Analysis of Key Issues Affecting the Sales in the Tradesman Segment and Thereafter

This paper will address penetrating the global marketplace and broaden the area of operations and sales for ToolsCorp Corporation. This paper will include the overall evaluation of this corporation and the long term strategic plan development. It will also include the corporation’s mission and vision statements.

1. Although Black & Decker is famous for providing power tools to consumers, they are not as successful to all segments. They have successfully captured the Consumer and Professional-Industrial segment with high market share, yet failed to do the same for the Professional-Tradesmen segment. (Only managing to hold 9% of the market share whereas its competing company, Makita, holds 50% of market share.)

In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the eyes of the Professional Tradesmen. In the Professional Segment most of the people who buy the products are people who need these tools to make a living such as carpenters, electricians, plumbers, roofers, and general remodelers. Black and

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 market share holding in its other two market segments, the dramatic decline for Tradesman hurt its overall brand image. B&D is now faced with repositioning its brand to reach the Professional-Tradesman segment more effectively. If the company is successful in doing so, it will allow it to obtain an

4) imposition of credit and monetary restrictions in Argentina and Brazil -> declines in farm

This paper will address ToolsCorp Corporation’s attempt to penetrate the global marketplace and broaden the area of the operations and sales. Overall evaluation of the establishment and the environment and Toolscorp Corporation’s long term strategic plan development in early phase and its mission and vision statements will be defined.

manufactures of energy products varies in their way of segmenting their market and in their Targeting strategy, the following table illustrates this for the major five key competitors in this market:

The purpose of this analysis is for the strategic planning group to consider developing a new proposed product. Our sponsor, the marketing director, has asked our strategic planning team to perform a competitive market analysis to determine the product’s potential success. The analysis will focus on our primary competitor in the product’s market.

* Product Differentiation: It is evident from the case that B&D products in the professional segment were of good quality with 10 out of the 14 products in leadership category (Figure E). Therefore, the problem faced by B&D products in this segment is more of differentiation than of product quality. The consumer level products in black in color are not substantially differentiated from professional level products which were charcoal grey in color (Figure D). This lack of differentiation has adverse influence on the buying decision made by professional tradesmen as they take pride in their work which is more rigorous than “do it yourself” low quality consumer segment. Therefore, the professional tradesmen segment has disassociated itself with Black and Decker brand name despite good quality professional tools manufactured by B&D.

Research on Tradesmen’s brand perceptions shows that DeWalt, a B&D brand associated with “industrial yellow” has a 70% awareness rating and is ranked by 63% of those in the P-T market to be “One of the Best”, which is much more than the 44% of people in this market who think the same of the B&D brand. Although the purchase interest in DeWalt is 51% compared to 58% of “DeWalt-Services and Distributed by Black and Decker.”

Duncan Industries is a company that prides itself on quality, innovation, safety, and customer service. They offer a broad selection of high-quality lifts that include the necessary features so that many different automotive tasks can be accomodated. Each lift is created with this particular purpose in mind and backed by an exclusive 5 year warranty. The commitment of Duncan industries to their lifts has caused the company to grow at an extremely fast rate in both the Canadian and United States (U.S.) markets. This high-growth is a key component of the company’s business strategy and needs to be maintained. Currently there are three feasible options to this problem. First, the company could focus its attentions

The Black & Decker Corporation is US based, designer and manufacturer of power tools, accessories, industrial tradesman machines, home improvement products and commercial applications worldwide. By creating the power tools business in the early 1990’s and by being the world’s largest producer, the company has been famed as offering high quality, distinguished products and excellent service in the power tool market. In spite of Black and Decker has large market share in 2 of the 3 segments of the $1.5 billion power tools market, it only has a 9% share in the Professional-Tradesmen segment, which was the fastest growing segment of the power tools industry. To begin with, Black & Decker; even Makita and Milwauke have positioned themselves as market leaders in the power tools industry, in consequence of its market

A sharing session was held with Mr Wan Siu Khuan, the CEO and founder of Drilmaco Pte Ltd. Mr Wan was a polytechnic graduate who turned down further education to hone his engineering skills in the industry. Over the years, with his deep understanding and broad knowledge in engineering, he discovered a business opportunity in precision machining which was not available in Singapore then. He founded Drilmaco Pte Ltd in 1997 with a few business partners and has achieved several milestones since. The company mainly provides precision milling services, specializing in deep-hole drilling and structure fabrication for the oilfield industry. In recent years, oil prices fell sharply which badly affected the company due to reduced work from major oil and gas Multinational Companies. Mr Wan took preventive and yet positive measures to keep his company going, knowing the oil price issues was out of his control and is confident the market will pick itself up again to revive his business. We will discuss further on this case study using the Michael Porter’s Five Forces analysis and as well as an analysis on market segmentation.

The price practices done by the manufacturer puts PMS in a favorable situation, as the three colors makes differentiation for resellers classes, thus, PMS with its warehouse and jobber capacity can get lower prices by taking some distribution tasks in behalf of the manufacturer (storing). In case PMS specialized in the least popular parts it will get further pricing deals increasing its profits margins and profitability. ( 2013)

The book gives a detailed outline of how companies should engage each other in the market wars while maintaining and bringing on board new customers. They successfully do so by presenting tools for the implementation of a successful marketing strategy, and the