Archibald's Black & Decker case (A): Solving a Classic Marketing problem in the power tools division
Joseph Galli second proposed option of re-establishing the B&D brand as the pre-eminent power tool brand by using a sub-brand for professional tradesman.
Objective:
B&D being the No.1 preference of Tradesman and gaining market share leadership.
Target Market and market position:
Tradesman, which are the current customers of Makita and positioning in the market by providing exclusive service & professional quality for this TG.
Product:
Creating a new and sophisticated line of product, which incorporates the tradesman persona. A product that defines quality of leadership, an image that are respected by all tradesman, some element, which differentiates it from the horde and definitely a neat packaging to isolate it from the other line of products.
Distribution:
Marketing channels are the key to drive a brand into a consumers mind the marketing channels defined in Exhibit 4 is the efficient channel and should not be changed any time soon, next mode to increase sales is by increasing the margins of units by motivating and providing incentives to the channel force.
Communication/Promotion:
Increasing in sales-force can lead to a fruitful revenue- by assigning a large amount of tradespeople per salesperson. Fanning out to very nerve of end users meaning go wherever the customers is and hunt them down; approaching a business with the new product line reinstating the value it derives to them will bring loyalty, product identification and market share from it’s competitor. Visiting job sites or places where usually tradesman hangout and approaching them with value proposition and making them aware of the features and services for the new product line.
Identifying customer problem:
What drives marketing decisions are determined by customer analysis.
How can we analyse the customers?
1. Meeting the customer in person and talking to them about the features and services they want/need
2. Indicating them the value it provides by showing the savings it derives or the extra leap it gives by factual data e.g. numbers.
3. Funnel analysis greatly affects the business organogram, thus helps is understanding the customer behavior and psychology which adequately helps customer decision making process
How the funnel analysis does helps in customer decision-making process?
Basic question in helping customer decision-making process:
Importance of Perception:
Why do Customers to “Perceive” Value? Customers want solutions but products have features consumers seem to believe that perception is equivalent to reality.
Perceptions can be managed by Informational strategy versus Transformational strategies; creating a new brand in-turn is expensive and turning a weak brand is even more expensive. B&D was on both “existing” and a “new” brand; this issue can be resolved by three fundamental key “Signs” of Perception: Use all elements of the marketing mix; Sustaining a steady focus and consistency; Avoid Conflicting cues.
What will drive the customers to buy the product?
Marketing Mix
Reliable Quality; For Professionals
Product: Leadership quality, New name/brand name, Isolation of from the rest, Industrial packaging, Manuals on the package, “No downtime” service
Price: Premium
Promotions: Job sites, Word-of-Mouth
Retail Placement: Bold Retail Displays
The perceptions can be managed when the customers are novices, the product is complex, and the product is experiential, before product use, even after product experience
