MKTG601

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Industrial Engineering

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Feb 20, 2024

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MKTG601.AO1 Fall 2023 Module 7 1. Brand Culture Analysis: Black and Decker was founded in 1910 by Alonso Decker and Duncan Black. In 1917, they received their first patent for the first portable power drill in the world. Seventy three years later, B&D was known as the world’s leading producer of power tools, electric garden/lawn tools, accessories, etc. While Black and Decker’s brand flourished in the Professional-Industrial and Consumer segments, the brand’s strength as a Professional-Tradesman brand wasn’t quite as successful. Many tradespeople (the customers) viewed B&D’s products as for at home use rather than on the job use. In addition, in the 1990s, the Japanese brand Makita entered the U.S. market, and B&D lost a large share of the tradespeople market to them. This affected their brand culture among the tradespeople. Research performed by B&D demonstrated that tradespeople had a lower brand perception of B&D compared to other brands, such as Makita, Milwaukee, Bosch, Hitachi, and Panasonic. Low sales figures in this market led Black & Decker to have to make a difficult decision. B&D could decide to drop out of the tradespeople sector, rebrand their tradesman tools, or sell the line under a new name. Ultimately, B&D determined that the best option was to sub-brand the line and differentiate it more completely by changing the color to yellow and giving the line a new name (Dolan 2001). 2. Customer Based Brand Equity Analysis: a. What specific performance and imagery characteristics of the Black and Decker brand influence what the brand means to consumers in the Professional–Tradesman segment? Identify at least 1 specific performance characteristic and at least 1 specific imagery characteristic and briefly explain how each impacts the brand’s meaning in this segment of customers. Color was generally regarded as a significant product differentiator. Unlike B&D, competitors were more highly differentiated in color (see Figure D). When compared to competitors, B&D saws were felt to be inferior (Dolan 2001). b. How do consumers’ respond to Black and Decker in the Professional –Tradesman segment of the power tools market? In your answer, identify specific information regarding customers’ judgements and feelings presented in the case. Customers, ie tradespeople, generally responded poorly to Black & Decker in the Professional- Tradespeople segment. They felt that the products didn’t hold up as well as the competition, and therefore considered them subpar when compared to other brands such as Makita, Milwaukee, Bosch, Hitachi, and Panasonic. Unlike the Professional-Industrial and Consumer segments, B&D did not perform well in the Professional-Tradespeople market, holding on 9% of the market share compared with Makita at 50% (Dolan 2001). c. Does the Black and Decker brand have a positive or negative brand resonance with consumers in the Professional - Tradesman segment? Provide specific information and data from the case to support your answer. Black & Decker has a negative brand resonance with consumers in the Professional- Tradespeople segment. Unlike the Professional-Industrial and Consumer segments, B&D did not perform well in the Professional-Tradespeople market, holding on 9% of the market share compared with Makita at 50%. As recounted by Gary DiCamillo, B&D’s president of Power Tools for the U.S., when asked regarding his thoughts on various brands of saws, a woodworker

stated, “...they’re all pretty good really – you just have to stay away from that Black & Decker!” (Dolan 2001). Dolan, Robert J. The Black and Decker Corporation: Power Tools Division. (2001). Harvard Business School .

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