Rayovac Corporation case study
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Rayovac Corporation Rayovac was a well established brand which had two main competitors that it had fallen behind, since it had not aggressively marketed the brand for many years. The main competitors were Duracell and Energizer, which had come out with a new line of batteries called e2. They had also fallen behind in market share and consumer awareness, while the company switched hands several times. The Tomas H. Lee Group of Boston acquired the company in 1996 and, attempting to turn the company around, the group brought in David A. Jones as the new CEO. He had experience in turning around other top companies such as GE, Electrolux, Regina, and Thermoscan, and the Tomas H. Lee Group was hoping that his experience at various different types of companies would help build a stronger company. Jones's main focus was on changing the marketing strategies, a sufficient distribution change, orient the company globally, and increasing the product lines. Jones stepped up the advertisement campaigns by obtaining credible spokespersons, such as Michael Jordan and Brett Favre, and a more sustained focus on Arnold Palmer. He also recognized the need to target national mass merchandisers for distribution since they were congruent with Rayovac's value pricing strategy.
The lightning bolt is already directly connected to Gatorade as well as Rayovac, therefore decreasing the need to reinforce the associations between the brands and relies on the reconstruction schema theory for relating both brands to one symbol. Appendix 1 represents the associations between the two brands relative to extreme sports, and shows the links to be established with the proposed strategy. Famous celebrities like Vin Diesel and Shaquille O'Neal, were chosen to be the representatives directed at the American teenage population, whom could be associated with power and exceptional performance. The athletic appeal of these gentlemen could easily be connected to Gatorade, and Shaq, also being a part of the hip-hop scene with his rap album releases, could be linked up with such electronic gear as MP3 players and other portable music players that would require the use of batteries. When it comes to the Asian market, continuation of the marketing strategies that target the younger market that is emerging in Asia will feature Yao Ming, the famous Chinese NBA player. Yao Ming is the ideal spokesperson for the target market because he is seen as a role model and represents power and energy.
This would gain the attention of the consumers at the time of purchase, a purchase that would be impulse and not analytically processed. There is a trend in the battery market for consumers to impulse buy the battery products that are needed, instead of using a pre-purchase plan for the items. Using this data, affectively influencing the target markets through advertisements and point of sale promotions should increase the sales potential for the brand. In conclusion, Rayovac had a broad history of differing marketing strategies, however they failed to focus on the main purchasing groups of batteries. To compete with Energizer's new e2 battery, the XXX strategy reaching out to teenagers should keep the competition hopping. There could be a new product introduced corresponding with this marketing strategy that would also compete with Energizer, called Rayovac X. Influencing the purchasing habits of women is a necessity for the new campaign strategy as it would allow a more focused approach towards the purchasers of Rayovac's products. Finally, the current distribution strategy that emphasizes further penetration into retail distribution channels is considered as successful and thus should continue in order to provide further availability of the product to as more consumers as possible. APPENDIX 1 TEENAGE SPREADING ACTIVATION CHART APPENDIX 2 FEMALE SPREADING ACTIVATION CHART
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