CASE INFORMATION - 1. 5Cs (1) Company M/S(Market Share) in...

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1. 5Cs (1)Company M/S(Market Share) in three segments in Consumer (nearly 50% M/S) and Professional-Industrial. (According to market research, B&D is the powerful brand name & high quality also in professional tools.) (B&D’s brand strength ranking was #7 in the U.S. and #19 in Europe.) Its sales reached $4.8 billion in 1990. (50% of product revenues from outside the U.S.) (nearly 30% share Accessories market reached the largest proportion, 29% of its 1990 sales. This market is major target for However, its entry in Professional-Tradesmen is relatively new and only 9% in M/S. The position of segments did not transfer to the Professional-Tradesmen segment. “The trade asked for advertising allowances and rebate money on B&D’s Tradesmen products, because the profitability of them was near (3)Competitors - Consumer Segment Skil, Craftsman, Wen - Industrial Segment Second tier suppliers were Bosch, Porter-Cable, and Makita. - Tradesmen Segment : Makita, Milwaukee, Ryobi, Skil, Craftsman, Porter-Cable, Bosch “total M/S” M/S Makita ~50% Milwaukee ~10% Black & Decker ~9% Ryobi ~9% Skil ~5% Three product types: drills(30%), saws(35%), sanders(>15%) Makita: 80% share in cordless drills 5 Channel types % of Tradesmen-Professional Makita In the channel In the channel Two-Step* 40% (most frequently) #1 ACE and Servistar ~$2MM each 55% <10% Home Centers 25% (growing in importance) #1 Home Depot ~$5MM ** #2 Home ~$3.5MM 45% <10% Warehouse HC 15% 45% 20% *Two step: Independent retail stores served by distrubuters, such as ACE and ServiStar *Newly emerging retail distribution channels including home centers such as Home Depot, Home Club and Lowe’s, in addition to the traditional hardware stores, such as ACE **Home Depot: New type of distribution. The largest of the rapidly growing collection of home improvement chain stores. With 145 stores and $3.8 billion in 1990 sales. Its strategy was to stock 30,000 items in a 100,000
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This note was uploaded on 04/18/2010 for the course BUSINESS 231 taught by Professor Steven during the Spring '10 term at 카이스트, 한국과학기술원.

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CASE INFORMATION - 1. 5Cs (1) Company M/S(Market Share) in...

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