Black & Decker: Case Analysis: Black And Decker

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EXECUTIVE SUMMARY Black & Decker has 9% market share in Tradesmen Segment which is low when compare with the market leader Makita. Because of the preferences of amateurs, professionals do not want to use this product. The image and name of brand is the main reason why Tradesmen Segment does not prefer Black &Decker as a best option. However the goals of Black & Decker are reaching both non-professional and professional users, the company is trying to increase its market share and take the attention of $430 MM. So, sub-branding is the best solution for Tradesmen Segment problem as it will be mentioned in recommendations part in detail. By producing special products for tradesmen under the brand name will get the segment’s attention.
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The consumer and professional market segment are differentiated by the users of the tool; consumer segment is considered an amateur segment requiring low performance tools but professional segment requires highest performance tools. Tradesmen segment is regarded as weak because Black & Decker dominated the consumer segment. The other issue is the color of the product; gray & black is generally associated with the consumer brands as most consumer brands including Craftsman, Private Label are sold in this color where as almost all the professional grade tools are sold in non charcoal gray/black color. Tradesmen are associating Black & Decker is a consumer brand and they are inclined to choose Makita over Black & Decker. That’s why while Makita having %50 share from the tradesman market share Black & Decker has just %9. If we will consider this market in total as a 420 million$, this is creating a huge gap between Black & Decker and Makita. For tradesman segment sub-brand of Black & Decker provides private power tools to only tradesmen segment with low price, unlike Makita which provides power tools with high price to both industrial and tradesmen…show more content…
Sub-branding is the main change in marketing mix and in order to present this new sub-brand it is essential to make changes on promotion strategy of Black & Decker. Even the quality and features of the product will be the same, because of the image of Black & Decker we have to sell our products to Tradesmen within another brand name. So, we will start to our action plan with changing the product element. And then to introduce the sub-brand as a different brand, we have to improve the promotion strategy. As well the cost might create some problems, with advertisements which target the tradesmen; benefit will be higher than the cost. The last change will be made in place. Since the segment of sub-brand is different than the Black &Decker, the distribution channel has to be different also. Instead of home-use dealers like Wal-Mart, it is better to sell products in residential contractors like Home

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