black & decker casestudy ppt
TRANSCRIPT
U.S Market segment
Product Color
B&D segment share 1990
B&D segment revenues1990
Professional- IndustrialSize: $ 550 mm
#1
Charcoal grey 20% $110 mm
Professional- TradesmenSize: $ 420 mm
struggling
Charcoal grey 9% $35 mm
Consumer#1
Black 45% $250 mm
STARS QUESTION MARKS
CASH COWS DOGSB&D Professional-Tradesmen division here.
Relative market share
Strengths-Exemplary ratings on product quality-High brand awareness for bothB&D – 98%DeWalt – 70%- Dewalt despite being dormant, had a “One of the best” rating of 63%
Weakness-Small segment share( 9%) in the fastest growing mkt segment.-Makes the segment a “dog” in the BCG matrix- Poor brand image reflected through surveys and studies.
Opportunities-Opportunity for market share growth within the tradesmen segment- Opportunity to increase the brand image in the tradesmen segment
Threats-Major competitors taking more of B&Ds share as the brand image declines-Failure of any strategy would lead to embarrassment and negatively impact other 2 segments.
the company cannot sit back and watch its Tradesman Segment struggle within the power tools industry’s fastest growing market
Action must be taken: harvest, sub-brand, or re-brand
To harvest is foolish, coz although the BU is considered a dog, it has the potential of being a question mark. To only focus o profits would also prevent the possibility to rise from question mark to star( @ 9% growth)
Subbranding wont help as products are highly rated but brand image is negative.Tradespeople attitude unlikely to change.
The division needs a clean slate, thus Re-branding could solve the problem. i.e. Change B&D name with DeWalt, recognised and popular, and changethe color, Brand new products
Thus, Dewalt should replace the ailing B&D brand name on the products for the Professional- Tradesmen market segment.