Arm & Hammer

435 Words2 Pages
What was the nature of this repositioning? What were the new use situations that helped revitalize the sales of baking soda? Its assumed that Arm & Hammer experienced market growth due to the positioning of their well-known baking soda product as a must have for baking needs. However, customer segments have changed resulting in less use of baking soda at home. As a result, the company was drawing near a declining lifecycle and compelled to innovate organically where according to Darwin “on this path the company uses its internal resources to reposition itself into a growth category reconnecting with its most valued customers and finding new problems to solve for them”. (Darwin pg. 71) Arm & Hammer was in need of a strategy to reposition the use of baking soda to renew sales and achieve sustainable growth. “Repositioning is changing the place an offering occupies in a consumers mind relative to competitive products”. (Crane pg. 243) By conducting an analysis on segmentation, targeting and positioning the company was able to reposition the use and identify new uses and markets for baking soda through an effective market-driven growth strategy. Through the segmentation process Arm & Hammer segmented customers based on their needs and desired benefits (e.g. what is purchased, why is it purchased and by who?). It was important for the company to select the correct variables when determining segments and also gain insight on why home usage of baking soda is declining (e.g. lifestyles, behaviors) to effectively reposition the product. They then identified customer segments that are distinct and identifiable (e.g. how much is purchased?) that can be targeted through innovative marketing. Based on overall attractiveness and profitability of the segments a value proposition was created to position the new products and uses as delivering the most benefit

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