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Digg it UP - An Analysis of Energizer Holdings (ENR)
Military metaphors work well for the field of marketing and advertising, and with great deference to the more serious conflict in Iran, we will look to both Napoleon and Sun Tzu for our foundation forstealing market share.Market leaders were generally on a deliberate track to build category. In many ways, this is not as true today as it was in the past. Today, only a few market leaders can afford the luxury of simply building categories. For those of us in the real world, who are not number one in the category, and who are being outspent and overshadowed in the market place, our brands need to steal customers from the competitive set.Human TendenciesOddly enough, with careful planning and insight, you may in fact find an ally and advantage in the market leader. Napoleon taught us that our advantage often lies in an understanding of human beings. He tells us that there is often a deep complacency to be found in market leaders. “The great majority attends to what is necessary only when they feel a need for it — the precise time when it is too late. They take only their needs into consideration — never their abilities.” Sun Tzu agrees. He tells us that we need to act boldly and with speed. “The nature of forces is predominantly swiftness.” This is much more than just “get there first with the most” — it demands that we find an advantage and exploit it while our competitors wallow in the status quo. This advantage is brand.Most brands, particularly package goods and technology brands, believe this advantage needs to be found in a product attribute, some new innovation that allows their brand to build a unique selling proposition. No one is downplaying the tactical advantages offered by product innovation; it is simply not where a brand builds long-term equity and is often unavailable and costly to develop. The good news is that the business world is full of successful brands that under-performed their competitive set. The world of video recorders is a perfect example.Beta vs. VHSRemember the old rule of thumb: be first in the market and the advantage will be yours. Well, back in the 80’s Sony’s Betamax was first in the market, and they had a superior product. Are you listening Apple Computer? The war between VHS and Beta was about to begin, and with surprising results. The Beta format was clearly superior in the video image it produced (it still is). The cassettes were a little smaller and more compact. In addition, Sony led the market in innovation, producing the first stereo video recorders, and they were the first to bring in HQ technology. On top of this, they had one of
Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.
In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies
The psychology of the trader plays a very important role in his trading decisions and style. The best traders keep their sentiments (greed and fear) out of their analysis and decide to trade with clear mind. Follow the advices below and you will notice a great deal of improvement in your trading style.Never trade when your mind is occupied with other things. Try to be concentrated on the market. Try to feel the market, that is the Market Sentiment. When you feel overwhelmed of the information in your head, take a break. Then come back with clearer mind. Do not be trigger happy with your trades and always have a trading plan. Follow your Forex system with discipline. Apply the rules of Money Management with care. Always mind your loses! Then let the profits come. Stop loss orders are there to save you by yourself. Always use them and never stay on a false trade just to feed your ego. Ego never makes money! Even the best traders are often wrong. But market is always right!The best traders have the vigilance to realize the market sentiment quickly and ride the market in the right position. Even when they are wrong at first, they quickly change their positions when they realize it! It is very important to learn from your mistakes. The less painful these mistakes are the best is for you! Practice a lot in demo accounts before opening a real live account. This will help you gain experience in Forex market before testing your strategies for real.
Energizer’s acquisition of Schick was a steal. In 2003, the company bought Schick – Wilkinson Sword from Pfizer (PFE) for just under $1 billion. In 2005, Schick contributed just under $120 million in profit. This figure does not properly allocate certain shared costs to Schick; but, it does include depreciation expense in excess of maintenance cap ex. Therefore, I believe $125 million is a good estimate of the true economic benefit provided by Schick in 2005. Over the next few years, further margin improvements are likely at Schick; because, between product launches, fewer razors and more blades will be sold. Energizer’s cost of capital for the Schick acquisition was very low. Most of the purchase price has been refinanced as fixed debt carrying an interest rate of less than 5%.
Over the next thirty years, Energizer will become primarily a razor business and primarily an international business. When looking at Energizer today, this fact is difficult to see; however, it is an important truth. Here, I disagree with many other commentators on Energizer’s business. They are far more optimistic about the battery business and far more pessimistic about the razor blade business than I am. We both have access to the same information, so why the disagreement?
I believe Energizer’s highly profitable battery business will slowly wither away. It will remain in some form. Even decades from now, there will still be Energizer batteries sold all over the world. But, how many will be alkaline batteries?
A lot of analysts note that Energizer is particularly well positioned in the markets for lithium and rechargeable batteries, and therefore believe a transition to such batteries would not necessarily spell doom for the little pink bunny. Energizer’s sales of these products has recently been growing at a 20% clip. With so many personal entertainment devices finding their way into consumers’ hands (and under their Christmas tress), it looks like Energizer has a wonderful growth opportunity to exploit.
Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.
In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies
In my years helping small business start-ups, I’ve seen the same mistakes repeated over and over. Many of these mistakes are the same ones I made with my first business two decades ago. They’re really easy to avoid for start-up entrepreneurs who are willing to learn the secrets and short cuts of other successful entrepreneurs. With each, I’ve included the rationale behind the mistake and how you can avoid it. Depending on where you are in the start-up process, use this information to avoid unnecessary struggle, wasted time and money.1)No business planBefore you start your business, you need a simple, written business plan, even if you’re solo. The plan should explore:Your products and servicesYour pricingYour projected year one gross revenuesAll your projected expensesYour market researchYour marketing plan and budgetYour projected gross profit (profit before taxes)You need these plans so you’re in control of your business; otherwise your business is being run on default and you end up spending money without a clear strategy. Many small business owners don’t have written plans because they think writing them will take too much time. The ones who do, succeed. Why not join them?2)Under fundingEven if you’re starting a home-based business, you need some money to start up. If you plan on hiring employees, purchasing inventory and leasing space, it’s obvious you need seed money, but you may underestimate how much.For a small service home based business, you’ll need office furniture and supplies, marketing and branding materials, a strategically planned website, some technology (software) and a healthy marketing budget. If you’re bricks and mortar, you’ll also need money for expenses like equipment, supplies, six month’s rent, payroll etc.To avoid underfunding, refer back to your business plan. How much money do you need? Funding is available from many sources: family, friends, personal savings, credit cards, home equity, independent small business loans, the SBA and through Prosper.com. Figure out how much you’re willing to invest in yourself. What are you telling others if you’re not willing to invest in your own business? If you set a budget and develop a smart plan for how you’ll spend that money to launch your business, you’ll get the results you want.The next mistake is made often by under funded start-ups.3)Amateurish marketing materialsDon’t hire the first graphics or web designer you meet. Worse yet, don’t entrust your business’s marketing image to high school or college students because you’re trying to save money. How you’re perceived in the world will depend heavily on your
Over the next thirty years, Energizer will become primarily a razor business and primarily an international business. When looking at Energizer today, this fact is difficult to see; however, it is an important truth. Here, I disagree with many other commentators on Energizer’s business. They are far more optimistic about the battery business and far more pessimistic about the razor blade business than I am. We both have access to the same information, so why the disagreement?
I believe Energizer’s highly profitable battery business will slowly wither away. It will remain in some form. Even decades from now, there will still be Energizer batteries sold all over the world. But, how many will be alkaline batteries?
A lot of analysts note that Energizer is particularly well positioned in the markets for lithium and rechargeable batteries, and therefore believe a transition to such batteries would not necessarily spell doom for the little pink bunny. Energizer’s sales of these products has recently been growing at a 20% clip. With so many personal entertainment devices finding their way into consumers’ hands (and under their Christmas tress), it looks like Energizer has a wonderful growth opportunity to exploit.
Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.
In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies
With holiday shoppers out and about in record numbers this season, many restaurants and retail establishments are thriving. Unfortunately this also is an ideal time for robbers to prey on unprepared businesses. We've put together a special reminder for business owners in hopes of lessening the chance that harm comes to your hard working employees and management teams.Preventing a robberyHave at least two employees open and close the business.Do not release personal information to strangers.Keep purses and personal valuables locked in desks or lockers.Install a robbery alarm.Place a surveillance camera behind the cash register facing the front counter, with a monitor facing the customers to let them know they are being monitored.Vary times and routes of travel for bank deposits.Don’t use marked "moneybags" that make it obvious to would-be robbers you are carrying money for deposit.Keep a low balance in the cash register.Place excess money in a safe or deposit it as soon as possibleKeep your business neat and clean. A tidy, orderly place of business is inviting to customers, but not to robbers. Dressing neatly also sends the right message.Stay alert! Know who is in your business and where they are. Watch for people who hang around without buying anything. Also, be aware of suspicious activity outside your place of business. Write down license numbers of suspicious vehicles if visible from the inside of your business.Make sure the sales counter can be seen clearly. Don't put up advertisements, flyers, displays, signs, posters or other items on windows or doors that might obstruct the view of the register from inside or outside your business. The police cruising by your store need to see in.Try to greet customers as they enter your business. Look them in the eye, and ask them if they need help. Your attention can discourage a robber.Keep your business well-lit, inside and outside. Employees should report any burned-out lights to the business owner or manager. Keep trees and bushes trimmed, so they don't block any outdoor lights.Encourage the police to stop by your business.Learn the names of the officers who patrol your business.Use care after dark. Be cautious when cleaning the parking lot or taking out the trash at night. Make sure another employee inside the business keeps you within eye contact while you are involved in work details outside of your building.If you see something suspicious, call the police. Never try to handle it yourself. It could cost you your life.Handle cash carefully. Avoid making your business a tempting target for robbers. Keep the amount
I believe Energizer’s highly profitable battery business will slowly wither away. It will remain in some form. Even decades from now, there will still be Energizer batteries sold all over the world. But, how many will be alkaline batteries?
A lot of analysts note that Energizer is particularly well positioned in the markets for lithium and rechargeable batteries, and therefore believe a transition to such batteries would not necessarily spell doom for the little pink bunny. Energizer’s sales of these products has recently been growing at a 20% clip. With so many personal entertainment devices finding their way into consumers’ hands (and under their Christmas tress), it looks like Energizer has a wonderful growth opportunity to exploit.
Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.
In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies
A financial advisor is a person who advises people of all walks of life on financial affairs. He is a very valuable servicer in the area of saving money and making investments. He makes investment decisions, manages your finances and gives you all financial advice. Thus he influences the vital decisions in your life, career, business and future.So the financial advisor should definitely be a qualified and experienced person who has experience with various financial matters. In matters related to money, experience counts. Practice makes perfect, says the proverb. You can never risk your career and money for unintelligent advice. So qualification and competence matter.How will you check a financial advisor’s credentials? Of course the reputation and references are important. Credentials must also be considered. The designations may sometimes vary, like financial consultant or certified financial planner. They of course are professionally qualified for the post.Next is the educational background. Here you have strike the right balance. You might find some very brilliant and competent financial advisors who have made a name through their vast experience. In such cases sometimes you won’t find the right educational qualifications, but experience matters more. The reverse is also possible. Those with a good educational background may not prove competent. So check an advisor’s work history and understand how he approaches the market and other financial equations.Next is the remuneration. Opt for a person who works only for a fee and not on commission. Those persons may not be reliable, because they will force you to unwanted financial commitments.
A lot of analysts note that Energizer is particularly well positioned in the markets for lithium and rechargeable batteries, and therefore believe a transition to such batteries would not necessarily spell doom for the little pink bunny. Energizer’s sales of these products has recently been growing at a 20% clip. With so many personal entertainment devices finding their way into consumers’ hands (and under their Christmas tress), it looks like Energizer has a wonderful growth opportunity to exploit.
Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.
In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies
Do you know how to recognize your ideal client for your business? Do you have any idea of the characteristics of your ideal client? Have you taken time to select criteria you will use to decide whether you will do business with someone or not? The honest answer from too many of you will be NO to these questions. And the sad truth of this is that too many businesses try to be all things to all people and believe that anyone that breathes or has a credit card is a prospect. This approach is definitely not strategic.My suggestion to you is to take a more strategic approach. And this means that you must define your ideal client. For advice on how to do that, I refer to one of my favorite mentors – Michael Gerber, who says, "The foundation of your marketing strategy is an insightful understanding of your customers. It's a "three-legged stool" - who they are, where they are and how they think and behave;"So how can we take Michael Gerber’s advice and translate it into some simple starter questions for you to answer. The questions focus first and foremost on what YOU want. I believe it is very important for you to decide and choose who your ideal clients will be and how you want to work with them. This puts you in a position to be proactive rather than reactive in your marketing. What questions might you ask to define your ideal clients? Here are ten (10) questions your strategic thinking business coach suggests you can use to help identify your ideal clients.1. Who do you really want to work with and what is the compelling reason you want to work with them?2. What are the types of problems you want to solve for your ideal clients?3. Where is the geographic location of your ideal clients?4. What is the minimum revenue/profit that you want to generate from your ideal clients?5. What are the socio/demo/psycho graphics of your ideal clients?6. What criteria will you use to prioritize the list of ideal clients?7. What criteria will you use and how will you "fire" clients that do not fit the ideal client profile?8. What types of businesses are your ideal clients in?9. What are the core values you will look for in your ideal clients?10. What markets do your ideal clients serve?The identification of your ideal clients so you can recognize them must be an initial step. Beginning with a clear profile of your ideal client, you will be able to develop more strategic marketing. And you will be in the position to focus your efforts on prospects that are most likely to purchase your products/services. If you create a culture where you gain a deep understanding of your prospects, you will become their company of c
Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.
In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies look forward to. There is very little price competition in alkaline batteries. Energizer’s brand name and its distribution system is the key to its ability to charge high prices on alkaline batteries. Those advantages are mitigated in the market for lithium batteries.
Alkaline batteries won’t be going the way of the Dodo anytime soon. It’s important to note alkaline battery sales have not yet decreased by volume. This is as true in the U.S. as it is overseas. In fact, unit sales of alkaline batteries have consistently increased over the past few years.
This fact has been obscured by changes in the retail business. More and more customers are buying batteries in bulk. Some analysts have expressed concern. They believe this means brand loyalty is eroding. Despite being generally pessimistic about the battery business, I disagree with that sentiment.
Brand loyalty is not eroding. More people are shopping at retailers that sell in bulk. Therefore, more people are buying larger packages of batteries. There is no evidence to suggest there is a trend toward cheaper, less prominent brands. In fact, there is no real evidence to support the idea that consumers actually want larger packages of batteries.
It’s clear they want to shop at the stores that sell larger packages of batteries, but that isn’t necessarily the same thing. Most consumers would be happy to buy batteries in smaller packages. That’s exactly what they’d be doing, if they weren’t shopping at superstores and the like. Consumers have not suddenly taken to buying their batteries via in – depth comparison shopping. Falling unit prices in the battery business have been caused by changes in retail methods, not changes in consumer tastes.
The strength of the major brands was evidenced last year when Energizer raised battery prices and Duracell followed suit. For the most part, Energizer has not been hurt by rising materials costs, because it has simply raised prices. Many investors haven’t really noticed the rise in materials costs, because these costs haven’t affected Energizer’s bottom line. Energizer’s pricing power has made this blissful ignorance possible. True, Energizer’s battery business doesn’t have as much pricing power as its razor business; however, it still has far more pricing powe
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