FROM CLEARSTATION:
From : Mister_J
Nov 16 1999 1:24PM
Replying To : Radar (post 316)
Title : SNC/CIRC synergies overlooked (LONG RECOMMENDATION)
I'm a marketing/promotions consultant and have worked directly/indirectly with SNC for many years.
Through their various busineses (i.e. co-op sampling programs, promo/adv agencies, etc.) they have strong
contacts and large contracts with many top-notch marketing organizations (i.e. companies that have $$$ to
spend to market their products). In the past they've been focused on selling media (i.e. space in co-op
programs) and consulting (via their agencies). I'm sure they've spotted the larger opportunity through their
existing contacts -- that being "every company in the world right now wants to roll-out or improve their
existing internet strategy." SNC clients have a good deal to benefit from the internet (still the wild wild
west to most of these comapnies)... but most companies would not consider SNC to handle this for them.
However, a "referral" from SNC to have sister company CIRC handle internet development and
marketing is a strong pitch.
And while competitors have broad tech capabilities (some similar to ASP's), CIRC seems to be heavily
focused on the niche of developing marketing-oriented internet solutions for their clients. Clearly, the
relationships SNC has is a tremendous asset. It is also what their competitors are lacking. In the
marketing/promotions business, your relationships and track record are EVERYTHING. By the way, even
though SNC's stock price history is miserable, they have a very good reputation within the industry.
Also, there's an even bigger opportunity. A large part of SNC's core business is co-op sampling and
marketing programs. Companies such as SNC have been courted lately by internets for possible
acquisition. The value is in their relationships with marketers/advertisers, and the data (i.e. consumer data,
lists, etc.) that they have from all their direct response efforts. Rather than sell out... SNC has been
bulking up by buying competitors in this field (i.e. Sampling Corp. of America) and has spun off their own
Internet operation (CIRC) rather than selling out. This is very smart. Bottom line = SNC can likely help
CIRC more than CIRC can help SNC. Actually, looks like SNC is CIRC's secret weapon. I'd expect
CIRC to be the core of all their businesses in a short amount of time. I'd also seriously expect CIRC to be
developing and introducing numerous marketing products as extentions to SNC's focus(i.e. online
couponing programs, online incentive programs, etc.) that SNC clients can buy into as they begin to test
the waters of marketing to consumers over the internet.
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