The profitable marketing firm was acquired in 2005 to support the company in its initial growth stage. Rainmakers International is an international media buying agency based out of LA, California. Cord Blood intends to purchase media for family based products through this business unit to support sales efforts. The company plans to use Rainmakers International as a marketing tool for its core business of Umbilical Cord blood storage. They intend to use these services until the cord blood storage business reaches levels of sustained profitability. The Company will then either divest Rainmakers or continue to hold as part of their business portfolio.
Advertising agency Rainmakers operates within three areas of Media buying: radio and television placement as well as on-hold advertising solutions. Their media buyer’s expertise places products and services in front of the right customers at the lowest costs. They have access to national television programs such as CNN, Fox News, ESPN, MTV, BET, TNT, USA, FX, and Bloomberg. Focused on Cost per Lead and Cost per Acquisition of customers, they lower their customer’s costs enabling them to see rapid customer growth.
This enables related diversification for Cord Blood America as the strong Marketing and Advertising competencies are put to use. Rainmakers International gives the company a 1+1=3 business unit as that gives them the ability to effectively target customers of its core business through the use of direct response advertising. In the future they aim to diversify Rainmaker International’s customer base and increase profitability by 35%. This business unit brings a strong competitive edge to Cord Blood America, leading to increased company profitability and improved shareholder well being through diversification.
Through its companies Cord Blood America provides Cord and Placenta blood preservation. They are also actively involved in educating expectant parents and families with a history of severe illnesses. The three companies they operate through are CorCell, Cord Partners Blood Banking, and their educational advertising company, Rainmakers Int.
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