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 : B&D has only 9% whereas Makita has 50% of the tradesman segment’s shares.
The cause of this issue is not due of the quality of the products offered but only by the perception they have. The objective that the management has to reach is clear : increase market shares (from 9 to 20%) in this segment by giving to their products the credit in phase with the high quality they offer and emphasizing it with professional use. II. Strategic Situation Facing B&D’s Management A. Analysis of the Customers and the Market The market of Professional-Tradesmen is a $420 millions sized, composed of professional users who work in residential constructions and with the highest growth in its category (9%).
This is a interesting and competitive market with a level of renewal of $1000 per year by each customers, and an average expense of $300 per tools. These persons buy their tools by themself for their own use and they purchase it mainly in independently owned stores served by distributors (40%), Home centers (25%) and warehouse home centers (15%).
The Essay on Black Decker Professional Tradesmen Segment
Question 1: B&D leads in two product segments, but trails in the third. Why? Answer: It seems from the case that there are several reasons why B&D leads in Professional-Industrial and Consumer product segments, but trails in the Professional-Tradesmen segment. It is also clear from the tests performed by Black & Decker that their products were at comparable, or even better at some ...
Among this channel, the home centers is growing fastly. The characteristics demanded in this market are high performance, reliability and durability. To finish, they must appear professional and proud with the tools they use. B. Analysis of the Competition
Within this market, we can focus on two main competitors : Makita and Milwaukee. About market shares Makita overwrites the market with 50% whereas Milwaukee is about 10%. In addition there are others brands specialized in certain kinds of tools in which they are famous for. Milwaukee and Makita are very well known and perceived as to be the highest products quality providers. They practices prices-premium, especially Milwaukee. Makita, the principal competitor is distributed by all the channels, but its relationships with these distributors and retailers is “arrogant and dictatorial”.
Moreover, Makita is trying to interest the private “do it yourself” consumers without differentiation. This strategy could drive them to the same branding problem that B&D is facing. These competitors will be ready financially to face any actions that B&D could engage to gain market shares, especially by doing advertising. C. Analysis of Black & Decker (See Exhibit 1 : SWOT) B&D has a high brand awareness, but its quality perception in this segment is low whereas it is high in the industrial segment with the same products.
This fact and researches show that B&D offers a very high quality products. Indeed, they have developed their marketing strategy keeping a similar logo with the “use at home” brand, and a color very close to it (black to grey).
This has conducted to a non-differentiation between the two brand by the Professional-tradesmen customers. The problem starts here : Professional are every day in contact with home consumers. They work for them, at their home and go mostly in the same stores to buy their tools.
They don’t want to use the same drills as their clients and also don’t want people think they use the same : this sounds not Professional. Above all, the Professional had been confused by this marketing mistake which does not instill the professional high quality required for their jobs. The Industrial segment is not touched by this phenomenon because it is not the same supply chain. They are aware about the quality and are not as sensible to the brand perception as the Professional are. B&D is present into all distribution channels excluding the Member Ship Club because of low prices.
The Research paper on Consider The Sales Process In Each Market (low-end Residential, High-end Residential And Industrial)
Question 1: Consider the sales process in each market (low-end residential, high-end residential and industrial). How effective are Jindi’s sales and sales management practices in the first two markets? What should they do to be effective in the industrial market? There are two main ways of sales process regarding this kind of product: 1. The Direct Walk-in 2. The Targeted Promotions The first one ...
D. Analysis of the Market Environment The market environment offer a good trend to this market. There are possibilities to always improve the performances and the quality of the products. The customers demand an important renewal which gives the product a maximum life cycle of three years and an average of one and half year (See Exhibit 2 : Life cycle).
The channel “Home centers” is growing fast and represent a good opportunity of sales development. There is a trend of “do it yourself”, which drives home consumers to purchase professional tools. III. Strategic Alternatives Available
After this analysis, it appears that B&D’s brand is in such a risky position in this segment. Also, it can be seen that the B&D for Professional brand has really good strength to be salvageable, and to conquer the market, especially observing its high level of quality and awareness. But the brand must follow important changes to not be crushed totally. To solve the problem, Galli, Vice President of sales and marketing is thinking of three different strategy. The first would be to focus on the two other segment who are more successful and to just keep the Professional profitable.
This strategy is not viable because the brand will be kicked out of market in few times without doing anymore, and so the profitability would become highly negative. The opportunity to try to improve in this market and this segment is too important regarding the low financial risk. The second strategy would be to do sub-branding. This kind of strategy is in my opinion not enough drastic. Indeed, the bad reputation of B&D in the Professional segment is too rooted, there is a risk that they feel deluded and rejected the brand more.
The Essay on Ansoff's Product Market Grid
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
The third strategy using the DeWalt name appears to be the best to solve the problem. It will erase the bad brand perception and give a new chance to the product, better differentiated and with a strong positive awareness. But it will cause internal incomprehension and also may be confusion to the Industrial and Consumers tools’ customers. IV. Recommended Strategy : Use DeWalt brand and more… A. Branding Recommendation The new brand has to display DeWalt in big position and also in little “serviced and distributed by B&D”.
At first the mention of B&D will give a better purchase interest and also will maintain the recognition of B&D as a provider of Professional for the home consumer who buy the other product still named under B&D brand. But after three years, the mention of B&D will disappear to let the DeWalt brand become a full brand. The main color will be yellow because no other brand is using it and it reminds the building industry. It will have to be a dull yellow mixed with dark black for other component. The brand brand will be accompanied by a powerful slogan such as “Proud and Strong”.
This brand would have to appear valuable and like the best for professional and only for them : the strongest, the more powerful and the safest. B. Marketing Mix Recommendations Into this new brand, only the product very competitive and in leadership will be conserved. The others will be added later if they are improved too high level of performance. This will ensure that the product range will be composed only by high quality products, what buyers are expecting. The design of all those products will be changed. The use of good quality materials is required.
In addition, many little options, accessories and details (antishock, integrated light, handy storage box … ), all mixed to make the last technological tools for hard uses which cares about its hard workers users. To convince on the liability of the new brand a warranty will be added. This warranty will be one year superior to the Makita’s one. With that we will offer a hotline service opened on working hours which allow consumer to ask for help with the product. The prices will be 7% superior to Makita’s products, and always inferior to Milwaukee’s ones.
The Homework on My High School Years
Every single day of our lives, we go through experiences that one way or another challenge our abilities and help us look at the world in a different way the next day. I believe it is inevitable to think of high school as one of the most important places where new things are experienced and lessons are learned. That is why, as I come closer to the end of high school, I have taken time to think ...
The price sensitivity is not high in this type of purchasing, and to be a bit higher than Makita will be a proof of superiority. Also the year warranty in addition will convince the buyer about the price advantage. In terms of channels, the DeWalt new brand will go along all except the Membership Clubs that is not profitable and complectly dominated by Makita. A special focus will be made on the Home Centers and the independently owned stores by given to them specials advantages. To reach this segment effectively and efficiently, a campaign of direct personal mailing to all Professional will be used.
Demonstration of products in stores will be organized to show the product and proof its superiority. This will be to create discussion within the profession. The communication will be based on the DeWalt branding, coming on the Professional segment to fill in the complete needs of the market with very high performance. C. Timeline and Performance Goals See Exhibit 3. D. Consideration of Management Preference This strategy will have to reach minimum 20% market shares within three years and improve the operating income to at least 12%. People internal to the
firm may complain changing the brand name in the professional segment. This will be counteract by a large explanation before launching the brand, to all the firm on the situation supported by figures and transparency. The differentiation will have to appear like inevitable to grow. Exhibit 1 : SWOT Analysis of B&D Professional STRENGTHS High global awarness Good relationship with distributors and suppliers High quality of products Experience and historic in this market Big group company with high financial posibilities WEAKNESSES Not known as high quality product
Bad reputation in this segment Confusion with “at home uses” from the other B&D brands Rejection of the products OPPORTUNITIES Growth of the market Capabilty of doing best quality Growth of Home centers channel THREATS Many strong competitors Risk of losing on other segment if changes in this one Exhibit 2 : Life Cycle 10 tools = 3000$=> 1 tools = 300$ on average Every 1 years, 1000$ spent on renewal => 3,3 tools bought per year So the last tools are renewed 3 years later maximum and 1,5 years on average. Exhibit 3 : Timeline and Performance Goals
The Essay on Lanc Ome Chanel Products Brand
The second direct competitor to Chanel is L'Or " eat, the world's largest manufacturer of high-quality cosmetics, perfumes, and hair and skin care products. Although L'Oreal the company doesn't manufacture a perfume it owns the brand Lanc^ome that produces Tresor a perfume that rivals Chanel. In the chart below, it lists the US female fragrances brand share by value from the 2002 Table base data. ...
Sell the old production. Mailing campaign Demonstration inside the stores Explain to the firm this new strategy Develop the sales Specialized media advertisment Showroom itinerant Develop the sales Remove B&D sign on the the DeWalt brand Accentuate margin Performance goals Maintaining the same level of sales Dump the old stock of products Grow the awaraness Sales up to 40% Grow the awaraness Sales up to 50% Grow awaraness arround DeWalt only
