The Black & Decker Corporation (A)
Power Tools Division
International Marketing Management
Prof. Dr. Lutz H Schminke
Marc Gerlach (323514)
Tobias Holler (725219)
Fulda, 24th May 2011
Table of Content
Table of Content2
2. Case Summary3
2.1 The Black & Decker Corporation3
2.2 The US power tools market4
2.3 Black & Decker’s professional segment4
4. How to deal with the insufficient brand awareness in the Professional- Tradesmen segment?6
List of References8
Declaration of Authenticity9
This research paper deals with the case study of the Black & Decker Corporation and its power tools division. Black & Decker is one of the world’s leading tool manufacturers. The paper looks into the problems faced by Black and Decker which are a lack of brand awareness coupled with a poor market position in the Professional-tradesmen segment.
First of all, the reader is provided with a short introduction about the company, their operating segments, and the US power tool market. After that, this paper investigates and analyses the strengths, weaknesses, opportunities and threats of Black & Decker.
The aim of this paper is to give recommendations based on the results of the SWOT-Analysis. Furthermore, it will be analysed which of the given options is the most promising alternative.
2. Case Summary
1 2.1 The Black & Decker Corporation
The Black & Decker Corporation is the leading producer of power tools and accessories in the United States. Also it is the firm most responsible for the creation of the post-World War II consumer market for power tools. The firm's key power tools are brands Black & Decker and DeWalt. Additionally, Black & Decker is also a leading producer of electric lawn and garden tools, security hardware, general and decorative hardware products, plumbing products and specialty fastening and assembly systems. Black & Decker products are sold in more than 100 countries and are manufactured at 36 plants, 18 in the United States and 18 abroad, located in Brazil, China, the Czech Republic, Germany, Italy, Japan, Mexico, and United Kingdom.
2 2.2 The US power tools market
The U.S. power tools market is divided into three segments: Consumer segments (this segment is made up by consumers who buy the tools usually from markets like Wal-Mart etc. or other hardware shops for home use), Professional-Tradesmen segment (according to the work requirements contractors buy the tools for themselves) and Professional-Industrial Segment (intended for conductors who work on large projects; tools are usually purchased and owned by the company). According to statistical data, the Professional-Tradesmen Segment has largest growth potential because it has been growing faster than the other two segments.
Black & Decker is one of the most famous brands in power tools in world range. Its products have a good reputation thanks to the general high quality. Nowadays, Black & Decker has a market share of 45% in the Consumer segment and 20% in the Professional-Industrial segment. However, in the Professional-Tradesmen segment Black & Decker holds only 9% of the market share, and on the other hand, the competitors performed better in this field: Milwaukee Electric has 10% of market share and Makita which is the market leader with 50% of the market share.
3 2.3 Black & Decker’s professional segment
The vice president of Black & Decker had to find out why Black & Decker is perceived as a good brand for home usage but at the same time, when it comes to professional usage, consumers avoid Black & Decker’s products. And...