Strategic Distribution Mix and Improved Visibility Will Generate Sales of Alkaline Batteries

Battery vendors are challenged to provide the right combination of distribution channels and to take steps to make their brands prominently visible as well as easily available to customers, since batteries are a highly impulsive purchase. Strategic location of batteries in high customer-traffic zones such as supermarkets, drugstores, and electronic stores, and in multiple locations throughout a store increase sales. Places such as hardware stores that stock battery end-user applications serve as strategic sales points. In addition, embellishments such as improved packaging ensure that the product stands out from its competitors in the retail space.

This new research service from Frost & Sullivan analyzes the world alkaline battery markets and provides an analysis of drivers and restraints that affect sales. It provides strategic analysis and forecasts, and industry trends along with potential market impact.

Low Penetration of Alkaline Batteries in Developing Regions Presents Growth Opportunities

"With the economies of developing countries in Latin America and Asia opening up and improving, the sales of more expensive and superior alkaline batteries are expected to increase," says the analyst of this research service. In the past, cost was a prohibitive factor, but with the economic hurdle removed, there are immense opportunities for growth.

For instance, with foreign exchange controls, a continental economy, and a consumer market large enough to drive growth on its own, China's economical stability spurs sales. The country's population of 1.3 billion and GDP growth of 7 percent provides a lucrative market for battery vendors. "A huge population coupled with higher disposable income and an open economy is anticipated to prod the migration from carbon zinc to alkaline batteries in this region," states the analyst. The growing awareness of the product provides ample scope for growth over the forecast period.

Establishing Long-term Relationships with Distributors Will Sustain Profits

In today's cluttered market, securing long-term contracts with key distributors will garner greater visibility for specific brands in the retail segment. Vendors that adopt this strategy will gain an extended distribution line that results in market leadership. Apart from securing space on the retail shelf, a fruitful relationship with the distributors plays a vital role in market penetration. Companies such as Duracell, Energizer, and Rayovac maintain an advantage over other market participants because of the established base of distributors that handle their line of products.

An effective distribution channel is the key to attracting customers. Choice of channel depends on customer traffic, which differs from place to place. Food stores, discount stores, hardware stores, warehouses, and drug stores are some of the commonly used distribution channels.

Information on Alkaline Battery Market

The research contains unit shipment and growth forecasts for both the primary and secondary alkaline battery markets. It also analyzes the end-user application segments of the battery market. This enables the client to see the available potential target market size for each battery segment.

Unique Regional Analysis

The report provides a unique regional analysis of the alkaline battery market, segmenting it into strategic geographic regions of North America, Europe, Asia Pacific, and Rest-of-the-world.

Specific Strategic Recommendations

The report provides in-depth strategies for improving market penetration. It presents varying strategies to address each challenge. It provides market size and forecasts for each battery chemistry and application segment in one convenient report, apart from the total alkaline battery market size.

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Battery Chemistry

• Primary Alkaline Battery
• Secondary Alkaline Battery

By Geographic Region

• North America
• Europe
• Asia Pacific
• Rest-of-the-world

By End User Application

• High End Application
• Low End Application
• Others

By Cell Size

• AA Cell
• AAA Cell
• C Cell
• D Cell
• 9V Cell
• Others

By Distribution Channel

• Discount Stores
• Food Stores
• Drug Stores
• Hardware Stores
• Warehouse Stores
• Other Stores

The following technologies are covered in this research:

• Primary Alkaline Battery: A primary alkaline battery has a zinc anode and a manganese dioxide cathode. The electrolytes used in the alkaline batteries are either potassium hydroxide or sodium hydroxide. The battery is characterized as having a good energy density, especially when used at low and moderate rates.
• Secondary Alkaline Battery: This is a reusable battery having multiple cathode rings (pellets) formulated from electrolytic manganese dioxide, graphite and additives and gelled zinc anodes with a microporous separator. The reusable alkaline battery has a fast charge time, lower self-discharge rate and unlike other rechargeable chemistry can be used straight out of the package

Click here to view the analyst presentation:

A428.ppt