Competitors Reactions Have Been Ineffective

One of the initial responses of Energizers competitors in the hearing aid battery market to the introduction of EZ Change was aggressive promotion and price cutting. These actions have not been effective. Consumers have demonstrated that they want the EZ Change solution no matter how much competitors promote the alternatives. The sales of EZ Change have continued to grow and its exposure at retail has continued to expand in spite of heavy promotional spending by competitors.

Another competitive action was the introduction of Easy Tab by Duracell.Energizer found out about this new competitive hearing aid battery in March 2001, Just six months before the time that EZ Change was launched. The consumer reaction to Easy Tab has not been strong enough to affect the sales of EZ Change. Energizer management feels that there are three reasons for this. First, the Easy Tab card size is very small, making it difficult for the consumer to read. Second, the EZ Change focus groups indicated that hearing aid users really do not like tabs, which are the basis of the new Duracell product. Finally, the Easy Tab batteries come in a rectangular package, which is different from the package that hearing aid battery users are accustomed to.