Untapped Potential: Energizer Limits Brand Extension Opportunity in Automotive Battery Category

Energizer has had a licensing agreement with Johnson Controls for an unknown number of years (at least since 2001) for auto and marine batteries. This is a strong move for Energizer and shows the potential of licensing agreements for products within seemingly core categories. Johnson Controls is one of the world's largest automotive battery makers and this partnership is a strong move for both parties. This agreement is a big opportunity to spread the Energizer brand and increase the number of Energizer consumers and amount spent by those buying energizer batteries.

With only a few brands within the automotive battery segment, in addition to the fact that consumer purchasing cycle for batteries has to be very long (3+ years) cycle, a prominent consumer brand such as Energizer could pull consumers to the Energizer branded auto battery when compared to the competition. In fact, a majority of auto battery brand are actually private label brands, such as Die Hard (Sears) and Duralast (AutoZone).

The problem here lies with the execution and oversight of the licensing agreement. Many companies face similar problems, a viable opportunity, but a lack of resources and personnel. Lack of attention spent on managing brand extensions and partnership opportunities because of insufficient resources leads failed ventures and negative impressions with consumers. The licensing arrangement is seen almost as an easy revenue stream and then set aside. This appears to be the case with Energizer’s auto battery.

With such a large potential in this category, it is a shame to see Johnson Controls sell the batteries exclusively at the Pep Boys automotive store. Johnson Controls has an exclusive supplier arrangement with Pep Boys and seems to lack incentive to sell the Energizer branded car and marine batteries elsewhere. This is where competent oversight of the program could lead to increased revenue and consumer brand impressions.

With Pep Boys’ ~550 (and shrinking) store count, Energizer has essentially limited themselves to a small percent of the auto category footprint. Because the Eveready company has given the control of the Energizer brand with a lack of oversight to the licensee, they have given up control of one of their most valuable assets. Understanding that the auto battery category is very competitive and commoditized, including a large dominance of private label brands, one has to view the opportunity for Energizer within the auto battery as an opportunity to build brand strength first and a financial opportunity second.