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Black & Decker

Question 1: B&D leads in two product segments, but trails in the third. Why?

Answer: It seems from the case that there are several reasons why B&D leads in Professional-Industrial and Consumer product segments, but trails in the Professional-Tradesmen segment. It is also clear from the tests performed by Black & Decker that their products were at comparable, or even better at some cases, quality.

Branded as Home Tools: It appears that professional-tradesmen did not want to use the same tools that housewives used at homes (Black & Decker). Tradesmen viewed Black & Decker tools more for home use than being subjected to demands of the job site. This was a perception issue that was hurting Black & Decker big way.

Distribution Channel: It is also evident from the data (Exhibit 2) that Black & Decker lacked in capitalizing one of the most profitable distribution channels i.e. Membership Club. On the other hand, Makita who distributed its product through membership clubs, in......


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Approximate Word Count: 1228
Approximate Pages: 5 (250 words per double-spaced page)

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