain services; they are the only company aside from Recall InfoLink to rely solely on product recall services. RREs offerings, however, do not appear to match Recall InfoLinks as far as simplicity or speed are concerned. The service appears to be vastly inferior to Recall InfoLinks but is more expensive regardless. Indirect Competitors Red Prairie (RP): RP is a management solutions company that offers many different services. Among these services are solutions for performance, inventory, transportation, and workforce. RP does not offer an actual product recall service but offers advice on how to prepare for such an event and how to minimize damages to company image during and after a recall occurs. Some companies may prefer this service to having recalls handled by an outside agency. There is an opportunity here to fill the service void left by a lack of product recall services offerings or to potentially sell a service filling that void directly to Red Prairie. Reflexis: Reflexis offers solutions for merchandising companies such as workload optimizers, task managers, vendor performance managers, schedulers, and assistance in new product launches. All solutions are broken down into four steps: merchandising operations, store 6

operations, vendor operations, and retail execution support. While management solutions are provided to help prevent recall events, there is no recall event service offered by Reflexis. These event prevention solutions could be an alternative to a recall processing solution. Although they do not compete directly against Recall InfoLink, the services pose a threat to Recall InfoLink, because it could make their product obsolete. Intertek: Interteks offerings focus on risk management services. As a part of these services, Intertek addresses product testing, disposal of bad products, and prevention of future events. They offer no actual product recall service. This company could provide both an opportunity and a threat to Recall InfoLink. Recall prevention programs like the ones offered by Intertek can make the service offered by Recall InfoLink useless but incorporating a service for handling product recalls could also bolster the product offering of Intertek and could provide a cobranding opportunity. Considering established internal recall systems, perhaps the largest competitor in this marketplace is the internal representatives for companies needing recall solutions. Many companies believe their own ways of processing recalls to be good enough as they are, or fear the implementation of a different service could be too difficult or time consuming. As an unproven product with an undeveloped market, companies are wary of spending money on a service that has not been proven to save money. The adversity companies have towards changing their structures and processes is a considerable threat to product recall service companies. Economic Analysis Economic Overview With the current financial crisis the US economy is facing, many companies are downsizing and/or reshaping their business models to survive the poor economic conditions. The unemployment rate of the US work force is at a level of 9.6 % which is considered dangerously high (Department of Labor Statistics). These unemployment levels have led Federal Reserve Chairman Ben Bernanke to urge caution to all businesses and individuals, fearing that the economy could become stagnant at its current level before an economic recovery emerges (Ben, 2010). With many businesses rushing to cut costs in order to compensate for sales decreases, there is a great opportunity for companies offering business solutions (i.e. fast and accurate product recalls), specifically if they present cost saving. Implications of Economic Condition Under the current situation, finding a viable option for product recall that is fast, accurate, and affordable, will cut costs for companies. Recall InfoLink is providing a service that helps companys lower costs. With companies slashing budgets, product recall service companies will face considerable adversity in selling a new product without an established history of success. Changing their own recall structures may prove more costly if the product itself does not meet consumer needs. Many large companies are finding that it can be more costly not to re-evaluate their current recall systems. The Johnson & Johnson recall of childrens over the counter drugs in 2010 is a prime example of why companies, even in this recession, must look to find recall systems that are fast and accurate. Johnson & Johnsons failure to act swiftly and correctly caused Motrin sales to decrease by 88% and Tylenol for infants to drop by an astounding 99% 7

(Gibson, 2010). As a result of this event, Johnson & Johnson is investing over $100 million into new equipment for the production and testing of their products. Investments and changes in large firms such as Johnson & Johnson such as this create an enormous opportunity to companies offering product recall and management solutions. Legal Analysis Legal Environment Surrounding Product Recall There are six federal regulatory agencies that govern product inspections, issue safety standards (ensure compliance with those standards), and have the authority to issue product recalls for various consumer products. Each agency is in charge of different categories of consumer products (Recalls.gov): Food and Drug Administration (FDA) - governs foods, medicines and cosmetics National Highway Traffic Safety Commission (NHTSC) - deals with child safety seats, motor vehicles, and tires United States Consumer Product Safety Commission (CPSC) - deals with toys, clothing, household appliances and other consumer goods United States Department of Agricultures Food Safety and Inspection Services (FSIS) - oversees the meat and poultry industry United States Coast Guard - governs boats and boating safety Environmental Protection Agency (EPA) - also deals with vehicle recalls with regards to emissions, as well as pesticide and chemical products Pending Food Safety Legislation According to the New York Times article, Senate Passes Law on Food Safety on November 30th, 2010, senate passed a bill to prevent contaminated foods such as tainted eggs, peanut butter, and spinach by having a sweeping overhaul of the nations food safety. The legislation passed the senate by the vote by 73 25, which would greatly strengthen the Food and Drug Administration, an agency, that in recent decades, focused more on policing medical products than ensuring the safety of food. The bill will grant the FDA with new powers to recall tainted foods, increase inspections, and demand accountability from food companies and oversee farming. The bill would also give the FDA the power to demand immediate food recalls. This creates an opportunity for product recall companies such as Recall InfoLink to become a part of the act to issue recalls before the product reaches the shelves in the stores. Having many regulatory agencies surrounding the recall process provides an opportunity for Recall InfoLink in a few ways. With a relatively large amount of governing bodies that make laws concerning product safety and recalls, there will be more focused laws and requirements on consumer product companies. This could potentially result in more expert recall companies that can provide the necessary services to keep up with the changes. This is an opportunity for Recall InfoLink because with more laws and agencies assigned to deal with recall; there will also be increased difficulty for big businesses to keep up with the reporting demands of each agency. The more difficult recalls become, the less willing businesses are to be in charge of the process themselves, hopefully leaving recall to the experts.

Patent Law Under the novelty requirement of patent-ability, a patent can be enforced on any product created after the original patent was filed for (Cornell, 2010). The wizard offered by Recall InfoLink will be protected once a patent is processed against any imitators, including those who created similar products prior to approval of the wizards patent. This creates an opportunity to advertise the product without the concern that it will be stolen if competitors become aware of the program. Technological/Creative Analysis Competitor Websites To the benet of Recall InfoLink, many of these companies present all their information in an ineffective manner. The information will often be entirely on the main page in a wall-of-text format with no consideration to white space, which could potentially drive away trafc. Their layout of information sometimes borders on being stylized like an advertisement website. These competitors also offer other services which can take away focus from their product recall portion and provide a lower quality product. Product information is much easier to find on competitor websites. Many will give images of the wizard offered; provide a PDF for receiving product information, or give phone demonstration through the website. More information about product benefits is readily available on the web pages for competitors as well. Society and Culture Analysis Brand Preservation Businesses care about protecting their brand and reputation because it is their identity in the eyes of consumers. Once lost, a good reputation is difficult for a company to regain because consumers will be hesitant to trust a company again. A recent example of this is in the highly publicized Toyota gas pedal safety recall. Toyota, a company formerly known for their high quality and safety standards, was forced to issue a safety recall by NHTSC. The company had been ignoring consumer reports and refused to acknowledge the issue. By the time the recall was in effect, Toyota had lost the faith of many consumers and is still recovering from the damage to their name. A fast, accurate recall can save companies not only time and money, but it can save them their reputation as well. When recalls are handled promptly and properly, consumers are generally more willing to forgive and forget, said David Champion, the director of auto testing for Consumer Reports (Bunkley and Vlasic). This provides Recall InfoLink with an opportunity to showcase their ability to provide a fast and accurate recall service to companies who may need it in the future. Customer Attitudes Toward Corporate Social Responsibility Over the past few decades, consumer attitudes have shifted from a buyer-beware attitude to, now, an expectation of safety and corporate responsibility. The pressure on companies to practice corporate social responsibility (CSR) has gained momentum in recent times as a means of sustaining competitive advantage in business. (Cheah, Chan, Chieng) In order for businesses 9

to compete, they not only need to have a good product, but also a good fail-safe mechanism if the product does indeed fail. Since product recalls are gaining greater press attention and products are coming under increasingly more scrutiny, the need for a fast and easy recall system is not only apparent, but necessary. Environmental Trends Consumer tastes and preferences are leaning more toward environmentally friendly products. As a result of this trend, companies are striving to create an eco-friendly image by cutting back on waste, in addition to working with other environmentally conscious partners. Recall InfoLink provides a mostly paperless, environmentally friendly product and would fit well into this new social trend.

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Current Strategy
Overall Strategy New Product Existing recall methods vary widely from company to company because the FDA and other government recall authorities only issue guidance for performing recalls, they do not specify methods. The FDA website reads, an alternative approach may be used if such approach satisfies the requirements of the applicable statute, regulations, or both (Guidance, 2009). This flexibility has given way to paper methods of product recall, telephone call centers conducting recalls, and even automated recall methods. Recall InfoLink has a solution to the product recall problem and it is rooted in Internet technology. They only use the other methods to contact customers should their first attempt fail. Through the same system, Recall InfoLink also provides a mock recall solution to companies who need to practice their recall process. Lastly, after a recall, governmental agencies require certain reports to be filed; the company also assists in generating these reports. Analysis This web-based application is a fairly new product that has been relatively unproven in the marketplace. This is a one-size-fits-all solution for an eminent problem. Therefore, the overall strategy of this company is one of diversification or product-proliferation. This strategy is defined as a non-price competition based on the development of new products. The battle is over a products perceived uniqueness, quality, features, and performance (Hill, & Jones, 2009). Product Strategy Product Capabilities Recall InfoLink's product is a web-based application that is easily accessed by their clients at any time. It has an easy step-by-step process in creating a recall and is adaptable to the client's needs. However, being that it is purely web-based, it poses a few issues. If a current client loses their log-in credentials, there is no way to retrieve it outside of contacting the company directly. The log-in help form is listed as under construction. Also, the website seems to have very little documentation of how to use the software. There is no frequently asked questions (FAQ) available, as it is also listed as under construction. Despite the speed of the software for performing recalls, it is questionable whether or not they are able to change their product easily so it can be tailored to client needs or a changing market. The product in its current form is built to be faster and easier than in-house solutions. However, it is uncertain if the competitors have a superior advantage with their product. Recall InfoLink benefits their customers with rapid service, accurate information, and offers to cut costs compared to traditional product recall services. Their competitive advantage is their rapid service that can reach their customers sooner than any other product recall service. However, there are some weaknesses that exist that could potentially slow down their process of dominating the market. 11

Diffusion of Innovation To break down the diffusion of innovation, there are three main components: Innovation, communication channels, and time. Innovation Innovation - Recall InfoLink carries an idea that is new to the product recall market and would provide customers with credible and rapid services for pulling products off the shelf sooner than their competitors. Recall InfoLink is a new-to-the-market product that has no other similar presence in the marketplace. Their innovative product has potential to change the standard strategy on product recall services. They are currently waiting on a patent for their product to make sure their innovation is protected. With their innovative product, they should be able to enter the market with an advance over their competitors. Communication Channel Communication channel - "the means by which messages get from one individual to another (Manfer, Sam)." Recall InfoLink has a great communication tool that they do not utilize properly. They are struggling to gain credibility through their website and to promote their product. Customers, whether or not they visit the website after a referral, are unlikely to find their product reliable if their website is not polished with detailed information about their innovative product. However, with a quality website, they have the potential to increase in transactions. With the advance in technology, customers are more likely to do their research on the Internet, as opposed to speaking with salespeople directly. Their current communication channel goal is to gain sales or transactions through referrals. In a retail market, it is essential to have transferable credibility. This is a great aim and approach to their strategy. Rate of Diffusion Time can be a concern in the short-term analysis. "Rate of adoption is the relative speed with which an innovation is adopted by members of a social system (Manfer)." A threat to Recall InfoLink is habituated in this segment of the diffusion of innovation. Convincing customers to use the newer technology is difficult, considering that the retailers are content with their system as it is. This could also be an advantage to the company since there are not any other competitors performing the online-based strategy. However, this could cause an increase in the time it takes for their product to make a launch in the targeted market, because the customers might feel reluctant to adopt the new technology. As a newly launched technology, it should be understood that there is going to be a lag before the product takes off in the market. However, once it is established in the market, Recall InfoLink should be the fastest and most reliable service provided to customers and retailers. Long term and short term analysis In the long run and the short run, there are a few areas of concern that could exist in the role of expanding their business. In the long run, with the development in the online and software market, having an online product recall service will become a common service. This will take away the business that Recall Infolink will potentially receive if they were to be the only online product recall service. Recall InfoLink is currently under the process of receiving a patent for their software, but companies commonly find ways to get around patents. With the discovery of 12

such great product, there will be companies benchmarking their tactics to gain profit and perform faster services. In the short run, existing competitors threaten to push Recall InfoLink out of the market altogether. Most local stores and manufacturers already have an in-house product recall service or have a company they have been using for a long period of time. Additionally, most retailers tend to be late adopters which make them reluctant to pick up a new strategy unless it has already penetrated the market. Traditionally, in Boise, to implement a technologically savvy tool to the market has been slower than other regions. However, Recall InfoLink is a national product that allows all regions to utilize their time-efficient product. Marketing Communication Strategy Recall InfoLink has limited product awareness within the recall industry. The limited awareness stems from the companys short history in the market. Also limiting Recall InfoLink are the funds established to support proper marketing and communication. The entity only has a revenue stream of $5000 for all operations; therefore creating exposure without creating cost has been a necessity for Recall InfoLink. The elements that make up Recall InfoLinks marketing communication are as follows: Trade ShowsTrade shows are events that take place across the nation allowing companies such as Recall InfoLink a chance to showcase their product for prospective customers. Trade shows have been the primary means of exposure for the Recall InfoLink solution. The sales team is responsible for traveling to these events and pitching the Recall InfoLink product through the use of 15 minute presentations. Recall InfoLinks sales team have used the PowerPoint demo, which they also offer on the website, as the main tool at these events. It is used to show the recall process is made easy through the use of Recall InfoLinks online interface. When a potential customer is interested in the recall solution, business contacts are exchanged and that becomes a lead for the sales team. The sales team, consisting of two people, is under-manned and limited to attending a limited amount of trade shows per year, which also limits the reach and exposure for their product. MessageFast, accurate and affordable would be the Recall InfoLink message. The underlying concept throughout the companys sales pitches and demonstrations is that the Recall InfoLink solution will speed up your recall system, keep everyone involved on the same page to ensure accuracy, and that it is less costly than your current recall system. The Recall InfoLinks website allows for everyone involved in the supply chain; to see what recalls are to be done, as well as who has done their part within the system. This kind of connectivity allows for a faster and more accurate recall process. The reach and frequency of the message is limited considering the companys awareness within the recall solutions industry. The message is not reaching enough people at its current form. Publications and Public RelationsPublications of Recall InfoLink have been very limited as to be expected with a start-up company. The few publications they have are listed on the website to help build credibility to the company and product. They have articles written about them from publications such as Food Safety News and Progressive Grocer. Journalist at the trade 13

shows wrote on how the recall solution market was evolving and Recall InfoLink was a potential solution for the future (Prakash, 2010). Again, the potential is only being lightly touched in the public relations department. The company currently has a low revenue stream which creates difficulty in investing into creating awareness and exposure with larger publications, as well as performing any SEO on the website to increase hits off of search engines. Recall InfoLink relies on John Kirkpatrick and Roger Hancock for all public relations; those two are responsible for combating negative press and promoting the product. WebsiteTo measure the effectiveness of the Recall InfoLink website, the seven Cs and the CRAAP test were used as a measurement. Each section of the measurement was ranked from 1 to 5, worst to best. CRAAP - Rating: 1 - 5, 1 being the worst, 5 the best Currency: The timeliness of the information. Rating: 4 - The front page has up to date information on recent recalls, as well as links to other websites that have updates on recalls. Relevance: The depth and importance of the information. Rating: 4 - The information about the site is highly relevant and covers the basics of the company and its product. Authority: The source of the information. Rating: 3 - The site has information on recalls that are also featured on authoritative websites like the USDA. However, no sources are cited for the information. Accuracy: The reliability of the information. Rating: 4 - Information about recalls can be backed up by authoritative resources but posts on the Recall InfoLink site do not cite sources. Purpose: The possible bias present in the information. Rating: 5 - No bias present. The provided information are valid reports on recalls. Seven Cs - Rating: 1 - 5, 1 being the worst, 5 the best Context: The layout of a website and overall visual design needs to be uncluttered, easy to read and navigate, and the color scheme needs to be appropriate for the marketing design. Having some white space will also aid in the overall design and readability. Rating: 2 - The layout is basic and maybe even dated. It looks semi-professional and theme colors are consistent throughout the site but they do not support large, wide resolutions. The background uses a .gif image, the typeface is inconsistent throughout pages, and some pages use serif typefaces while others use sans-serif. The layout of information is cluttered and scattered and the website has redundant pages and some sections, like FAQs and login help, are non-existent. The search function on the website is broken. The website uses a JavaScript for its link bar that is static on every page, but its links only work when you are on the main page.

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Commerce: If the website is intended for commercial transactions, then it has to be safe. The fact that it has been made safe must be communicated to the customer. Most websites use a lock symbol in the corner to indicate that it has been encrypted. Rating: 1 - SSL (secure sockets layer) or any sort of security or encryption is nonexistent on the site. HTTPS does not work for the site at all. Connection: Any links that lead the customer away from the website. Rating: 3 - The main page itself is a blog list of recent recalls but the site also features links to recalls from the FDA, USDA, CPSC, as well as links to Recalls.gov and the CDC website. They also use a YouTube video to give an explanation of how recalls are handled online. Communication: How the company talks to its customers; this can be done through signing up for special offers, email newsletters, contests, surveys, live chat with company representatives, and company contact information. Rating: 2 - Each employees e-mail and phone numbers (with the exception of Johns) are provided, as well as a general supports e-mail and number. There is also a company fax number. The site lacks any sort of interactivity, such as live chats or support forms from the website. Content: The text, graphics, sound, music, and/or videos that are presented. Rating: 3 - The site features some pictures and logo graphics but many have odd placement and are not properly sized. The website also features an embedded YouTube video. Website typefaces are inconsistent, some pages use serif while others use sansserif. The site does not have any intrusive sound or music. Community: The website may allow interaction between customers through message boards and live chat. Rating: 1 - No online community is available for Recall InfoLink. Customization: Companies can allow customers to personalize aspects of the website, or it may tailor itself to different users. For example, different colors and graphics for people who speak different languages. Rating: 1 - There is no ability to change any aspect of the website. No ability to change languages, size of fonts, colors of website. As a result of their actions thus far, Recall InfoLink is progressing towards a larger market share, but are doing so at a limited pace. The companys message is only reaching small segments of the marketplace and is doing so with low repetition. Sales Strategy Staff The sales operations of Recall InfoLink are handled by Roger Hancock and John Kirkpatrick. Kirkpatrick is the actual salesperson for the company and is the individual responsible for running the majority of the sales process. Hancock attends all sales calls and provides the demo of the program that Recall InfoLink offers. Hancock also answers the questions about 15

functionality and other factors related to the program itself throughout the demonstration. Outside of the demonstration, Kirkpatrick answers all questions and provides all information. Lead Generation Recall InfoLink uses two strategies for lead generation. First, they gain leads through their professional contacts on their own board of advisers or other contacts they have compiled. Such advisers include individuals from companies such as Ecolab, Bill Main & Associates, and SUPERVALU. Secondly, Recall InfoLink finds leads through strategic partnerships, such as that with the global market development center (GMDC). The GMDC works with a large number of companies, including over 100 manufacturers, and provides many opportunities to connect with potential buyers. Leads are also gained through attending trade shows occasionally. The connections that are being utilized are helpful and provide strong leads; however, the small number of tools used to create leads is a weak point for the company. Qualifying the Leads Once a connection has been made, Kirkpatrick handles the prospecting for Recall InfoLink. Prospecting is an important process for this company, as it is common for the contact to actually be someone without the authority to purchase the product. It appears that the prospecting is a somewhat minimized process, including only the steps to ensure that potential client has both the money and the authority to purchase the product. Little time appears to be spent on ensuring an actual need for the product or on learning about the specific company. A small number of potential leads, those represented by the board of advisers, do not qualify as legitimate prospects because it is believed that they cannot be approached favorably. Planning the Sales Call No additional planning for individual calls appears to take place outside of qualifying the leads. Call objectives are standardized for each sales meeting and demonstration: get to the next step of scheduling a second appointment where the customer works through a recall in the program themselves. The lack of individualized sales objectives is an area of concern for the sales strategy, as is the lack of an in-depth needs assessment prior to the sales call. Making the Sales Call: First Presentation The sales call is done through an online meeting site that allows customers to view the sales persons screen as he walks them through the product demonstration, while also connecting voice through a conference call. There is usually no face to face interaction throughout the sales process. Sales calls are started with a benefit approach, letting the customer know how the product will help their business save money. After the opening statement, John and Roger will begin to develop rapport by relaying their background and personal experience in managing recall events. There is no strategic attention grabber in the opening of the sales call. Once the introductory statements have been finished, the customer will be asked how many recalls per year they issue and how are they resolved. The answer to the number of recalls issued varies greatly by customer, but the standard answer for how recalls are handled is it is handed off to the customer service department, who will handle the problem from there. The final part of the call consists of a step-by-step demonstration of a product recall through the 16

online wizard. Every part of the process is covered in detail and a recall is issued to a fake list of contacts and also to the customer. This allows the customer to view the tracking tools offered through the wizard. After the recall is issued, however, the customer will immediately begin to receive phone calls notifying them of the product recall. While this is helpful in showing the customer how quick and effective the service is, it is also a distraction, as it does not take place at the end of the presentation and the customer may receive up to five calls while still attending the demo. The demonstration shows how an actual recall would be processed through Recall InfoLink, but does not address the benefits or features of a mock recall. The mock recall is briefly explained at the beginning of the presentation when the option appears, but is ignored for the rest of the meeting. The lack of information about this service is a serious flaw of the sales strategy. The goal of the first sales call is to impress the client enough to move forward with a second call, where the customer will get the opportunity to work through the program and set up a recall themselves. Price is not discussed unless the customer specifically requests such information. This is a strong goal, as it is specific, measurable, and realistic. Overall, the first sales call has many noticeable strengths and weaknesses. The demonstration is a very powerful tool. It allows the customer to see first-hand how simple everything is with the system and creates an immediate understanding of the time-saving benefits. However, it lacks customizability for specific customers, is long and dry, and features no attention grabbing material such as charts or graphs. Making the Sales Call: Second Demonstration The second sales call is again done through an online meeting place and over the phone. It is highly similar to the first call, going over the same demonstration, only this time the customer can control the process his or herself and gain hands on experience using the wizard. This can be a powerful tool for demonstrating the usefulness of the product to the customer, but since the customers are still unfamiliar with the program, Hancock will often need to retake control of the demo and show the customer what and how to enter information. This makes the second demonstration feel so similar to the first, that it feels somewhat repetitious and fails to add significant value. While this helps to create a better customer understanding, it has virtually the same pitfalls as the first sales presentations: it lacks customizability for specific customers, is long and dry, and features no attention grabbing material such as charts or graphs. The Rest of the Process After the demonstration, the sales process becomes more standardized. Meetings will consist of discussing price and negotiating contracts. This process could not be observed and therefore, no further information can be given. Distribution Strategy Recall InfoLink's web-based recall wizard is easily accessible from anywhere in the world for initiating and completing product recalls. This is important because often supply chain members operate over broad geographic areas and different time zones, making phone calls and faxes more difficult to coordinate. The web-based product provides the flexibility and speed to perform 17

timely and accurate product recalls. When contact cannot or has not been made through the web-based application the Recall InfoLink team makes the necessary contacts by phone or fax. This allows for a complete dissemination of the recall message to all of the supply chain members who have been affected by the recall. Pricing Strategy Setup Fee Recall InfoLink charges a $2,995 setup fee for new clients. This setup fee is said to be an industry standard, but no information has been found to confirm or discount this claim. The fee is in place to cover the cost of software development and customization as well as the time it takes to enter client customer contact lists into their application. This is a one-time fee that is charged to new clients, that differs from the industry norm of a subscription service. Recall Pricing per Event After the initial setup fee there is a price schedule per recall event based on the amount of contacts to be made. The schedule provides a discount where the cost is less per customer as the amount of contacts increases. These figures are fairly straightforward and easy for potential clients to understand. The following is the pricing schedule provided by the company:
Customers 1 200 201 400 401 800 801 1,200 1,201 1,600 1,601 2,400 2,401 3,200 3,201 4,000 4,001 5,000 5,001 + Price $ 250 $ 395 $ 695 $ 995 $ 1,295 $ 1,695 $ 2,195 $ 2,695 $ 3,295 $ 0.65 per customer

This pricing structure includes two different elements that combine to make up those listed. The 18

first element factored in to the price has to do with average cost per recall calculated by the amount of time and money it takes to initiate contact with each customer. Since emailing is fast and timely it costs significantly less than any other method (pennies on the dollar)--so it is attempted first. If email does not work, phone calls are the next attempted form of contact, since more time and explanation are needed to make phone call, more costs are allocated toward the end price. Faxes use the most substantial amount of time and resources; even more costs are allocated toward the price paid. Keeping in mind that some customers will need to be contacted using more than one channel, Recall InfoLink estimates that about 50% of contacts will be reached via email, 60% by phone, and about 20% of all contacts will need to be reached via fax. This estimate allows Recall InfoLink to estimate their own costs and then past those costs onto their clients. Also, built into Recall InfoLinks pricing structure is a margin to allow for the fixed and variable costs of doing business. The following is a list of the fixed and variable costs that the company accounts for in their pricing:

Payroll Expenses Administrative Expenses Rent Miscellaneous IT Phones Supplies Business Insurance Miscellaneous Travel

Please note that there is flexibility built into this margin to allow for changes in cost structure. Lastly, in their margin they attempt to leave room for profit above and beyond their costs. However, it is unclear what the true margins and percentages are that are incorporated into the end price.

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Strengths and Weaknesses Strengths


Trade shows and the Global Market Development Center provide strong leads. Access to a large advisory board with various qualifications and experience and the ability to quickly develop rapport due to the staffs background and personal experience. Demonstration is a powerful tool in quickly informing the potential client. Second sales call will help create a better customer understanding of the product. The product itself is simple and creates time-saving benefits. It provides flexibility and speed to perform time-sensitive and accurate product recalls. Recall InfoLink team provides necessary contacts by phone/fax and email to allow complete dissemination of the recall messages to all relevant supply chain members as well as providing general support lines. Website has up to date information on product recalls, which is sourced from legitimate and authoritative resources, such as the USDA and FDA. Website features pictures and videos to break up walls of text and create more white space Current communication goal is to gain sales/transactions through referrals which creates transferable credibility. Simplified pricing, easy to tell customers what they will owe

Weaknesses

Cannot approach advisory board to generate leads. Lack of individualized sales objectives and in-depth needs assessment prior to sales call, as well as customizability for customers with specific needs. Very little face-to-face interaction throughout the sales process. Lack of information about the benefits or features of a mock recall. First sales call is long with no attention grabbing materials (i.e. charts and graphs) with the second sales call being repetitious and not adding any significant value. Source of product recall information on website is not cited. Website layout is dated and does not support wide range of resolutions. Typefaces on website are inconsistent, going between serif and sans-serif Layout of information on website is scattered and occasionally redundant. Some pages are broken or missing. Search function and demo scheduling is broken, login help and FAQs pages are under construction. Use of JavaScript on site only works on specific pages, even though the use is static on every page. Website needs security or use of SSL. Website lacks any sort of interactivity and graphics have odd placements with improper sizing and formatting for web viewing. Methods for costing and pricing their product are unclear.

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Opportunities

Higher amounts of recalls across all industries than originally thought with the number of recalls steadily growing. The industry is also fairly new and unsaturated. Large target market to choose from, specifically manufacturing, as it can provide a gateway to other members of the supply chain. Low consumer awareness makes it easier for Recall InfoLink to establish a brand/identity. Co-branding opportunity with Intertek, a risk management company, could allow them both to provide a better offering to the market. Economy is down and businesses are looking for cost-cutting measures. Large firms (i.e. Johnson and Johnson) are investing in safeguards to improve product safety and recall measures. Different regulatory agencies have different reporting and safety requirements, which creates a need for recall experts. Filing for a patent protects their product from being copied by competition. Brand preservation and company reputations are important and stimulate demand for a recall product. Consumer expectations for social responsibility are forcing companies to have good safeguards in place as a minimum standard. Environmental trends make Recall InfoLinks product look beneficial to green businesses.

Threats

A lack of available industry information. Bell Tower Technologies offers same benefits as Recall InfoLink and dominates a large section of food and beverage industry. The medical segment, generally considered the most profitable, has already firmly established ERS and the market leader. iCiX is already offering a very comparable product to the wizard offered by Recall InfoLink. Total management solutions packages offered by competitors are a more recognized offering than recall services, threatening to replace product recall service providers. Companies are hesitant to change their current recall system and are intimidated by the implementation process of an innovative service, such as that offered by Recall InfoLink. Similar products are already available in the marketplace. Competitors have more professional websites, with much easier access to product information. Search results do not list Recall InfoLink at a location that provides any significant level of visibility, running the risk of making the website obsolete.

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Recommendations
Marketing Communication Search Engine Optimization Optimizing a websites page rank on search engines is an important factor when redesigning any companys website. It is important for Recall Infolink to have a web page appear higher in the rank of an organic search engine to enhance the credibility in the eyes of potential customers. When a customer is searching for a product recall company within the search engine, for example Google, they are more likely to trust a website that is located on the top of the results due to Googles reputation of putting the most trusted websites as the first results. Google is known to rank their pages based on how long the website has been established, how many relevant keywords are within the content, and how many hits the site receives on a daily basis (The Basics of PageRank). When you type keywords such as product recall or online product recall service in the search engine, you dont see Recall InfoLink appearing on the top of the search engine. Therefore, it is crucial improvement needed on the website. Web traffic can be measured with an essential SEO tool called Google Analytics (See Figure 1).

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Figure 1: zahipedia.com (2010) Google Analytics can be accessed by anybody that has the rights to track the activity on the website. It is software that can be used without any cost and provides in-depth analysis of the web traffic statistics to see if Recall InfoLink is earning efficient clicks on their website. AS mentioned earlier, utilizing this tool to measure web traffic is a crucial step in running an effective SEO campaign. With effective SEO performance for a website, Recall InfoLink will essentially have an effective salesperson on the Internet selling your products 24/7. Recommended keywords to include on the Recall InfoLink website are product recall, rapid services, online recall tool, low cost, and Boise. There are online software products such as Market Samurai, SEO Powersuite, and SEO Elite Software to measure which keywords are being searched when looking for a product recall company. Social Media Social Media is a marketing tool that many companies have been utilizing to enhance their traffic to increase potential customers. The number one recommendation is LinkedIn. Many business owners have a profile on LinkedIn. Finding potential businesses that utilize product recall services and adding the influential stakeholders via LinkedIn is a great way to begin networking with a potential new business partner. LinkedIn.com is a social media networking website where individuals can connect with other people sharing common interests and business needs. Other users on LinkedIn can also search for you using the keyword function. Contacts created through the website can create connections with companies in industries that utilize product recall services. This should be an advance regarding earning transferrable credibility through other businesses. This would be an alternative to broadening the word-to-mouth effect rather than relying on convention center events. Also, more technologically savvy stakeholders would be on LinkedIn and are the likely people that would be more interested in purchasing an online product 23

recall service. Recall InfoLink can also set up an advertisement account (direct ad), where their ad will be visible only to the targeted market that they select. It will target a specific audience according to the geography, job function, industry, company size, gender, and age. Recall InfoLink can also set up their daily budget to control how many clicks they attract to their website. When you go through a Pay Per Click (PPC) system with an ad agency, you can be charged as much as $1000 or more a month (TechMark Consulting). With a ceiling on your budget, you will not end up spending extra amounts of funds on PPC by itself. LinkedIn also has a section where recommendations from previous customers can be shared and positive influences with your service can be listed and confirmed by current customers. This will assist Recall InfoLink in gaining transferable credibility. Promotions and Incentives To help clientele grow, an incentive should be offered to those clients who choose to refer others to Recall InfoLinks product. This promotion will help start a word of mouth buzz from clients that may be taken more credibly than an initial cold sales pitch. A way to implement this incentive is to issue a $1,000 dollar credit to a current client's account for each new customer they refer that signs a contract with Recall InfoLink. This will help relieve some of the costs of doing business for your client and will ultimately foster positive disposition toward Recall InfoLink. The credibility generated by a client's referral will also help when delivering the sales pitch to the new client. Lastly, the credit is not money that must be paid to the client, so the only cost to Recall InfoLink is only a partial cost of performing a product recall (since it generally costs more to process a whole recall than the credit covers). Trade Shows & Sales Support Trade shows should be focused more on networking and prospecting than just displaying the demonstration. Limited man power makes it difficult to reach a large amount of people but this is a vital process to growing as a young business. Securing funds employ a sales team consisting of more than just two people is the most immediate need for Recall InfoLink. Paying for these employees now will create a considerably larger dividend in the future. If the board of advisers feels this product is going to be successful, then they should to be lobbied into becoming investors. Public Relations Public relations efforts are a powerful tool for growing a small business. Having a PR team will enable Recall InfoLink to expand their brand awareness. Teaming up with other companies such as Albertsons, Fred Meyer, and even private, smaller companies, such as Dawson Taylor or Westside Drive-In, for community projects will not only help raise Recall InfoLinks awareness level, but will also provide the opportunity to make contacts with potential clients. Joining networking groups such as the local ones like the Boise Chamber of Commerce and/or Boise Leaders Networking Group is an affordable means of gaining publicity. Focusing on gaining visibility for Recall InfoLink is a priority that must be met. Visibility and revenue are closely related benefits in gaining proper exposure for Recall InfoLink within the right channels. 24

This also leads to potential new customers, more support from shareholders, and higher revenue streams. The product itself is a better option than what other companies are offering but it is up to Recall InfoLink to create the brand and product awareness that is missing. Networking with these free-to-join groups will often provide personal face time with other leaders of prospective markets. Having one-on-one time with these clients will provide a larger audience for your product. The actual cost of these may vary from just offering up your time or a small fee. Website The following is a listing of recommendations and suggestions of changes to be made on the Recall InfoLink website. A mock website visualizing these changes can be seen on Table 1. The mock website that has been designed to represent these changes uses an all-Flash layout which is a type of software used to display a website and allows for information on the website to flow easily. Rather than loading up multiple pages with separate files associated with the content of each individual page, all the information is self-contained within the Flash site. The Flash design also lends to a more modern corporate layout. It will look more professional and dead links will be a more controllable issue. Information should be reorganized and consolidated to reduce redundancy and improve the flow of information. The first page of the site should contain information about the company and an overview of the recall process and Recall InfoLinks product, as opposed to the current form of the site, which is a list of recent recalls. Recent recalls and the links sidebar should be moved to its own sub-page. The recall philosophy page should be moved onto its own page and combined with elements from overview page, such as the YouTube video. The contact page should be changed to a contact form which will streamline the process of contact for general questions. The pages under Support should be removed to eliminate redundancy. All pages under Services should be combined. The Training page should be removed from the main page and moved to the members section, once the user has logged in. Information in the download-able e-brochure PDF can be integrated throughout the website as well. The method of scheduling a demo should be changed from the current coded calendar format to using Google Calendar. Google Calendar allows for easy integration of its calendar onto any website and is easily managed and updated. The site should be updated with a new color scheme and a new use of images that are relevant to the pages. The color scheme can be reduced to a limited number different colors for simplicity and ease of keeping consistency, such as the mock designs use of black, dark grey, light grey, white, accented by purple. A sans serif typeface should be applied uniformly throughout the site, as sans serif fonts are typically recommended for text that is read from a computer screen because it creates less strain on the eyes. The design itself should be centered in order to look more uniform across a variety of resolutions. With the use of Flash, the site can also scale itself down to support smaller resolutions. While not immediately apparent from viewing the mock website, there are also some necessary changes on the technical aspects of the website. Due to using an all Flash design, there is no longer any need to use PHP or JavaScript as with the current site. Security on the website should also be added, allowing for SSL on not only on the login form and actual recall wizard itself, but throughout the entire site. Also recommended is to add keywords and phrases into the code of the website. This is called meta information and is used for SEO. Google Analytics should be used 25

as well to track visits and other necessary analytical information used to analyze and drive traffic to the site. Due to the mock website utilizing an all-Flash design, it typically does not lend well to include click tracking code but it is not necessary on a site of this nature. An example of the mock website design can be seen in Figure 2.

Figure 2 - Ma, Albert; Accessed 1 December, 2010 <http://bit.ly/Recall InfoLink> Sales Strategy Qualifying the Leads and Needs Analysis It is highly recommended that at least one meeting with the customer take place before the product demonstration. This meeting could be less than 30 minutes long and should be used to conduct an in-depth needs analysis. This should be conducted over Skype or a similar video conferencing application so that the customer can talk with the representative face to face on at least one occasion. This will add a level of personality that cannot be achieved with straight phone communication. A needs analysis may not reveal anything groundbreaking as far as product needs, but it will likely help customers feel like the product is a bit more customized towards their needs. Additionally, it gives the salesperson a chance to further qualify leads, potentially lowering the number of meeting with clients that do not have proper authority to make the purchase. The customer should be asked to provide, in as much detail as possible, the current recall procedure for their company. Be sure to ask how long it takes to execute, how many people are involved, and how the customer contacts are made. Also ask how the representative would prefer to see the recalls handled if there was not a process already in place. This will let the customer 26

describe improvements in their own words, and this description can used to describe the product Recall InfoLink is selling. It is also very important to ask qualifying questions. These questions ensure that the conversation is with the appropriate decision maker for the company before any further steps into the sales process are taken. These questions should address the customers ability to pay, the authority to purchase and use the product, and to verify an actual need for the product. The Presentation At the very beginning of the product demonstration, more information needs to be given about the mock recall option. This is a potentially very valuable tool to a client, and even if they do see a demonstration of this option, they should hear some information on what it is and why the feature is valuable. It is important to find some level of customizability for approaches and presentations. If the same pitch is given to every customer, it sounds uninspired and rehearsed. This makes the sales call feel too much like a pitch to the customer and less like a conversation. Steps need to be taken to learn more about companies before the demonstration. Looking at the customers website to get a better feel for the specific products offered will give more insight than asking them for basic information over the phone. Even if it adds little value to the presentation, it lets the customer know that they are a priority and that you are interested in their business. Building relationships is an important part of sales and a difficult process when speaking with a customer exclusively over the phone, every chance to make the service feel more personal must be taken advantage of. If possible, a demo version of the program should be created. This would eliminate some of the more trivial steps in the program, such as screens that make the users review data that has already been entered, and reduces the amount of time the customer spends on the phone. Since all sales calls are done over the phone, it is vital that steps are taken to help hold the customers attention. These steps create opportunities to be distracted as they are not important, and since the customer is usually at work while attending, it is highly important that time on the call be spent on pertinent information that will keep the client focused. During the product demonstration, the phone call that is made to the customer after the fake recall is issued, needs to be eliminated. The call dials out immediately to the clients number and it is both irritating and distracting to the customer to hear that call waiting over and over again while they try to listen to your presentation. The phone call could be eliminated altogether, but a better option is to set the recall to contact the customer a half hour after it is issued. This would allow the customer to hear the phone call without causing an annoying interruption. It is also recommended that an option be offered to receive a phone call about a fake recall available online. iCiX has this feature available on their website by simply entering a phone number, which is then dialed and given a generic recall message. This immediately gives the product a credible demonstration, and if the numbers can be saved, could generate leads as well. The second demonstration needs to be eliminated. It adds a small amount of value for the customer and feels more like a training seminar, specifically because clients commonly get lost in the program and salesperson will need to take control over the demonstration again. Every 27

time this happens, information is being repeated exactly as it was presented in the initial demonstration and absolutely no value is added to the customer. While it does help customers get a hands-on feel, which could be important to overcoming the hesitancy to changing systems, it also takes a lot of time away from the client. These clients are representing their businesses while on the phone. Because of this, an extra hour long presentation that is not needed is bad for those businesses and wastes the time of the employee attending the meeting. A full step by step demonstration is long, and at points also dry and dull, if done more than once you risk losing the customers attention completely. Selling the Benefits and Closing Finally, during the presentation more focus should be given to the benefits of the product. The benefits are mentioned in the introduction and quickly summarized at the closing, but between these points, all emphasis is placed on the features. When going through the product demonstration, summarize the benefits of each feature as often as possible, instead of assuming that the client understands how it is helpful. An example of this would be explaining how each step eliminates a more time-consuming process using a different system, and how each reviewable report helps them understand the brand strength preserved by a fast recall process. A benefit should be named on each step of the demonstration, if there is no visible benefit, the step should be removed from the demonstration. Also, the benefits need to be quantified. Several times while talking with Roger, he mentioned that most recalls cost companies about $20 per contact, whereas with his product the cost is less than three dollars per contact. However, this was never observed to be mentioned while on the phone with a customer, only generic phrases about how time and money can be saved. It is strongly suggested that a standard closing be adopted that uses a Return on Investment (ROI) or cost-benefit analysis as a means to quantify the benefits of the product. Pricing Strategy Trial Period Offer a trial period for new clients to test the application. Recall InfoLink could give different lengths of trials to different clients based on the amount of average recalls they have per month. The following provides one example of a recommendation to breakdown the trial periods:

High instance of product recalls - 10 day trial Medium instance of product recalls - 20 day trial Low instance of product recalls - 30 day trial

If a product recall does not happen within the trial period, offer to do a mock recall or allow them an additional 10, 20, or 30 days of trial service respectively. When the trial is over, if they agree to continue with the service, they can then be billed for the set-up fee and any future recall events. Since their information is already in the system, it makes for an easier transition for the both Recall InfoLink and the client. The above example is only one way to structure a trial period, any structure could solve the same issues for clients. Other examples could entail giving a free mock recall service just to show the process.

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The free trial will alleviate some of the problems that arise when pitching the product to a client who feels that it is the right product and the right time, but is still nervous to make the commitment. This offer will ease the risk of investment for clients and it will allow them to see all of the benefits of the system within the context of their own company.

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References
2007 Economic Census. (2007). Retrieved October 19, 2010, from U.S. Census Bureau: http://www.census.gov/econ/census07/ (2010). Retrieved October 17, 2010, from ExpertRecall - Stericycle: http://www.expertrecall.com/ (2010). Retrieved October 17, 2010, from RapidRecallExchange: http://www.rapidrecallexchange.org/ (2010). Retrieved October 17, 2010, from Red Prarie: http://www.redprairie.com/ (2010). Retrieved October 17, 2010, from Reflexis Inc: http://www.reflexisinc.com/REFLEXIS/ (2010, September). Retrieved October 20, 2010, from Bureau of Labor Statistics: http://www.bls.gov/ (2010). Retrieved December 2, 2010, from U.S. Food & Drug Administration: http://www.fda.gov/ (2010). Retrieved December 2, 2010, from U.S.Consumer Product Safety Commision: http://cpsc.gov/ Ben Bernanke hopes his risky plan will perk up the economy. (2010, October 20). Retrieved October 20, 2010, from The Washington Post: http://www.washingtonpost.com/wpdyn/content/article/2010/10/19/AR2010101906476.html Confused About All The Recalls? You're Not The Only One. (2010). Retrieved October 20, 2010, from The Car Connection: http://www.thecarconnection.com/marty-blog/1045465_confusedabout-all-the-recalls-youre-not-the-only-one Consumer Product Safety Improvement Act of 2008. (2008, August 14). Retrieved October 18, 2010, from U.S. Consumer Product Safety Commission: http://www.cpsc.gov/cpsia.pdf Eng Tuck Cheah, W. L. (2007). The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of U.S. and U.K. Markets. Journal of Business Ethics , 1. Gibson, E. (2010, September 30). FDA Moved Too Slowly on J&J Recall, Official Says. Retrieved October 20, 2010, from Bloomberg BusinessWeek: http://www.businessweek.com/news/2010-09-30/fda-moved-too-slowly-on-j-j-recall-officialsays.html Guidance for Industry: Product Recalls, Including Removals and Corrections. (2009, August 5). 30

Retrieved October 25, 2010, from U.S. Food and Drug Administration: http://www.fda.gov/Safety/Recalls/IndustryGuidance/ucm129259.htm Hill, C.W.L., & Jones, G.R. (2009). Strategic management: an integrated approach. Mason, OH: South-Western Cengage Learning. Hines, A. (2007, April 2). Toyota Stays Lean and Green with Kanban... Kan-who? Retrieved December 2, 2010, from BNet: http://www.bnet.com/blog/intercom/toyota-stays-lean-and-greenwith-kanban-kan-who/106 Katherine. (2010, October 16). Intertek Saleperson. (T. Brandel, Interviewer) Kavilanz, P. (2010, August 16). Drug recalls surge . Retrieved October 16, 2010, from CNNMoney.com: http://money.cnn.com/2010/08/16/news/companies/drug_recall_surge/index.htm? source=yahoo_quote Logistics Services. (2007). Retrieved October 17, 2010, from DecisionOne: http://www.decisionone.com/product_recall_services/ North American Industry Classification System (NAICS). (2010). Retrieved October 19, 2010, from U.S. Census Bureau: http://www.census.gov/eos/www/naics/ Patent. (2010, August 19). Retrieved October 10, 2010, from Cornell University School of Law: http://topics.law.cornell.edu/wex/Patent Product Recall Sercives. (2010). Retrieved October 17, 2010, from Bell Tower Technologies: www.belltowertech.com/ProductRecalls Product Recall Services. (2010). Retrieved October 17, 2010, from Intertek: http://www.intertek.com/appliances-electronics/product-recalls/ Product Recalls. (2010). Retrieved October 19, 2010, from Bell Tower Technologies: http://www.belltowertech.com/ProductRecalls Products liability. (2010, August 9). Retrieved October 18, 2010, from Cornell University Law School: http://topics.law.cornell.edu/wex/products_liability Recall Management Database. (2010). Retrieved October 17, 2010, from iCiX: http://icix.com/pdf/icix_recalls_v9.pdf Recent Recalls. (2010). Retrieved October 18, 2010, from Recalls.gov: http://www.recalls.gov/recent.html

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Sanchez, M. (2010, October 15). Inside Sales Representative. (T. Brandel, Interviewer) The trouble with recalls. (2004, August). Retrieved October 14, 2010, from ConsumerReports.com: http://www.consumerreports.org/cro/consumer-protection/trouble-withrecalls-804/overview/index.htm

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Table 1

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Table 2
Recall InfoLink Industry Experien ce Years of recall experience, covering thousands of recalls. Extensive connection s to recall advisers. Bell Tower Technology Very high. Been in business since 1993 and has expansive management team with considerable relevant experience. Decision One Over 50 years of recall experience among management. Expert Recall Stericycle Most experience in industry by volume. Over 1,400 recalls executed to date. iCiX Very little. Five executives have experience in sales, accounting, and supply chain management. Experience appears to be limited to no more than three individuals. Information unavailable. Rapid Recall Exchange Massive. Management team and advisers include high level managers from CocaCola, Johnson & Johnson, and various others.

Brand Awarene ss

Very poor. No significant awareness whatsoever.

Good, industry leader in food and beverage recalls. Dave & Busters, Associated Food Stores Inc., and ERASE Enterprises

Client List

Poor. Decision One does not promote a single commercial business contract. Government contracts

Very good. Stericycle appears to have the best awareness in market. Wendys, ResMed, Merck, and Imagination at Work

Very good. Surpassed 500 subscribers in one year. Over 500 subscribers, all of which can be found on the company website. Coca-Cola North America, Bumble Bee, and Campbell are some of the most notable No. Rapid Recall Exchange offers only Product Recall services.

Raleys, Mario Camacho Foods, and The Bama Companies

Total Solution Package

No. Recall service is all that is offered.

Yes. Includes marketing, emergency management, human resources, and business continuity.

Reach

Global.

Only U.S. is directly addressed.

Yes. Recall services is a very small part of what Decision One offers. Other services include other logistics services, data centers, workgroups, specialized equipment, and service desk services. U.S. & Canada.

Yes. Product recalls are just a part of what Stericycle does. They offer services for retrieval, returns, and disposal of all products, including biohazards. Global.

Yes. Other offerings include compliance, quality, incident, and product specification management, as well as validated certification.

Global.

North America.

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Recall InfoLink Real Time Reporting Tracking Tools Yes. Live online wizard allows complete access to all information as it is recorded.

Bell Tower Technology Yes. Live online dashboard, that gives all info on contacts, returns, etc.

Decision One Yes. Direct interface with customer website. Complies with regulations required by ISO compliant providers. No direct info, but advertised as costeffective.

Expert Recall - Stericycle Information unavailable. All notifications documented in online document center according to FDA guidelines.

iCiX Yes. Online interface allows tracking of all related informatio n as it is collected.

Rapid Recall Exchange Yes. Internet access to all information , two-way messaging, and e-mail alerts about new information . $1500 annual membershi p fee for initiators and $750 for receivers, regardless of whether or not a recall occurs. Information unavailable .

Cost

Speed

Ease of Implementati on

Set-up fee of $4995 for manufacturer s, $2995 for distributors. Variable cost per recall event, no annual fees. Consulting offered at $300 per hour. Very fast. Information sent through text, phone, or e-mail, with response information being recorded immediately. Very easy. Program takes over process, training does not need to done at every level of the company. Training provided as needed.

Information unavailable.

Information unavailable.

Membershi p fee of $299-$999 per year. Per event cost not provided.

Immediate contact through text, phone, and email.

Contact through phone calls.

Slow to Rapid: Contacts through fax, e-mail, phone, and direct mail.

Varies: Options include fax, e-mail, text, and phone.

Information unavailable.

Offer continuous training and certificatio ns. Work is mostly handled by Decision One with reports generated for clients to view.

Varies, offer a recall readiness check to determine amount of training necessary. Offer product recall and leadership training.

Product Recall Service Awareness

Very low. People do not about this company at all.

Very high. Leader in withdrawal communicati on.

Information unavailable .

Very high. Leader in pharmaceutic al, have processed over 1,400 total recalls.

Before recall, iCiX works with customers to establish a customize d process for them, choosing method, max response times, and templates for company. Moderate. Limited number of partners but little market penetratio

Offer training webinars. Seems to add to process instead of simplifying. Likely very difficult to implement.

Very high. Over 500 membershi ps currently.

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n.

Accessibility to Demo or Offering Information

Target Market

Other Features

Demo must be provided through contact of salesperson, file showing product offering is available online, but is very difficult to find. None but have identified pharmaceuti cal as a desirable market to enter. Consulting offered for additional fees.

Test Call Available on website as well as requests for template, self assessment, and newsletters.

None. No demos or specific offering info available on site.

Can set up a demo mock recall over the website. Offer case studies and extensive information about services provided. Pharmaceutic al, specifically biomedical.

Screensho ts of interface seen online and a detailed breakdown of the flexibility offered in a PDF file. Informatio n unavailabl e.

Information al flyer available on web, as well as case studies.

Food and beverage.

Information unavailable .

Grocery.

24/7 Support.

24/7 Support, over 2,500 technology employees in North America.

Offer retrieval services and warehouse storage while decisions are being made about what to do with the product.

Generate recalls using unique UPCs and after events, locates employees within company needing further training and assists in finishing the relevant training. Can share informatio n with other users and invite or request partners through community .

24/7 support, as well as quick feedback and assistance filing all necessary paperwork. Mock recalls are available.

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