Black And Decker Executive Summary

Executive Summary Black & Decker’s problems have not been limited to just one internal or external factor. There have been many factors that have contributed to the companies decline which include branding, its perception to the tradesmen, and single target marketing with the power tools. One successful aspect of Black & Decker has been their segmentation. The segmentation has been broken down into three Consumer Tools, Professional - Tradesmen Tools, and Professional - Industrial Tools. Both Makita and Milwaukee are priced 5-10% higher than B&D, which makes the Consumer segment believe that the higher price must have a better quality. Brand awareness and distinction plays an important role in buyer decision making in this segment. Tradesmen

For instance, Black and Decker can formulate more creative billboards. Even though the costs of the billboards may be costly, but if this idea of advertising catches the attention of many customers then profitability for Black and Decker will gradually form. If the company can balance the cost and benefit, the Black and Decker should gain profitability if they are creative enough to advertise the items in order to capture the attention of consumers. Online advertisement is a good way to promote Black and Decker’s products, making sure when consumers shop online they feel that it is safe and easy to shop. In addition, the corporation can also promote advertisement on the television but not just publicizing but rather making it funny and meaningful at the same time. If Black and Decker advertise more then there is a better chance for profitability, but companies need to take risk to advertise because the outcome may be extraordinary. Overall, the more times consumers can hear the name, “Black and Decker” whether its online, television, outside on billboards, or newspaper then it’s more likely that consumers will know where to shop when it comes to purchasing power tools and equipment. The more people know about their company, services and products then the sales will eventually flourish. Not only should Black and

Therefore, Black and Decker should increase their price as well. For example, according to the article, “both Milwaukee and Makita are priced at premiums over Black and Decker, average 10% and 5%”. The corporations should range their price for power tools to be a certain amount and well for the hardware and security. The corporation can either provide products that are cheap and for everyone, or sell products cheap. Choosing different strategies can be the best way for the company to progress in terms of profit. While Black and Decker set up different pricing strategies, they can see which strategy is the best. When consumers see these advertisements, they are more likely to purchase the item if they have money. So when the consumers get paid from their job, then they are likely to spend more if they are planning on decorating their home. In order for consumers to decorate their home, they can go to Black and Decker and by the supplies. Furthermore, when consumers see the advertisements of Black and Decker having a 40% sale then they are more likely to go to Black and Decker than their competing businesses. To sum it up, the timing of advertisement is important as well because if the corporation advertises when people have no money, then it’s likely for the