1. Black and Decker has 9 % share compare to Makita 50 % in Professional-Tradesmen segment because Black and Decker is mainly focused on Consumer and Professional-Industrial segments and has significant market share in those segments. Black and Decker associated more as a consumer brand than as professional-tradesmen. This image has negative effect on the professional segment. Besides, Black and Decker has variety of household product and heavily advertise them. All these factors affect company’s image and contribute to the perception of Black and Decker as a basically consumer tools oriented.
The causes of poor market performance among tradesmen are following:
- Black and Decker name not attractive to professional market;
- Black and Decker name associates with household products;
- Black and Decker has no access to the some channels that Makita has;
- The variety of household products destroy the reputation of Black and Decker as a professional-tradesmen tools;
- Presences of competitors (Makita, Milwaukee);
- Lack of differentiation, distinctions between consumer and professional tools (same color);
Factors that are not cause of Black and Decker poor market performance among tradesmen:
- Wide product line;
- Price below most competitors;
- Cost leadership;
... middle of paper ...
...e between customer’s and professional’s tools, and to expand channels’ usage in professional-tradesmen segment by increasing usage of two-step channels, home centers, and specialized stores.
Yellow color seems to be the right color to use since construction and professional workers usually perceive and relate this color to the professional applications. In respect of the channels expanding I think that Black and Decker make right decision to avoid discount stores for distribution and I think should increase its presences in home centers such as Home Depot and Lowes. I would also suggest increase presence in specialized stores such as Harbor Freight Tools and Western Tool Supply. Distribution professional-tradesmen tools through specialize stores will increase reputation, perception, exclusiveness, and prestige of these tools for tradesmen.
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