(2 of 2)
Meanwhile, the folks at Energizer are miffed that Panasonic ads, claiming that Oxyride "beats the bunny" in comparison tests with leading alkaline batteries in digital cameras, left out Oxyride's performance against Energizer's e2 lithium batteries. "Their comparison is against one of the batteries in our portfolio that is recommended for everyday devices like flashlights, toys, smoke detectors," says Jeff Ziminski, vice president of North American marketing at Energizer. Energizer plans to let consumers know (loudly) that in tests specifically for digital cameras, e2 lithium batteries blow the socks off competitors.
Despite the challenges, Kimberlin makes clear that Panasonic will do whatever it takes to claw up the market. "Our plan is to keep doubling our advertising investment year over year. We are looking to be very, very aggressive," he says. It will have to be. Last year Panasonic spent $5 million to $10 million on advertising--peanuts compared with the $77 million that Duracell spent.
Is Oxyride a bunny beater? Panasonic says that before Oxyride, battery technology lagged behind the leaps in consumer electronics. The battery is made with a more efficient electrochemical process than alkaline versions, using nickel oxyhydroxide, which provides a higher voltage (1.7 volts) than alkaline batteries (1.5 volts). According to Panasonic, Oxyride delivers up to three times as many photos on your digital camera for a comparable price.
One hitch in that great new technology is that while Oxyride is clearly better for digital cameras and other gadgets that slurp up a lot of energy in pulses, it is less effective for things that consume low amounts of energy at a constant rate, like radios and smoke alarms. "Our preliminary tests show that Oxyride is a good cell," says Paul Klatt, a quality-assurance engineer for Batteries Plus, a retail chain specializing in batteries. "But its niche is really higher-drain devices."
And as good as it is for digital cameras, Oxyride can't hold a candle to Energizer's disposable e2 lithium battery, which delivered 3,107 digital shots to Oxyride's 990 according to the results of a comparative test in the June issue of POPULAR SCIENCE. But Panasonic is banking that most people will balk at paying $10 for a four-pack of lithium batteries when they can get a four-pack of Oxyrides for $5.
Some critics have chided Panasonic for not focusing more on environmentally friendlier rechargeable batteries. The company makes those too, but the U.S. remains a disposable society. In 2005 86% of U.S. households bought batteries at least once. Moreover, the market for disposables is forecast to grow 5% annually through 2009, to $5.2 billion, according to Joe Iorillo, an analyst at the Freedonia Group. "Price and convenience have a lot to do with the growth of the primary battery market," Iorillo says. "A lot of people don't want the hassle of recharging batteries."
If this fight runs true to form, consumers can expect to be winners, at least in the short term. They will get better products, and they may see some out-and-out price wars as Panasonic tries to lure away consumers and the others defend their turf at any cost. And if Panasonic's marketing creativity is anywhere near as good as Energizer's and Duracell's, this fight is going to be highly entertaining too.