First, even though Black & Decker has a good brand perception in general, are considered to be among the powerful brand names in the world and considered to have the highest quality product in the industry, they were perceived badly by the tradesmen segment. Some trade people viewed all Black & Decker as for use at home rather than on the job. The tradesmen considers Makita to have a good baseline options in all majors categories, hence being their firs option and others brands as having particular product strengths. Thus, the customers in this segments were not identifying themselves to the products that Black & Decker proposes to them.
Second, the rapid development of the Home centers such as The Home Depot, with prices 30% less than the traditional hardware store made Black & Decker to lose market share to Makita. As per Exhibit 2 we could notice that in the home center channel that represent 25%of the trades...
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