Professional Documents
Culture Documents
n Time
2 minutes
Discussio
n Format
Criticism
& Debate
Think
Tanks
Before we begin
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Outline
Introduce the case study
Framework of analysis
Market Background and Analysis
Market Strategy Identification and
Analysis
Sales Strategy Analysis
Conclusion
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Introduction
Underlying Forces
Demand Increasing energy consumption
Household batteries: exponential growth
Increased popularity of high-drain devices
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Introduction
Market Opportunity
Alkaline Batteries
70% of total battery market in Canada
Relatively flat growth
Focus of major competitors for next 5-10 years
Rechargeable Batteries
10% of total battery market in Canada
Minimal focus of major competitors
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Introduction
Rayovac Battery Division
A division of Spectrum Brands Canada
Spectrum Brands: a global consumer products
company owing a variety of brand name
products
Bob Falconi
VP of sales and marketing for Spectrum Brands
Duracell: worked for 16 years and became VP
of sales
Prior to Rayovac: worked for Pure Energy
Battery Corp which introduced a revolutionary
rechargeable alkaline battery system
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Introduction
Falconis Ultimate Decision
Create competitive advantage in alkaline segment
OR
Proceed with rechargeable batteries strategy
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Introduction
Rayovacs Goals
Maintain positive return on investments
Minimal cannibalization of existing
products
Become market leader in proposed
segment
FRAMEWORK OF
ANALYSIS
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Analysis Framework
Market
Analysis
Marketi
ng
Strategy
Ultima
te
Decisi
on
Sales
Strategy
MARKET
BACKGROUND &
ANALYSIS
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Market Background
Battery Market
In 2005, the overall battery market in
Canada is approximately $300 million
Alkaline segment 70%
Rechargeable segment 10%
Other battery chemistries (including zinc)
20%
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Market Background
Heavy Users
Description
Families
Techies
$ 200 Million
$ 75 Million
Low
High
Type of Devices
Not High-Drain
High-Drain
Decision Factor
Impulsive
Many
Few
Low
High
Estimated Total
Sales
Disposable Income
Quantity
Replacement
Frequency
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Market Background
Rayovac's Canadian Market Share
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Market Background
Rayovac's Global Net Sales
(Percentage)
70%
(Exhibit
5)
60%
50%
40%
30%
20%
10%
0%
2003
2004
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Market Background
Rayovac's Global Net Sales (US$ 000s)
(Exhibit 6 incorporated in Exhibit 5)
$700,000.00
$600,000.00
$500,000.00
$400,000.00
$300,000.00
$200,000.00
$100,000.00
$0.00
2003
2004
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Market Analysis
Objectives
Perform a structural analysis of the battery
industry
Assess and evaluate Rayovacs
competitive position currently and in
rechargeable battery market
Identify competitive strategy to meet the
opportunities and threats in Rayovacs
external environment
Provide meaningful insight when
performing SWOT and other applicable
analysis
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Market Analysis
Threat of New
Entrants
Power of
Suppliers
Competiti
ve Rivalry
Threat of Substitutes
Power of
Buyers
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Market Analysis
Power of suppliers
How much power do suppliers hold?
How many suppliers are there and what market
share do the largest suppliers hold?
How distinctive are each suppliers products?
How straightforward is it for the customer to
switch to another supplier?
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Market Analysis
Power of suppliers
Strong
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Market Analysis
Power of buyers
How much power is held by the customer?
How many customers are there and how many
customers does a typical player have?
How much market share do the largest
customers account for?
What alternatives do customers have?
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Market Analysis
Power of buyers
Increase
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m1
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Market Analysis
Threat of new entrant(s)
How likely is it that competition will increase with
new entrants?
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Market Analysis
Threat of new entrant(s)
Increase
Tea
m1
Tea
m2
Tea
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Decrease
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Market Analysis
Threat of substitute(s)
What is threat that customers will switch to
different products?
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Market Analysis
Threat of substitute(s)
Team 1
Team 2
Team 3
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Market Analysis
Competitive Rivalry
How much competition is there in the market?
How many competitors are there?
How much market share does each competitor
hold and how strong are competitor brands?
How easy is it to win new customers?
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Market Analysis
Competitive Rivalry
Tea
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MARKETING
STRATEGY
IDENTIFICATION
&
ANALYSIS
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2007
2008
2009
2010
Volume strategy
10%
9%
7.5%
6%
6%
Niche strategy
7%
7%
6%
6%
5%
2007
2008
2009
2010
Volume strategy
25%
30%
35%
40%
45%
Niche strategy
20%
20%
20%
20%
20%
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Marketing Strategy
Competitive Advantage
Com
peti Broad
tive
Sco
pe Narro
w
Low Cost
Higher Cost
Overall Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
SALES STRATEGY
ANALYSIS
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CONCLUSION
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Conclusion
1. Conduct a
benchmarking study
of the market hold of
current product line.
2. Think of ways in
which our
competitors can
outperform us
3. Explore ways of
promotion.
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