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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


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...

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