Energizer 2000 Annual Report Download - page 10

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ENERGIZER 2000 ANNUAL REPORT
8
TOTAL CATEGORY MANAGEMENT
DON’T FORGET THE BATTERIES
ALREADY AVAILABLE AT HUNDREDS OF
THOUSANDS OF RETAILERS AROUND
THE WORLD, ENERGIZER®BATTERIES
CAN ALSO BE ORDERED CONVENIENTLY
ONLINE FROM A GROWING NUMBER OF
NATIONAL RETAILER WEB SITES.
ENERGIZER PROVIDES RETAILER CUSTOMERS WITH A COMPLETE PRODUCT PORTFOLIO BACKED BY TOTAL CATEGORY MANAGEMENT
SUPPORT TO HELP ENHANCE THE OVERALL BATTERY CATEGORY. THE PORTABLE e2MERCHANDISER ENABLES RETAILERS TO POSITION THIS
HIGH-PROFIT PRODUCT IN A HIGH TRAFFIC AREA FOR OPTIMUM SALES.
RETAILER SUPPORT
GLOBAL PRESENCE
Production Complex To support its worldwide sales and distribution, Energizer operates a global production complex
that includes 22 manufacturing plants in 15 countries on four continents. These strategically situated facilities, including five
geographically dispersed alkaline production plants, produce approximately 6 billion battery cells each year. Restructured to
reflect the global shift in preference for alkaline batteries over carbon zinc batteries, our combined manufacturing capacity is
adequate for current requirements as well as anticipated future growth.
Customers
Energizer distributes its products to consumers through a broad range of retailers including mass merchan-
disers, warehouse clubs and dollar stores; supermarkets, drugstores and convenience stores; hardware and home centers;
department, toy and electronic specialty stores; and military exchanges. We have the capability to deliver an array of
products to any customer anywhere in the world – from a sidewalk stand in China to a hypermarket in Europe.
Beyond its comprehensive product offerings, the company seeks to develop and solidify relationships with major retailer cus-
tomers by supplying solutions to boost sales, increase margins and improve supply chain efficiencies. Our industry-leading
customer support includes planning and consultation, joint promotional and advertising efforts, in-store merchandising,
inventory management and integrated category management.
E-Commerce
As an extension of its strong customer network, Energizer is tapping the potential of e-commerce as part
of its distribution strategy. Our products are currently sold by a number of leading online merchants – from battery-specific
retailers such as Batteries.com and Batteriesdirect.com to recognized retailers such as Amazon.com, Bestbuy.com,
HomeDepot.com, Officedepot.com, ToysRUs.com and Walmart.com.
Research and Development
Bolstering our manufacturing operations is a long-standing commitment to continued
technological improvement and product innovation. Beginning with the introduction of the first dry cell battery for consumer
use in 1896, this commitment has given birth to the world’s first alkaline zinc manganese dioxide cylindrical batteries, the
first miniature silver oxide batteries, the first lithium iron disulfide button cell and the first on-label tester for alkaline
batteries. Our leadership in innovation is reflected as well by the more than 800 U.S. and foreign patents owned by
Energizer and the more than 800 patent applications currently pending.
We have significantly increased spending on research and development in recent years, reaching $50 million in fiscal
2000. The development of Energizer
®
e2
TM
, for example, represents an investment in technology of more than $50 million.
To leverage our internal resources, we have expanded our collaborative alliances with leading technological organizations
and key developers of new technology including universities, government laboratories, private research companies, small
technology start-ups and raw material suppliers.
Future Outlook
Energizer is well positioned and aggressively poised for growth: a strategic product portfolio anchored
by strong world-class brands; a global production complex with sufficient capacity; significant market share worldwide
and in key geographic markets; strong established alliances with retailer customers; undisputed leadership in R&D
and technology innovation; and a workforce of motivated, enthusiastic associates.