Powercell Technologies is a distributor of B2B and retailer of rechargeable and disposable batteries. These batteries play an essential role in meeting the energy requirements of individuals, businesses and industries. The company is situated in Burnaby, BC, Canada. The problem that the company faces is that despite doing business for over a decade, it has failed to achieve the desired profitability levels. The situation can be attributed to inadequate demand by consumers of the batteries.Analysis and Evaluation
Many consumers do not view batteries as primary sources of power. The use of devices with inbuilt or replaceable batteries has greatly contributed to this trend. Devices such as laptops and cell phones are purchased with batteries that can be charged and used for lengthy duration of time. This implies that users of such devices only think about replacing the batteries after a long duration of time.
Another group of devices such as flashlights has a large market that can be categorized into either rechargeable or disposable batteries. Disposable batteries earn large amounts of sales revenue to retailers and manufacturers all over the world. They are easy to purchase, install and use. However, they require careful disposal because of their harmful after-use nature. On the other hand, rechargeable batteries are available in designated stores which deal in them. They cost relatively more than the disposable batteries.
The low demand for batteries by individual consumers remains the main challenge to profit realization by the company. In particular, the rechargeable batteries attract sales that are extremely lower than the demand for disposable batteries.Alternatives
The first strategy that the company can pursue is institutional marketing. Institutions such as hospitals use replaceable batteries in operating some of their equipment e.g. life saving equipment. The recurring needs of these institutions create a consistent demand for the batteries. However, such institutions can also resort to permanent solutions for power that does not entail disposal or replacement.
The second strategy involves customizing small order packs to suit the needs of a small group of clientele. These include professionals, technicians, scientists, engineers, hobby purchasers etc. these potential customers usually do not know about the company’s products because its retail outlet in Burnaby actually looks like a warehouse. This strategy increases awareness of the company’s products. However, financing staff for this type of marketing is very expensive considering the fact that sales are made in small quantities.Plan of Action
Powercell Technologies should adopt the first strategy. By targeting institutions rather than small groups of buyers, the company can realize a rise in its sales and profitability levels through creation of good customer relations. Institutions also have a greater prospect for creating business in the future than small groups of buyers. This will ensure business continuity.
Works Cited
Cadogan, John W. Marketing Strategy. London: SAGE, 2009. Print.
