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“RAYOVAC CORPORATION”

DECIDE frame work has been used to analyze the case.

Key Problem Definition

To enter Canada in the business of rechargeable battery market or not.

NATURE OF THE INDUSTRY MARKET AND BUYER BEHAVIOUR

Battery Industry Overview

Competitors

Duracell- Comprises of 35% of the total market in Canada. Being a part of P&G portfolio had provided Duracell a tremendous advantage over competitors when it came to maintain strong relationship with retailers and distributors.

Energizer- Comprises of 35% of the total market in Canada. The Energizer bunny has already created a positive attitude and brand image in customers mind like Nike ‘Swoosh’ in sports arena. Energizer holdings acquired the Schick-Wilkinson sword blade and razor business has allowed the company for a better distribution.

Competition in Non-Rechargeable Battery

In 2005, the Non-Rechargeable battery segment was estimated to$ 210 million .All the players in this category are organized, & the market for this category is mature .With the growth of large in retail chains, the balance of power shifter away from manufacturers. Strong relationship with these retailers has become very important element to occupy shelf space. Duracell and Energizers continued to dominate the market due to Brand recognition and their relationship with distributers and retailers, and their established category in alkaline category. (35% Market share each in Canada)

An additional benefit of these Merger, Duracell and Energizer has benefited by balancing out the sales cycle.(the market for household batteries is highly seasonal with the large majority sales occurring during the Christmas holiday season. Merging with brands that had a different sales cycle allowed for more efficient use of the sales force and a steady revenue stream.)

Competition in Rechargeable batteries

Rechargeable battery market is small and highly fragmented. In 2005, the rechargeable battery segment was estimated to 30 million $. There is...