Black and Decker is an American power tool

 

Black and Decker is an American power
tool manufacturer that is headquartered in Towson, Maryland. Other products
include hand-held vacuums, irons, mixers, and food processors. Black and Decker
has a strong brand image and has a reputation for quality. The three major
segments of the power tools business are the Consumer segment, Professional-Industrial
segment, and Professional-Tradesmen segment. Consumer represents “at home” use,
while “Tradesmen” and “Industrial” represent professional use. In the Tradesmen
segment, buyers buy tools for their own use on a job site while in the
Industrial segment, the buyer purchases tools for employees in a corporation. They
lead in the Consumer and Professional-Industrial segments, however; it only has
a 9% share in the Professional-Tradesmen segment for power tools. The
Professional-Tradesmen segment is the fastest growing segment of the power
tools industry, and because Black and Decker are lacking in this segment, it
dilutes their image. If they want to lead in all 3 segments, they have to
either focus on just the consumer and professional-industrial segment or
reposition the brand using a new brand name. Currently, Makita Electric
(foreign competitor) and Milwaukee Electric (local competitor) are leading in
the Professional-Tradesmen segment. Makita has a 50% market share in the
Professional-Tradesmen segment. One particular disadvantage is that Black and
Decker don’t really pay attention to color differentiation. Regardless of the
segments they are targeting, Black and Decker’s power tools are shads of black
and grey. The case discusses three options for focusing on the
Professional-Tradesmen segment. The first option talks about focusing on the
Consumer and the Professional-Industrial segments, the second option talks
about sub-branding, and the last option discusses dropping the name from the
Professional-Tradesmen Segment.