B&D holds only a 9% market share in power tools compared to Makita's 50% share. This is due to B&D's failure in the professional tradesman segment, where tradesmen viewed B&D's professional tools as poor quality. Tradesmen also preferred Makita due to its good brand image and perception that it provided good baseline options in all major categories. Makita's competitive strategies included being the best in quality, wide distribution, and charging a premium price but still below the #2 brand Milwaukee. The document recommends that B&D pursue launching new professional products under the DeWalt brand name to benefit from its existing high awareness and reputation in the tradesman segment.

1. HBS Case Study : The Black & Decker Corporation :
Power Tools Division
Gaurav Chandak
Nishant A
Paras Wadhwa
Rahul Nair
Sudiksha Mehta
Vipin Dhonkaria
Yougal Kargaonkar
Section D | Group 6

2. “
2
What is the cause of B&D's 9% share vs Makita's 50%?
Low Brand
Perception
Distribution
channel
Not the best
What Matika
was doing
good?
B&D’s failure
in the
Professional
Tradesmen
segment
Tradesmen considered
B&D’s professional tools to
be of poor quality
A research conducted
showed that only 44% of
tradesmen considered B&D
to be one of the best
B&D failed to capture the
growing Home Center
distribution channels,
which was preferred by
most of the buyers
A good brand image
coupled with the fact that
tradesmen considered
Matika to provide good
baseline options in all major
categories

3. “
3
How does the buying behaviour of tradesman impact the situation?
As per the study provided, 78% of the Tradesman proud to own Makita’s Products
but only 43% proud to own B&D products
Though Makita’s Products are premium than B&D products, still tradesman prefer
Makita’s products as they can not replace products every month due to durability
issues
Tradesman considers the products of B&D as fit for household use but not for the
use at work.
Tradesmen considered B&D’s professional tools to be of poor quality as compared to
the other competitive brands
Proud to be own
Not the Industrial Products
Can not replace products every month
Considered as low quality Product

4. “
4
What is the Makita's Competitive strategy and what role does Milwaukeee (#2 brand) play?
Membership
clubs – high
hold
Better brand
perception
better quality
Good brand
image-
provide
baseline
option
Competitive
Strategies
Be the best of best in tool
industry
More presence through
warehouse sales channel
Charge an ultra premium for
tools and deliver best of class
service
Quality tools at a price just
below Milwaukee
Availability of product in
every retail channel
Offer limited services and
warranty handling for
inflated margins
MILWAUKEE MAKITA

5. “
5
Which action alternative should B&D pursue?
Product
Repositioning
in price,
quality and
colour
Better
Customer
Buying
Behaviour
B&D can
Enjoy
DeWalt’s
Existing
Success
High
Awareness
and
Reputation
Option 3
(Launch
products
with DeWalt
Brand)
Professional Tradesmen
segment is growing at 9%
No profitable segment for
B&D so price can’t be raised
Increase price with poor
customer perception will
trigger a more fall in this
segment
Previous attempts have not
been successful
B&Ds major association
with Customer segment
Association with B&D will
only valuable in Warranty
and Service space. It has
tarnished image in this
segment.
OPTION 1 OPTION 2

6. THANK YOU