Rayovac Case Analysis Essay

1380 Words Mar 29th, 2012 6 Pages
CASE ANALYSIS

RAYOVAC CORPORATION

Introduction: As the use of household batteries is on the rise due to increased development of high-drain devices such as cameras, Bob Falconi, vice-president of sales and marketing for Spectrum Brands Canada Inc, is considering whether or not to pursue the not yet well developed market of rechargeable batteries in order to increase its presence and brand name recognition in this very highly competitive market of disposable batteries dominated by Duracell and Energizer. The major competitors of Rayovac- a division of Spectrum Brands Canada Inc, are not focusing on this category for fear that it would cannibalize their sales of disposable batteries, as this can be a good opportunity for Rayovac,
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-Must make a quick decision
-Viewed as a value brand rather than a quality brand
-Does not have a strong brand recognition
Opportunities:
-To gain competitive advantage to continue to build its overall brand by becoming market leaders in rechargeable category and gain share within the alkaline segment as well.
-Can use the recent NimH technology as a way to establish itself as a larger player.
-rising cost of one time use batteries
-increasing consumer demand for better technology
-growing environmental concerns
-Alkaline battery technology can become exhausted and outdated
-They already have a good relationship with the rechargeable manufacturers in Japan and China
-Energizer offers a full line of rechargeable batteries but very little advertising.
-Duracell only offers AA and AAA rechargeable batteries.
-Competitors reluctant to enter this market because they don’t want to cannibalize their disposable battery sales.
Threats:
-Market leaders will react and push into this category.
-Rayovac had to consider its outsourcing arrangement: The companies manufacturing the rechargeable batteries might want to enter market and Rayovac would essentially be setting up a market strategy for them. Asian manufacturers might want to capitalize this category since the market leaders did not dominate this segment.
-Canadians are similar in thinking with the Europeans but have mirrored the Americans for years and so they

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