Powercell Case Of Study
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Powercell is a distributor of rechargeable and disposable batteries located in Burnaby, BC, Canada. They serve institutions, industrial customers, and hobbyists. While profitable, Powercell faces challenges competing against its own product lines and needs to analyze which products are most profitable. The summary recommends implementing marketing strategies like the 7 Ps model, developing a unique sales proposition, considering customer lifetime value, and leveraging the product lifecycle to improve the business and take advantage of opportunities.
Powercell Case Of Study
- 1. Powercell Case of Study - Luis Cubillo
- 2. Agenda ● Background. ● Discuss Challenges. ● Conclusion.
- 3. Background Powercell Technologies is a B2B distributor and value added retailer of rechargeable and disposable batteries used in institutions, specialty industrial situations, and hobbyist applications. The company is located in Burnaby, BC, Canada, and is central to the industrial and commercial heart of the greater Vancouver area.
- 4. Background In market of batteries are primary and secondary batteries. Consumers rarely see industrial or "original" uses of batteries. Instead, they see devices personal to them with the original batteries already installed and ready to go. Consumers, therefore, don't care about the battery component unless, after many years, they still wish to use the device and the battery has worn out.
- 5. Background The replacement rate is perhaps 25% of the total pieces of equipment sold. Disposables cost pennies to manufacture, but are sold at high prices at final retail price. Rechargeable batteries are sold at large multiples of the price of disposables.
- 6. Background Institutions use batteries for a variety of purposes. These institutions work hard to keep costs low by inviting multiple bids for their annual consumable and rechargeable battery needs. Professional users are willing to pay higher prices to have the packs built well using high quality battery cells. Finally, hobbyists purchase a variety of battery packs for their model airplanes, radio equipment, and experiments.
- 7. Challenges Why is Powercell not profitable? Explain in detail based on case information. Powercell is profitable, but the problem is that its own product compete between them, in this case, Powercell should be investigate and see internally, which of its products give them more profits.
- 8. Challenges Identify and utilize several appropriate marketing models to analyze Powercell's overall business situation. Do not give definitions of the models. ● 7 Ps: Product, Price, Place, Promotion, People, Process and Physical evidence. ● USP: Unique Sales Proposition. ● Customer Lifetime: Customer have a value. ● Product Life Cycle: How a project moves in stages of introduction.
- 9. Conclusions ● Powercell has potential. ● Implement marketing strategies. ● Take advantages of opportunities. ● Research for new and old markets. ● Improve brand and products. ● Future vision
- 10. Thanks