SMART Co-operative Marketing

The owner of Cherished Scrapbooks (CS) had just decided to go ahead with the development of an industry-level marketing program. In January 2006, the chief executive officer of SMART Group (SMART), a scrapbook trade group based in California, advised the owner of CS that the next step in the evolution of her business was to co-operate with her direct competitors. Initially the CS owner had rejected the idea out-right: "The retailers in my area don't like me and besides it seems it would be contrary to my competitive position." However, just one month later, she asked SMART's CEO if he would come to Toronto to lead the formation of a cooperative marketing plan team for 68 scrapbook retailers within 100 miles of Toronto. She now wondered how she could help grow this grass roots initiative? SMART planned to launch 20 cooperatives in North America for 2006. How could CS's owner help support and grow this initiative? She also wondered what her exit strategy would be; she hoped to grow her business and either sell or franchise it.