Black segment. “Consumer” is for nonprofessional users, while

Black and Decker is an American power
tool manufacturer that is headquartered in Towson, Maryland. Black and Decker is
known for having a strong brand image, as well as having high quality products.

The three major segments of the power tools business are the Consumer segment, Professional-Industrial
segment, and Professional-Tradesmen segment. “Consumer” is for nonprofessional
users, while “Professional-Tradesmen” and “Professional-Industrial” are for
people who use these tools for work purposes. In the Tradesmen segment, people
purchase tools for their own use on a job site; but in the Industrial segment, the
tools are bought for employees in a corporation. Black and Decker leads in the
Consumer and Professional-Industrial segments; however, it only has a 9% share
in the Professional-Tradesmen segment. Because Black and Decker are lacking in the
Professional-Tradesmen segment, it dilutes their image. Currently, Makita
Electric (foreign competitor) and Milwaukee Electric (local competitor) are
leading in the Professional-Tradesmen segment. Makita has a 50% market share in
the Professional-Tradesmen segment. One particular problem is that Black and
Decker does not have color differentiation in their power tools. Black and
Decker’s power tools are charcoal grey, while professional tool brands such as
Makita and Milwaukee use colors such as teal and red. The case discusses three potential
ways that may help Black and Decker gain a competitive advantage in the power
tools industry. The first option talks about focusing on just the Consumer and
the Professional-Industrial segments, the second option talks about
sub-branding, and the last option discusses dropping the name from the
Professional-Tradesmen segment. 

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