Professional Documents
Culture Documents
Submitted By:
CABAYACRUZ, Jamie Bernadette C.
CARPITANOS, Joyce Sophia R.
TAN, Krystal Joy D.
TAN, Neil Matthew L.
ZOZOBRADO, Bethle May M.
Submitted to:
Mr. Francis Arroyo
Date:
September 22, 2015
The Black & Decker Corporation Household Products Group: Brand Transition
Problem Statement
How can the Black & Decker brand name be conveyed in the most effective and
efficient way to the GE small-appliance line while choosing the right kind of
communications program that would facilitate the transfer?
Objective
The objective for theBlack & Decker Corporation is to strengthen the structure of
the company, their product innovation line, communications, promotional programs and
advertising for it to be prepared for future endeavors regarding their brand transition
with the GE small-appliance line.
Brief Description of the Case
Black and Decker Corp. (B&D) acquired the Housewares Division of General
Electric Co. (GE), combining the GE small-appliance product line with its own
household product line. The Black and Decker Corporation, as the leading worldwide
manufacturer of professional and consumer hand-held power tools, produced over 100
products in 21 factories around the world. Theywere confronting two problems in the
business in the late 1970s. First, they had lower growth rate for the power tool market
worldwide together with increasing foreign competition. Second, their management
realized that the American housewares market presented a significant opportunity. In
1979, Black & Decker Corp. produced a new kind of product, which is the Dustbuster. It
is a rechargeable hand-held vacuum cleaner. Women mostly purchased this type of
product and it was ranged at 60%. It was a success and that prompted to launch their
two new rechargeable product which are the Spotliter, a rechargeable flashlight, and
Scrub Brusher, a rechargeable cordless scrubber. These three products have helped
them in achieving a big amount of revenue. As the year goes by, their sales increased
30% annually between 1983 and 1985.
Spacemaker
line
of
under-the-cabinet
kitchen
appliances.
not
that
often,
promotional
and
merchandising
allowances
escalated.
Manufacturers decided to introduce new products and decided to enter new product
categories. Just like in the case of Norelco and West bend, it was said that they would
launch a new line of irons. For the Sunbeam company it was announced that theyve
allocated a huge amount for national advertising, cooperative advertising and sales
promotion. They also introduced two new aggressively and heavily advertised products
which was introduced at premium price level. With the competitors that B&Ds
considers, they also had to content with imitators of some of their products. Believing
that the newly acquired product lines would divert B&Ds management and attention.
B&Ds imitators doubled their effort to capture the market.
B&Ds was traditionally strong in hardware stores. In 1984, B&D accounts
carried, on average, 30 B&D stockkeeping units (SKUs).Housewares and hardware
buyers at B&Ds major accounts determined twice a year which models they would
specify as basics. The selected models were carried in distribution for the next six
months. There were some models that were not specified as basics that might be
occasionally stocked but depends to temporary offers.
Areas of Consideration
Strengths
The Black & Decker offered one of the broadest lines of any manufacturer
competing in 17 products groups.
Black & Deckers models were priced competitively within each price or feature
segment but overall Black & Deckers share tended to be stronger in the medium
and upper rather than the lower prices ranges.
Weaknesses
Black and Decker is very vulnerable with their products because they make
products that can easily be serviced.
The companys products are usually found with their competitors. They do not
innovate and try to make their products more enticing.
Opportunities
The Black & Decker Corporation is the largest competitor in U.S Household
market.
Black & Decker is traditionally strong in hardware stores with regards to notably
catalogue showrooms and mass merchandisers.
Black and Decker have four principal competitors in the households segment
namely Sunbeam, Proctor-Silex, Hamilton Beach, and Norelco.
The price premium in certain categories left the Black & Decker company
vulnerable to lower-priced competition.
First alternative for the Black and Decker Company is to change the name
across the entire product line as soon as possible to demonstrate.
Communication program should also be facilitated, push & pull programs and
media exposure should be considered.
Economical: This would cause the company to have huge expenses given the
fact that they will have to immediately find a way to change its name or do the
brand transition as soon as possible. Reopening a brand name immediately
without having to take few considerations can cause drastic and unbearable
outcomes.
Political: This does not violate any law otherwise stated by a given state or
foreign country.
Psychological: This would be a bold move for the entire company and the
people involved may have to undergo series of meeting or conferences for them
to be fully aware of the risks that they will have to encounter. They should also be
mindful of the pros and cons that they are about to come along upon the brand
transition.
Social: For the community, people will have the tendency to be confused or
puzzled with the immediate brand transition. Maybe they would have doubts in
the products being produced from now on by the Black and Decker if they will not
be properly informed by the transition that will happen.
This alternative suggests that Black and Decker should delay first the
name transfer until the end of the three-year period. With these alternative, push
& pull programs and media exposure should be implemented.
Economical: As we all know, brand transition would really be costly in the part of
the Black and Decker Company. But given this alternative since they will be
delaying, the company could prepare the necessary finances in order for them
not to incur more losses in the whole run of the brand transition.
Political: This does not violate any law otherwise stated by a given state or
foreign country.
Psychological: For the persons involved this would have a positive effect on
them because they will be given sufficient time in order for them to brainstorm
their ideas regarding the brand transition.
Social: This would have a positive effect in the community since they will be fully
aware of the brand transition. Advertisements and promotions will be posted for
them to be able to identify the Black and Decker Company products.
Economical: This will be costly for the company since they will be dividing their
finances into two: First six months and the second and last six months of brand
transition. They would have to consider advertising and promoting their products
two times and their finances should also double to be able to compensate this
alternative.
Political: This does not violate any law otherwise stated by a given state or
foreign country.
Psychological: This will be a heavy task for the persons involved since they
would have to consider two different brand transitions. They would have to plan
out everything so they will have a smooth flow. But with great determination and
teamwork coming from the employees of the company, this alternative can be
pulled-off.
Social: Although this would be of good advantage for the buyers of the Black and
Decker, this can also create confusion. Considering the fact that they have two
brand transitions to do. The consumers should be fully aware of this so confusion
will come in the picture.
Political: This does not violate any law otherwise stated by a given state or
foreign country.
Psychological: This will be a heavy task for the persons involved since they
would have to consider two different brand transitions. They would have to plan
out everything so they will have a smooth flow. But with great determination and
teamwork coming from the employees of the company, this alternative can be
pulled-off.
Social: Although this would be of good advantage for the buyers of the Black and
Decker, this can also create confusion. Considering the fact that they have two
brand transitions to do. The consumers should be fully aware of this so confusion
will come in the picture.
Psychological: This will be stressful on the part of the persons involved since
they will not be only thinking on how to do the brand transition but also on how to
create new innovations for the products to be presented to the public in line with
the brand transitioning.
Social: This will have a positive effect on the community since new products
under the Black and Decker Company will be presented. They will have a new
outlook with the products given by the company because they are not coming
from the acquisition of the previous companies.
Recommendation
The researchers of this study recommend to use the 2 nd alternative
presented above. The push and pull marketing is a strategy in attracting the
customers to your offered products and services. There are differences in the
push marketing and pull marketing. Push marketing involves activities that take
your products or services directly to the customers. This refers to many
traditional mass marketing approaches. It also involves advertising and direct
mailing to your customers. In push marketing, the emphasis in on you, mass
advertising is implemented, it is spread demographically, and it is a point-in-time
blast. Meanwhile, pull marketing has the same objectives with push marketing,
but there are also differences. Accordingly, one of the objectives of pull marketing
is attracting interest in products and services that leads to sales. Its goal is to use
less time, fewer dollars or expenses, but should be resulting with greater impact.
It aims to get your customers to seek out your products and services through an
active and exploratory process. Basically, its goal is to influence and attract. Why
is pulling power the most recommended by the researchers? Potential customers
are difficult to reach, highly skeptical and you need to earn their trust. It focuses
on how customer research and buy versus selling to them. The emphasis of
pulling power or pull marketing is on them, the customers, and the entire market.
This uses 1 to 1 targeting. Also, this gives importance to the continuous and
growing relationships to the customers. The company needs to build the trust to
their customers, and they need to make sure that the customers will make the
right decision in buying their products for them not to get the feeling of regret,
and waste of money.
Action Plan
Activity/Plan
Implementing
Scheme
Monitoring
Scheme
Person(s)
Responsible
Target
Date
Budget/Resour
ces Needed
Change the
By conducting
-Legal
-Kenneth
Within two
This would be
name across
a meeting to
requirement
Homa, B&Ds
weeksif
costlysince they
the entire
discuss about
s needed
vice president
possible
will have to
product line as
-Signed
of marketing
for their
immediately find
soon as
pull programs
Contracts
-External
brand
a way to do the
possible to
and media
Consultants
name to
brand transition
demonstrate by
exposure of
be
as soon as
conveyed
possible taking
& pull
Decker since it
in the
few
programs and
will solely
most
considerations
media
stand alone
-Management
effective
exposure kind
after and
Team of
and
cause drastic
of
brainstorm
Housewares
efficient
and unbearable
communication
Division of
way to the
outcomes.
program.
persons
General
GE small-
responsible to
Electric Co.
appliance
make this
(GE)
line.
activity/plan
possible.
- Executives
of B&D
corporation
Activity/Plan
Implementing
Scheme
Monitoring
Scheme
Person(s)
Responsible
Target
Date
Budget/Resour
ces Needed
By trying to
-Signed
-Kenneth
Within
This would
Decker should
communicate
Contract
Homa, B&Ds
one
really be costly
with the
-Legal
vice president
weekif
almost
transition until
people
requirement
of marketing
possible
millionsbut
involved in
s needed
- Executives
for their
given this
three-year
making this
of B&D
brand
alternative since
period by using
alternative
corporation
name to
they will be
possible.
be
delaying, the
conveyed
company could
in the
prepare the
programs and
media
- External
Consultants
exposure kind
-Management
most
necessary
of
Team of
effective
finances in
communication
Housewares
and
programs.
Division of
efficient
not to incur
General
way to the
more losses in
Electric Co.
GE small-
(GE)
appliance
the brand
line.
transition.
Activity/Plan
Implementing
Scheme
Monitoring
Scheme
Person(s)
Responsible
Target
Date
Budget/Resour
ces Needed
Introduce to the
By conducting
- Budget
-Packaging
2 weeks
When
a meeting with
-Plan on
and graphics
in
advertising a
items in one or
the persons
how to
team
planning
product in
two product
involved to
introduce to
-Kenneth
everything
television the
categories
plan out
the market
Homa, B&Ds
and allot
cost depends on
under the
everything so
vice president
another
name of Black
in one or two
of marketing
week in
commercial be
and Decker in
a smooth flow.
product
-Financial
analyzing
but 30 seconds
categories
Department
how to
will be enough
influence
for B&D to
six successive
months
-Legal
-Executives
requirement
people
advertise their
of B&D
watching
corporation
the ad.
cost around
exposure kind
-Signed
- Research
$200 to $1,500
of
contracts
and
if in local
Development
television
department
station.
communication
Activity/Plan
Implementing
Scheme
Monitoring
Scheme
Person(s)
Responsible
Target Date
Implement the
By making
-Legal
-Packaging
1 month to
Budget/Resour
ces Needed
There is no
brand
some radical
requirement
and graphics
implement
exact or
transitioning
changes to
- Senior
this brand
accurate figures
on the
whatever is
-Plan on
Management
transitioning
premium
needed to
how to do
Team
including the
quality items
this brand
schedule
first to be
brand
transition
meeting for
followed by
transition to
ts operation
the remaining
happen and
-Kenneth
to run
transitions for
lower-priced
schedule a
Homa, B&Ds
smoothly
this alternative.
items in each
meeting for
vice president
since they
product line.
planning.
of marketing
have to
to consider
- Executives
place the
advertising and
of B&D
customer
promoting their
corporation
benefit front
products two
and center
at all times.
would result to
-Financial
Department
- External
Consultants
another cash
outflow.
-Management
Team of
Housewares
Division of
General
Electric Co.
(GE)
Activity/Plan
Implementin
g Scheme
Monitoring
Scheme
Person(s)
Responsible
Target Date
Budget/Resourc
es Needed
Create a new
By inventing
-copy of the
-Financial
2-3 weeks
This will be
product
new
plan that
Department
so they can
development
platforms and
they came
-Kenneth
make some
program that is
up with
Homa, B&Ds
changes
linked to the
new products
during the
vice president
already.
transition itself
transition
that would
meeting
of marketing
schedule
come along
-new product
through the
the brand
- Executives
development
new innovation
transition
of B&D
program
of products.
program and
through
corporation
media
scheduling of
- External
exposure kind
meetings with
Consultants
of
the persons
-Management
communication
responsible.
Team of
that would
Housewares
facilitate the
Division of
transfer.
General
Electric Co.
(GE)
Conclusion
In
conclusion
with
the
given
discussion
of
the
researchers
the current situation of the company involved in this case. It may be costly, but if
the strategies will be done efficiently and effectively, then surely, it will really
make a great change in the company. -Inbound and outbound tactics must be
aligned and coordinated. Lastly, the key is to earn to trust of the customers. To be
able to achieve that, Black& Decker must add value in a clear, relevant, and
helpful manner.