Black & Decker Analysis Essays

Submitted By ashleyvarano
Words: 1257
Pages: 6

After reviewing the presentation of Team D, I concluded from their problem statement that their plan for Black & Decker moving forward is to focus on the Professional-Tradesmen segment since it is their segment with the lowest market share. They focused on this problem because even though the Professional Tradesmen segment is the smallest of the three segments, Professional Industrial, Professional Tradesmen, and Consumer, it is the fastest growing. As a follow up to their problem statement, I found it somewhat confusing as to what their actionable items would be in regards to the vehicle they were choosing to enhance the Black & Decker brand image. First, Team H said they would put the DeWalt product name on Black & Decker products to instill brand recognition with tradesmen since the DeWalt brand comes from a line of successful stationary woodworking equipment and was absorbed by Black & Decker in 1960. However, Team H also proposed that Black & Decker should do a better job at highlighting their brand name on their product line via a new brand called “DeWalt by Black & Decker”. Where I did see the value of such a change, it was confusing as to which the Team was proposing.
Team H opened their presentation with a background on the Black & Decker brand, mentioning that even though this company was the world’s largest producer of power tools in 1990, it is most known for home appliances, such as blenders, coffee machines, toaster ovens, and of course, the Dustbuster. However, Team H pointed out that even though Black & Decker was a market leader for in-home consumer products, it was not leveraging the Professional-Tradesmen market efficiently. Team H broke down the differences between a Professional and Consumer tradesman, saying that the main difference is the how their work is being done. As a Professional Tradesman is one who works on an industrial site using industrial grade equipment, while a Consumer Tradesman is more of a “weekend warrior” performing small home improvements. As stated in the case, the Professional Tradesman category mailyn consists of tradesmen who depend on their trade as means of employment. They include “electricians, plumbers, carpenters, framers, roofers, and general remodeler workers in residential construction”. The Consumer Tradesman, however, is not as serious as the Professional Tradesman, thus their needs for equipment is less strict. Team H went a step further to show how both types of tradesmen view the Black & Decker product line. Professional Tradesmen are not pleased with the brand because they have a negative brand image for Black & Decker. Professional Tradesmen see all Black & Decker products for at home use only and not suitable for the job site. A Professional Tradesman spent approximately $3,000 on their “tools of trade”, and spent approximately $1,000 on replacement tools per year. As Team H pointed out, the performance of tools was a big conversation on the job site, thus if a few tradesmen disliked a product, that perceived brand reputation spread, which caused a loss in revenues for Black & Decker. On the contrary, Consumer Tradesmen were happy with the Black & Decker product line because they saw the value in using this equipment for their smaller scale projects.
Team H compared the brand image and product line of Black & Decker to that of their competitors so they could point out the differences in brand reputation among the target market. The perceived top brand in the space was Makita. Professional Tradesmen saw Makita as having a strong base line of products in all major categories. Team H also explained that the Professional Tradesmen segment also noticed that Makita was easily accessible; meaning that they could be purchased at most, if not all, home improvement centers, such as Home Depot or Lowes. Despite Makita’s strong position with this market segment, some explained that this brand was “arrogant and…