Marketing: Black & Decker

Black & Decker has a low market share in the Tradesman category and must decide if they should develop a product/program to compete with Makita. This Tradesman segment includes consumers who purchase their own tools and require them to make a living. In such segment, performance and reliability are most important. Black & Decker already manufacture such equipment, but has poor brand perception in this space. Therefore it should abandon the effort to attract to this segment with a brand that is synonymous with toasters and Dust-Busters, and differentiate itself from lower grade products.

Black & Decker should launch a new brand of tools, differentiated by a unique color (yellow being one of the limited options not already in use) and a price point equal to that of its major competitor – Makita, who customers are not particularly loyal (and where no loss of love would occur with retailers), yet maintain ½ of the market share. The high brand recognition of the DeWalt name should be used and Service & Distribution should be done by Black & Decker. A focus of distribution should be through the growing Home Center channel, and also include the Two-Step stores.

Analysis of Black & Decker’s products, including blind consumer testing, shows strong support for a majority of products and the company’s overall fit in meeting the demands of the Tradesman segment. The company should begin their entry with highest rated tools, and could do so with re-casing and repackaging of such. Development of weaker tools to follow. With DeWalt’s 70% awareness and 58% purchase interest, and the 9% market growth rate, a 20% market share should be achievable within the required three years.