Rayovac 2001 Annual Report Download - page 14

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Rayovac Maximum Alkaline batteries
deliver competitive performance,
at an everyday price that is
10-15 percent lower than that
of our competitors.
Leveraging
Our Value
Proposition
01
Annual Report
Driving Home the Power of the Brand
Rayovac has successfully leveraged our strong value brand proposi-
tion in the retail battery marketplace over the last five years. Rayovac
competes effectively with other leading brands because we appeal to
a different kind of consumer: A value-conscious shopper for whom a
combination of price and performance drives the point-of-sale decision.
Despite a soft market and competitors that consistently outspend
us on advertising and promotions, we successfully expanded our U.S.
market share again in 2001. In the important mass merchandiser channel,
where two of ever y five batteries are sold, Rayovac is the top-selling
brand, further evidence of the appeal of our value proposition.
In addition, consumer recognition of the Rayovac brand grows
every year. Consumer awareness of Rayovac has risen 20 percentage
points since 1997, and is comparable to that of our competitors. Today,
nine out of every 10 consumers know the Rayovac brand and are familiar
with our advertising.
Making Global Distribution Gains
Rayovac’s clear value to the consumer also extends to our retailer
customers, a fact that we prominently demonstrated in 2001 by forging
major distribution gains with both new and existing customers. The
Home Depot and Lowe’s, the nation’s two leading home improvement
suppliers, and Toys “R” Us, the nation’s largest toy retailer, now sell
Rayovac products. And Wal-Mart, the world’s largest retailer, recently
selected Rayovac to produce private-label AA and AAA batteries for
Wal-Mar t’s 26,000 checkouts chainwide.
During 2001, Latin American retailers also continued to buy into
the Rayovac value proposition. We added new customers, such as
Ahold, Makro and Jumbo, and increased our business with existing
Latin American retailers, including Wal-Mart, Casino and Carrefour.
Already the best-selling zinc carbon brand in most countries in Latin
America, Rayovac gained significant market share in alkaline batteries
during fiscal 2001.