Black And Decker Essay

1005 words - 5 pages

Introduction:
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.

Weaknesses:
-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.”

Opportunities:
-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.

Threats:
-Risk of the new repositioning strategy failing.
-Financial risk involved with adopting a new branding strategy.
-Competitors:
-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
• 78%...

Other Papers Like Black And Decker

Bosch vs Black& Decker Essay

2400 words - 10 pages To: Professor John Swassy From: Rashid Vanoni Date: February 21 Black & Decker and Bosch The U.S Market for Power Tools The power tools industry in United States generates approximately $8.6 billion in boost growth and profit margin. The U.S. power tools industry is dominated by these major companies: Black & Decker that posses 9.3% market share.,  China’s TTI, Bosch., DeWalt and Craftsman . Thanks to all largest home centers

Black & Decker Case Study

753 words - 4 pages BLACK & DECKER CASE Problem Statement: With Black & Decker being one among the most powerful brand names in the world and establishing its professional tools to be the highest quality in the industry, B&D failed to make an impact in the Professional-tradesmen segment. B&D was known for offering high quality, differentiated products and excellent service in the Professional-Industrial segment whereas its brand recognition, and image

Black & Decker Case Memo

691 words - 3 pages Black & Decker Case Memo If you think Galli should pursue a build share strategy, what actions do you recommend? Does DeWalt idea have any merit? How about using current name? Remember you have at least three audiences to please: a. The end consumer, i.e. the Tradesman b. Retailer c. Nolan Archibald and GarydiCamillio Actions that I recommend to Galli: * He should focus on leading distribution channels which are “Two-step

Marketing Managment

1953 words - 8 pages 1.1 Problem Statement: The problem faced by the Black and Decker Corporation (A) is the zero profitability faced by the company in its Power Tools Division’s especially in the ‘Tradesmen” segment. Out of the three segments in this Power Tools Division, B&D was facing immense competition from Makita Electric of Japan which had practically taken oven the professional power tools for tradesmen business since it entered the United States market a

Prison And Group Formation

2737 words - 11 pages Mafia, Texas Syndicate, Aryan Brotherhood, and the Black Guerilla Family (Wood and Gannon). A prison gang can be defined as “an organization which operates within the prison system as a self-perpetuating criminally oriented entity, consisting of a select group of inmates who have established an organized chain of command and are governed by an established code of conduct. This prison gang will usually operate in secrecy and has as its goal to

Quaternary Concrete

624 words - 3 pages defects rate, analyse the performance and improve the quality level in construction projects. At early 1980s, Motorola Corp was the initiator of the Six Sigma concept and led the organization successfully through the implementation of the Six Sigma principles. However, till mid 1990s when the organizations such as General Electric and Black & Decker adopted the Six Sigma principles for quality improvement and economic development, the concept was

StephenKings Rage

2544 words - 11 pages Richard Bachman as Rage (Russell 4). Rage is about Charlie Decker, a high school outcast who, “spreads sufficient destruction (physical and psychical) with only a pistol” (Collings 14). Charlie wasn’t always an outcast; he became an outcast after, “almost [killing] Mr. Carlson,” his chemistry teacher (King 114). Charlie tried to kill Mr. Carlson because; “when Carlson called [him] up to do a problem on the board...he started to make fun of [him

Interview Of A Healthcare Leader

1391 words - 6 pages for the stars and if they fall to pick themselves up, dust themselves off and try again. G.O. has encountered several learning experiences that have affected her career in one way or another. The learning experiences that have impacted her career most has been her involvement with the Chicago Chapter of the National Black Nurses Association. This organization has helped to build her confidence as a nursing professional and has fostered her

Case Study Answers

741 words - 3 pages opting for it because of the perception attached to it. Consumers think it as being an fragile household products. So sub-branding is not good enough to solve the problem. ● Option 3 talks about dropping the Black&Decker name from the professional-tradesmen segment, the alternatives are whether develop a new name or using some other name already in B&D stable of brands. We think this option is the best one. First of all, this is a new brand

Crime and Violence

1573 words - 7 pages between race and the sentencing of juveniles. The researchers analyzed secondary, cross-sectional data copied from the Juvenile Defendants in Criminal Courts dataset. Howell et al. (2012) review the relationship between race and probation, restitution and jail on a sample of 7,135. Howell et al. (2012) find a correlation between being black and not receiving probation, although being White or Hispanic has no influence on the matter. Howell (2012

Incremental Innovation in Technology, Advantages and Disadvantages

4008 words - 17 pages , "it's not what I want . . . but you really helped me clarify my thinking." The flexibility offered by incremental innovation is vital in such situations. Let us look at some examples of this. Black & Decker is a leader in eliminating cords from electric tools and appliances by replacing cords with rechargeable battery packs. Their Handy Mixer was among the first items in a line of kitchen appliances designed to capitalize on cordless operation

Related Essays

Black And Decker Essay

910 words - 4 pages 1. Why does Black & Decker have a 9% share and Makita 50%? Attempt to establish what is – and is not – the cause of B&D’s poor market performance among tradesmen. * Black & Decker was known for their differentiated, high-quality products and excellent service in the Professional- Industrial segment. In the consumer segment, Black & Decker had a strong brand recognition and image. * The cause of B&D’s poor market performance

Black And Decker Global Essay

747 words - 3 pages Black and Decker This case exemplifies the challenges, decisions, and intricacies involved when a company dives into mergers and acquisitions operations. The emergence of a global economy is no secret to anyone. Globalization offers outstanding opportunities for those companies that take advantage. Of course, globalization offers many challenges for companies to compete both domestically and globally. Black & Decker’s (B&D) global endeavor

Black & Decker Essay

2038 words - 9 pages Black and Decker 8 to 1 in account which gives them equal space? Ever since Makita entered the professional tradesmen business in the United States, the company has been a major competitor for Black and Decker. In fact it is outselling Black and Decker in one location 8 to 1, mainly due to brand, durability, and quality perceptions. Black and Decker’s sales in the consumer segment are very strong, but unfortunately that does not have a good

Black & Decker Essay

1707 words - 7 pages distribution channel, demographics of customers etc. Given the high quality of insights gathered by Galli during his site visits, B&D could have also looked in to doing more frequent (quarterly/half-yearly) in-person interviews to better understand the needs and behaviour of the tradesmen segment. 3. Provide an account for why the poor performance of Black & Decker with the tradesmen is not observed in the other segments. (25%) B