Cobra Group (Marketing)
Encyclopedia
The Cobra Group is a sales and marketing company specialising in a variety of direct marketing
strategies, including event marketing and face-to-face selling (door-to-door
) in the business-to-consumer and business-to-business
channels.
The company is based in London
, UK and Sydney
, Australia
and has an affiliate network of legally independent sales companies in 20 countries throughout Europe and Asia. The Cobra Group represents firms in industries such as telecommunications, home security, energy and financial services. The group is also contracted by some charitable organisations to collect donations in the form of a pledge and enlist new donors.
), the organisation has also received negative press, including investigations by the Daily Mirror and the BBC
. The BBC found misleading practices by representatives, leading the Department for Business, Enterprise and Regulatory Reform
Energy Select Committee to release a report threatening to ban energy companies from using direct sales. Video footage from past investigations offers proof of Cobra Group contracted companies participating in bad practices such as lying to potential customers, and according to this report (in which the Cobra group is specifically named) the year 2002 saw 12000 consumer complaints against salespeople in this industry. Some past and current sales people for the company have also commented on questionable sales methods and the repercussions for the salespeople involved.
case in Ireland
in 2008. A Zimbabwean woman was awarded €50000 by the Equality Tribunal after successful litigation against her former employer Steven Broadey of Boss Worldwide Promotions Ltd (BWPL). The payment ordered by the equality officer responsible for the case was for compensation of €5000 for "harrassment and discriminatory treatment" and another €45000 compensation for discriminatory dismissal. The main argument used by Broadey in defending his case was that the worker in question had been a self-employed sole trader and not actually an employee of his company. Prior to the dismissal the worker in question had been lauded as the highest fundraiser
within Boss Worldwide Promotions Ltd, and was given a positive mention in Cobra Group promotional literature for this reason.
racing team then known as "AKA Cobra". This partnership led to the formation of CRS Racing
in 2007.
The Cobra Group was once associated with North American company DS-MAX, now called INNOVAGE, a sales firm that is similar to Cobra, but as of 2004 Cobra has claimed that the only ties they have with DS-MAX, now called INNOVAGE is regarding the supply of some goods that Cobra group companies sell door-to-door.
Direct marketing
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional...
strategies, including event marketing and face-to-face selling (door-to-door
Door-to-door
Door-to-door is a sales technique in which a salesperson walks from the door of one house to the door of another trying to sell a product or service to the general public. A variant of this involves cold calling first, when another sales representative attempts to gain agreement that a salesperson...
) in the business-to-consumer and business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
channels.
The company is based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, UK and Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and has an affiliate network of legally independent sales companies in 20 countries throughout Europe and Asia. The Cobra Group represents firms in industries such as telecommunications, home security, energy and financial services. The group is also contracted by some charitable organisations to collect donations in the form of a pledge and enlist new donors.
Responses within the community
Although The Cobra Group is known for some contributions towards socially benevolent causes (such as work with Save the ChildrenSave the Children
Save the Children is an internationally active non-governmental organization that enforces children's rights, provides relief and helps support children in developing countries...
), the organisation has also received negative press, including investigations by the Daily Mirror and the BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
. The BBC found misleading practices by representatives, leading the Department for Business, Enterprise and Regulatory Reform
Department for Business, Enterprise and Regulatory Reform
The Department for Business, Enterprise and Regulatory Reform was a United Kingdom government department. The department was created on 28 June 2007 on the disbanding of the Department of Trade and Industry , and was itself disbanded on 6 June 2009 on the creation of the Department for Business,...
Energy Select Committee to release a report threatening to ban energy companies from using direct sales. Video footage from past investigations offers proof of Cobra Group contracted companies participating in bad practices such as lying to potential customers, and according to this report (in which the Cobra group is specifically named) the year 2002 saw 12000 consumer complaints against salespeople in this industry. Some past and current sales people for the company have also commented on questionable sales methods and the repercussions for the salespeople involved.
Legal issues
Some examples of the ill-treatment of workers in companies contracted by the Cobra Group are documented in a successful unfair dismissalUnfair dismissal
Unfair dismissal is the term used in UK labour law to describe an employer's action when terminating an employee's employment contrary to the requirements of the Employment Rights Act 1996...
case in Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
in 2008. A Zimbabwean woman was awarded €50000 by the Equality Tribunal after successful litigation against her former employer Steven Broadey of Boss Worldwide Promotions Ltd (BWPL). The payment ordered by the equality officer responsible for the case was for compensation of €5000 for "harrassment and discriminatory treatment" and another €45000 compensation for discriminatory dismissal. The main argument used by Broadey in defending his case was that the worker in question had been a self-employed sole trader and not actually an employee of his company. Prior to the dismissal the worker in question had been lauded as the highest fundraiser
Fundraiser
A fundraiser is an event or campaign whose primary purpose is to raise money for a cause. See also: fundraising. A fundraiser can also be an individual or company whose primary job is to raise money for a specific charity or non-profit organization...
within Boss Worldwide Promotions Ltd, and was given a positive mention in Cobra Group promotional literature for this reason.
Sponsorship
The Cobra Group (and founder Chris Niarchos) have sponsored various types of motorsports drivers since 2003. Chris Niarchos, through the Cobra Group, partnered with Andrew Kirkaldy in 2006 to the form the BritishUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
racing team then known as "AKA Cobra". This partnership led to the formation of CRS Racing
CRS Racing
CRS Racing is a British auto racing team founded by British driver Andrew Kirkaldy and Canadian-Greek entrepreneur and driver Chris Niarchos. The team was founded in 2007, but is based on the former team of Kirkaldy known as Team AKA which competed in the British Formula Renault Championship...
in 2007.
Companies associated with The Cobra Group
Appco Direct and Support Direct.The Cobra Group was once associated with North American company DS-MAX, now called INNOVAGE, a sales firm that is similar to Cobra, but as of 2004 Cobra has claimed that the only ties they have with DS-MAX, now called INNOVAGE is regarding the supply of some goods that Cobra group companies sell door-to-door.