Black & Decker
In professional tradesman segment B&D is lagging behind other power tool producers. B&D holds a meager 9% market share in this segment. B&D was able to generate total revenue of $ 35 million dollars through this section but was unable to restrict the SG & A costs, which were as high as 25% of the revenues. At a macro level B& D has not been able to satisfy or influence the consumer behavior in the tradesman division. Some of the factors contributing in the present situation are:
1. This is a clear case of misperception on the part of tradesmen, who believed that B&D tools weren’t good enough for construction sites. Most professional tradesmen carpenters, painters etc had the view “Just stay away from that Black & Decker”. This perception was mainly due to B&D’s leadership position in the consumer market with 45% Segment share which perpetuated the view that B&D brand was only good for consumer products and home tools.
2. B&D had very high brand awareness of 98% within Professional-Tradesmen segment. In the consumer buying process, B&D was at the top of the awareness set, but they were unable to convert their authoritative position into consideration/choice set amongst tradesmen. This phenomenon is occurring because of their brand dilution and no clear differentiation among its product lines.
3. B&D brand recall was so tightly wrapped with its consumer products or home tools that professional tradesmen did not give credence to its professional line of tools.
Some other B&D actions which contributed to the existing circumstances were their excessive focus on advertising products such as dust buster and Spacemaker. Tradesme ...