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Rayovac CorporationTable of Content
1. Introduction to Rayovac Corporation2. Competitive Landscape3. Situational Analysis
a) Strengthb) Weaknessesc) Opportunitiesd) Threats
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Rayovac CorporationIntroduction
COMPANYRayovac is among the leading global supplier of household and industrial batteries in 2005.
MARKET DEMANDIncreasing energy demand due to increasedpopularity of high drained devices, thus energyconsumption became an important issue.
MARKETING OBJECTIVESTo introduces rechargeable battery as an alternativeenergy source in North America.
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Rayovac CorporationIntroduction - 2
MARKETGrowth within this product category had becomerelatively flat yet it is expected to be the focus for thenext 5 to 10 years.
CONSUMERSThey sought convenient and quality over brand nameand trust.
Two major consumer categories:Light User Heavy User Family Segment (200 mil)
- Techie Segment (75 mil)
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Rayovac CorporationIntroduction - 3
CHANNELSMajor distribution channels are Mass Merchandiser,Traditional Grocery and Membership Club whichcontributes 72%.
MARKETING POSITIONINGValue brand by reducing selling price even though itsquality is even par with market batteries.
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Rayovac CorporationIntroduction - 4
COMPETITIVE LANSCAPEStrong relationship with retailers have becomeessential elements in competing shelf space.Factors influencing retailers choice:
-Primary: Brand Name, perceive quality, price andperformances-Secondary: product packaging, design innovation,creative marketing, promotion and distribution
strategies.
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Rayovac CorporationCompetitive Landscape
Duracell-Within the battery market, Duracells market share:
39% - worldwide35% - Canada
Energizer - Within the battery market, Duracells market share:
39% - worldwide35% - Canada
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Rayovac CorporationSWOT- Strength
The image of value brand by providing asuperior product at an affordable price.Market leadership in lowest selling price.
Existence of loyal distributor as well knowcompanies such as Panasonic, Sony, Sanyoand Kodak fail to gain a significant share of thebattery market despite their size, strength andbrand recognition in other markets.
Rayovac holds 14% of global market share and20% of Canadian market share.
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Rayovac CorporationSWOT- Weakness
The introduction of rechargeable batteries, maylead to the cannibalization of existing productline.The adaptation of outsourcing production of complex product line to internationalmanufacturing further expose Rayovac tomultiple uncontrollable parameters.Highly leverage and lacked the luxury of
investing in projects with negative short runreturns.
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Rayovac CorporationSWOT- Opportunities
No dominant market leader in North Americaand Canadian Market.In 2004, rechargeable batteries represent only5% of North America market and 10% of Canadian market.90% of the $300 million potential market of nonrechargeable battery users.Huge potential based on rechargeable batteryin Canada from 40mil in 2005 to 100 mil in2010.
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Rayovac CorporationSWOT- Threats
98 % of product distribution is by middleman.The success of the launching for rechargeablebatteries depends on third party.The market leaders had an objective to developcore competencies in manufacturing.Strong presence of Duracell under P&Gflagship.Expensive upfront investment to purchasecharger, higher cost of batteries and lack of convenient in having to charge baterries.
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Q&AEMBA MKT 750
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