Presentation on theme: "Segmentation analysis Market Leader B & D Makita B & D Market Segments Distribution Channel Grainger Home Depot Kmart INDUSTRIAL TRADESMAN CONSUMER."— Presentation transcript:
Segmentation analysis Market Leader B & D Makita B & D Market Segments Distribution Channel Grainger Home Depot Kmart INDUSTRIAL TRADESMAN CONSUMER
Color schemes of various brands Figure D Color Differentiation Professional & Tradesman Consumer Makita - Teal Milwaukee - Red Bosch – Dark Hitachi - Green Black & Decker - Grey Black & Decker Craftsman Skil Wen Private Label
What should B&D do? Concede segmentbuild share Sub-brandDrop B& Dname DeWalt New name
What do you think of this plan? Do these cosmetic changes really offer any true competitive advantages? How would you respond if you were Makita? Has B&Ds analysis taken this into account? Does Makita have any real competitive weaknesses to exploit?
Table 4 Percent Agreeing with the Statement % agreeing with statement (Brand X "………….") Makes High-Quality Tools 82% 51% 91% 43% Makes Durable/Rugged Tools 71% 48% 91% 42% Proud to Own 78% 43% 86% 36% Easy to Get Service 68% 66% Stands Behind Products 69% 52% Those Who Prefer Milwaukee Makita B&D Milwaukee B&D 44% 67% 56% 61% Those Who Prefer Makita
What Happened? Makita Other Makita Other Black & Decker DeWalt
Why was it successful? positioning in terms of service turned their weakness (association with the consumer channel) into a strength because the already existing B&D 117 customer service centers permit DeWalt to make a credible guarantee of 48 hour turn around on repairs. added value from service guarantee permitted them to charge premium prices (further supporting high quality image)
What did you learn? What surprised you the most?
Market share of tradesman segment Black & Decker Makita Other
What research did B&D do? visited tradesmen at their job sites visited Home Depot, and quizzed product demonstrators conducted lab tests of its performance and reliability conducted "blind" field testing analyzed market shares by firm, by channel, & by product type took a "total product" approach – looked beyond the technical aspects of the tool to evaluate how people felt about using it understood that tradesmen did not want to be "marketed to in a conventional sort of way
The cola "taste test" Group 1 A" = RC Cola B" = Coke C" = Shaw's Group 2 "a" = Coke "b" = Coke "c" = Coke What are some reasons for having such a design?
A blind rating of Coke in 3 successive sips
Brand rated as best
Guesses about identity of "A" [RC]
Guesses about identity of "B" [Coke ]
Guesses about identity of "C" [Shaw's]
Coke vs. RC: Stated preferences vs. actual preferences % prefe rring Coke to RC stated actual Preference taste test