Ultimately BD has been unable to change the behavior of tradesmen In order to

Ultimately bd has been unable to change the behavior

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tradesman. Ultimately, B&D has been unable to change the behavior of tradesmen. In order to compete with Makita for market share in the tradesmen segment, B&D will need to find a way to rewrite their relationship with the tradesmen. S.W.O.T Analysis Strengths - Two-step distribution support - Market share consumer & industrial segments - Service and ‘stands behind product’ brand - 50% of B&D’s revenue coming from outside of the U.S - Very strong brand recognition Opportunities - Evolving tradesmen market - Competitors could help guide market - Remarket to tradesmen under DeWalt - Exploit Makita’s lack of channel protection - Inability to enter retail market with power tools - Sub-branding with Piranha Weaknesses - Brand perception among tradesmen - Success in consumer segment - Lacks distinction between product categories Threats - Loss of retailer confidence - Makita poaching existing market share - Tradesmen perpetuated perception
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- Diluted product mix spanning unrelated markets - Financial pressure - Milwaukee had high brand perception with tradesmen - Milwaukee and Makita high brand perception among tradesmen Assumptions and Missing Information - The financial standing of company if they did change the product’s name to DeWalt - What is the consumer’s motivation to buy B&D’s product?- vacuum cleaners, popcorn makers… etc. - How did B&D find themselves with such a negative reputation Problem Definition: Black & Decker’s inability to adjust to an evolving marketplace is hindering their ability to deliver a suitable value proposition to the tradesmen market segment. Development of Alternatives: 1) Harvesting segments: Black & Decker would focus on the consumer and industrial segments, the two that they are still doing well in. With 45% of their share coming from the consumer segment, they would remain a major player in the market. B&D’s industrial market share is at 20% with their consumer dependent on cost, performance, and quality of their products. Focusing on these two segments and dropping the tradesmen segment would be economically safe and less work than changing their entire product. 2) Get behind Black & Decker name with sub-branding:
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While there had been several half-hearted attempts to rebuild the B&D name in the Professional-Tradesmen segment, they had not been successful. One new aspect which might offer promise, though, was the sub-branding strategy, which had been so successful with the Spacemaker line and which Galli had used earlier in his career in the accessories business. Specifically, he had transitioned replacement saw blades
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