B&D Case Details

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1. What is the cause of B&D 9% share and Makita 's 50% share? 2. Describe buyer behavior of tradesmen. 3. Analyze the competitive situation. 4. Choose the action from the action plan on page 10 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 cause of B&D’s failure of capturing the Tradesmen segment is because their perception on B&D’s power tools is that of an…show more content…
One weakness of Makita is that it does not have a positive reputation among retailers. Some regarded it as ‘arrogant and dictatorial.’ Makita offered no channel protection, selling the same products throughout a wide range of outlets, some channels that B&D has not decided to include as its product distributors. To become a successful company, it is essential to maintain a good relationship with the retailers because they have the power to decide which products to display on certain part of the shelves, where consumers can notice more easily. In terms of quality of the two brands’ products, there is not much difference. According to the professional power tool product assessment, B&D power tools generally showed very strongly competitive results. Therefore, it is not the quality of the final product that B&D needs to work on, it is the misperception of the tradespeople that B&D needs to correct. 4. Out of the three action plans suggested for B&D to take, the best option is to choose the third one: Drop the Black & Decker name from the Professional-Tradesmen Segment. This is because customers have already formed strong, solid household-appliance image on B&D products. Rather than putting in effort in trying to change this wrongly image, it is faster and more efficient to drop the company name and develop a new name

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