Preview

Arm & Hammer

Good Essays
Open Document
Open Document
408 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Arm & Hammer
Arm & Hammer: Church & Dwight Grows Up (2002)

STRENGTHS
100+ Year old company
Versatile products for consumers
25% of outstand stock shares are family owned with the ability to stay focused
Ability to acquire 2 companies in 2001 for growth (economies of scale)
Arm & Hammer brand recognition
2002 Church & Dwight held 75% of the sodium bicarbonate production
WEAKNESSES
Until 1990 the company focused on niche markets to avoid competition
Limited international marketing experience
Line extension problems, saturating the market with logo branding
OPPORTUNITIES
Consumer market barriers – muscle into the market by gaining from current offerings
Improve international growth which is product driven
Asia market expansion
Synergies with ARMALLEEN in sales manufacturing and distribution
Research & Development in new uses for sodium bicarbonate
THREATS
Major players in consumer markets laundry division, i.e. P&G, Clorox, Dial
Nahcolite Solution Mining Procedures were more cost effective from competition rather than the Trone method used by Church & Dwight
Extremely competitive consumer markets

Recommended Strategies:

Church & Dwight are well equip in US & Canada therefore achieving market share from current manufacturers should not be a major problem. Church & Dwight also have advantages regarding brand recognition with the Arm & Hammer logo. Marketing costs should be fairly low if consumer products continue to use this logo.

Church & Dwight must grow internationally from the U.S. and Canadian markets to global markets specifically in Asia. These product driven markets will be a new territory for the organization therefore acquisitions of leading companies with experience will be necessary. Church & Dwight have positioned themselves to effectively purchase international companies with profits from domestic sales.

Continue to peruse ARMALLEEN synergies (50-50) for gains in manufacturing, distribution

You May Also Find These Documents Helpful

  • Powerful Essays

    Church and Dwight

    • 3621 Words
    • 15 Pages

    2. Summary statement of the recommended solution: Since Church and Dwight is a relatively small company, when compared to competitors in household and personal care product markets they must recognize the challenges of growing sales through acquisitions to promote growth and competitiveness within those markets. Church & Dwight must incorporate additional acquisitions of solid brands and products in order to grow market share through an expansion of product lines into a variety of “personal care, deodorizing and cleaning, and laundry products” as well as “specialty chemicals, animal nutrition, and specialty cleaners” (Wheelen & Hunger). In addition, to maintain its position in the world market place, Church & Dwight must expand into international markets and gain footholds in product markets through acquisition of manufacturing assets. Simply shipping domestic product lines overseas is cost prohibitive. Foreign manufacturing assets will allow product recognition by local consumers in…

    • 3621 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Mg 495 Week 3 Case Study

    • 4356 Words
    • 18 Pages

    CASE 35 – CHURCH & DWIGHT: TIME TO RETHINK THE PORTFOLIO? I. INTRODUCTION A. EXECUTIVE SUMMARY 1. Summary statement of the problem: Church & Dwight, more commonly known by its brand name “Arm & Hammer,” has held a commanding lead in the sodium bicarbonate product market for over 160 years with virtually 99 percent of all consumer products in households within the United States. However, in order to promote growth and diversity while maintaining a steady profitability rate of 3-5 percent per year, the company has expanded uses of sodium bicarbonate products so that it is no longer the sole focus. In fact, the acquisition of a diverse group of consumer products in international markets has been viewed as a viable option to sustain the profitability margins well into the 21st century. (Wheelen & Hunger, p. 35-12, 2012). 2. Summary statement of the recommended solution: The relatively small company, as compared to competitors in household and personal care product markets must recognize the challenges of growing sales through acquisitions to promote growth and competitiveness within those markets, Church & Dwight must incorporate additional acquisitions of solid brands and products in order to grow market share through an expansion of product lines into a variety of “personal care, deodorizing and cleaning, and laundry products” as well as “specialty chemicals, animal nutrition, and specialty cleaners” (Wheelen & Hunger, p. 35-6, 2012). In addition, to maintain its position in the world market place, Church & Dwight must expand into international markets and gain footholds in product markets through acquisition of…

    • 4356 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    Church And Dwight Case

    • 2198 Words
    • 9 Pages

    The company also looks to increase in international expansion to take advantage of a larger global market that is poised to add substantial growth the company as a whole. Church & Dwight “approach business analytically and thoughtfully, identifying strategies that create…

    • 2198 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Strength: Church & Dwight have many different strengths but their main strength is brand recognition. Church & Dwight manufactures Arm & Hammer products which I believe is there strongest recognized brand product in the company. That little yellow box can be seen in millions of households across the country. This product can be used for baking, cleaning, and deodorizing. This product can also be mixed with other products to create such things as a drain opener and even a volcano for science class. Even though you can buy other baking soda products Church and Dwight have cornered the market with there recognizable product.…

    • 344 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ruth Chris Essay

    • 814 Words
    • 4 Pages

    What are the expected benefits for Ruth’s Chris of globalizing, i.e., of consciously pursuing expansion outside the U.S. in a variety of countries?…

    • 814 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Church and Dwight can attribute much of its success to the fact that it has concentrated on the production and sales of sodium bicarbonate. Strong family control has shielded management from the problems of defending the company from takeover attempts. The company has successfully taken a commodity chemical, branded it, and marketed it to the point where it dominates the market. It has subsequently capitalized on consumer recognition and loyalty to the ARM & HAMMER brand by introducing multiple consumer products under this logo. As the dominant producer and marketer of sodium bicarbonate products, Church & Dwight has faced limited competition in its primary markets and successfully entered the markets with other consumer products using a low price strategy with limited advertising expenditures. Recent acquisitions now present the company with new challenges as it faces major competition in the consumer products markets both domestically and internationally.…

    • 1366 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Successful global expansion depends on the execution of an effective and efficient capital budget. Determining a retailer 's available capital and talent will assist in identifying the degree of flexibility and/or limitations it may have in developing an executable expansion strategy.…

    • 1830 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Brand: Arm & Hammer

    • 1823 Words
    • 8 Pages

    The Arm & Hammer Brand Baking Soda has been a staple of American life since 1846. The brand once only used for baking enjoyed a resurgence of interest in the 1970's by reinventing itself and its usefulness without changing a single ingredient. The new marketing campaign would eventually expand the Arm & Hammer brand to include deodorants, laundry detergents, cleaning supplies, and even toothpaste. An interesting history with many interesting uses in such an uninteresting little yellow box we are all familiar with, Arm & Hammer Baking Soda has become as Americana as apple pie and baseball. In fact, you probably can't even name one other brand of baking soda, can you?…

    • 1823 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    This case study states the problem of the global expansion of a company and the strategic and operational anticipated changes it must take into account to make this internationalisation a success. Can the reasons of Outback Steakhouse's success within the United States also be applied to other markets? If not, what are the inputs the company needs to take into account before being global?…

    • 1157 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    * B&D was the world's largest producer of power tools, power tool accessories, electric lawn and garden tools, and residential security hardware. * Power tools market was categorized in three segments i.e. * Professional-Industrial Tools – commercial contractors working on large projects where corporation generally buy tools for their employees * Professional-Tradesmen Tools – individual contractors such as carpenters, electricians, plumbers, roofers, framers, etc. bought from Home Depot, Ace Hardware … etc. * Consumer Tools (35% market share) – consumers purchased tools for “at home” use from mass merchants e.g. Wal-mart, Kmart and hardware stores * Nolan became CEO in 1986 with 1st profitable year (~$50 million) after 5 consecutive years of losses, growth continued year after year reaching to an operating of income of ~$500 million in 1990 * 1981 – 1985 company lost money with a $158.4 million loss in 1985 * B&D $4.8 billion sales in 1990 (50% revenues from US and 50% from outside world) * Substantial brand equity i.e. #7 in US and…

    • 931 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Black & Decker Case Study

    • 752 Words
    • 4 Pages

    I would recommend B&D to use the strategy of Re-branding i.e; using DeWalt name and the color yellow in order to regain Professional-Tradesmen segment market share. The reasons behind the above recommendation are explained in the following paragraphs…

    • 752 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The Tool

    • 633 Words
    • 3 Pages

    Lying down, stomach flat, straight. My breathing was long, lengthy, and slow. I felt the wind pushing against my face; it was a mildly strong wind. Raising my left elbow, closing my left eye and lowering my cheek onto the rest, I make three adjustments, three notches up. Immediately bringing my target to the cross, I slowly squeeze. A moment later, after the very familiar metallic clinking, I squeezed again, once again. The tree, made of metal, swinging ferociously came to a rest. Although people think it’s a bit more than complicated, for me it’s easier to shoot than it is to breathe. And although I can shoot better than most, doesn’t mean I know everything there is to it. I still mess up on safety and without safety everyone is in danger.…

    • 633 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Lufthansa 7

    • 915 Words
    • 3 Pages

    1. What type of international strategy has the company chosen, and what means has it used to expand internationally?…

    • 915 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Hand Tools

    • 2114 Words
    • 9 Pages

    The "Allen screw" name for the socket head cap screw and "Allen key" for the wrench originate from the products of the Allen Manufacturing Company of Hartford, Connecticut. According to Bates, it is widely reported that the company trademarked the name "Allen wrench or key" for its range of hex wrenches in 1943.…

    • 2114 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    international case

    • 1072 Words
    • 5 Pages

    Known primarily for its power tools, Black & Decker is one of the world’s older multinational corporations. The company was founded in Baltimore, Maryland, in 1910, and by the end of the 1920’s had become a small multinational company with operations in Canada and Britain. Today the company has two well-known brands, Black & Decker consumer powers tools and its DeWalt brand of professional power tools. It sells its products in over 100 nations, and has revenues in excess of $5 billion, more than half of which are generated outside of the United States.…

    • 1072 Words
    • 5 Pages
    Better Essays