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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|This is a decision case. Galli has 3 optional strategies to choose to improve the poor sales of Professional-Tradesmen products. We need to analyze all of | |them and make a decision. | |SWOT analysis(Strength Weakness Opportunity Threats) can be applied to this case. | |End users hold a
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Black & Decker International: Globalization of the Architectural Hardware Line Company Background Black and Decker was founded in 1917. It manufactured and sold a wide line of electric and battery-powered power tools and accessories‚ household products‚ outdoor products‚ locks and hardware‚ plumbing products‚ and mechanical fastening systems. Black and Decker acquired Emhart Corporation in 1989. In 1985‚ Nolan Archibald became the CEO. Two of Mr. Archibald’s key actions had been to develop
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be used as a building block to promote Grunewald’s plan for creating a global lock business. It would also help to improve market knowledge along the dimensions of completion‚ consumer segments and product requirements. Another factor is that Black & Decker would now have a worldwide distribution system. the factors that stand in the way would be problems in loosing key managers‚ simplifying production design and engineering and overcoming regional differences. 2. What are the organizational
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The Black & Decker Corporation Case I. Problem Statement While Black & Decker is one of the 10 most known brand in the US‚ the brand’s branch selling tools to the professional-tradesmen‚ which was the original heart of consumers since the creation of the company‚ is facing a branding problem. Indeed‚ the entire range offered to the professional-tradesmen segment is considered by those buyers as a bad brand compared to Makita’s brand. The market shares highlight this rejection of B&D’s brand :
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The black and decker corporation: power tools division | The Case of Black and Decker | The Marketing Plan for The Professional Tradesmen Segment Year 1991/1992 | | Executive Summary Gary DiCamillo‚ Black and Decker’s president of power tools for United States‚ is reviewing the most recent sales records and figures indicating the professional tradesmen segment’s market share in his office. The research findings are not looking good and surprisingly‚ he didn’t expect otherwise. It
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Black & Decker p534 1. How would you characterize Black & Decker’s international expansion during the 1950s and 1960s? What strategy was the company pursuing? What was the key feature of the international organization structure that Black & Decker operated with at this time? Did Black & Decker’s strategy and structure make sense given the competitive environment at that time? The company grew rapidly during the 1950s and 1960s due to its strong brand name and near monopoly share of the consumer
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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) 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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The Black and Decker Corporation (A): Power Tools Division B&D only has 9% of the Professional-Tradesmen segment. Makita has 50% of this segment. B&D’s strength as a consumer brand had negative effects on the Professional-Tradesmen segment: “Some tradespeople viewed all B&D products as for use at home rather than on the job; and‚ conversely‚ there had been instances of a B&D product designed for at home use being subjected to the demands of the job site and failing.” (p.6) Option 1: Harvest
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