Case - The Black & Decker Corporation

Household Products Group: Brand Transition

Submitted to:

Prof. Sanket Vatavwala

Submitted by – Group 2

MBA/07/031 MOHAMMAD TARIQ ANSARI

MBA/07/062 ABHIJEET RATHORE
MBA/07/101 SACHIN NANDA
MBA/07/124 AMAR KHATTRI
MBA/07/158 PAWAR KUNAL PRADEEP
MBA/07/200 HARI KRISHNAN R K
Case Analysis:
Introduction:

• Having its primary objective to gain access to houseware buyers and to resolve to
develop a family of products that could address wide range of houseware needs Black &
Decker Corp acquired GE houseware division.

• Black & Decker 3 Innovative houseware products till 1984; Dustbuster, Spotliter, Scrub
Brusher

• Competitors aggressively responded by boosting market expenditures and introducing

new items; new product development is also crucial in the expansion of houseware
markets.

• Black & Decker could use GE name for 3 years following the acquisition.

Problem Statement:

• To determine the most efficient method of brand changeover.

• To design Integrated Marketing Communication for Brand Transition.

SWOT Analysis:
Strength:
• Black & Decker has one of the most
diverse product portfolios of any firm,
with 17 product categories.
• Each pricing or feature segment for the
autos had competitive prices.
• Widespread distribution
• Large assortment of items and shop
network.
Opportunities:
• The main competitor in the American
home market.  American household market.
• Black & Decker has traditionally
dominated the hardware retail market,
particularly mass merchandisers and
catalogue showrooms.
Weakness:
• Competitors usually have access to the
company's products. They do not
innovate or attempt to increase the
appeal of their products.
• develop items that are easy to maintain
• The items of the firm are frequently less
priced.
Threats:
• The most significant competitor in the
• Black & Decker has a long history of
supremacy in hardware stores,
particularly mass merchandisers and
catalogue showrooms.

Solution:
Industry Analysis:
The home appliance industry is one of the fastest emerging in the Indian market. Home
appliances in India have been steadily rising, driven by both large and small equipment. In 2018,
most home appliance categories witnessed an increase in both retail volume and current value.
The industry has a sizable untapped market for appliances such as air conditioners (AC),
washing machines, and refrigerators. The growing economy and changing lifestyles of Indian
consumers have increased the number of working individuals, nuclear families, single-person
homes, and job migration. As a result, these emerging homes have a growing need for
accessibility and are looking for items that provide convenience while significantly reducing the
time and effort spent on daily activities.

The major drivers for the growth are,

 Increased Affordability

 Conscious on energy efficient products

 Increasing digital penetration

 Technology advancement

The popularity of internet shopping, expanding social media influence, and increased
electrification of rural regions all point to rising demand. The urban population accounts for
two-thirds of the overall revenue, with the remaining third coming from the rural population.

Market Trends:

 Offline Distribution Channel is still observed to have a High Growth in Indian Home
Appliance Market.

 Online sales saw a considerable increase in 2018 across all categories, including those
for home appliances, and are now acknowledged as one of the most crucial distribution
channels in the industry. Through this channel, there has been an upsurge in sales of air
conditioners, refrigerators, and washing machines.

 Many major firms have started changing their business from B2B to a B2C
distribution model, thus forcing others to adopt the trend to be relevant.

 The CAGR shows to be >5% from 2018 to 2027 (Source: Mordor Intelligence) and the
market is in between the scale of consolidated and fragmented with major players like
Electrolux AB, Haier Electronics Group Co Ltd, LG Electronics, Robert Bosch and
Whirlpool Corporation