1) Why is Makita outselling Black & Decker 8 to 1 in an account which gives them equal shelf space? • Trade is asking for advertising allowances and rebate money on products‚ profitability in the Tradesmen segment is near zero. • The B&D brand in the Tradesmen segment may be regarded as “weak” due to the fact that B&D dominated the consumer segment. • The “heavy do-it-yourselfers” may have a misconception on the quality/reliability/durability of B&D professional line. These individuals make a
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Marketing Concepts and Commercialization Business Case Analysis Black & Decker Background Black & Decker Corporation is one of the largest manufacturers of power tools and accessories‚ residential security hardware‚ outdoor tools and numerous other products. The two largest product groups of B&D are power tools & accessories and household products representing 29% and 15% respectively‚ in terms of sales. During the 90s the portable power tool market accounted for 1.5 Billion and is segmented in
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1. How does the buying behavior of tradesman affect the situation? 2. What is Makita’s competitive strategy and what role does Milwaukee play? Makita: provide a good baseline option in all major categories; other suppliers had particular product strength‚ like Skil in circular saws. the largest single outlet of professional-tradesmen tool sales in 1990 was the Home Depot at $5 million.—largest of the rapidly growing collection of home improvement chain stores. --Strategy: stock 30‚000 items
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Company Name: Black and Decker 2 Team members and their respective functions 1 Sal Salvino – Management 2 Carl Ruffier – Management 3 Kevin Stephen – Marketing 4 Dan Howells – Marketing 5 Ryan Alexander – Marketing 6 Candis Robison – Economics 3 View our group is taking according to business function 1 Entrepreneurial a. Analyzing “the heart” of the actual operation b. Decision Making analysis c. Analyzing Black and Decker’s
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Black & Decker Case Questions Address the following questions with regard to the Black & Decker case study in up to two pages (one-sided) or two sides of one page. Do not use a font smaller than 12 or margins less than 1 inch. Please consider the writing rubric as you begin (available on Angel). Also‚ do not hesitate to use bullet points when listing items. 1. Briefly‚ what is the nature and background of the company? Black & Decker Corporation is an organization located in Towson
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BLACK & DECKER CASE Problem Statement: With Black & Decker being one among the most powerful brand names in the world and establishing its professional tools to be the highest quality in the industry‚ B&D failed to make an impact in the Professional-tradesmen segment. B&D was known for offering high quality‚ differentiated products and excellent service in the Professional-Industrial segment whereas its brand recognition‚ and image helped it attain the #1 position in the
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In this case‚ Black & Decker Corporation (B&D) is facing a major challenge in the power tools market. The industry is segmented into three categories; Consumer‚ Professional-Industrial‚ and Professional-Tradesmen‚ and while B&D holds the biggest market share in the Consumer segment‚ they are trailing far behind in the Professional-Tradesmen segment‚ with a meager 9% market share. Though this is a growing market segment‚ B&D is barely making any profits from it‚ and a new strategy is needed if they
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Lundgren President & Chief Executive Officer Stanley Black & Decker 1000 Stanley Drive New Britain‚ CT 06053 Dear Mr. Lundgren‚ In response to your request‚ an evaluation of your firm‚ Stanley Black & Decker‚ was conducted to determine the strategic issues and problems within and surrounding your firm. This consisted of a review of the external environment‚ a SWOT (Strengths‚ Weaknesses‚ Opportunities and Threats) analysis incorporating identification of factors which drive the business
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Brittani Edwards April 6‚ 2011 MKG 631 Black and Decker Case Study Cause of B&D’s 9% share in the Tradesman segment; In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the
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Despite maintaining a very strong brand name and being #1 in the Consumer & Industrial segments of the power tools market‚ Black & Decker (B&D) was being significantly outsold by Makita Electric of Japan‚ who had taken over the Tradesmen segment with 80% market share in cordless drills and 50% overall share in this segment. Tradesmen appeared to perceive the B&D brand as a household product unworthy of their usage given B&D’s success in the Consumer segment and Makita’s dominance
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