Black And Decker (a)
Marketing 1
Fall 2014
Professor Ron Shachar
ASSIGNMENT 1: Black and Decker Corporation
GROUP 6:
Avidor Amir, Amariglio David, Efrat Tamar, Shine Maor
Due: 23 Nov 2014
Submitted: 23 Nov 2014
Question 1: Why is Makita outselling B&D 8 to 1 in an account that gives tem equal shelf space? The case study begins by giving us information regarding Black and Decker’s (B&D’s) performance in the Professional-tradesmen (trade) segment – detailing the failings of B&D to match sales with their key competitors, namely Makita who are outselling them 8 to 1.
Retail customers are displeased as they cannot maximise revenues from shelf space given to
B&D.
The trade segment of the power tools market refers to working professionals who are required to purchase their own work tools. The segment comprises of skilled individuals who invest on average $3000 on building their initial tool portfolio, followed by an average additional $1000 per year on maintenance and replacements. They frequently discuss their tool choices amongst each other.
Trade consumers associate the B&D brand with household goods they may have seen around their homes, such as vacuum cleaners and popcorn machines. This is reflected in
B&D’s consumer survey (table D) – where only a minority of trade consumers would be proud to own a B&D work tool with comparison to the tools of key competitors. We have also seen concerns from trade consumers regarding the suitability of B&D products for professional use, as opposed to infrequent DIY around the home- as was illustrated in comments made to Joseph Galli by tradesmen suggesting the B&D brand products are great for his spouse but not suitable as a workmen’s tool- and he would be ridiculed by colleagues if he brought a B&D tool to the workplace.
Question 2: Why are B&D’s shares of the two professional segments - industrial and tradesmen - so different? Wouldn’t you expect them to be similar?
The industrial and trade consumers follow a very different purchasing pattern.
Fall 2014
Professor Ron Shachar
ASSIGNMENT 1: Black and Decker Corporation
GROUP 6:
Avidor Amir, Amariglio David, Efrat Tamar, Shine Maor
Due: 23 Nov 2014
Submitted: 23 Nov 2014
Question 1: Why is Makita outselling B&D 8 to 1 in an account that gives tem equal shelf space? The case study begins by giving us information regarding Black and Decker’s (B&D’s) performance in the Professional-tradesmen (trade) segment – detailing the failings of B&D to match sales with their key competitors, namely Makita who are outselling them 8 to 1.
Retail customers are displeased as they cannot maximise revenues from shelf space given to
B&D.
The trade segment of the power tools market refers to working professionals who are required to purchase their own work tools. The segment comprises of skilled individuals who invest on average $3000 on building their initial tool portfolio, followed by an average additional $1000 per year on maintenance and replacements. They frequently discuss their tool choices amongst each other.
Trade consumers associate the B&D brand with household goods they may have seen around their homes, such as vacuum cleaners and popcorn machines. This is reflected in
B&D’s consumer survey (table D) – where only a minority of trade consumers would be proud to own a B&D work tool with comparison to the tools of key competitors. We have also seen concerns from trade consumers regarding the suitability of B&D products for professional use, as opposed to infrequent DIY around the home- as was illustrated in comments made to Joseph Galli by tradesmen suggesting the B&D brand products are great for his spouse but not suitable as a workmen’s tool- and he would be ridiculed by colleagues if he brought a B&D tool to the workplace.
Question 2: Why are B&D’s shares of the two professional segments - industrial and tradesmen - so different? Wouldn’t you expect them to be similar?
The industrial and trade consumers follow a very different purchasing pattern.