Duracell Marketing Plan

I. Executive Summary

 Duracell is a member of the Gillette Co. and is the alkaline battery market leader holding approximately 50 percent of the U.S. market share. Duracell has been forced to realign its prices in order to stay competitive with competitors who have introduced lower-cost brands. New advances in technology calls for the latest devices to be smaller, lighter, and more portable. Additionally, this new technology is placing increased demand for a stronger power supply and that is why Duracell has launched a new line of batteries called Prismatics. Prismatics will utilize a unique flat battery design that will provide a more compact platform for device manufactures to build new products on. The goals in the marketing plan are to:

1. Establish partnerships with major electronic manufactures, especially Sony, to create products that utilize and capitalize on the lightweight and slim design afforded by Prismatics.

2. Initiate and achieve full product rollout by the 2004 holiday season.

3. Capture a significant share of the battery market for digital cameras and portable audio devices.

Duracell's marketing strategy is based on the creation of co-branding opportunities with major electronic manufactures and a media campaign to educate battery consumers on the advantages of Prismatics. The alliances with manufactures are the key to the long-term success of the Prismatics line.

II. Situation Analysis

A. The Internal Environment

 Review of marketing goals and objectives

* Gillette's overall goal focuses on the skillful marketing of superior technology to achieve worldwide leadership

* Duracell released the promotional campaign "Trusted Everywhere" for their Coppertop alkaline battery that stressed trust and reliability rather than product performance

* Duracell lowered list prices for the AAA and AA batteries in response to intense price competition from Rayovac and Wal-Mart

 Review of current marketing strategy and performance

* They currently hold about 50 percent of the US battery market and are the world's leading manufacture and marketer of high-performance alkaline batteries

* For the period in 2003, Duracell sales were at $816 million which had increased 7 percent from the previous year and their profit had more than doubled from the year before to a total of $93 million

* Since consumer use of portable electronic devices has increased over the past few years Duracell has introduced a new battery called the Duracell Ultra, which is just a "juiced up" version of the alkaline battery

 Review of current and anticipated organizational resources

* Duracell has a work force of 7,700 and sales volume was nearly $1.9 billion in 2002 and their profits have been on the rise in 2003 due to the increase in battery demand

* Duracell has an advantage over its competitors because of the relationships that it has with retailers and manufactures

* Duracell can use any other Gillette distribution channel and retailer relationships to extend the overall reach of their battery distribution

 Review of current and anticipated cultural and structural issues

* The "Trusted Everywhere" campaign reflects customers' basic emotional needs for security and reliability

* By answering consumer's demands for new technology, it shows indicates Duracell's customer-oriented values

* Duracell appears to have a long-term vision to adapt to the changing electronic device market

B. The Customer Environment

 Who are the firm's current and potential customers?

* Dominant users are owners of toys, audio products, cameras, remote controls, and flashlights, which together account for 83.7 percent of the total U.S. market

* Virtually all potential consumers can be reached as electronic devices and batteries are now being marketed over the Internet

* Customer service can help to determine consumer decision making by retail employees explaining the true value of Prismatics over competing batteries

 What do customers do with the firm's products?

* Some consumers will most likely desire volume discounts if they plan on using large amounts of the batteries

* Prismatics, at the same time, can appeal to consumers' practicality, trendiness, and their historic trust in the Duracell name

 Where do customers purchase the firm's products?

* It will be sold directly to electronic manufactures and to consumers via specialty and general retail stores

* Batteries will also be sent separately to general retailers, online vendors, electronic specialty stores, camera stores, and wherever compatible portable electronic devices are sold

 When do customers purchase the firm's products?

* Purchase of batteries often complements an initial purchase of a toy or electronic device that says "Batteries not included"

* Consumers are often reminded to purchase batteries by the cashier at the store or by seeing another customer in the store buying batteries and be reminded of their own portable power needs

* Seasonal spikes in alkaline battery consumption occur around Christmas, summer, and the hurricane season. Also consumption may vary depending on the lifestyle and frequency of travel of the consumer

 Why (and how) do customers select the firm's products?

* The Duracell name means reliability to consumers and that is why their products are trusted by customers everyday

* They use the most advanced technologies to ensure that the power is there when the customers need it to be

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