Black and Decker Analysis

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Options 1: Harvest Professional-Tradesmen Channels; * In this strategy, B&D would focus on the Consumer and Professional-Industrials segment, focus on profitability even expense of market share * Option appears reasonable, but it could be damaging to the B&D Corp. * According to BCG approach, the decisions should be based on SBUs relationship to market growth rate and market share. * In the BCG matrix below, since Makita has 50% market share and B&D has 9%, relative market share for B&D is 0.18x * If B&D chooses to harvest the company, focus on profit rather than market share and wind up forcing the company to become a dog when it could have the potential of being a star. * One major factor the 1st option ignores is the high product ratings, which shows great deal of potential. 2: Get Behind Black & Decker Name with Sub-Branding * In this strategy, B&D can sub-brand current products in order to re-establish the brand. * Presents a way to tap the potential of high product ratings by rejuvenating the brand Issue –with brand currently: * negative view of the B&D brand * OTJ site, tools are status symbol * Thus by adding catchy names like ‘Piranha’, ‘Sawcat’, ’Super Sawcat’, B&D could theoretically raise its brand image….. BUT Potential for sub-branding may be slim, risky option * Coz, currently though 98% of tradespeople are aware of the brand, only 44% agree its “one of the best” * If name is still on, tradespeople will not be able to change their attitudes towards new sub-brand, coz they clearly recognise B&D as the creator. * A new sub-brand on the same product without removing the perception of a poor brand will show desperation . 3: Drop the Black & Decker Name from the Professional-Tradesmen Segment, and use one of B&D's Established

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