Spectrum Brands Inc. – the Sales Force Dilemma
CASE ANALYSIS 1SPECTRUM BRANDS INC. – THE SALES FORCE DILEMMASubmitted 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 marketsAnnual GrowthCompetitorsChannel partnersMarket Share by CompetitiorsSelling PeriodFactors Affecting the segmentBattery market1-2%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 partnersShaving & Grooming products market3 – 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 AwarenessLawn & Garden market4-5%Scotts (market leader) S.C. Jonson & Son Inc., CGPC(united was acquired)Mass Merchandisers,Home Centers, independent Nurseries & hardware Stores50 – 60 %Demand peaks during first 6 months of the year starting from march, seasonalDependence on weather, to drive salesSpeciality pet supply Market6-8%CGPC (market leader) , Hartz Mountain Corporation(united was acquired)Pet Supply Store, National retailers : petsMat % PetCoHighly fragmented market shareSales is stable throughout the yearGrowth in sector attributed to increasing levels of pet ownershipThe Key elements Mr Falconi should be worried about is