Black and Decker Corporation (A) Power Tools Division

1. Why is Makita outselling Black and Decker 8 to 1 in an account which gives them equal shelf
space?

 Makita had taken over the professional power tools segment for tradesman business
 Makita provided a good baseline option in all major categories
 80% share in cordless drill and a 50% segment share overall
 Makita have positioned themselves as a premium product in the profession power tool
segment. Price was higher which is a good signal from premium products
 Home use did not translate to on the job use
 It was the smallest sector but now became the fastest growing sector
 Makita was quick to develop its distribution channel to accommodate the demand from Home
Depot’s growing collection of chain stores
 The charcoal grey was not too far from the black color and general consumer goods were
either black or charcoal grey. No other professional good was black
 Some of their products that were subjected to demands on the job site failed
 Non-existent in membership clubs, Makita was in all channels