U.S Market segment

Product Color

B&D segment share 1990

B&D segment revenues1990

Professional- IndustrialSize: $ 550 mm

#1

Charcoal grey 20% $110 mm

Professional- TradesmenSize: $ 420 mm

struggling

Charcoal grey 9% $35 mm

Consumer#1

Black 45% $250 mm

STARS QUESTION MARKS

CASH COWS DOGSB&D Professional-Tradesmen division here.

Relative market share

Strengths-Exemplary ratings on product quality-High brand awareness for bothB&D – 98%DeWalt – 70%- Dewalt despite being dormant, had a “One of the best” rating of 63%

Weakness-Small segment share( 9%) in the fastest growing mkt segment.-Makes the segment a “dog” in the BCG matrix- Poor brand image reflected through surveys and studies.

Opportunities-Opportunity for market share growth within the tradesmen segment- Opportunity to increase the brand image in the tradesmen segment

Threats-Major competitors taking more of B&Ds share as the brand image declines-Failure of any strategy would lead to embarrassment and negatively impact other 2 segments.

the company cannot sit back and watch its Tradesman Segment struggle within the power tools industry’s fastest growing market

Action must be taken: harvest, sub-brand, or re-brand

To harvest is foolish, coz although the BU is considered a dog, it has the potential of being a question mark. To only focus o profits would also prevent the possibility to rise from question mark to star( @ 9% growth)

Subbranding wont help as products are highly rated but brand image is negative.Tradespeople attitude unlikely to change.

The division needs a clean slate, thus Re-branding could solve the problem. i.e. Change B&D name with DeWalt, recognised and popular, and changethe color, Brand new products

Thus, Dewalt should replace the ailing B&D brand name on the products for the Professional- Tradesmen market segment.