Good Morning DINKS! It’s time for another post in our Stock Market Showdown series. We will examine two companies that offer very similar products and who appear to be each other’s direct competition. After reading about the different companies history and product line up we have to make a decision which stock to buy.
Investing in the stock market can be a very emotional experience. Some of us may invest in Blue Chip stocks of big companies that have a proven history of constant growth. Some of us may choose to buy stocks using a value investment strategy. A value strategy invests in the under-valued underdog in hopes that it will have substantial growth in the future. Whether you want to invest in “sure thing” growth stocks or you are a gambler and want to take a risk investing in value stocks, investing is definitely a personal choice.
Stock Market Showdown: Duracell vs. Energizer
The Duracell home page opens up with a client satisfaction survey. Although I am not a fan of surveys I appreciate the fact that Duracell values my opinion as a client. The layout of the Duracell home page is very well organized and shows their product line up very well. Common household items that use batteries, as well as their charitable efforts with Power Those Who Protect US are displayed.
Duracell offers a comparison tool as well as a product finder on their homepage. The comparison tool will tell clients which Duracell product is best suited for their particular battery powered item. The Product Finder allows clients to search for a type of battery based on the category such as all purpose batteries, rechargeable, or specialty batteries. Duracell also offers coupons for discounts on Duracell products…on their homepage.
Although the company information was not located on the Duracell homepage it was easy to find under Tools and Information. Smart Power is listed as the first topic under Company Information followed by Battery Care and Disposal. Actual information on the Duracell Company is listed at the bottom of the page, which I found very interesting.
Did you know that Duracell was founded in 1920? Did you know that Duracell was the creator of the AAA battery? Did you know that neither of the two men who founded Duracell were actually named Duracell? The company history page links back to the Smart Power page which proves that Duracell is committed to a sustainable healthy environment.
The Energizer homepage has a different (and brighter) layout than the Duracell homepage. The Energizer homepage also focuses on their product line up as well as current product promotions. If I didn’t know any better I would think that these two major players are owned by the same team. The way to have a majority market share without actually creating a monopoly is to be the owner of both major competitors on the market.
Energizer batteries are very often, if not always, associated with the pink energizer bunny that keeps going and going. Energizer focuses on brand recognition based on their marketing mascot, whereas Duracell focuses on brand marketing based on their brand name. Duracell is a house hold name, but so is the energizer bunny.
The About Energizer page was very easy to find on the website. Energizer currently has a partnership with both Shick and Playtex, although I don’t understand why feminine hygiene products need batteries. The page talks about Energizers Mission as well as their Strategy. The company history is listed as the first point on the page followed by information about their corporate headquarters and global offices.
Energizer Holdings Inc also lists their stock symbol (ENR) on the About Energizer page. Charitable efforts such as Positivenergy and Sustainable Development are at the bottom of the list. Energizers website is definitely more focused on their company and business. Both websites do successfully display their products and brand image.
If you are deciding between two competitors and all other variables are equal would you buy stock based on a personal preference? I feel that batteries are extremely overpriced and therefore I always buy either Energizer or Duracell depending on which ones are on sale.
Here is a previous post in our Stock Market Showdown series:
– Coke vs. Pepsi
(Photo by Paper Tygre)
I would personally buy Energizer stock over Duracell because Energizer takes a more business focused approach to marketing their brand. I also like the associatiton that consumers have with the Energizer bunny. Duracell may be a better well known brand but Energizer can definitely hold it’s own on the stock market.
Hum…I like KO better, they have a strong dividend than Pepsi Co. On some level, dividends are a more reliable indicator of future returns than anticipated future stock price appreciation. Since building wealth can be risky, its important to build as much certainty into the processes as possible.
@James – A lot of people prefer dividend investing to capital growth investing for that exact reason. A lot of people feel that constant growth through dividends is a great indication of future stability, growth, and potential returns. I have several clients who live off of their quarterly dividend payments.
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Check the history of the “Energizer” bunny. The bunny was originally the Duracell bunny but they moved in to other ad campaigns and Energizer picked up the same bunny toy and began using it. Interesting factoid I’ve heard is that Duracell never challenged Energizer’s use of the bunny because polls indicated that consumers seeing the Energizer commercials still related the bunny to Duracell, even though the ads had Energizer displayed all over it! Free advertising for Duracell.