Re-branding and Marketing Matters: Example, Black & Decker Case Study: the power tools division is declining. The problem is possibly because a) B&D started making toasters and kettles that diminished the brand, and do not have large margins, or b) low-cost competitors in Japan. One solution is to create a new brand. This is because B&D are one of the most recognized brands in the US but it has a massive 45% of the consumer segment, only 20% of the industrial tools segment, and only 9% of the tradesmen segment.
So as the CEO of Black & Decker, do you: try to improve margins, create a sub-brand or try a DeWalt Line? Other solutions might be to have a Made in America stamp on the powertools playing on patriotism ie. “Going Nativist.” But the Japanese tools remained better and cheaper. Perhaps the solution lies in determining what the customer wanted rather than what the company could offer. A good isn’t the sole value, as you will need marketing, sales, and customer service to sell it.