Black & Decker 2008

Pricing can play an important role in the success or disaster of any product. Too high a price and the product will fail; too low a price and not enough profits will be made to sustain business operations (Hisrich, Peters, & Shepherd, 2014). The key is to make the customer think that they are paying exactly the right price for the product. Anything else though in this regard means the product is not positioned well in the mind of the consumer. First of all, Gril-Kleen will have to decide on what sort of strategy it needs to pursue. This strategy is decided on three factors namely costs, margins and competition.

•For suppliers: The company does not ask so much money for what they sale and can give more money for what they want.

the success of the company. The pricing strategy adopted by the company for its highly durable

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

Price is one of the most important components in regard to a marketing mix. Price is important to virtually all consumers although some concern themselves with perceptions of value as well. Kudler is positioned in the higher end of the price spectrum with a "premium" product position. This position requires Kudler to

product and starting a price war with competitors that would damage margins. In addition, a low priced

The setting of ‘fair’ prices to consumers: the company should bear in mind that customers nowadays will shop around to compare the intended products and services. However for the business survival and growth purposes, the company should also maintain its profit margins to ensure its business growth and expansion. The company needs to consider its cost factors and business operation areas to reduce or minimise the costing areas.

Black and Decker (B&D) was founded in 1910 by Duncan Black and Alonzo Decker. By 1917, B&D had world’s first patent in portable power drills. Since then, B&D has been the world’s largest producer of power tools and power tools accessories. The power tools market in 1990 in the US mainly comprised of three segments-Professional Industrial Tools (PI), Professional-Tradesmen (PT) Tools and Consumer tools. B&D was a market leader in America power tools industry worth $1.5 Billion, with a share of 30%. It was number one in PI and consumer segments with a share of 20% and 45% respectively. However, its share in the fastest growing market segment of Professional-Tradesmen Tools was only

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.

1. Describe the current distribution system of the company and explain why it is so important for its brand positioning? Please explain also how the brand is positioned on international markets.

Was to focus on convenience and "coolness" of the product. Price was not an issue!

Imagine waking up one morning, only to find out that all your investments and savings are gone. So if your bank that you invested all your money in collapsed, you didn’t get any money back. This is what happened to millions of Americans during the 1930s. This era was called the great depression.

To have students analyze the product’s image, packaging costs, and design, in its relation to setting a price (and applying “just noticeable differences” in product pricing and packaging).

3: How can supply chain strategy help John Wolf reduce investment and space requirements while maintaining adequate service levels?

Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.