Rayovac Corporation - The Rechargeable Battery Opportunity

The vice-president of sales and marketing was contemplating how to grow the Rayovac Battery Division of Spectrum Brands Canada Inc. (Spectrum). Spectrum, a global consumer products company, owned a variety of brand name products. The vice-president of sales and marketing knew that, with effective marketing, the rechargeable battery market was one that would likely grow within North America as it had in Europe. Major competitors were not focusing on this product category, fearful that it would cannibalize sales of their non-rechargeable products. Rayovac could use this opportunity to increase its presence and brand name recognition by entering the "back door" instead of competing head-to-head against the well-established market leaders - Duracell and Energizer. The vice-president wondered whether this was a business worth pursuing and, if so, how he would market the Rayovac line within Canada. Students will assess opportunities and develop marketing strategies to pursue these opportunities. The case also shows students how building one segment of the market might lead to building other related segments.