Arm & Hammer: Church & Dwight Grows Up (2002)
100+ Year old company
Versatile products for consumers
25% of outstand stock shares are family owned with the ability to stay focused Ability to acquire 2 companies in 2001 for growth (economies of scale) Arm & Hammer brand recognition
2002 Church & Dwight held 75% of the sodium bicarbonate production WEAKNESSES
Until 1990 the company focused on niche markets to avoid competition Limited international marketing experience
Line extension problems, saturating the market with logo branding OPPORTUNITIES
Consumer market barriers – muscle into the market by gaining from current offerings Improve international growth which is product driven
Asia market expansion
Synergies with ARMALLEEN in sales manufacturing and distribution Research & Development in new uses for sodium bicarbonate
Major players in consumer markets laundry division, i.e. P&G, Clorox, Dial Nahcolite Solution Mining Procedures were more cost effective from competition rather than the Trone method used by Church & Dwight Extremely competitive consumer markets
Church & Dwight are well equip in US & Canada therefore achieving market share from current manufacturers should not be a major problem. Church & Dwight also have advantages regarding brand recognition with the Arm & Hammer logo. Marketing costs should be fairly low if consumer products continue to use this logo.
Church & Dwight must grow internationally from the U.S. and Canadian markets to global markets specifically in Asia. These product driven markets will be a new territory for the organization therefore acquisitions of leading companies with experience will be necessary. Church & Dwight have positioned themselves to effectively purchase international companies with profits from domestic sales.
Continue to peruse ARMALLEEN synergies (50-50) for gains in manufacturing, distribution and...
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