Rayovac (known as Ray-O-Vac until 1988) is a brand of batteries owned by Spectrum Brands of Madison, Wisconsin, United States.
Rayovac was founded by James Bowen Ramsay (1869-1952) in 1906 as the French Battery Co. in Madison, Wisconsin, United States, with Alfred Landau as its first president. Landau was replaced by C.F. Burgess, and the company became profitable in 1910. After a fire destroyed the plant in 1915, Burgess left to found his own company. Production rose during the First World War, and by 1920 the French company had $2.74 million in sales and 600 employees, and 1000 employees in 1931. [1]
In 1930 the company name was changed to Ray-O-Vac, an allusion to the then-new technology of vacuum tubes and electron rays. In 1933 the company patented the first wearable vacuum tube hearing aid.[2]
During its ownership by the parent company of ESB Industrials, a British subsidiary was established to manufacture and market batteries in the United Kingdom under the Ray-O-Vac name. This operation ceased in 1972; Ray-O-Vac batteries continued to be marketed, though they were manufactured by the British Ever Ready company.
Rayovac changed its name to Spectrum Brands in 2005 after it acquired non-battery related businesses including Remington Products and United Pet Group. Rayovac also bought other battery companies including Varta, Ningbo Baowang, and Microlite S.A.. The Microlite acquision included the rights to the Rayovac name in Brazil, giving the company world wide rights to the Rayovac name.[3]
In 2004, Rayovac successfully underbid Energizer as RadioShack's battery supplier and now produces the "Enercell" brand of battery sold exclusively at RadioShack.
The case study was about the initiation of the Rayovac Corp. to be part of providing innovative products like the rechargeable batteries to be offered in the world market, specifically in North America. In this regard, the marketing analysis will be conducted to see the opportunity and strength of this business in the market.
Industrial Analysis
The Rayovac Corp is known to be the largest manufacturer and marketer of consumer battery in the world. The business is selling batteries for different household as well as commercial uses. Furthermore, the product lines of Rayovac consists alkaline batteries, in all standard sizes to be able to effectively compete in the highly saturated but profitable household market. The purpose of the company is to be the number one choice of the customers in the battery and rechargeable battery market in the world. Their purpose is to provide quality and standard batteries that would provide and satisfy the needs of the market in terms of a new trend of energy from both household and industrial use.
Ø Environmental Analysis
According to the case study, the major changes that is happening in the global market is the existence of the context of rechargeable market to meet the changing needs of the consumer from both household and commercial uses. To be able to analyse the external and internal environment of Rayovac, marketing tools like PEST Analysis and SWOT Analysis will be used.
o Political
Firstly, the political environment concerns the role of the government concerns the political and government role and its influence in a business. It also includes the extent to which the government intervenes in the economy. The North American government has been very supportive with the rechargeable battery industry.
Since the government of the North America believes that these industries will be beneficial for the region, the government of North America is also open for other possibilities of considering the products of Rayovac that will meet the needs of both the household and commercial clients.
o Economical
Secondly, the amount of economic activity in the economic environment is extremely an important aspect. Whilst assessing the economic environment in which battery industry operates. The government tries to terminate the level of economic activity to provide positive and friendly environment for the battery industry like Rayovac. It can be said that North American economic situation is strong and stable. With this, North America is able to sustain good relation with battery industry. The economic stability of the region has helped the battery industry to have a good economic performance.
o Technological
Technological factor has helped in reducing the barriers of entry for other battery industry. It has also supplemented in the cost of capital in other areas, to enhance the products provided by battery industries. Through the use of more advanced and efficient technology, battery industries have been able to provide innovative products like rechargeable batteries to meet the needs of their target market.
Ø Product Life Cycle
As an innovative and unique product, the life cycle of the rechargeable battery is expected to be extensive. With the current interest of the consumers for innovative battery products and their increasing openness towards technology, the rechargeable battery is expected to go through years of strong market impact. However, this product life cycle can be affected by several factors. For instance, considering that competitors are also equipped with innovative skills and technologies, it is likely that similar products will be manufactured in the future. This could possibly shorten the product’s life cycle.
Ø Market Challenger Strategies
In this case, it can be said that in order for Rayovac to compete well in the North American market, they must use a market challenger strategy. In the case of Rayovac, they have been able to use the guerrilla tactic, in terms of providing cheaper prices and quality products. Since, the North American market has price-conscious clients, Rayovac as the challenger, offer a low price for their batteries and rechargeable battery products than what the Rayovac competitors (Duracell, Energizer and other industry in North America). Although this guerrilla tactic is regarded as more harassing than other strategies, Rayovac will be assured that they would have small increments of share in the market or they can force their competitor to spend additional cost for promotional activities.
Ø Defensive Strategies
To be able to compete well in the North American market, the Rayovac Corp has been able to use defensive strategies like counter offensive. In terms of counter offensive, they used their core competencies to position the rechargeable battery products in North America and in line with their counter offensive strategy; the company has been able to use strategic marketing approach to outgrow their rival companies and to gain competitive advantage.
Retention
Our United States salaried employees enjoy the following benefits:
Medical and dental insurance
Life insurance
401(K) retirement savings plan
Paid vacation and holidays
Short and long term disability plans
Tuition reimbursement program
Business casual dress code
Flexible spending account
Employee Assistance Program (EAP)
Rayovac was founded by James Bowen Ramsay (1869-1952) in 1906 as the French Battery Co. in Madison, Wisconsin, United States, with Alfred Landau as its first president. Landau was replaced by C.F. Burgess, and the company became profitable in 1910. After a fire destroyed the plant in 1915, Burgess left to found his own company. Production rose during the First World War, and by 1920 the French company had $2.74 million in sales and 600 employees, and 1000 employees in 1931. [1]
In 1930 the company name was changed to Ray-O-Vac, an allusion to the then-new technology of vacuum tubes and electron rays. In 1933 the company patented the first wearable vacuum tube hearing aid.[2]
During its ownership by the parent company of ESB Industrials, a British subsidiary was established to manufacture and market batteries in the United Kingdom under the Ray-O-Vac name. This operation ceased in 1972; Ray-O-Vac batteries continued to be marketed, though they were manufactured by the British Ever Ready company.
Rayovac changed its name to Spectrum Brands in 2005 after it acquired non-battery related businesses including Remington Products and United Pet Group. Rayovac also bought other battery companies including Varta, Ningbo Baowang, and Microlite S.A.. The Microlite acquision included the rights to the Rayovac name in Brazil, giving the company world wide rights to the Rayovac name.[3]
In 2004, Rayovac successfully underbid Energizer as RadioShack's battery supplier and now produces the "Enercell" brand of battery sold exclusively at RadioShack.
The case study was about the initiation of the Rayovac Corp. to be part of providing innovative products like the rechargeable batteries to be offered in the world market, specifically in North America. In this regard, the marketing analysis will be conducted to see the opportunity and strength of this business in the market.
Industrial Analysis
The Rayovac Corp is known to be the largest manufacturer and marketer of consumer battery in the world. The business is selling batteries for different household as well as commercial uses. Furthermore, the product lines of Rayovac consists alkaline batteries, in all standard sizes to be able to effectively compete in the highly saturated but profitable household market. The purpose of the company is to be the number one choice of the customers in the battery and rechargeable battery market in the world. Their purpose is to provide quality and standard batteries that would provide and satisfy the needs of the market in terms of a new trend of energy from both household and industrial use.
Ø Environmental Analysis
According to the case study, the major changes that is happening in the global market is the existence of the context of rechargeable market to meet the changing needs of the consumer from both household and commercial uses. To be able to analyse the external and internal environment of Rayovac, marketing tools like PEST Analysis and SWOT Analysis will be used.
o Political
Firstly, the political environment concerns the role of the government concerns the political and government role and its influence in a business. It also includes the extent to which the government intervenes in the economy. The North American government has been very supportive with the rechargeable battery industry.
Since the government of the North America believes that these industries will be beneficial for the region, the government of North America is also open for other possibilities of considering the products of Rayovac that will meet the needs of both the household and commercial clients.
o Economical
Secondly, the amount of economic activity in the economic environment is extremely an important aspect. Whilst assessing the economic environment in which battery industry operates. The government tries to terminate the level of economic activity to provide positive and friendly environment for the battery industry like Rayovac. It can be said that North American economic situation is strong and stable. With this, North America is able to sustain good relation with battery industry. The economic stability of the region has helped the battery industry to have a good economic performance.
o Technological
Technological factor has helped in reducing the barriers of entry for other battery industry. It has also supplemented in the cost of capital in other areas, to enhance the products provided by battery industries. Through the use of more advanced and efficient technology, battery industries have been able to provide innovative products like rechargeable batteries to meet the needs of their target market.
Ø Product Life Cycle
As an innovative and unique product, the life cycle of the rechargeable battery is expected to be extensive. With the current interest of the consumers for innovative battery products and their increasing openness towards technology, the rechargeable battery is expected to go through years of strong market impact. However, this product life cycle can be affected by several factors. For instance, considering that competitors are also equipped with innovative skills and technologies, it is likely that similar products will be manufactured in the future. This could possibly shorten the product’s life cycle.
Ø Market Challenger Strategies
In this case, it can be said that in order for Rayovac to compete well in the North American market, they must use a market challenger strategy. In the case of Rayovac, they have been able to use the guerrilla tactic, in terms of providing cheaper prices and quality products. Since, the North American market has price-conscious clients, Rayovac as the challenger, offer a low price for their batteries and rechargeable battery products than what the Rayovac competitors (Duracell, Energizer and other industry in North America). Although this guerrilla tactic is regarded as more harassing than other strategies, Rayovac will be assured that they would have small increments of share in the market or they can force their competitor to spend additional cost for promotional activities.
Ø Defensive Strategies
To be able to compete well in the North American market, the Rayovac Corp has been able to use defensive strategies like counter offensive. In terms of counter offensive, they used their core competencies to position the rechargeable battery products in North America and in line with their counter offensive strategy; the company has been able to use strategic marketing approach to outgrow their rival companies and to gain competitive advantage.
Retention
Our United States salaried employees enjoy the following benefits:
Medical and dental insurance
Life insurance
401(K) retirement savings plan
Paid vacation and holidays
Short and long term disability plans
Tuition reimbursement program
Business casual dress code
Flexible spending account
Employee Assistance Program (EAP)