Black & Decker Corporation (B&D) is one of the top power tool producing companies in the world. The company targets three main segments: Consumers, Professional-Tradesman, and Professional-Industrial. By late 1990 B&D’s market share in the Tradesman segment fell dramatically causing its main competitor, Makita, to obtain 80% of the market share in cordless drills and 50% segment share overall. Although B&D has a respectable market share holding in its other two market segments, the dramatic decline for Tradesman hurt its overall brand image. B&D is now faced with repositioning its brand to reach the Professional-Tradesman segment more effectively. If the company is successful ...view middle of the document...
-Number one in market share holding for the Consumer and Professional-Industry segments.
-Brand name is well known in U.S. and Europe with 98% brand awareness level.
-Offers various high-quality products and excellent service.
-Holds only 9% market share in the Professional-Tradesmen segment.
-In 1985, B&D experienced a $158.4 million loss and continually lost money from 1981 through 1985.
-Gary DiCamillo, the president of B&D, went to Home Depot and experienced negative feedback on the B&D brand. One Home Depot employee, after being asked what brand of Skil Saw he preferred stated, “They’re all pretty good really—you just have to stay away from that Black & Decker.”
-Success within the consumer segment negatively affects the Professional-Tradesmen segment because some Tradesmen view B&D products solely for home use rather than industrial use.
-B&D scored low on the brand perception scale of Professional Tradesmen segment buyers.
-Color of product is unpleasing.
-Scored low against leading brands in the following categories: “High-Quality Tools,” “Makes Durable/Rugged Tools,” and “Proud to Own.”
-As listed above, the following three strategies all offer opportunities that could be beneficial for Tradesmen market success: (1) Harvest Professional-Tradesman Channels, (2) Get behind B&D Name with Sub-Branding, (3) Drop the Black & Decker Name from the Profession-Tradesmen Segment
-Product color change could increase consumer appeal toward the product.
-Contract with Home Depot to promote the brand would help with brand reputation.
-Risk of the new repositioning strategy failing.
-Financial risk involved with adopting a new branding strategy.
-Milwaukee: leading competitor
• 95% brand awareness
• 91% say it makes high-quality tools
• 91% say it makes durable/rugged tools
• 86% are proud to own one
• Product Color: Red
-Makita: leading competitor
• Maintains 80% of the market share in cordless drills and 50% segment share overall.
• 90% brand awareness
• 82% say it makes high-quality tools
• 71% say it makes durable/rugged tools