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Duracell

In: Business and Management

Submitted By xbrowneyez622
Words 464
Pages 2
The New York Times posted an article promoting Duracell, a Proctor and Gamble brand, which is introducing a new line of batteries called Quantum. The article starts off by recognizing how consumers’ choices have evolved with newer technologies. For example, consumers are choosing devices like digital cameras which are powered by built-in rechargeable batteries, and smart phone alarms instead of battery-operated alarm clocks. Market research shows that the battery market declined between 2007 and 2012, with a 10% decrease in revenue. Nonetheless, Duracell is up for the challenge and has introduced Quantum, its most powerful battery which will be sold at a suggested retail price of 20%-30% premium. The new entry will replace Duracell Ultra, another premium battery line which is priced the same as Quantum. Quantum will be marketed with the color red, and will run advertising campaigns featuring firefighters and first responders in action during disasters. Duracell’s strategy to introduce a line of high-end batteries is an opportunity that was stimulated from the environment such as changing consumer’s needs and new means of technologies. The product life cycles for batteries are passed maturity, where it is important for the firm to differentiate it product in order to keep up with external factors such as competition and the environment. Quantum will be differentiated heavily in its marketing mix and offering. For instance, the price will be sold at a 20-30% premium, creating a perception of higher quality. The product itself will be marketed differently. Quantum had replaced Duracell Ultra, another premium battery line and is innovative in its product presentation. The usual Duracell batteries have had a copper-color upper section and a black lower section since 1972, however, the new batteries are red below the copper band. The color red is marketed so that the

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