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Key Issues
Low market share of the relatively new Professional Tradesman Segment
1. Harvest Professional tradesmen Channels
. Sub-brading
Online writing services offer help on Case Study- Black and Decker Corp- Power Tools case study; Robert J. Dolan HBS
. Drop the B&D name from professional segment
Environmental Analysis
Demographic
Men professional tradesmen for the tools. Housewives for Housewares divisional products
Marketing
Customer Analysis
Mainly trade companies rather than individuals- end users are electricians, plumbers, builders etc. Customer loyal to existing distributors
Product Analysis
Power tools and housewares- electrical handheld equipment for both professional and consumer use.
Colour a product differentiator
Distribution Channels
Grainer of Skokie, Illinois- 00 branches, stocked more than ,000 items
Home Depot
Home Club
Twosteps
Ace
Retailers not positive towards Makita brand
Pricing
Each of the customers had generally about $000 invested in tools of the trade.
Spending $1000 per annum
Strengths Weaknesses
Powerful Brand name #7 in USA, #1 in EuropeBrand recognitionMarket leaderExceptional growth50% product revenues outside of the USA0% of share of overall marketExcellent knowledgeable serviceIn depth field tests.Strong R&D Low market share of the relatively new Professional Tradesman SegmentSeen by some as fathers day gifts not professional tools
Opportunities Threats
Household divisionProfessional Tradesmen segment growing the fastest. Makita holding market share of the Professional tradesman segmentB&D brand viewed as home use products.
Recommendations
B&D should look at the possibility of using a sub brand backed by the B&D name- Through this re-branding strategy B&D name would hold the back bone to the core product although a key differentiation would exist through a new or existing sub brand such as De Walt.
Focus sales on Two-Step where Mikita has 55% of market share.
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