BLACK &

DECKER
Case Study Presentation by Group I
About the Problem
• Black & Decker (B&D) was operating in all 3 major segments
for Power Tools:
• Consumer Segment- At Home Users
• Professional Segment for Tradesman
• Professional Segment for Industries
• While the Market Share in other two was high, In Professional
Tradesman Segment- it was very low- at 9%.
• Tradesman Segment was fastest growing segment at that time-
So Company had to do something to increase their Market
Share.
CAUSES FOR THE PROBLEM
Cause of Low Market share of 9%
• Low Perception of Quality amongst Tradesman
• Due to Strong Presence in Consumer segment for Home use, Tradesman
felt B&D was more suitable for At Home use only & not as a
Professional Tool.
• Bandwagon Effect
• Often, some Tradesman felt that as other Tradesman are using other tools
& felt B&D was of inferior Quality, they too agreed with it and felt it
would not be well-received if they use “Those Black B&D tools.”
• Channel for Distribution
• Not utilizing Membership Clubs even though it captured nearly 10% of
total share.
• The Home Depot’s rise helped Makita’s growth in Market.
Buying behaviour of the tradesman’s
impact on the situation
• Colour Impact
• While it was assumed that the colour does not have significant impact on
Buying pattern- the Charcoal Black of B&D used in Tradesman segment
was used by some other companies even in Consumer segment.
• Brand Perception
• Makita was considered good in all segments of tools while other
companies were considered better for specific equipment.
• High Quality, Durability & Proudness to own the equipment
looks to be more important amongst consumers then Service or
Warranty or even Price of Products.
Makita’s competitive strategy &
Milwaukee’s impact on Market
Makita Milwaukee
• Focus on Tradesman rather • Higher Price but perception
than Distributors of better Quality then others.
• Father’s Day gift • Strong Satisfaction amongst
• Premium Quality Goods its users
PROPOSED SOLUTION
Which Alternative should B&D select!
Proposed Alternative
Based on Data, the most promising alternative is Option 3
“Drop the B&D Name from Professional Trade segment.”
As seen from a report, DeWalt has higher percentage of people
agreeing about it being one of the best brands- 63% to B&D’s
44%.
Also, to differentiate itself from others, B&D should focus on
promotion mainly after which Channels of Distribution could
be focussed on.
Conscious effort to create separate branding from B&D as well
as Premium Quality Product.
Thank you 