topCase StudyBlack and Decker Corporation (A) - Power Tools DivisionBlack and Decker, a US based corporation has reached the #7 brand in the US and the #19 in Europe. By creating the power tools business in the early 1990s and by being the worlds largest producer, the company has been recognized as offering high quality, differentiated products and excellent service in the power tool market. Moreover, a strong brand image has made B&G achieve the number one position in the Consumer segment and leadership position in the Professional-Industrial segment. Despite that Black and Decker has large market share in two of the three segments of the $1.5 billion power tools market, it only has a 9% share in the Professional-Tradesmen segment, which was the fastest growing segment of the power tools industry. Black and Decker has to start an action plan to take away shares from Makita and Milwaukee, the main players who occupy 50% and 10% in Professional-Tradesmen segment.I would describe the problem that Black and Decker has, as described in the case, as a b) Perception problem. Results in the case showed a great discrepancy between brand awareness and perceptions. The B&G name in the Professional-Tradesmen segment had poor quality perception and lack of proud ownership of the tools, because the tools were perceived to be designed for home usage. On the contrary to quality perception, B&Gs product quality was strongly competitive thanks to laboratory tests and extensive field tests. This contradiction stems from the brand being highly associated with the Consumer market and the low segment differentiation through the use of color and packaging for the products. The lack of dominance in the retail distribution channels such as the emerging Home Centers exacerbated B&Gs disadvantaged position.

SWOTExternal OpportunitiesO1. Professional Tradesmen segment was rapidly growing at 9%O2. Some densely populated developing countries have more needs for home constructionsO3. Easy servicing quality ranked higher than competitor MakitaO4. Makita did not please some retailers and distributers that offered no channel protection and no special treatment for outletsO5. Milwaukee and Makita charge a premium while B&G has already provided sufficient servicesExternal ThreatsT1. Makita provided a good baseline option in the major categories and other competitors to have specific product strengthsT2. Competing brands use highly differentiated solid colors for the Professional Tradesmen segmentT3. Makita grasps every retail channel especially membership clubs and the fast growing home centers such as Home DepotT4. Milwaukee achieves the smallest difference between brand awareness and brand acceptance at 15% tend to gain loyalty of customersT5. Power tools market is affected by economic environment

Internal StrengthsS1. Very strong brand image in the global market and high awareness at 98%S2. High market share in the power tools market: #1 in the Consumer segment and a leader in the Industrial segmentS3. Large high-quality product portfolios under innovative culture and intense experiments with relatively lower priceS4. Have good service perception even by those who prefer other brandsSO StrategiesS3, S4/O3. A greater discount and longer return policy to support their extensive lab test results for the competitive-leadership quality productsS1/O2. Expand into developing countries that require industrial and self-employersS1, S3/O5. Use the pricing strategy in the international market backed by their less pricy and practical productsST StrategiesS3/T1. Reinforce the quality of the tools depending on the market share especially those that not satisfied by competitorsS3/T1. Reduce manufacturing costs by shifting production from the US and England to lower-cost locations such as Mexico and China to make the selling price more competitiveS4/T3. Focusing on Home Depot, the largest retailer, offer them discounted rates and excellent customer service

Internal WeaknessW1. Brand name and image are associated with household products which unintentionally influenced proud ownership of tradesmenW2. The inability to differentiate Consumer and Professional tools has negatively affected perception of quality and durabilityW3. Low market share in distribution channels: below 10% in the Two-Step and Home Centers which are most frequently patronized by tradespeopleWO StrategiesW3/O4. Offers some sort of incentives and special treatments to preferred retailersW1/O3. Targeted the opinion leaders and successful tradespeople in this marketW3/O3. Promote in the media tradespeople primarily rely on and demonstrate in television channels and retailers especially Home Centers to prove the quality of the toolsWT StrategiesW1/T2. Separate the Consumer segment and the Professional segment by using the DeWalt name for professional products and the B&D brand for household toolsW2/T2. Use a differentiated color and packaging for their Professional power tool lineW3/T3, T4. Research each type of channel and treat them differently according to market share

To drop the Black and Decker Name from the Professional-Tradesmen Segment is the most strategic course of action for Black and Decker. Since the Professional-Tradesmen segment is fast growing at 9%, compared to a 7% growth rate for the Consumer and a stagnant Professional-Industrial market, the company could not solely enjoy the favorable position in the other two segments. It can be seen from Table 1, the brand image associated with the Consumer segment has causes confusion of professional products with consumer products in the Professional-Tradesman segment, despite having excellent quality products and service. To stop this long time confusion, separating the Consumer segment and the Professional segment by using another familiar brand name for the Professional segment that is free from negative associations is viable. DeWalt indicates a high purchase interest of 51% and greater positive brand image among tradespeople. Backed by Black and Deckers well-aware service, launching the Professional-Tradesman tools under the DeWalt brand name is a steady option in the long run. Sub-branding may not be able to solve the problem of removing that perception attached to household products. In terms of that B&G has no profitability in 9% share of the market, therefore, Option 1 is too risky and unpredictable.RecommendationsProductDifferentiating segment through a distinctive color for the Professional-Tradesman power tools under the DeWalt brand name is the first step of the implementation. This can be visually recognized when displaying in the market, allowing no bias attached to Black and Decker name. In terms of the choice of color, it should be distinctive among competitors. Since main competitors have occupied three colors (Red, Blue, Green) within the seven colors, there are limited choices for DeWalt to pick. Pink and purple are not suitable to display a masculine image, in this case, orange and yellow can be considered as they symbolize energy and safety respectively.Reinforcing the quality of the tools depending on the market share especially those not satisfied by competitors is the second step. Although Makita has large share for all categories in the Professional-Tradesmen power tools segment, and that Skil and Ryobi held higher share in Circular Saws and Belt Sanders, the market share in corded drills, Miter Saws, Reciprocating Saws, Jig Saws and Chop Saws have potential spaces for DeWalt to grow. The promotion should mainly focus on these five categories. In addition, among these five categories, Miter Saws, Reciprocating Saws and Jig Saws are less competitive in terms of quality shown in Figure 5 of the case. It indicates that an intense improvement for these three types of saws is vital.PriceTo make the selling price more competitive by shifting factories from the US and England to lower-cost locations and to provide a greater discount and longer return policy for customers is the third step. Some developing countries such as Mexico and China have lower salary requirement and more human resources. Relocated production can reduce manufacturing costs and therefore reduce the price of the product and relieve the burden of debt in the long term.Since B&Gs products are less pricy compared with competitors, using the pricing strategy in the international market can be an alternative.PlaceMaking a difference among channels by focusing on the growing home distribution centers, such as Home Depot, and offer specific incentives for preferred channels is the fourth step. Some special treatments that can be given to Home Centers such as offering discounted rates and after sale service, can be an attack on Makita that has no channel protection. This move would increase the loyalty of retailers and build a sustainable relationship circle in the market.PromotionTargeting the opinion leaders and successful tradespeople in this market and promoting in the media tradespeople primarily rely on and demonstrating in television channels and retailers to prove the quality of the tools is the fifth step. Tradespeople are easily influenced by fellow peers in the decision making process through their reviews and discussions, so identifying opinion influencers in this segment is necessary. Although Dewalt owns a considerable level of buying interests, its brand awareness is relatively lower in the market, rating at 70%. A series promotional campaign, targeting media that tradespeople frequently access and demonstrating new products in retail stores by advertisers, has to be undertaken to gain the publicity of the new brand. Endorsements on the packaging show DeWalt is backed by Black & Decker could gain credibility taking advantage of the high awareness and excellent service of B&G.

Zhuoyun Li, wrote in 2 March 2014Marketing Concepts and Commercialization course, Rochester Institute of TechnologyProfessor Raj MurthySaizeriya Brand CritiqueSaizeriya Restaurant Management Co., Ltd. is an exclusively foreign-owned enterprise. The company employs as its innovative business model and enterprise core the integration of service business and manufacturing thinking. It uses the manufacturing job analysis method to detail all of the concerns in the store and achieve standardization and refinement.During the fiscal year ending August 31, 2013, Saizeriya achieved the highest net sales in its history both in Japan and overseas, posting consolidated net sales of 110,428 million. In November 2013, the company likewise achieved its objective of operating a chain of 1,000 outlets nationwide. Saizeriya entered the Chinese market in 2003, and was growing dramatically in the Pearl River Delta. In 2013, Chinese outlets (151) accounted for almost the total number of foreign outlets (162). The increase is especially evident in Guangzhou. From 23 outlets in 2011, Saizeriya expanded to 38 outlets in 2012 and 55 outlets in 2013.The price inflation in the past few years and the continually increasing demand of busy city dwellers to eat outside have driven the popularity of low-cost foreign fast-food restaurants. Under these circumstances, the successful operation of Saizeriya in the Chinese market has revealed its internal management advantage. However, the company likewise experiences challenges brought about by external factors. The details are shown in Table 1.Table 1. SWOT Analysis of Saizeriya Restaurant Management

SWOTStrengthsImplements global supply chain management; materials supply directly from signing contracts with the peasants or the sources of importsFollows a centralized procurement processUses the advanced Saizeriya information system to analyze costs, sales, revenue contribution, daily transactions, and so on, to make staffing adjustments that reduces the cost of human resourcesMaintain an environment that is distinctly Italian to attract customers, and sell products at reasonable pricesWeaknessesThe packaging design which including the menu and utensils, lack branding and representationPromotional activity is insufficientDishes cannot compare with the traditional Italian cuisineBased on the manufacturing efficiency principle, the menu has been deemed outdated; lacks new ideasImportance is attached to the standardization of food production and productivity; however, the size and structure of the outlet are ignored

OpportunitiesThe development background of the brand founder provides inspirationThe use of the Internet and social networking platforms presents a huge potential Mobile application accessibilitySO StrategiesTake advantage of the brand to create accurate positioning among the lower and middle class demographic, as well as student groupsAttach importance to the material to compensate for the deducted point after the standardization in the production processDigital information technology as a guide, in Wi-Fi wireless transmission implies realizing the tablet menu and information management services based on the customer habitsWO StrategiesImprove the store, brand image, and packagingUnder the precondition of retaining the dishes, creative mixing and matching can be designed can be designed, or more applicable dishes of the same ingredients can be designed.Use a relatively inexpensive network environment and social platform to increase publicity

ThreatsPizza Hut offers discounts on a number of its packages for a limited periodCompound business has become popularCompetitors have larger spaces and better advertising strategiesST StrategiesConsider establishing the restaurant in a commercial location with lower rental ratesUnify the material preparation process but serve differently by changing the ingredients on top of the dishWT StrategiesAvoid being influenced by price competition, which reduces the quality of the brandImprove management efficiency during peak hours

The SWOT analysis reveals that key to the success of the company is maintaining lower costs without compromising quality. The application of information technology, cultivation of local talent, and implementation of industrialization and standardization have enabled Saizeriya to fully optimize and develop its potential in the Chinese market, which is largely composed of young consumers.

To confront future challenges, Saizeriya could maximize mobile applications. Its target customers tend to use mobile devices and the Internet; thus, a bold attempt would be the development of an application for an order system that is expected to save human resources and ease the crowded environment during busy hours. The order system could include a digital menu with adequate information about the dishes being offered, such as health benefits and preparation process.

In the short term, Saizeriya should improve its visibility via a social networking service through which it could increasingly interact with customers, particularly the young ones, or provide a creative platform for two-way communication. In the long term, Saizeriya should ensure the sustainable development of its brand by seriously considering the use of online and mobile resources, launching low-cost but effective promotions, and focusing on creativity to fill the gap created by its manufacturing-style strategies.

Zhuoyun Li, first wrote in 2012, revised in 2014

Sources:Annual Report 2013, Saizeriya Co., Ltd., August 31, 2013, http://www.saizeriya.co.jp/PDF/irpdf000295.pdfAnnual Report 2012, Saizeriya Co., Ltd., August 31, 2012, http://www.saizeriya.co.jp/PDF/irpdf000253.pdfAnnual Report 2011, Saizeriya Co., Ltd., August 31, 2011, http://www.saizeriya.co.jp/PDF/irpdf000219.pdf

COACH BRAND AUDIT & COMMUNITIES

MINI Brand AuditPresentation of Coach Inc.Marketing Concepts and Commercialization course, Rochester Institute of TechnologyProfessor Raj Murthy

Description How do the brands messaging efforts (such as TV advertising, its social mediapresence, its website, print ads and other media) convey the brands authenticityand its brand personality? Does the brand do it effectively thus boosting itsauthenticity? Specifically look for evidence of this across countries or differentmarkets. The brands image and personality are often defined byits primary target market and existing customers. -Professor Raj Murthy

FieldsAnalyzing/ Case Study/ Brand Community/ Presentation

Date2014Zhuoyun Li 2014 all rights reserved