Black and Decker Case Study

Essay by big_robwUniversity, Master'sA+, April 2005

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Decisions to be made:

The vice president of sales and marketing for power tools, Joseph Galli, must decide on a strategy, if any, to increase market share in the Professional-Tradesmen market. If a strategy is chosen to pursue an increase in market share in this market, then it must double their Professional-Tradesmen segment share from under 10% to nearly 20% within three years, with major share "take-away" from Makita.

Relevant Facts / Issues:

Target Market Perception: Black & Decker (B&D) is a leader among power tool companies in supplying households with power tools. However, their success in the Consumer market has caused problems in other markets that they participate in. The Professional-Tradesmen market consists of professionals that use power tools as a way to make their living. Customers in the Professional-Tradesman market demand the highest quality tools, and believe that their choice in power tools has a big impact on not only their work and services but also their image.

In their view, a product used in the home cannot handle the workload required in their profession, and thus will not use an inferior product. This is a contribution as to why the success of B&D in the Consumer market has prohibited success in the Professional-Tradesmen market. Appendix A shows the current market share of B&D in the Consumer, Industrial, and Professional-Tradesmen market segments. The research shows that B&D is behind Makita and Milwaukee in the Professional-Tradesman market. If B&D cannot prove to the majority of the customers in the Professional-Tradesmen market that B&D power tools are superior to Makita and Milwaukee brands, B&D will unlikely be successful in this market segment.

Research/Studies: B&D conducted research to determine what the customers in the Professional-Tradesmen market thought of different brands (see appendix B), and to compare the qualities of other brand...