Black And Decker Corporation Case Study Summary

In summary, marketing is very important for a business to achieve success. Many businesses have a difficult time in this area. With the stiff competition, businesses struggle to stand out among others. Other companies resort in unethical and unfair schemes just to win the competition. But eventually find themselves in great loss and failure. As businesses all over the world enter into a gigantic marketplace, every business owner is faced with convoluted market competition. Nevertheless, any entrepreneur can be different and become successful in this matter. In every product sold and in every service provided, patience and hard work should take precedence to ensure quality. Products and services should be marketed honestly, planning should not be done with evil

Recent research studies showed that B&D is one of the powerful brand names in the world because of its professional tools that has high quality in the industry.

With innovations and technology Maruti Suzuki tries to bring new experience to customers and to produce environment friendly cars while achieving stability and security now and for future generations. Business organizations have to operate in a competitive field. The organization’s competitive competence can be appraised on the basis of trends in market shares for which the information can be made available from various outside sources as well as through the MARUTI own marketing research department.

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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 company’s business strategy seems to be sound. The management recognized the potential to exploit the company’s strength in the material handling equipment business. This strategy is likely to help the company to move away from the mining and construction equipment business, which is a low-growth and cyclical industry, to a higher-growth and more stable business.

Tradesmen most often buy their tools from the retail distribution channel like Home Depot, or independently owned stores like ACE hardware. In this segment of the market tradesmen spend about $3000 a year on tools and about $1000 a year to replace tools. Quoted in the article “On the job, people notice what you’re working with, if I came out here with one of those B&D gray things I would be laughed at.” Just buy this statement it shows that B&D tools are looked at by tradesmen as tools for the home or tools that are used for hobbies. Even though B&D products are high quality and sold at a good price tradesmen would rather purchase tools that are looked at as professional tools like Makita. Also it has been known for B&D tools to fail on the job. Even though these were tools that were marketed to the consumer segment, it still gave B&D a bad name to tradesmen. Some of B&D’s tools were solely designed for the consumer segment for home use but how was the tradesman suppose to know exactly what tool was for which segment. To avoid this confusion B&D could possible go out to job sites and provide information about their products that are designated for the tradesmen segment so people will be more informed about their product, or go to the big retail chains and have information sessions. By doing these things it could make their product more attractive to the consumer.

Improving marketing has become a top priority of successful inventors and corporations. Most corporations’ research different groups and needs in the marketplace, satisfy the consumers in a superior way by targeting their wants and needs. All marketing strategies are built on segmentation, targeting, positioning, and then position its offering so that the target market recognizes the company’s image and terrific offerings. There are many different business areas which will sometimes play a huge factor such as, finance, accounting, information systems, marketing, and strategic management.

* 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.

As can be seen in Graph 1, from the traditional perspective, Analysis for Strategic Marketing written by Rao and Steckel is plotted the highest with respect to the Horizontal Axis “Business Strength” and the Vertical Axis “Industry Attractiveness”. On the contrary, if AWL wants to build its “leading-edge” image, it is suggested to promote Marketing Engineering written by Lilien and Rangaswamy with more resources and effort. As can be seen in Graph 2, from the leading-edge perspective, Marketing Engineering written by Lilien and Rangaswamy is plotted the highest with respect to the Horizontal Axis “Business Strength” and the Vertical Axis “Industry Attractiveness”.

This strategy explained that a company’s process of finding out competitive advantages in the market situation. To achieve competitive market advantages, Porter’s Generic strategy’s framework is used. Competitive environment has two aspects. The model’s three options should be considered within the competitive environment’s aspects. The first one is competitive advantages and the second one is competitive scope. The first one is developed to know whether the company’s product is different or the company follow the low cost leadership procedure. The second one is developed to know whether the company focus on wide market or narrow

In mid-September 2005, Ashley Swenson, the CFO of large CAD/CAM equipment producer must choose whether to pay out profits to the firm¡¦s investors or repurchase stock. On the off chance that Swenson pays out profits, she should likewise settle on the extent of the payout.

1. The main criteria FEL uses to assign managers to their projects include time constraints and expertise. Clearly, managers with heavy workloads will not do as well as those without significant current time constraints. Hence, the likelihood that the work will progress smoothly under such managers is greater than otherwise. Expertise is also an important requirement to ensure that a project runs smoothly. Hence, the combination of low time constraints with the highest level of expertise appears to be a good basis for successful projects. However, one potential danger of assigning an apparently random number of managers to teams who need to work closely together could create communication problems, especially if these managers have not worked together before, or indeed if severe personality clashes occur. Hence, it might be a good idea to conduct regular assessments of the progress of the work as well as how well managers function together, particularly in a remote location such as Abu Dhabi.

New search of market is the next step that after capturing our current existing market we can go to USA and the central Asian markets much deeply. Much more innovation, improved value and quality can added the products for our consumers. Adoption of the new technology will deeply help us to minimize the cost of our products. The research and development department can be making more strong and efficient for the product improvement and products availability. Improved and much more concentrated customers service. Provide continuous staff training and cost effective production of labor. Strive to increase the customer's expectations through the quality, customer’s services and innovation. Increase in the promotional activities through the online marketing to high market share. Building strong relations and very long term contracts with the whole suppliers will be more beneficial for the future

The marketing process has gained more and more significance within the modern day business setting. As competition intensifies and the demands of customers exponentially increase, the economic agents are forced to devise and implement new strategies that attract and retain customers. In other words, it is no longer sufficient for a company to provide its customers with high quality products and services, but it has to also make use of complementary solutions, such as marketing strategies.