Emilie Blanc Spectrum Case Brief

Emilie Blanc
October 14th
Spectrum Brands Case Brief

1. Assess the Spectrum organization and each of the markets in which the company now operates. What are the key elements from each industry about which Falconi should be concerned?

Key elements to be concerned
Batteries
Consumers look for convenience and quality
Market leaders: Duracel and Energizer (80% market share)  adaptation to consumer needs and valuable negotiating power with retailers
Flat growth of the market (1-2% annually) but large market
Household’s market highly seasonal  70% of batteries sales occurs after Christmas
Large majority of sales sold through traditional retail channels
Shaving and grooming products
Market dominated by a select group of companies
Growth rate of 3-4% annually and likely to continue
Market highly seasonal: gift-giving seasons
Main factors influencing sales: quality, price and brand awareness
Products sold mainly through traditional retail channels
Lawn and garden products
US $4 billion industry in America
Growth rate of 4-5% annually and expected to continue
Main competitors: United, Scotts (30% market share) and CGPC (17% market share)
Insect control market growth of 7-8% annually
Product sold mainly through mass merchandisers and home centers (50-60%)
Market highly seasonal: first 6 months of the calendar year  risk because sales depend on the weather
Specialty pet supplies
Fastest growing consumer product categories with annual growth of 6-8%  US $8 billion market in 2004
Industry highly fragmented  no company hold a market share of greater than 10%
Majority of sales made through pet supply stores  only two national retailers in this category: PetsMart and Petco.
Sales fairly stable

Spectrum Brands sales organization differs depending on the industry and their brands. Rayovac and Remington sales force is organized by distributions channel and geographically, it aims to strengthen relationships with retailers.
Nu-Gro sales force is more