Spectrum Brands Inc. – the Sales Force Dilemma
Autor: JaeZy Reborn • June 22, 2015 • Research Paper • 1,658 Words (7 Pages) • 1,346 Views
CASE ANALYSIS 1
SPECTRUM BRANDS INC. – THE SALES FORCE DILEMMA
Submitted By: GROUP 2
Avik Sen (u313008)
Biswajit Bhuyan (u313010)
Jyoti Ranjan Rout (u313018)
Paritosh Mishra (u313033)
Rasmiranjan Mallick (u313042)
Soobhraj Purohit (u313050)
QUESTION 1:- Make an assessment of the Spectrum organisation and each of the markets it operates, what are the key elements that Mr. Falconi must be worried or concerned about? (A tabular representation of the same would be useful, (5marks)
Ans. In 2005 Spectrum brand was created when Rayovoc Corporation acquired United Industries Corporation, Nu-Gro corporation and Tetra Holdings .Spectrum brands is a global consumer products company. Formerly known as Rayovac Corporation, had made a lot of acquisitions to diversify its product and brand portfolio. The company has growing owing to the strategic acquisitions. Its range of brands portfolio has expanded. The company now has global presence and a wide retailer reach. But at the same time, total liabilities of the company (from exhibit 2) had become threefold which was majorly contributed long term debt, net current maturity and deferred income tax. Although the net sales has increased, but the Net income has decreased that shows that the expenses has increased.
Brand markets | Annual Growth | Competitors | Channel partners | Market Share by Competitiors | Selling Period | Factors Affecting the segment |
Battery market | 1-2% | Duracell (P&G) & Energizer (Energizer Holding INC) | Wholesalers, Distributors, Professional & OEMs, Retailers (mass merchandisers, home and garden centres, niche electronic stores) | 80% | Months Leading upto Christmas & following Chirstmas sales : Upto 70% | Brand Recognition, Relationship with Channel partners |
Shaving & Grooming products market | 3 – 4% | Norelco (Koninklijke Philips Electronics) , Braun & Remington (P&G) | Traditional Retail channels (Mass Merchandiser, Speciality Retailers) | Gift giving seasons (like father’s day mother’s day, Christmas ) | Quality, price & Brand Awareness | |
Lawn & Garden market | 4-5% | Scotts (market leader) S.C. Jonson & Son Inc., CGPC | Mass Merchandisers,Home Centers, independent Nurseries & hardware Stores | 50 – 60 % | Demand peaks during first 6 months of the year starting from march, seasonal | Dependence on weather, to drive sales |
Speciality pet supply Market | 6-8% | CGPC (market leader) , Hartz Mountain Corporation | Pet Supply Store, National retailers : petsMat % PetCo | Highly fragmented market share | Sales is stable throughout the year | Growth in sector attributed to increasing levels of pet ownership |
The Key elements Mr Falconi should be worried about is
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