1. What is the cause of Black & Decker 9% share and Makita’s 50% share? The Black & Decker Corporation has three major segments which are Professional-Industrial tools, Professional-Tradesmen tools and Consumer tools. It is making good profit in Professional-Industrial and Consumer segments but has only 9% share in Professional-Tradesmen, compared to 50% share of Makita (Table A). One of the reasons of this difference is that due to the popularity of Black & Decker in the Consumer segment, tradesmen view Black & Decker’s products as for use at home rather than professional, according to the brand perception statistics of Professional-Tradesmen segment buyers(Figure C). The other possible reason is that Black & Decker has black/charcoal …show more content…
Even though the portion of Professional-Tradesmen segment in the Black & Decker’s total revenue is small, there is still a possiblilty of its success in the section because it has a relatively high growth rate of about 9%, comparing to Professional-Industry segment’s stagnant growth and Consumer segment’s 7% growth rate. The first and second option are not that optimal as the third option. If Black & Decker chooses the first option, it might result in giving up possible future profit. The second option uses sub brand name while also exposing Black & Decker Brand name to consumers. However, it might be difficult to conduct this option to consumers who have negative image toward Black & Decker brand name, especially the tradesmen, because Black & Decker`s negative image will also affect the image of sub brands. On the other hand, there is one proven possibility of option number 3. The Black & Decker succeeds in having higher favorability rate at the survey by using the brand name Dewalt which Black & Decker bought in 1960. If Black & Decker conceals its brand name and use that brand name, it can avoid negative effect from unfavorable image and get profit from the Professional-Tradesmen segment. Statistic also shows that DeWalt had acheived an “Is One of the Best” agreement percent of 63% from tradesmen, comparing to B&D’s 44%. Further research also proves that 51% of tradesmen would have purchase interest in the DeWalt brand. On top of the positive image
From the case analysis above, the ability of Barton Engine Works to influence customers regarding its brand is decreasing. It seems like consumers are opting for other brands in the market as explained by Little Bill in his memo to his father. The fact that major small and medium-sized customers prefer the Japanese brand to Barton Engine shows that Barton is not controlling the market and has lost its ability in influencing customers to choose its brand.
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.)
The online market is the target for Blackmores in order to gain more market share, inform information to customer and various benefits.
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
It also consists of the Professional Power Tools business, Hand Tools & Storage business, and Fastening & Accessories business. Black+Decker products are considered Consumer Products Group (CPG), which sells corded and cordless power tools, outdoor lawn and garden tools and home products. DeWALT and Porter Cable products are considered Professional Power Tool, both of which sell professional grade power tools. Stanley products are considered Hand Tools & Storage and Bostitch products are considered Fastening and Accessories. Stanley sells measuring, striking, layout, fastening and cutting tools. Bostitch brand sells pneumatic tools and fastening tools. The well-known brands are the most important part of the customer’s experience.
Even if their products have high quality, their market share in tradesman segment is low. The reason behind this is their problematic brand image between tradesmen segment consumers. Consumers don't want to buy the brand but they don't have problems with actual product. In researches we are seeing that this segment of consumer prefer B&D products if they don't know its brand. We can understand why they are acting like this from consumer research. B&D has highest brand awareness between other power tools producers. It can see as a good thing but this is the reason behind wrong consumer perception. Tradesmen think that B&D has low quality because it exists in many product categories other than power tools. For example they have household and outdoor products. One tradesman said his wife has their dust and he loves their popcorn machine but for tools he is thinking that they are unprofessional. Because he does not believe that a company produces this kinds of products also can produce quality work products for him. These tradesmen taking their job serious and their perception to B&D is that it’s a low quality brand because of its popularity and high product
Black & Decker Corporation is one of the largest and well-known American manufacturer of power tools, home improvement products, accessories and various other products. The company not only holds an overall leadership position in market but also holds a name for its consumer segment by holding 45% of the market share. Although Black & Decker has a strong brand image and position it only holds 9% of the market share in its Professional-Tradesman segment. Even without leadership in this segment company is doing really well and enjoys a favorable position in market in terms of it’s net income and revenue. Professional-Tradesman is the fastest growing segment in overall market and a lack of suitable share in market is the main
Black and Decker (B&D) is a pioneer in portable power tools. In 1991, it is a $5 billion in sales company with 29% of these sales coming from Power Tools and Accessories. B&D is the world’s larges producer of power tools and the U.S. market overall leader.
ABB Electric hired a marketing research company to design a survey to determine the product attributes most important to current and potential customers. A pretest questionnaire asked electrical equipment purchasers to rate the importance of 21 product and service attributes (e.g., maintenance requirements, invoice price and warranty) and then to rate the major suppliers in the industry on a poor to good scale on each attribute. The firm used factor
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
BLK is Australian’s most trusted manufacturer and distributor within the industry. By already competing in a growing industry, BLK has already established itself within Australia against its two other competitors Swisse and Natures Own due to its rich heritage. BLK products are available to be bought online, and in-store. Australian major supermarkets Coles and Woolworth stock them, as well as a huge number of dependent and independent pharmacies. Store manager Kim Wood of Blake's Pharmacy in Sydney's Potts Point stated "I watch tourist buses arrive regularly with keen shoppers willing to buy 'whatever Blackmores (vitamins) we have'" (Cormack L, 2016). BLK really does pride its brand image of empowering everyone to 'Be a Well Being' (Fenlon, D, 2016)
Published: April 23, 2012 Author: Carmen Nobel Upgrades to existing product lines make up a huge part of corporate research and development activity, and with every upgrade comes the decision of how to brand it. Harvard Business School marketing professors John T. Gourville and Elie Ofek teamed up with London Business School's Marco Bertini to suss out the best practices for naming next-generation products. Key concepts include: • Companies often take one of two tacks in naming a next-generation product—the sequential naming approach or the complete name change approach. • Experimental research showed that each naming approach affects customer expectations. With a name change,
Black and Decker is a multinational corporation based in Baltimore Maryland, well known for its production of consumer and professional power tools. The company sells its products in over 100 nations with a revenue of $5 billion, with operations in Canada and Britain. During its growth, the company was decentralized and kept all of its businesses functions as close as possible to the market to be served.
From the past two decades, the most complex issue concerned with B2B marketing is B2B branding that has received little attention of the