1. Why does Black & Decker have a 9% share and Makita 50%? Attempt to establish what is – and is not – the cause of B&D’s poor market performance among tradesmen.
* Black & Decker was known for their differentiated, high-quality products and excellent service in the Professional- Industrial segment. In the consumer segment, Black & Decker had a strong brand recognition and image.
* The cause of B&D’s poor market performance among tradesmen is due to the way Black & Decker positioned themselves in the market, issues with their marketing channels, and differentiation.
* The products in the Professional-Tradesmen segment were perceived as products of same quality as the products in the Consumer segment. The products of the Professional grade looked no different than the products of the Consumer grade.
* Some tradesmen perceived Black & Decker to be a brand that supplied household products.
* Black & Decker also needs to understand what the tradesmen are looking for in a product (satisfy their needs).
* The Professional-Tradesmen segment is also in numerous channels. Black & Decker needs to figure who their target market is, instead of trying to target multiple ones.
2. How does the buying behavior of tradesmen impact this situation? What are tradesmen looking for in their tools?
* Buyers in the Professional-Tradesmen segment will find a different brand that makes tools that have differentiated product lines. They will not buy a brand that is mostly known for its household products. Tradesmen want tools that are the best. They want to brag about their tools to other tradesmen.
* Tradesmen are looking for tools of high-quality that are durable and will last a long time.
* They want tools that don’t have the same persona as products in the consumer segment.
3. What is Makita’s competitive strategy? In what ways are they strong? Vulnerable? What role does Milwaukee play in this market?
* Makita’s competitive...