Case Overview and Thought Questions > MKTG 534-301 – Fall 2012 – Exec MBA Program Integrated Market Communications and Brand Management Dr. Ralph Oliva Note: Cases will be discussed in class – Please be sure to read all of them. Questions below will help in thinking through the implications of each case‚ and in preparing “Case Insights.” Each team should turn in at least 4 Case Insights – if more are submitted‚ the best 4 grades will be selected as part of your final grade (40%)
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1. FINDINGS Black and Decker’s DeWalt line has been so successful in the USA that it is now the standard for both the Professional-Industrial and the Professional-Tradesman market segments. Nolan Archibald‚ Chairman‚ President and CEO of Black and Decker (B&D) saw the potential in 1994 to increase the companies market share through worldwide sales of B&D products. While the company had a definite presence in the European Consumer Power Tools market segment‚ it lacked penetration in the Professional
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Running head: BLACK & DECKER BLACK & DECKER Marketing MBA 504 Introduction Duncan Black and Alonzo Decker‚ SR.‚ in 1910‚ started a machine shop business and in 1917 receiving the world’s first patent for a power drill. The company was later named Black & Decker‚ (B&D) and over the next 73 years they became one of the most well known brands and market leaders of power tools‚ accessories‚ lawn‚ garden supplies and residential security hardware worldwide. In
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Company Name: Black and Decker 2 Team members and their respective functions 1 Sal Salvino – Management 2 Carl Ruffier – Management 3 Kevin Stephen – Marketing 4 Dan Howells – Marketing 5 Ryan Alexander – Marketing 6 Candis Robison – Economics 3 View our group is taking according to business function 1 Entrepreneurial a. Analyzing “the heart” of the actual operation b. Decision Making analysis c. Analyzing Black and Decker’s
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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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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 living
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CASO: BLACK & DECKER 1. How would you explain the considerable smaller market share in the Professional-Tradesmen segment of the market as compared with its leadership or strong position in the others segments? Seis meses luego de la adquisición de C&C‚ su margen bruto a descendido del 60% al 50%. Ellos está gastando mucho dinero en folletos y listas de mail pero no están haciendo foco en la clientela principal de C&C y no les conviene competir con los negocios Retail. 2. What pros and cons
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didn’t mention was that you can fill the bowl up with liquid and there won’t be anything leaking out of the center shaft. Another incredible assest to owning an Oster Total Prep Food Processor is that there is no hole! Other brands such as the Black & Decker FP1600B tends to leak if you fill it to close to the suggested fill markings. A friend of mine owns a Delonghi 9-Cup Food Processor. She paid tens times the amount of my Oster and the darn thing doesn’t even shred cheese. Mine does. Go figure
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BLACK AND DECKER CASE ANALYSIS Black and Decker a company that has a long history of innovation‚ is a great example of how an organization must constantly adapt to a changing environment. As a company that has a presence of over one hundred years it had to reengineer itself‚ when after years of dominating the market it started losing market share. It is easy to see why a company that was the first to introduce products like the first ½“ special drill was the first all-sleeve-bearing power tool
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professional-tradesmen tool sales in 1990 was the Home Depot at $5 million.—largest of the rapidly growing collection of home improvement chain stores. --Strategy: stock 30‚000 items in a 100‚000 square foot location‚ with prices about 30% less than the traditional hardware store‚ while also providing superior customer service. --Makita’s rise to marketplace dominance was aided by the rapid development of this new type of distribution. Milwaukee strategies: Be the best of the best in the professional tool industry
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