Chapter 1: Successful Marketing Plans Eliminate the Negatives

Great marketing plans often succeed because the product or service is able to eliminate a significant consumer negative. These negatives are not always obvious. Sometimes consumers may not even be aware of negatives that they are actually experiencing every day. Existing products in the product category you are involved in may seem to meet virtually every consumer requirement, yet careful observation of consumer behavior may reveal an important negative that could enable you to create a critical point of difference for your product. In developing your marketing plan, you should search for potential negatives, as these could very well be the keys to success.

By identifying and eliminating a hidden but significant consumer negative, Energizer has been able to become the fastest -growing brand in the hearing aid battery market. In March 1999, Energizer was in last place in this market and was going nowhere. Through some clever research, the company discovered a significant negative that users of hearing aid batteries were unaware of, but that was present every time they changed their hearing aid batteries. This observation resulted in the development of EZ Change, a new product that virtually eliminated this negative. This new product, coupled with a brilliant marketing plan, resulted in an explosion of sales that is rapidly moving Energizer to the number one position in the hearing aid battery category. Sales of Energizer s hearing aid batteries have increased 89 percent since the launch of EZ Change.

A Time for Change

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.