Submitted by: Bhoopendra Singh (09PGDM078)

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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?

The markets in which Spectrum operates are as follows:

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TYPES OF BUSINESS THEY ARE IN

Spectrum Brands runs the spectrum of brands - more than 15 of them. They include batteries (Rayovac),
pet foods and supplies (Tetra, Marineland, and Dingo), personal care (Remington), and garden care
(Spectracide, Cutter, and Hot Shot). The company operates from four divisions, 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. It 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 accessories is at peak hence the sales force
should be knowledgeable and professional in selling the accessories.

Pet 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 Product 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.
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Answer 2:

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. Hence 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 chances 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 products.
 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:

To be contd…

Contd…
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.