Essay About Professional Segmentfrom Exhibit And D Shareb

The Black & Decker Corporation (a): Power Tools Division
Essay Preview: The Black & Decker Corporation (a): Power Tools Division
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The Black & Decker Corporation (A): Power Tools DivisionHow should Joe Galli market power tools to the Tradesmen segment? Why? What risks does he take? Be specific about your actions and remember he has three audiences to please: the customer, the retailer, and Nolan Archibald and Gary DiCamilloWhy is Makita outselling Black & Decker 8-to-1 in an account that gives them equal shelf space?What, if anything, do you learn from Black & Decker’s consumer research?Joe Galli’s objective is to “challenge Makita for leadership” in the Tradesmen segment. To do this, he needs to build share to “nearly 20% within three years, with major ‘take-away’ from Makita.” Is this realistic?Market SegmentMarketGrowthB&D ShareB&D RevenueIndustrial$550M0%20%$110MTradesmen$420M9%9%$35MConsumer$530 M7%45%$250MMajor player in Consumer and Industrial Segments.Lacking in Tradesmen segment.Permeation into Consumer Segment likely hindering our perception in Professional SegmentFrom Exhibit 2 : 5 major outlet typesPoor performance in channels that make up 65% of the professional market.Majority of Industrial sales come from Warehouse HCs.Tradesmen sales coming from Two-Steps and Home CentersCustomer (Brand Perception)From Table B, C and D, and Figure CB&D has highest brand awareness (98%) under Professional-TradesmenB&D: Bottom half of brand perception under Professional TradesmenLowest “One of the Best agreement” data for B&D (44Discrepancy between awareness and product imageThose who favor Makita indicate displeasure with Makita products where B&D is strong (Opportunity)Need to investigate the cause, whether it is due to the actual performance of professional toolsPoor performance in Tradesmen segment caused by:Poor brand perception in Professional segmentBrand not differentiated well enough from tools meant for the consumer segmentNeed further research about perception vs realityFigure E: Product AssessmentThe professional quality of items 1, 2, 3, 5, 9, 13, and 14 are above that of our competitors.All other products need additional development.Proves that permeation into households in the consumer segment has inhibited our brand perception in the professional tradesmen segment. B&D products CAN stand in this marketStrategy RecommendationsCompetitor:MilwaukeeHigh end market in the professional-industrial tool industry.Have a solid presence in the Industrial segment through the Warehouse sales channel. MakitaProvide high quality toolsArrogant and dictatorial acc to retailers. No channel protection, despite retail grievances.Trading down offeringsOption 1:Harvest Tradesmen Channels and Focus on Consumer and Industrial: NoTradesmen segment has highest growth. Losing out on potential opportunityIncreasing profit at the expense of market share may have negative long-term impactOption 2: Sub-Brand products with a new major label AND the Black & Decker: No