Rayovac Case Analysis

3 March 2017

However consumers are now demanding improved battery technology. – In 2005 Alkaline technology has become the most popular however growth has flattened out but due to the market size, it still remains the main focus for the next 5-10 years. – In Canada the overall battery market is 300 million; 70% of which is the alkaline category, 20% other, and only 10% the rechargeable category. In order for a company to be successful they needed to be involved in the alkaline segment. Consumers: Light Users: $25 average/year Heavy Users (Families and Techies): $250 average/year

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Families: $200 million per year of the market – one or more children, $60,000 income, but lower level of disposable income – price and value important – batteries used for household items but not high-drain items Techies: $75 million per year of the market – 15-30 years of age -early adopters -heavy users of high-drain devices -$20,000-40,000 per year income but more disposable income Channels: -Mass merchandisers generated the largest volume of sales within a market segment Mass merchandisers and grocery stores focus on price sensitive and families consumers

Drugstores focus on seniors and tween consumers Hardware and homegarden stores focus on males 30 to 35 Niche stores focus on the techies Rayovac: Rayovac is 3rd largest consumer battery manufacturer and marketer in the world. Largest seller of hearing aid batteries in the world. Product Line up: alkaline (14% globally and 20% market share in Canada for Rayovac) Bought Remington Products Inc to enhance their retail presence Bought a lawn company in order to have access to hardware and homegarden stores Greater ability to compete Rayovac positioned themselves as a value brand.

They reduced their price although offered same quality products as the main competitors. Targeted value conscious shoppers looking for high quality at a lower price. They manufactured a large portion of their products but also outsourced- rechargeable line The Competitive Landscape: -Highly competitive market -Retailers chose one supplier over the other due to brand name recognition, perceived quality, price, performance, design, marketing, and promotion. Main competition: Duracell (39% of the market, and 35% in Canada) and Energizer (39% of the market share, and 35% in Canada).

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