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>> Describe the lessons learned from this case.
The case study is about B&D that lose out their market share to competitor in the Professional-Tradesmen segment. In spite of having powerful brand name and high product quality, the company still failed in the Tradesmen segment due to other factors. Since B&D tools were highly regarded in the demanding Professional-Industrial segment, the problem of loosing share was obviously not related to product quality. This was proven with thorough laboratory and onsite testing that B&D products are not mechanically inferior to any of the competing power tools.

This case study thought us the lesson that on top of the product’s quality by itself, the brand positioning is very important. Brand positioning is about creating customer perceptions of a particular brand among other brands (including competitors and other brands offered by a company). In this case, it appears that professional-tradesmen did not want to use the same tools that housewives used at homes. Tradesmen viewed B&D tools more for home use rather than on the job. This is a perception issue that was hurting B&D in big way.

At the same time, there had been instances of a B&D product designed for at home use being subjected to the demands of the job site and failing. This reflects that they are not aware or confused about the product features. The strength of being a consumer brand was not beneficial for B&D. Companies should strive to avoid product positioning overlap and brand dilution. Company should have clear identification of their products based on different segment and targeted market.

We also learned from the case that customer preferences are heterogeneous; tastes and preferences differ among people. We should consider design attributes of both function and aesthetic form. From product point of view, the color is one of the most prevalent factors in the eye of customers. Company should always consider...