1. CASE ANALYSIS: BLACK &DECKER CORPORATION(A): POWER TOOLSDIVISIONGroup 4 Aditya, Apratim, Neha, Siddharth, Shloka

2. The Team Neha Jain Siddharth R Aditya Sharma Apratim M Shoka Shetty 3. Agenda Problem Discusison B&Ds Brand Perception BCG Matrix SWOT Analysis Situation Analysis Evaluations of Strategic Options Recommendations 4. Problem Discussion Poor market share in Professional-Tradesmen 9% (Makita market leader with50% market share) B&Ds perception as a leading brand suited only for the consumer segment Perceived as having poor quality products in the Professional-Tradesmensegment ....Black & Decker makes a good popcorn popper, and my wife just loves herDustbuster, but I am out here trying to make a living.... Charcoal grey color of its product perceived as old fashioned and dull 5. B&Ds Poor Brand PerceptionHIGHMEDIUM LOWPOOR Makita Bosch Black & Decker Wen Milwaukee Hitachi Ryobi Porter Cable Skil Panasonic Craftsman 6. BCG-Matrix High10%STARQUESTION MARK$359%Mn B&D professionalMarket Growthtradesmenproducts5% CASH COWDOGrate Low0%.18%.1% High Relative Market shareLow 7. SWOT AnalysisStrengths Weaknesses B&D Reputed brand globally Brand is associated with High Quality Products consumer segment High on Awareness Tradesmen perceive it as low Good Service perception quality Diversified portfolio Monotonous colorOpportunities Threats Professional Tradesmen Possible reduction in futuresegment was fastest growing revenue from the industrial9%segment Retailers doubts over Makitaand their distribution strategy 8. Situation AnalysisCompany CompetitorsCustomers CollaboratorsClimateExpertise in producing Consumer (Low)Successful in theConsumerB&D has highest high quality products SkilConsumer andK-martmarket share inMarket ShareCraftsman Industrial segments.Walmart Consumer and Industrial 20% Poor performance inIndustrial segmentIndustrial (Medium)Hardware stores Tradesmen 9%Tradesmen Segment Makita holds 50% of Milwaukee Industrialcaused bythe Industrial segment Consumer 45%Tradesmen (High) Distributors like W.W.No productmarket shareNo.1 in Consumer andMakita Grainger differentiation from Growth Rate Industrial segmentMilwaukee Tradesmen Consumer SegmentIndustrial 0%#7 brand strength rankRyobiproducts Home centres in USATradesmen 9% SkilPoor Brand Perception Hardware stores Consumer 7% Craftsman 9. Snapshot - Tradesmen Segment Approximate Segment Shares - 1990 CraftsmanSkil6%6% Drill, saws and sanders represent 80%of the total sales80% of the total sales Makita, Milwaukee and Black andRyobi10%Decker offer 175 SKUs each Fastest growing segment at 9%Black & Decker 9%Makita57% Milwaukee11% 10. Evaluations of Strategic OptionsOption 1: Harvest Professional-Tradesmen ChannelsIncrease profitability at the expense of market shareSr.Expense Heads Current Figures With a 5% With a 7%No premium premium1 Sales3536.75 37.452 COGS 22.75 22.75 22.753 Gross Profit 12.25 14.00 14.704 SG&A8.75 9.19 9.365 Operating Income 3.5 4.81 5.38 37 to 54 % increase in Operating Income Milwaukee (10%) and Makita (5%) are priced at premiums over B&D Increasing prices with the current product and its perception as a poor professionalproduct is not advised as it could trigger a fall in market share 11. Evaluations of Strategic OptionsOption 2: Get Behind Black & Decker Name with Sub-Branding Tasted success previously with a similar strategy for replacement saw blades Sub-branding program has been done before Previous attempts to rebuild the B&D name in the Professional-Tradesmen segmenthave not been successful B&Ds strong association with the Consumer segment has an overpowering impact Risky, expensive and unpredictable outcome 12. Evaluations of Strategic OptionsOption 3: Drop the Black & Decker Name from the Professional-Tradesmen Segment Free from any negative associations Ride on existing success of the DeWalt brand name DeWalts relative success with high awareness and purchase interest New brand will enable product repositioning with respect to price, quality, color and otherattributes Limited financial risk Building a new brand identity is a rather costly process 13. Recommendations 5Ps Product Discontinue Black & Decker branded products from theProfessional Segment Utilize Industrial Yellow as the brand color of DeWalt toolssince it is aggressive, highly visible, associated with safetyand not yet with any other Price: Currently B&D is priced lower than its competitors Price it at least 5% higher than current prices on par withMakita 14. Recommendations 5Ps Place Home Center and Two-Step contribute over 65% of total sales in the Professionalsegment Traditionally B&D has had a low share of 10% as compared to Makitas share B&D should enter these two channels since they are high volume markets 15. Recommendations 5Ps Promotion: Utilize the DeWalt brand name on all Professional Segment tools with a serviceand warranty handling endorsement by B & D To be promoted as DeWalt: Serviced and distributed by Black & Decker since itattracted highest purchase intent (58%) 16. Recommendations 5Ps Portfolio Management: Contrary to common perception, most of B&D products were of extremely high quality Price premium for high qualityproducts Miter Saws, Routers / Trimmersand Belt Sanders could be either Eliminated Re-engineered