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B & D Case

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Submitted By angelicachou
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1. What is the cause of Black & Decker’s 9% share vs. Makita’s 50%?
Consumers in Professional-Tradesmen segment looked Black & Decker’s products as for use at home rather than on the job and their brand perceptions of B&D products’ quality are low. Even though B&D has strong brand awareness of 98%, only 44% of tradesmen in telephone survey agree it’s “one of the best.”
Black & Decker didn’t include Membership club into its distributors of Professional-Tradesmen tools.
Strong competitor – Makita in Professional-Tradesmen segment. i.e dominance in distribution channels, trading down strategy, provide good baseline selection and high quality price premium products as well…
2. How does the buying behavior of Tradesmen impact the situation?
Since tools and performance were a constant topic of conversation at the work place for tradespeople, they have negative perception toward B&D products because they viewed B&D products as consumer products, not professional products.
Even product color is never a key attribute in purchase decision for tradespeople, no differentiation between B&D consumer and professional products also give a negative impression while they purchasing the products.
Tradesmen bought most frequently in independently owned stores served by distributors such as the Two-Step. B&D own less than 10% market share in the biggest channel type (Two-Step). Moreover, B&D own less than 10 % market share in the second as well as growing in importance channel (Home Center). One of the main competitor- Makita dominates most of the market share in each

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