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Church And Dwight Essay

2109 words - 9 pages

INTRODUCTION
For years now, Church & Dwight Company, Inc. has surrounded itself by products that have built name for themselves over time. Some of these brand name products have become so popular that they can be found, almost, in every household. Noted as the world's largest producer and marketer of sodium bicarbonate-based products, Church & Dwight until resent times had, achieved consistent growth in sales and earnings.

Using the ARM & HAMMER brand name , Church & Dwight moved into other products such as: laundry detergents, carpet deodorizers, air deodorizers, toothpaste, deodorant/anti-perspirants With a strong family branding strategy, the company has been able to promote vast ...view middle of the document...

B…THE SITUATION
Although Church & Dwight is the world’s largest producer and marketer of sodium bicarbonate, it has either, been unable or unwilling to successfully expand internationally. The company, capitalizing on the recognition of the ARM & HAMMER brand name, gave it the leverage to avoid the need for costly advertising, which has allowed the company to sell its products at a lower price as compared to competitor. Now entering into new markets with products such as ARM & HAMMER Dental Care and Deodorant/Anti-Perspirant, the company has resulted in the use of more aggressive advertising strategies.
The company is family owned and they have kept it so for years. About 50% of the outstanding shares is owned by descendants of the family's co-founders. Many Several executives with vast knowledge in product marketing have been part of the company in the past. Although their duty was to assist the company expands into house hold goods but their trial failed.
Joint ventures and subsequent divestitures led to the fluctuation in sale of chemicals to the Specialty, Industrial, and Agricultural Product markets, which leave the contribution of the Chemical Division, to Church & Dwight's overall sustainability questionable. The company is going through series of developmental stages as in circuit board cleaning, paint removal, as well a water quality control and medicine. As for management positions the company has many unanswered questions

Pricing and profitability: Church & Dwight was in competition against several multinational companies like Proctor & Gamble, Colgate-Palmolive, and Unilever. These companies controlled large market shares, especially in soaps and detergents. Due to the competitors’ market dominance, Church & Dwight did not have the sole opportunity to set prices but must follow the lead established by these major competitors. The fact that it depended on the pricing strategy of others, adversely impacted its profitability. At the low end of the pricing list , new companies such as USA Detergents and Huish Detergents also resulted in intensified pricing competition.

Church & Dwight had developed a solidified strategy to exploit the full potential of the Specialty Products Division, but the Consumer Products Division focused on management and strategies, at the point which the Chemical Division struggled for identifiable focus and/or strategies. Be that as it may, the Consumer Products Division, needed to expend a considerable amount of time and energy on this division.

Strong consumer franchise was a plus for Church & Dwight, in the consumer products field. However, it depended on domestic markets and a single brand focus. It remained vulnerable to foreign and other competitors with more financial resources. Church & Dwight mitigated these potential difficulties: first, the company made a limited move into the European market; and second, trusted management that was in...

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