Maximum P-O-P Power: A Profile of Rayovac Corp.

Rayovac Corp.'s in-store presence is on the rise. As the company attempts to raise consumer awareness of its brand, P-O-P is becoming a more integral component of that effort. From contracting celebrity endorsers to diving into account-specific promotions, the company wants to entice retailers with attractive displays to gain multiple store placements."Since batteries are a high-profit/high-impulse item, the more store locations you can get, the higher sales you're going to have," says Larry Bauer, director of merchandising and packaging development.With 60 percent permanent and 40 percent temporary, the company's display needs can be daunting. The Madison, Wis.-based battery manufacturer markets a wide spectrum of battery and flashlight products including the Maximum Alkaline, Heavy Duty, Renewal, Sportsman and Workhorse product lines. Additionally, the company ships to virtually every class of trade: mass merchants, home centers, supermarkets, specialty electronics stores and drugstores. That keeps Bauer and his marketing associates busy keeping track of a multiplicity of store design requirements and restrictions.The French ConnectionThe company was founded in 1906 as the French Battery Co., and sold dry cell batteries. In 1933, the company patented the first portable radio with high-fidelity reception. Around that same time, the company changed its name to the Rayovac Corp.Rayovac's history has been highlighted by a number of technological innovations:In 1937, the company patented the first wearable vacuum-tube hearing aid.Two years later the first leak-proof dry cell battery was introduced to the marketplace.Around 1950, the company launched the stainless steel Sportsman flashlight.Doubling the life of general purpose batteries, Rayovac developed the first heavy-duty, all-zinc chloride battery in 1972.In 1984, the Workhorse premium flashlight with its lifetime product warranty was introduced.Capitalizing on the popularity of personal computing, in 1988 the company developed a clock battery to power the real-time clocks of personal computers.In 1993 Renewal rechargeable long-life alkaline batteries were released.Aiming to gain more exposure and consumer awareness for its brand, Rayovac contracted basketball star Michael Jordan to become the spokesperson for Renewal batteries and Power Station chargers in 1995. In 1997, the company unveiled a new look for its packaging and graphics, further strengthening the image of the brand.Design StructureBoth permanent and temporary displays are used in all classes of trade, says Bauer. "We'll do permanent displays and to support seasonal and promotional opportunities, we'll include temporary displays that can be used in a secondary location. Since batteries are so impulsive, the best way to gain sales is to have multiple placements."Permanent displays are often built in cooperation with competitive brands due to the category management needs of retailers. Big box retailers and chain accounts will frequently approach Rayovac with their ideas for a permanent battery center with specific design criteria. Rayovac then works within those parameters to design a permanent station.Temporary displays tend to support the company's promotions and are strategically aimed at gaining secondary placements in stores. Oftentimes, these displays will feature celebrity endorsers to attract consumer attention and gain retailer support for the programs.Bauer generally handles the development of permanent displays, while Ann Rule, merchandising product manager, oversees the production of temporary units. Larry Baer (not to be confused with Larry Bauer), manager of consumer promotions, is in charge of fashioning promotional programs. All three are part of Rayovac's marketing department."I develop the promotional programs and the graphic design that goes along with them," says Baer. "Then I work with Larry and Ann on taking the design elements for the program and developing the display and the structure around it. Most of the time I'm coming up with the graphics and they're able to translate that into creative displays."New display projects evolve out of need and opportunity, says Bauer. Ideas for new displays stream from both the marketing and sales departments. If a specific account requests a display or a salesperson sees the opportunity within a particular class of trade, they pass that information along to Bauer."We try to look at what's going on in the marketplace and what different retailers have done to see what opportunities we can evolve," says Bauer. "We present those ideas to sales so they can look at presenting those to the retail buyers."Once the need for a display has been established, the team analyzes the goals of the display and then outlines the display criteria. An internal creative staff designs the graphics to be used on displays. Outside suppliers are then contacted and prototypes are developed. The brand manager, sales department, marketing department, channel marketing department and creative services tweak the final design until all departments are satisfied with the results, though Bauer notes that the store buyers often make the final decision for permanent displays.Rayovac works with a variety of suppliers, depending on whether they're working on a temporary or permanent display project. "What we try to do is look at the companies that excel in their industry for the materials that we want to use," says Bauer. "We go to those people for help in evolving displays in a particular medium."For permanent projects, the company employs Promo Edge, Menomonee Falls, Wis.; Chesapeake Display & Packaging Co., Winston-Salem, N.C.; and Great Northern Display, Racine, Wis. For temporary pieces, Spectrum Industries Inc., Chippewa Falls, Wis.; Bowes Industries, Indianapolis; Elkader Wire & Display Manufacturing Co., Elkader, Iowa; Merchandiser's Inc., Milwaukee; and Idea Display, Crystal Lake, Ill., are contracted."A lot of our programs are based on using existing types of structures," says Bauer. "For temporary programs, we might have a half-dozen specific types or sizes of displays. Those are used year in and year out. We change the promotional header with new graphics, but the structure stays the same."As the company has worked to raise its image with consumers over the past couple of years, celebrities have been contracted to gain exposure in-store. Television commercials featuring Michael Jordan as well as temporary displays stamped with his image have gained consumer awareness of the Rayovac brand and helped get displays placed in-store, says Bauer. In addition, the company features golfing legend Arnold Palmer on its hearing aid battery displays. Rayovac has also recently become a supporter of NASCAR and may feature NASCAR-themed displays and promotions in the future."We're doing quite a few more promotions now than we have in the past," says Baer. "Part of that is due to the increased visibility of our brand since we've started our TV commercials with Michael Jordan. That has helped raise the image of the Rayovac brand. Now, consumers are looking for our brand at retail."Since battery sales generally stay even throughout the year, with a small jump during the holidays and in the summer months, seasonally-targeted promotions are becoming a more useful selling tool. For example, Rayovac developed a program for last year's Halloween season that included free stickers with a flashlight. "The thought was that kids love flashlights, parents like for kids to have flashlights on trick-or-treat night, and we also know that kids love stickers," says Baer. "These were stickers that they could stick on the light or anywhere else. That ended up being an extremely popular promotion that we're repeating next year."Apart from seasonal promotions, the company is organizing event promotions around such themes as Y2K. Account-specific promotions have also become more abundant. "We have a core group of displays that are generic and they'll fit any class of trade," says Bauer. "If a retailer wants to take it one step further and get involved in an account-specific design, then we'll work with them to evolve that look."That customization can be anything from a standardized display with a custom header, to a standardized display with custom colors, to a completely original display with custom graphics and custom product packaging. Above all, the company works with retailers to meet their needs while maintaining the Rayovac brand image. The company also works with retailers through their private label business, which requires customized packaging, graphics and displays."If Wal-Mart says that they want a new secondary location for batteries, they may have their own parameters on what they're trying to accomplish," says Bauer. "Some stores have their own limitations on size and space so we want to meet that criteria. If they want a display in their store colors, that's another criteria that we have to meet. Then we look at how many dollars they want to put on a display, which translates into facings. Once you have the parameters down, you can then start going out to suppliers and saying 'Here's my criteria. Give me ideas on what designs you can generate to meet those requirements.'"In general, the company's temporary displays are litho-printed corrugate, though Bauer says they have experimented with motion, light and sound on a very limited basis. Permanent displays are made of a variety of materials, including wood, metal, wire and acrylic. Because of the heavy weight of the batteries, very little vacuum forming is used, except for decorative purposes.The effectiveness of a display is assessed using AC Nielsen data and store-specific sales information, though Baer notes that it's difficult to separate the effectiveness of the display from the promotion at large.Production runs vary depending on the type of display, classes of trade, and whether it's an account-specific or national program. For national programs, display runs can range from 10,000 to 25,000 units.

Maximum P-O-P Power: A Profile of Rayovac Corp.

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