Black & Decker

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Question 1: B&D leads in two product segments, but trails in the third. Why?

Answer: It seems from the case that there are several reasons why B&D leads in Professional-Industrial and Consumer product segments, but trails in the Professional-Tradesmen segment. It is also clear from the tests performed by Black & Decker that their products were at comparable, or even better at some cases, quality.

Branded as Home Tools: It appears that professional-tradesmen did not want to use the same tools that housewives used at homes (Black & Decker). Tradesmen viewed Black & Decker tools more for home use than being subjected to demands of the job site. This was a perception issue that was hurting Black & Decker big way.

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They were: o Rated best (80%) on "one of the best" Agreement Data survey o Rated high (95%) on the awareness scale, next to Black & Decker (98%) o Rated best on the "Makes High-Quality Tools" and "Makes Durable/Rugged Tools" (91%)
· Additionally, Milwaukee 's markets share in Professional-Industrial segment is at parity with B&D. This shows Milwaukee 's competency in power tools.

Milwaukee Weaknesses:

· Like Makita, Milwaukee 's products were also priced at Premium over B&D. This could be a weakness, as competitors could sell under their price to capture the share.
· Data in exhibit 2 reveals that either Milwaukee was not participating in the "Membership Club" or was not very effective in it.

Question 4: Describe the marketing options available to B&D. What are the pros and cons of each?

There are three marketing options available to B&D. They are as following:

Option 1: Harvest professional-Tradesmen Channels
In this option the strategy was to concentrate on the Consumer and Professional-industrial segments and only participate in Professional-Tradesmen segment for profitability. There was no emphasis on capturing the market share.

· In this option the focus will be on profitability only, not on market share.
· Better concentration on the Consumer and Professional-Industrial segments

· Taking focus away from a big market (US Market Segment of $420MM) is not a good idea
· Profitability is good,

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