Black & Decker Case Study

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Black & Decker Case Questions

Address the following questions with regard to the Black & Decker case study in up to two pages (one-sided) or two sides of one page. Do not use a font smaller than 12 or margins less than 1 inch. Please consider the writing rubric as you begin (available on Angel). Also, do not hesitate to use bullet points when listing items.

1. Briefly, what is the nature and background of the company?

Black & Decker Corporation is an organization located in Towson, Maryland. They blueprint and trade in power tools and accessories, hardware and home improvement products, and technology based fastening systems (Wikipedia, 2011). For a long time, B&D brands magnetize great strength from the consumers and
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The issue faced here is the decline of the market share of the Professional Tradesmen segment and how to overcome that decline and gain larger market share in this segment of the market.

4. Briefly present the plusses and minuses of each of the three proposed options.

Option 1: The Professional Tradesmen segment focus is to be profitable at the expense of other segments market shares. This cannibalization method can only be successful for the short run. However, in the long run, competitors may take over the other two segments market shares.

Option 2: Sub-branding B&D name. This option can only work for products that are already sub-branded; however if this strategy fails, the parents brand may suffer. Moreover, Professional Tradesmen can lose loyalty to B&D brand if their sub-brand is too much differentiated.

Option 3: Drop the Black & Decker name. The percentage of purchase interest, which reflects consumers behavior toward the new brand, is higher when DeWalt brand is included in the survey (63%) compared to B&D (44%). On the same token, one should consider that DeWalt brand may be an interest to consumers, but in fact not be a product that consumers may actually buy.

5. Indicate which alternative you would choose and explain why.

Knowing that brand awareness has a big influence on an organization success or failure, let 's first determine Professional Tradesman needs or want:
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