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Submitted by wmaruna1 on March 7, 2007
Category: Miscellaneous
Words: 1059 | Pages: 5
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Popularity Rank: 93,855
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Memo
To: Joe Galli
From: W. Dean Maruna
Date: 7/27/06
Re: Marketing plan for Black & Decker targeting Tradesmen
Black and Decker has a low market penetration within the Tradesmen market segment due to the perception that Black and Decker is a consumer product and therefore lower quality. While B&D has a high brand name product awareness, within this market segment, brand name awareness is not buying the company anything. I recommend that B&D drop the name from its line of product tools sold at Home Depot, Lowe's and Ace Hardware. While internally this may not be a popular decision, the fact is that only 9% of this market segment believes that the creator of the power tool makes a power tool FOR THEM. B&D should leverage the strength of the DeWalt name with this market segment to create a new line of products that will appeal to Tradesmen.
Black & Decker Marketing Plan
Customer:
-Tradesmen Electricians, Plumbers, Carpenters, Framers, Roofers, and General Remodelers working in Residential construction
-9% growth rate in 1990
-Purchase tools at Home Depot, Lowes, and Ace Hardware stores
-$420MM market, B&D has only 9% market share
-Color of product is a differentiator within this market; black/grey are considered consumer product colors
-B&D is perceived as a strong consumer brand within this market
-Purchasing habits Owns approximately $3K in power tools with life span of 3 years. Each tradesmen is spending about $1K/year in replacing tools.
Branding:
Black and Decker should create a new line of products branded with the DeWalt name. DeWalt was a leader in sales of large radial arm saws and a well-known brand name within the Tradesmen market. While many tradesmen may never have used a DeWalt product, as they had not previously produced a portable power tool, 51% of tradesmen stated they would have some purchase interest in a DeWalt...
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