Spectrum Brands, Inc. – The Sales Force Dilemma Case

Spectrum consists of four organisations – Rayovac, Remington, United Industries and Tetra Holdings. It basically services North American Market and other markets but the case focuses on Canada. The four Industries mentioned are: Batteries, Shaving and Grooming Products, Lawn and Garden Market and Pet Care are covered
Shaving and Grooming products and Lawn and Gardening products have seasonal demand. Stiff competition in the Pet supplies market by over 500 manufacturers and have a great clutter of retailers where not a single player having more than 10% market share. Batteries are dominated by two players Dura Cell and Energiser covering around 80% of the market which left Spectrum with only 20% market share to compete for with other brands. The growth rate is really low at around 1-2%. Alkaline Battery market growth had flat lined and was expected to be in the market only for the next 5-10 years. Spectrum would have to focus more on rechargeable batteries.
Spectrum operates in areas which are highly fragmented and seasonal. Seasonal fluctuations in the battery and shaving markets, restricted sales to December. Since with its spate of acquisitions it has acquired a wide product mix it would be better if the sales force are trained to cater to this product mix. It may be cost-intensive and time consuming initially but cross promotion is possible with the trained sales force in the long term
The new sales force structure would be to have amalgamation of product centric and geography centric sales force. This way a sales rep would be assigned a territory with knowledge of complete portfolio of products and under him junior sales reps should be allowed to look after a category.

Sales Force Structure

So a Senior Sales Rep should engage with a mass merchandiser say Walmart managing whole portfolio. While