Spectrum Brands is a highly diversified company, encompassing consumer batteries, lawn and garden care products, specialty pet supplies, and shaving and grooming products. There is no single consumer profile for all of these products; a wide range of demographics are encompassed although overall Spectrum capitalizes upon a strategy of a broad market outreach with relatively low prices, versus niche marketing. Consumers usually wish to purchase the majority of products issued by Spectrum at the lowest price possible. However, solely competing on price is not a wise idea given that price wars can drive product pricing below what is profitable, even for a company able to operate on a large economy of scale such as Spectrum. Additionally, to distinguish it from generics and cultivate some kind of brand loyalty is wise: customers should ideally believe that all the products give them some added value in terms of quality, durability, and other desirable features. Formerly as famous the Rayovac Corporation, the company is attempting to capitalize upon its synergies while still remaining true within each product segment to what consumers have liked and been loyal to for many years.
The fact that the company is newly merged with other organizations is an additional challenge for Spectrum. This is the central dilemma of Bob Falconi, vice-president of sales and marketing for the Canadian division. "Falconi wanted to ensure, despite the differences amongst the diverse groups, that he still maintained a team that would effectively and efficiently continue to increase the sales of each business unit" (Falconi 2007:1). However, Falconi remains unsure if changing the current sales structure is preferable or retaining the structure, given the successes it has generated in the past.
The company has attempted to accrue value through economies of scale through strategic acquisitions. Although the conventional wisdom is that mergers often fail, the organization believed that these acquisitions made sense in several critical...
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