Presentation for a Strategic Marketing case review of Black & Decker Corporations 1990 marketing strategy.

1. BLACK & DECKER

2. Strategy Proposal Agenda Situational Analysis Market Competitors Research Findings Strategy Recommendations Financial Forecasts

3. Market Analysis Market Segments Industrial $550M 0% Growth Tradesmen $420M9% Growth Consumer $530M7% Growth Professional Segment Sales Channels Two-Step 40% of Market Home Centers 25% of Market & Growing Warehouse HCs 15% of Market Membership Clubs 10% of Market Farm Outlets 5% of Market Referred to Jointly as Professional Segment

5. Lacking in Tradesmen segment.

7. Majority of Industrial sales come from Warehouse HCs.

8. Tradesmen sales coming from Two-Steps and Home CentersProfessional Segment 19% Share of $970M

9. Competitive Analysis “Black & Decker makes a good popcorn popper, and my wife loves her Dustbuster, but I’m out here trying to make a living…” - Bob, The Builder

13. Be the best of the best in the professional tool industry.

14. Have a solid presence in the Industrial segment through the Warehouse sales channel.

15. Charge an ultra-premium for tools, and deliver best-of-class service.

16. Makita

17. Provide high quality tools at a price premium just below Milwaukee.

18. Offer products through every retail channel despite retail grievances.

22. All other products need additional development.

25. Strategy Recommendations Color Options DeWalt

26. Strategy Recommendations Official Recommendation Proceed with Option 3, eliminating Black & Decker brand products from the Professional Segment. Utilize the DeWalt brand name on all Professional Segment tools with a service and warranty handling endorsement by B & D. Focus market entry under Dewalt name for the tools identified in research as having the highest quality, entry order determined by market share. Cordless Drills, 16% Circular Saw, 14% Corded Drills, 13% Finishing Sanders, 10% Chop Saws, 5% Scruguns, -% Impact Wrenches, -% Strategically enter the Home Center and Two-Step distribution channels at the same price point as Makita brand tools. Utilize “Construction Yellow” as the brand color of DeWalt tools.

27. Potential “Can I build with it?” “Yes, I can.” Serviced and Distributed by:

28. Financial Forecasts Moving into this segment requires a 20% market share in 3 years by board. Estimated spend per customer per year is $1,000 on three new tools, giving us an approximate cost per unit of $333. Total market is at $420M annually, giving us unit sales of 1,261,261. Serviced and Distributed by:

30. 1,374,774 * 0.09 * ( 0.70 / 0.58 )

31. 149,329

32. 31.5% Growth YOY, Yields 11% Market Share EOY 1991

33. We can forecast the next three using the same formula.

34. Here we find ~20% share is achieved EOY 1994 at the latest.Serviced and Distributed by:

35. Closing Numbers prove viability of new venture Move is necessitated by our current position in market, as current position presents a long-term threat to our most lucrative segment Three year requirement is reachable, but can’t be guaranteed Hardware in current state only needs new casing and packaging for retail entry Move is a must for Black & Decker company Serviced and Distributed by: