Rayovac Case Study

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Rayovac’s growth and success can be attributed to a well-defined and executed strategic plan. First, as the third largest battery maker, Rayovac’s alkaline battery strategy is to compete on price. They price their alkaline batteries below Duracell and Energizer to gain market share.
Rayovac has made significant progress in establishing partnerships with low-cost mass merchandisers to distribute its products. Giants, such as Wal-Mart, Lowes, and BJ’s Warehouses have teamed with Rayovac to market its batteries. Currently, Rayovac batteries can be found in over 100,000 stores in North America, tripling its distribution points in just four years.

Second, Rayovac has had significant global expansion. They have concentrated on the
Latin America market and have copied its North American strategic and marketing plan and implemented throughout Latin America. To continue to grow the 24% market share in Latin
America, Rayovac will continue to expand distribution outlets with mass merchandisers. In addition, Rayovac will expand its product offering by introducing the successful North American products. Rayovac has plans to further expand its European market. With a foothold in the UK,
Rayovac again will leverage its North American distribution strategy by partnering with mass merchandisers. Rayovac’s key relationship with Wal-Mart in the U.S. will help further expand its operations in continental Europe. Additionally, Rayovac will continue to expand.

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For the most part, Rayovac has implemented a very successful strategic platform evidenced by their consistent financial performance and record earnings in 2000 and 2001. The company should maintain its focus as the low cost provider of consumer batteries offering a full range of battery solutions. Rayovac needs to continue to expand its alkaline business (accounts for nearly 50% of sales) and increase its retail outlets in North America. They have increased
their

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