Essay about Black & Decker Power Tools Division - Case Study

945 Words Dec 16th, 2012 4 Pages
Module | Session | Course/Theme | Case | Who | When | Where | Case Leads/Due Date | T1 | 8 | Winning Through Marketing Management | Black & Decker – Power Tools Division | Joseph Galli, VP of Sales and MarketingNoran Archibald, CEO | January 1991 | Towson, MarylandUnited States | November 28, 2012 | What – Situation/Issues/Risks/ Decision | 1. B&D lost its market share of professional-tradesmen tools segment against Makita Electric of Japan 2. Makita held an 80% share in cordless drills, the single largest product category and a 50% professional-tradesmen tools segment share overall compared to 9% share of B&D 3. B&D maintained #1 market position in the Consumer and Professional-Industrial segments; and only …show more content…
80% of the total capital | S * Brand awareness (98%) * Efficient distribution channels * Ranked #1 in two of the three segments * Market penetration in all three segments with separate product lines specifically targeted for each segment * Faster (9%) growth rate in weakest segment * Some retailers regarded Makita as “arrogant and dictorial” * Very strong product quality for majority of the items | W * Poor reputation in Prof-Tradesmen segment * Product color scheme (Black & Charcoal) * Only 9% mkt share in Prof-tradesmen segment * Profitability was near zero | * Makita electric, Milwaukee, Ryobi, Skil, Craftsman, Porter-Cable, Bosch | P * | E * | | O * Improve poor brand quality perception for tradesmen segment * Product color scheme * Reduce SG+A cost, currently at ~25% * | T * Increased competition. The top three manufacturers i.e. Makita, Milwaukee and B&D offer product lines at ~175 SKUs each | | S * Peer pressure, tradesmen laughed at if they use B&D gray things * | T * | Financials | Options & Evaluation | * | 1. Option 1. Harvest Professional-Tradesmen Channels 2. Option 2. Get Behind Black & Decker Name with Sub-Branding 3. Option 3. Drop the Black & Decker Name from the Professional-Tradesmen Segment 4. Option 4. Launch new product line under DeWalt brand in

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