Rayovac Case

M450 Marketing Strategy
Spring 2012
Chapter 4 Case

Rayovac Corporation: The Rechargeable Battery Opportunity Case Discussion Topics

Purpose: • Analyze industry and company characteristics; • Assess opportunities and alternative strategies available to a smaller company competing with larger, better resourced, well-established competitors; • Determine the best strategic direction for the company, given this opportunity and the company’s goals and resources, including establishing strengths and brand awareness in a small market segment to help growth in larger categories; • Understand the power and importance of retailers in highly competitive consumer btands overall, the growing need to gain leverage through building brand portfolios through
Duracell and Energizer; o Battery consumer segments included “light users” (less than $25 per year) and “heavy users” (spent up to $250 annually); o Mass merchandisers generated the largest volume of sales, with corresponding need for Rayovac to compete effectively for shelf space (discounting); o Competitors use merging with other consumer goods companies to leverage relationships across brands (Duracell owned by Proctor and Gamble; Energizer through its own acquisitions); o Duracell and Energizer each held 39% of global market and 35% of Canadian market vs. 14% and 20% for