Black & Decker Essay

2038 words - 9 pages

The Black & Decker Corporation (A):
Power Tools Division

University of South Carolina
MKTG 701
Spring II 2013

Jonathan Chandler
Heidi DiFranco
Pamela Hammond
Telissa McElveen

The Black & Decker Corporation (A):
Power Tools Division

SUMMARY

Black & Decker franchise holds nearly 30% market-share overall of The U.S. Power Tools Market. B & D’s research on tradesmen’s perceptions of supplier’s quality has shown that they are ranked in the 3rd tier out of 4 tiers in the marketplace, which is due to the fact that B&D are viewed more as a consumer brand, and perception of tradesmen’s that B&D’s products are of inferior quality, less durable/rugged for the required ...view middle of the document...

The perception about the quality of the products/brand is no longer positive. Tradesmen are not proud to own a Black and Decker product due to the negative perceptions about the brand, durability, and quality. This can also been seen in the data in Table D, which was gathered from the Image Study.

2. Why are Black and Decker’s shares of two professional segments – Industrial and Tradesmen so different? (viz. about double in Industrial) Wouldn’t you expect them to be similar?

The Industrial segment and the Tradesmen segment have very different shares. The different product lines and logos would lead one to believe the products are not similar. If they were, why would the company make them under separate logos?

The buyers for the segments are very different and the buyers’ perceptions of the products are very different as well. In the Tradesmen segment, the buyers are individuals who purchase tools for their own use on job sites. In the Industrial segment, a corporation/company buys the tools for many employees to use on job sites. As stated in question 1, and can be seen in Table D, the Tradesmen do not believe that the Black and Decker tools are high quality or durable. But in the Industrial segment, very knowledgeable purchase decision influencers view the tools as high quality and heavy duty. A buyer will have a different standard for quality if purchasing an object for their own use, versus purchasing it for someone else to use. A tradesman buyer wants to make sure the tool will do good quality work and last him awhile; whereas an industrial buyer just wants a tool that will get the job done.

3. What if anything, do you learn from B&D’s consumer research?

B&D’s consumer research reveals many important details regarding how consumers in the differing segments of the U.S. Power Tools Market value competing brands. Research on Brand Awareness and Perceptions reveal that B&D was number one in 1990 for Total Awareness of Power Tool Suppliers Among Tradespeople. Unfortunately, when asked which brand is “One of the Best,” B&D was only cited 44% of the time. It appears that the success achieved by B&D in the Household Products category and in the Consumer Tools segment, created a negative impression amongst those who work with their own personal tools day in and day out. The tradesmen like carpenters, plumbers and electricians viewed B&D products as low quality and unreliable, even though B&D overall was one of the most recognized and trusted brands.

4. Joe Galli’s objective is “to develop and gain corporate support for a viable program to challenge Makita for leadership” in the Tradesmen segment. To gain support, the minimal share objective would have to be “nearly 20% within three years, with major share ‘take-away’ from Makita.” How realistic is this?

Joe Galli’s goal may have seemed unrealistic at first, but the expansion of the DeWalt brand surely helped B&D regain market share in the...

Other Papers Like Black & Decker

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 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 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 following dissertation will be discussing the issue of unequal distribution of law enforcement in correlation to racism. It is an atrocity that a horrible mentality created centuries ago is still being used against ethnicities in the 21st century. All races should be considered as equal to one another, whether white, black, yellow or even purple. We, humans, share the same planet. Under our skin, we share identical functioning. Somewhere between our

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 & 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

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 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

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