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Black And Decker Case Study

2745 words - 11 pages

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 power tools to their own (see appendix C). Studies showed that almost all the customers knew the B&D brand, but less then half (44%) viewed B&D as one of the best suppliers. The customers in the Professional-Tradesmen market prefer the support and service of B&D, but do not prefer their products. B&D had great success in the Professional-Industrial market, so it is not B&D's belief that their product quality is less than that of competitors. To test this, B&D conducted its own laboratory tests on competitors and their own products to assess performance, reliability, and durability. The results showed that B&D products were just as capable, if not superior, than most other products offered by competitors. B&D conducted extensive field tests to confirm the results of this study. All identifying marks and colors were removed from all products (both B&D and competitors), and were then used in actual work situations for a time period of one month. Users provided comments on product performance and their interest...

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