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    Case Analysis in Sales and Distribution

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    laal sa
    The document discusses Spectrum Brands Inc., a company with various product lines, and its options for restructuring its sales forces following mergers and acquisitions. The main options considered are maintaining separate sales forces for each business, fully merging all sales teams into one, or using distributors. A combination approach is proposed, with merged "platform teams" of business managers and product experts supporting sales to major retailers, while also using distributors. Key challenges include creating an effective structure, additional training needs, and handling change for current employees.

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    Case Analysis in Sales and Distribution

    Uploaded by

    laal sa
    849 views16 pages
    The document discusses Spectrum Brands Inc., a company with various product lines, and its options for restructuring its sales forces following mergers and acquisitions. The main options considered are maintaining separate sales forces for each business, fully merging all sales teams into one, or using distributors. A combination approach is proposed, with merged "platform teams" of business managers and product experts supporting sales to major retailers, while also using distributors. Key challenges include creating an effective structure, additional training needs, and handling change for current employees.

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    The document discusses Spectrum Brands Inc., a company with various product lines, and its options for restructuring its sales forces following mergers and acquisitions. The main options considered are maintaining separate sales forces for each business, fully merging all sales teams into one, or using distributors. A combination approach is proposed, with merged "platform teams" of business managers and product experts supporting sales to major retailers, while also using distributors. Key challenges include creating an effective structure, additional training needs, and handling change for current employees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    849 views16 pages

    Case Analysis in Sales and Distribution

    Uploaded by

    laal sa
    The document discusses Spectrum Brands Inc., a company with various product lines, and its options for restructuring its sales forces following mergers and acquisitions. The main options considered are maintaining separate sales forces for each business, fully merging all sales teams into one, or using distributors. A combination approach is proposed, with merged "platform teams" of business managers and product experts supporting sales to major retailers, while also using distributors. Key challenges include creating an effective structure, additional training needs, and handling change for current employees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Case analysis in

    sales and
    distribution

    By :
    Ashutosh Mayank
    Abhishekh Chaurasiya
    Swapnil Kale
    introduction
     Spectrum Brands Inc.

     Different product lines –


     Consumer battery
     Lawn and garden care products

     Specialty pets supply

     Shaving and grooming products


    Shaving and grooming product
    market
     Growth rate : 3-4% annually
     Nature of market : seasonal

     Primary competitors : Norelco(philips),


    braun & remington , Gillette(P&G)
     Mode of selling : traditional retail channel
    with heavy emphasis on mass
    merchandizers and specialty retailers.
    Lawn and garden market
     Growth : 4-5%
     Market size : US$4 billion dollar

     Nature of Market : Highly Seasonal

     Primary competitors : United Industries


    (United)/Nu-Gro, Scotts Miracle-Gro
    Company ( Scotts )and Central Garden &
    Pets Company(CGPC)
     Mode of Selling : Mainly through mass
    merchandizers, home centres, independent
    nurseries and hardware stores
    Specialty pet supply market
     Market Size : US $ 8 Billion in 2004
     Nature of Market : Fairly stable

     Growth : 6-8 % annually

     Primary Competitors : Highly Fragmented


    ( 500 manufacturers in North America :
    CGPC, United Pet Group/ Tetra and Hartz
    Mountain )
     Mode of Selling : Through specialty pet
    stores, independent pet retailers, mass
    merchants, grocery stores and through
    various professional outlets

    Spectrum brands, Inc.
    Annualized Revenue : US $ 2.8 billion
     Mergers & Acquisitions :
     Remington Products, Inc. (Shaving & Grooming
    Products) in 2003
     United Industries (Lawn & Garden Care, Insect
    Control Products)
     Nu-Gro Corporation (Lawn & Garden Care
    Products)
     Tetra Holdings Inc.(Fish & Aquatic Supplies)
    Benefits of acquisitions
     Leverage Global Distribution Channels,
    Purchasing Power & Operational Processes
     Extended Brand Portfolio

     Access to new retailers & ability to gain shelf


    space
     Increased ability for each brand to compete
    within its given market
     Position of Spectrum : 1st in aquatic supplies,
    2nd in lawn & garden industries, household
    insect market and shaving & grooming
    industries, 3rd in battery industry
    Current sales forces
     Rayovac & Remington
     - organized by distribution channel
     - 8 sales representatives serving this division
     - sales representatives organized
    geographically
     also
     - effective and efficient working
     Nu-Gro
     - tems of 30 consumer sales representatives
     - geographically distributed
     - struggling as operations and product
    offerings
     were extremely unfocussed

    Current sales forces ( Contd. )
     Tetra/United Pet Group
     - regionally based sales representatives in US
     - sales handled by distributors of Canada

    Real Issue
     To create a national sales force from the
    teams of the newly merged companies
     To capitalize on the synergies across the
    various businesses
     To immediately implement the plan to avoid
    disrupting the growth momentum of
    individual brands, maintain customer
    relationship and to preclude competition
    from taking advantage of any perceived
    disruptions
    Sales force options
     Separate sales forces
     Advantages : (1) Greater degree of expertise
     (2) Less or no additional training
     (3) Maintenance of momentum of
     sales representatives & more
     focused sales force capable of
     better consumer services
     Disadvantages : (1) No advantage out of
     synergies due to mergers, no
     expense reduction
     (2) No efficiency improvements
     by the use of sales repres. during
     slower seasonal periods
     (3) Duplication of efforts by sales
     representatives
    Merged Sales force ( One bag )
     Each representative is required to become an
    expert on all product lines & selling to their
    specified customers
     Advantages : (1) Capitalize on potential
    synergies
     due to merger of
    companies
     (2) Consolidation of existing
    teams
     into a smaller unit saving
    upto
     US $ 2 million
     (3) More efficient teams able
    Merged Sales force ( One bag )
     Disadvantages : (1) Difficulty in creating an
     effective & efficient
    merged
     team
     (2) Additional training
    required
     leading to increased
    cost
     (3) Highly unfocused sales
    reps.
     resulting in killing the
     existing momentum

    Distributors
     Provides sales & logistic services in exchange
    of commission
     Advantages : (1) Well-organized, existing
    relatio-
     -nship with retailers
     (2) Large sales group serving
    large
     no. of customers in an
    efficient
     manner
     Disadvantages : (1) High service cost
    (App.15%)

    Decision
     Can opt for combination of merged sales force
    & distributors
     To create “Platform Teams”, business
    managers responsible for relationship with
    retailers, product experts support the
    managers during sales pitchers
    OTHER CONSIDERATIONS

     Change in position of current employees

     Dealing with sensitivity of employees to avoid


    potential disturbances & to preserve current
    momentum

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