1. Group 7 Samantha Persaud Benjamin May Vivian Nunez Melanie Ngo Dllechim Eesir

2. Power Tools, Professional-Tradesmen Approximate Segment Shares, 1990

3. Black & Decker Product Assessment Professional quality of items 1,2,3,5,9,13 and 14 are of high quality and above our competitors B&D’s products can compete in this market!

4. Brand Awareness vs. Brand Image

5. Why B&D’s 9% share in Tradesmen Segment? a)Poor differentiation from lower grade products in the Consumer segment Some tradesmen viewed ALL B&D products as for use at home rather than on the job b)Strong association with the consumer segment has damaged its brand perception in the Professional Segment

6. Tradesmen Influence Word of Mouth influences buyer behavior – Makita & Milwaukee both have high qualtiy brand perception – Meanwhile Black & Decker has poor association Seen as a consumer product

7. Why B&D’s 9% share in Tradesmen Segment? a)Poor brand perception in Professional segment, perceived as having low quality products – “…Black and Decker makes a good popcorn popper, and my wife just loves her Dustbuster, but I’m out here trying to make a living…” Highest Lowest MakitaBoschBlack & DeckerWen MilwaukeeHitachiRyobi Porter CableSkil PanasonicCraftsman (Sears)

8. Competitors Strategy Both Milwaukee and Makita hold an edge in the market – Milwaukee has strong brand loyalty – Makita controls largest market share Differentiated with color and “wow factor”

9. Option 3: Shift to DeWalt The Black & Decker name cannot survive in the Professional-Tradesmen Segment – Drop current name for DeWalt – “Is One of the Best” agreement survey 63% DeWalt vs. 44% B&D