The Goal
Essay Preview: The Goal
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CASE WRITE UP
THE BLACK & DECKER CORPORATION (A):
POWER TOOLS DIVISION
THE IMAGE CONSUMERS HAVE OF YOUR PRODUCT IS CRITICAL
Black & Deckers (B&D) mistake was not differentiating their product image between the professional-tradesmen tools segment and the non-complementary consumer tools and appliance segment. The tradesmen that purchased their own tools for professional use associated the B&D line with the consumer tools line. That association caused them to perceive B&D tools as being cheap, for home use, and subject to failure on the job.
B&D needs to 1) drop the B&D name in the tradesmen tools segment in favor of the DeWalt name, 2) use bold “Industrial Yellow” and black as the colors for the tools in this segment, and 3) create a brand image for the DeWalt line of professional grade, durable, rugged, and of the highest quality.
COMBINED BRANDING OF NON-COMPLIMENTARY PRODUCTS WAS A MISTAKE
B&D did not sufficiently separate their tradesmen tools product line from their consumer product lines. The combined branding of non-complementary products was B&Ds biggest mistake. The tradesmen were not proud to carry tools with the same brand name as their wifes can opener or Dustbuster. In the Image Study (See Exhibit 1) on average only 40% of those interviewed were proud to own B&D while laboratory and field tests revealed that B&D product quality in the tradesmen segment was strongly competitive in the large majority of product categories.
Tradesmen typically get information about tools from others experience or opinion on their job sites. Tradesmen are emotional about their tools. They identify with the tools and use them to feed their egos. This is why the B&D brand failed in the tradesmen segment while it succeeded in the industrial and consumer segments. Industrial and consumer purchases are based primarily on the quality and price that best meets their needs. There is an element of emotion for the tradesmen when making a purchase. Confidence and pride are primary selection factors with cost being secondary. B&D used their name directly for the consumer appliances and tools instead using it as an umbrella brand. In doing so they gave away their brand equity in tradesman tools earned by the founders many years before.
DIFFERENTIATE THE BRAND IN THE TRADESMEN SEGMENT
B&D needs to remove the B&D name from the tradesmen tools segment and replace it with DeWalt. Of those interviewed in the image study (See Exhibit 1) less than half of those interviewed felt that B&D made a high-quality, durable tool. This contradicts the laboratory and field tests conducted by B&D. The logical explanation for this is that the brand image created this false perception.
The DeWalt name was an underutilized brand in the B&D family. Research shows that the DeWalt name had a 70% awareness rating, 63% of tradesmen rated is as “One of the best” compared to only 44% for B&D, and 51% of tradesmen expressed some purchase interest. Other than the awareness rating B&D trailed substantially in these categories in the tradesmen tools segment. DeWalt is a name that could be leveraged in this segment to capture significant market share from Makita.
The contrast of Black and Grey to differentiate the tradesmen tools segment from the consumer tools segment was not sufficient. B&D should use standard construction site colors (Industrial Yellow and Black) in the tradesmen segment. Tradesmen associate those colors with their profession. Caterpillar heavy equipment and other products of high quality and durability on the job sites typically wear these colors. Emotionally, the tradesmen will feel an attachment to the DeWalt line as a result.
FOSTER AN IMAGE OF QUALITY BY SUPPORTING THE PRICE AND THE CURRENT CHANNELS OF DISTRIBUTION
B&D can differentiate from Makita by pricing higher and staying out of the discount membership clubs. They should continue to distribute the DeWalt brand through the same distribution channels as they have with the B&D brand. This was one component of the B&D strategy in the tradesmen tool segment that was not flawed. B&D needs to