BLACK AND DECKER ASSIGNME

Q.1) what is the cause of low market share of Black and Decker at 9% compared to Makita’s 50%?

Black & Decker is one of the highest rated brand names throughout the world, which should contribute to its

growth in the Professional-Tradesmen market segment. Black & Decker also rates higher than many other

brands, including Makita, in terms of service, However, Black & Decker still maintains only around 9% of the

Professional-Tradesmen market segment. Due to lack of technical deficiencies with Black & Decker products,

the poor performance in the Professional-Tradesmen segment must be attributed to other factors. Professional-

Tradesmen do not respect B&D power tools because of the stigma attached to the Black & Decker brand name.

The Black & Decker brand name is too closely linked to household products (Dolan 2001). The variety of

B&D household products like toasters and dust busters destroy the credibility of Black & Decker as a

manufacturer of rugged, reliable and quality power tools that a tradesman would be proud to own.

a) Black & Decker brand name not attractive to Professional-Tradesmen market

b) Professional-Tradesmen do not respect quality and ruggedness of B&D power tools

c) Black & Decker brand name too closely affiliated with household products

d) Domestic product line is not available in independent stores. Also, the products of Black and Decker are

not available through membership clubs, where other competitors like Makita (with 85% shares) are

present.

e) Total share of Black and Decker in two-step distribution is also very less in comparison to its

competitors.

Q.2)Analyze the buying behaviour of Tradesmen vis-à-vis OEM’s buyers

Q.3) what is Makita’s competitive strategy and what role does Milwaukee (competitor no 2) play

in this segment?

• Even though B & D had a strong market presence in the consumer segment, the same cannot be said

about B & D in the industrial and tradesmen segments. Makita had staked out leadership positions in

almost all products

• Makita and Milwauke priced at premiums , whereas B & D falls far below because of the perception

that it is meant only for consumer products and not for heavy industrial and tradesmen purposes.makitas

position with tradespeople was strong

Makita 50%

Milwaukee 10%

Black & Decker 9%

• Makita offers same product throughout a range of outlets shown in the table.

• A product research conducted suggested that B & D tools were not of an inherent product quality as

compared to that of Makita and Milwaukee. But still they were competitive enough.

• Makita’s Teal product colur and Mlwaukee’s red was perceived by the consumers as that of professional

grade. Charcoal grey of B & D was unattractive to lure customers towards them

Q.4)Can we use buying behaviour to determine which alternative action Black and Decker should

pursue? What will be the alternative?