Bob Falconi was the vice president of sales and marketing for Spectrum was pondering how to grow the division of Rayovac Battery. He knew that with successful marketing, the rechargeable battery market would likely grow in North America just like Europe. Major competitors were not involved much in 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. Falconi wondered whether this was a business worth chasing and, if it was, how he would market the Rayovac line within Canada.
Decision
Based in my analysis of the options, I believe Rayovac should move forward and implement the “volume” strategy. As with any investment that has the potential for high return, there are risks as well. This option does have the highest risk as well as financial burden. However, this is the option that will allow for the most growth as well as return. If Rayovac wants to grab hold of the market share and create a strong brand name, they need to go big, and this is strategy is their opportunity.
