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Royovac Corporation The Rechargeable Battery Corporation

Situation Analysis
Prepared for : Dr. Baderisang Mohamed MKT 750 Strategic Marketing Management Prepared by :Kamaruzzaman Kamaludeen Syahril Nizam Dato Hashim

Rayovac Corporation Table of Content 1. Introduction to Rayovac Corporation 2. Competitive Landscape 3. Situational Analysis a) Strength b) Weaknesses c) Opportunities d) Threats

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Rayovac Corporation Introduction

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COMPANY Rayovac is among the leading global supplier of household and industrial batteries in 2005. MARKET DEMAND Increasing energy demand due to increased popularity of high drained devices, thus energy consumption became an important issue. MARKETING OBJECTIVES To introduces rechargeable battery as an alternative energy source in North America.

Rayovac Corporation Introduction - 2

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MARKET Growth within this product category had become relatively flat yet it is expected to be the focus for the next 5 to 10 years. CONSUMERS They sought convenient and quality over brand name and trust. Two major consumer categories: Light User Heavy User Family Segment (200 mil) - Techie Segment (75 mil)

Rayovac Corporation Introduction - 3

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CHANNELS Major distribution channels are Mass Merchandiser, Traditional Grocery and Membership Club which contributes 72%. MARKETING POSITIONING Value brand by reducing selling price even though its quality is even par with market batteries.

Rayovac Corporation Introduction - 4

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COMPETITIVE LANSCAPE Strong relationship with retailers have become essential elements in competing shelf space. Factors influencing retailers choice: -Primary: Brand Name, perceive quality, price and performances -Secondary: product packaging, design innovation, creative marketing, promotion and distribution strategies.

Rayovac Corporation Competitive Landscape

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Duracell -Within the battery market, Duracells market share: 39% - worldwide 35% - Canada Energizer - Within the battery market, Duracells market share: 39% - worldwide 35% - Canada

Rayovac Corporation SWOT- Strength

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The image of value brand by providing a superior product at an affordable price. Market leadership in lowest selling price. Existence of loyal distributor as well know companies such as Panasonic, Sony, Sanyo and Kodak fail to gain a significant share of the battery market despite their size, strength and brand recognition in other markets. Rayovac holds 14% of global market share and 20% of Canadian market share.

Rayovac Corporation SWOT- Weakness

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The introduction of rechargeable batteries, may lead to the cannibalization of existing product line. The adaptation of outsourcing production of complex product line to international manufacturing further expose Rayovac to multiple uncontrollable parameters. Highly leverage and lacked the luxury of investing in projects with negative short run returns.

Rayovac Corporation SWOT- Opportunities

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No dominant market leader in North America and Canadian Market. In 2004, rechargeable batteries represent only 5% of North America market and 10% of Canadian market. 90% of the $300 million potential market of non rechargeable battery users. Huge potential based on rechargeable battery in Canada from 40mil in 2005 to 100 mil in 2010.

Rayovac Corporation SWOT- Threats

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98 % of product distribution is by middleman. The success of the launching for rechargeable batteries depends on third party. The market leaders had an objective to develop core competencies in manufacturing. Strong presence of Duracell under P&G flagship. Expensive upfront investment to purchase charger, higher cost of batteries and lack of convenient in having to charge baterries.

Q&A

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