The management of Eveready Battery Company has learned to deal successfully with change. For many years it was a division of Union Carbide. It was acquired by Ralston Purina in the 1980s, and then, approximately three years ago, it was spun off as a separate business under the name Energizer. Throughout all of these changes, the company has held a leadership role in the battery industry. Hearing aid batteries are manufactured and marketed by the Miniature Group, a strategic business unit within Energizer. This group produces miniature batteries for both hearing aids and watch electronics.
Although Energizer is used to a leadership role, in 1999 it had a weak position in the hearing aid battery category. The management of the Miniature Group felt very vulnerable and did not like the way things were going. It had tried several traditional marketing techniques to improve the company’s position, but nothing seemed to work. It had tried advertising on the radio and had tried bonus packs, such as including a free battery caddy for hearing aid batteries. The company’s market share did not increase. It became obvious that Energizer really needed to do something different to strengthen its position in the marketplace.
The decision was made to create a new product that would represent a true breakthrough in the hearing aid battery marketplace—something that would clearly set Energizer apart from all the other manufacturers. A venture team was assembled that included key people within the company, along with a group of outside suppliers who were experts in various appropriate fields. A budget was allocated for this project, and a development timetable was agreed upon.