case rayovac - 1.0 Company Background Rayovac was the third...

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1.0 Company Background Rayovac was the third largest consumer battery manufacturer and marketer in the world. The company sold batteries and flashlights for various household and industrial use, in addition to being the largest seller of hearing aid batteries in the world. Rayovac’s battery product line-up included alkaline batteries, in all standard sizes, to compete in the highly saturated but lucrative household market. Rayovac products were available in over one million stores throughout North America, Europe, Asia Pacific, the Middle East, Africa, Latin America and Brazil. The company began operations in 1996, but it did not introduce the Rayovac name until the 1930s. Its initial focus was on specialty batteries for use in devices such as its own patented vacuum tube hearing aids. The company grew through the continued development of state-of- the-art flashlights and nontraditional batteries, including extending the successful hearing aid battery line. It eventually entered the competitive household battery market through key acquisitions and by capitalizing on existing distributor and retailer relationships. This was long after Duracell and Energizer were well established within this market. Rayovac has made great strides over the past few years in an attempt to gain ground. Acquisitions were made to access international markets including Europe (Varta Battery Corporation acquired in 2002), China (Ningbo Baowang acquired in 2004), and Brazil (Microlite acquired in 2004). Globally, Rayovac held a 14 percent market share, with a 20 percent share of the Canadian market. Similar to its competitors, Rayovac acquired other consumer brand companies to enhance its own ability to gain retail presence. In 2003, Rayovac bought Remington Product Inc, a company specializing in consumer shaving and grooming products. In February of 2005, Rayovac Corporation acquired United Industries Corporation (a leading U.S manufacturer of 1
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consumer lawn and garden care products and insect control products), Nu Gro Corporation (a leading Canadian manufacturer of lawn and garden care products), and Tetra Holdings Inc (a leading supplier of fish and aquatics supplies), and formed Spectrum Brands Inc. This series of moves provided Rayovac with an extended brand portfolio, as well as access to a number of new retailers such as RONA, Home Depot, and others where previously it had not been able to gain shelf space. The synergies gained did not necessarily favor one segment (alkalines, rechargeables, shavers, fertilizers, etc.) over another, but rather provided negotiating strength for the bundle of Spectrum brands, resulting in greater ability to compete within its given markets. 1.1
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This note was uploaded on 02/25/2010 for the course HGHJBN 78565565 taught by Professor Ghfhkjhkjv during the Spring '10 term at A.T. Still University.

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case rayovac - 1.0 Company Background Rayovac was the third...

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