Spectrum Brands

Submitted by: Bhoopendra Singh (09PGDM078)

Case Study: Spectrum Brands Sales Management

PGDM 2009-2011

Case Study: Spectrum brands, Sales Force Dilemma

Question 1: Assess the spectrum organization and each of the markets in which the

company operates. What are the key elements from each industry about which Falconi (Vice President) should be concerned?

Question 2: What is the best sales force structure? How did you decide? Question 3: What major problems might you encounter with your new sales force structure? Create an implementation plan?

Question 4: How it may affect the sizing decision?

Rayowac and Remington Nu-Gro

Tetra/United Pet Group

Spectrum Brands

The markets in which Spectrum operates are as follows:

Spectrum Group Present in North America, Europe, Asia pacific, Middle east, Africa, Latin  America and Brazil 

Rayowac and Remington US Manufacturer

TYPES

Consumer shaving and grooming products

Nu-Gro

Tetra/United Pet Group

Canadian Subsidieary of  United

OF BUSINESS THEY ARE IN

Lawn and garden care Products

Fish and Acquatic Supply (Pet Supply)

Spectrum Brands runs the spectrum of brands - more than 15 of them. They include batteries (Rayovac),

pet foods and supplie s (Tetra, Marineland, and Dingo), personal care (Remington), and garden care (Spectracide, Cutter, and Hot Shot). The company operates from four divi sions, which include Global Batteries & Personal Care, United Pet Group, Home Appliance, and the Home & Garden Business. Spectrum Brands markets its products in about 120 countries and is a leader in the sale of rechargeable

batteries and hearing aid batteries to manufacturers. I t gets more than half  of  its sales in the US; 20% comes from Wal-Mart.

Answer 1: Key

elements for different industries:

Consumer shaving and grooming Industry: 

Fairly competitive industry as large no. of local and national players available in market



Large no. of  retailers available in the market hence extensive coverage of  market is desired.



Market penetration is one of  the biggest challenges for marketers to do successful

business. 

Shelf space availability



Technological advancement in the grooming acce ssories is at peak hence the sales force should be knowledgeable and professional in selling the accessories.

P et

Supply industry: 

Large no. of retail outlets available for sale (15000 in US and over 5000 in Canada)



This industry mainly works on product reliability, brand credibility and brand recognition.



Loyalty is of  great importance hence relationship building is a primary key to do business.

Lawn

and Garden care P roduct Industry:



Shelf space is critical factor to be considered for better sales



Products sell based on relationships, recommendations, and word of mouth.



Less points of sale hence distribution is not a critical problem.



Generally selling is done by mass merchandisers, Home centers and nurseries hence

better repo with the clients is required. 

Product used for cherishing the gardening desires.

Answer 2:

Senior Management

National Sales Head for all brands (1)

Middle Management

Productwise sales heads for different products (4)

Lower Management Field Sales Executives

Area Sales Heads (Territorywise) (=No. of territories)

Distributor Sales Force

Areawise Direct Sales team1

Areawise Direct Sales team 2........ (and so on)

The reason for this type of  sales force structure is that the selling propensity of  the products under Spectrum Brands depends upon the personal relationship maintained with the channel members i.e. retailers etc. H ence in such a scenario the sales representative must be equipped with all relevant information in context of the product he is intending to sell and if merged sales force does not know about the product well then there are higher chance s that the organization will not succeed in its objective of maximizing the sales. Hence the prerequisite for the better sales are 

Sales executive with the sound product knowledge especially in case of  technology

items (i.e. grooming items) and also in case of lawn and garden care product s. 

Large number of  touch points for sales are there so a large sales team will be more effective in covering the whole market.



In order to avoid duplication of  efforts as it might impact the repo of  company with its

the customer 

Vast Geographical Region coverage



Internal sales force for big accounts and external sales force for retail accounts



Maintaining relationships



Focus on building retail strength

 Organizing as 

per locations

Product & market expansion

With respect to above mentioned prerequisites, it seems a better solution to keep the product

focused sales force in different territories so that sales can effectively execute its plan of action. Answer 3:

Problems expected from the designed sales force: Bigger sales force and hence more expenses incurred Better co-ordination needed to track the sales efforts as bigger sales force.

Inability of leveraging the synergies

Inability in optimum reduction in cost of  sales force

Implementation Plan:

Meeting of head of group companies across nations

Appointment of National Sales head of  Group

Appointing Country heads as per plan

Appointing sales managers for different geographical regions

Appointing distributors and Direct Sales force To

be contd

Contd Intensive training of each domain

Target Setting

Territory allocation

Execution

Result analysis

Further Improvements in Sales process

Answer 4:

The effects of designing such sales force on sizing decision are as follows: 

Sizing process becomes easier as the calculation of  manpower required for sales can

easily be calculated because there is no cross functional teams. 

Since due to large sales force the profitability of  the organization might tend to reduce

hence it become little restrictive on part of sizing decision.