Arm & Hammer Grows Up

1362 Words Nov 21st, 2006 6 Pages
What factors have led to Church & Dwight 's long history of slow and stable growth? Church and Dwight can attribute much of its success to the fact that it has concentrated on the production and sales of sodium bicarbonate. Strong family control has shielded management from the problems of defending the company from hostile takeover attempts. The company has successfully taken a commodity chemical, branded it, and marketed it to the point where it controls a dominant market position. It has subsequently capitalized on consumer recognition and loyalty to the ARM & HAMMER brand by introducing multiple consumer products under this logo. As the dominant producer and marketer of sodium bicarbonate products, Church & Dwight has faced …show more content…
• Operating in many mature markets with limited growth potential. • New or increased domestic production of the company 's basic raw materials by other potential producers. • Potential consumer confusion through overuse of the overall family branding line extension strategy which could eventually weaken the Arm & Hammer brand name. • Retaliatory competitor reactions as the company enters into new consumer product markets that have been dominated by major players as Procter & Gamble, Colgate-Palmolive, Unilever, etc.. • Potential substitutes for current products.

4. What potential strategies could Church & Dwight pursue?

• Continue to follow the overall family branding line extension strategy in order to introduce new products (especially sodium bicarbonate-based products) such as skin care, soaps, mouthwashes, lotions, and antacids in order to gain increased market exposure and economies of scale. Recent launches of products such as chewing gum with baking soda are testing this strategy. • Expand the limited advertising program for current niche market products to retain and gain market share. • Promote products carrying the Arm & Hammer logo as being environmentally safe. • Resources should be directed to testing and developing new brands to lessen dependence on the Arm & Hammer brand due to the possibility of loss of its present customer appeal. • Since the
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