Black & Decker
1. How would you explain the considerable smaller B&D market share in the Professional-Tradesmen segment of the market as compared with its leadership or strong position in the other two segments?
The small market share in the Professional-Tradesmen segment is explained by the a misleading perception of end-consumers and tradesmen which viewed all B&D products for home use rather than for a job (consumers at this segment are people who make a living out of it such as plumbers, electricians and/or carpenters) affecting the brand reputation in the segment. In contrast, on the other two segments, B&D is viewed as a market leader with high quality products.
Although B&D has a strong brand penetration and good quality products (tested), in this particular segment (Professional-tradesmen), competitors such as Milwaukee and Makita had a better quality perception than B&D. If we compare this market segment versus the Professional-Industrial and Consumer segments we can state that B&D has a powerful branding for home consumers explained by its vast history and leadership. Obviously this is supported by good services, quality products, variety and large distribution channels like for example: Kmart, Wall-mart and other country/region wide hardware stores. In addition, B&D leadership at the Professional-Industrial segment relies in a historically excellent service to customers which are corporate/mid and small business which the end-user is an employee and normally do not have the right or power to decide whether to buy the product or not.
2. If you were Joseph Galli, would keep the brand Black & Decker or adopt a new brand like De Walt?
If I was Joseph Galli I would have adapted a new brand like De Walt. I think that it is very difficult to change brand perception in this particular market segment. Consumers of these products put a lot of emphasis on quality and although B&D products do count with very good quality such as...
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