The Black & Decker Corporation household

products group: Brand Transition

Submitted to

Prof. Sanket Vatavwala

Submitted by – Group 4

HIMADRI JANA - MBA/07/077

PRANJAL YADAV - MBA/07/035
SARMA SIDDHARTH M - MBA/07/104
ANSH LAKHMANI - MBA/07/127
SUNDERJITH K - MBA/07/172
KAIRAM SAI KOUSHIK-MBA/07/204
 Part 1

Case Background
Black & Decker Corp. (B&D) purchased the General Electric Co. (GE) Housewares Division in
April 1984, integrating the GE small-appliance product line with its own home product line to
create the Household Products Group. The acquisition's terms created an original marketing
problem. Only until April 1987 was B&D allowed to produce and sell appliances under the GE
brand. B&D would have to change the GE name on all the acquired models to its own brand
name throughout the subsequent three years. Kenneth Homa, the vice president of marketing at
B&D, was given charge of the brand transformation immediately following the acquisition. A
week from today, on June 1, Homa was instructed to have the proposal for the brand change
finished. Homa evaluated the acquisition and the problems it created before he started to draft
the proposal. First they had lower growth rate for power tool market worldwide together with
increasing foreign competition. Second, their management realized that the American
housewares market presented a significant opportunity. Their products were able to meet
customer needs, particularly those of families. Their goods' high quality, usability, and
efficiency allowed them to assist households as well. On the other side, GE Housewares
Divisions is Black &Decker's biggest rival in the electric small appliance or housewares industry
in the US. Nearly 150 product models in 14 categories, including food preparation, oven use,
clothing care, personal care, and home security, were sold by the housewares division. GA's
success was largely due to their continued focus on product innovation, which is why they were
placed top or second in terms of market share. An arrangement between these two significant
businesses resulted in the signing of a three-year note and the purchase of the GE Housewares
Division by Black &Decker.

Problem Statement
How can the GE small appliance line be introduced to the Black & Decker brand name in the
fastest, most effective way possible while selecting the best kind of communications program to
enable the transfer?

Objective
To prepare for future endeavors surrounding its brand transition with the GE small-appliance
line, the Black & Decker Corporation is working to strengthen the organization's structure,
product innovation line, communications, promotional programs, and advertising.
Course of Actions
Budget/
Implementing Monitoring Person(s) Target
Activity/Plan Resources
Scheme Scheme Responsible Date
Needed
Change the By conducting -Legal -Kenneth Within This would be
name across the a meeting to requirements Homa, two weeks costly since they
entire product discuss about needed B&D’s vice if possible will have to
line as soon as the push and -Signed president of for their immediately
possible to pull programs Contracts marketing brand find a way to do
demonstrate by and media -External name to the brand
using the push exposure of Consultants be transition as
& pull the Black & - Executives conveyed soon as possible
programs and Decker since it of B&D in the taking few
media exposure will solely corporation most considerations
kind of standalone -Management effective that would not
communication after and Team of and cause drastic
program. brainstorm Housewares efficient and unbearable
with all the Division of way to the outcomes.
persons General GE small-
responsible to Electric Co. appliance
make this (GE) line.
activity/plan
possible.

Budget/
Implementing Monitoring Person(s) Target
Activity/Plan Resources
Scheme Scheme Responsible Date
Needed
The Black & By trying to -Signed -Kenneth Within one This would
Decker should communicate Contract Homa, B&D’s week if actually
delay the brand with the people -Legal vice president possible cost
transition until involved in requirements of marketing for their millions of
the end of the making this needed - Executives of brand dollars, but
three-year alternative B&D name to be given the
period by using possible. corporation conveyed choice to
the push & pull - External in the most delay, the
programs and Consultants effective corporation
media exposure -Management and could set up
kind of Team of efficient the required
communication Housewares way to the finances to
programs. Division of GE small- prevent
General appliance more losses
Electric Co. line. throughout
(GE) the entire
brand
change.

Budget/
Implementing Monitoring Person(s) Target
Activity/Plan Resources
Scheme Scheme Responsible Date
Needed
Introduce to the By conducting - Budget -Packaging 2 weeks in When
market all the a meeting with -Plan on how and graphics planning advertising a
items in one or the persons to introduce team everything product in
two product involved to to the market -Kenneth and allot television the
categories plan out all the items Homa, another cost depends on
under the name everything so in one or two B&D’s vice week in how long the
of Black and they will have product president of analyzing commercial will
Decker in six a smooth flow. categories marketing how to be, but 30
successive -Legal -Financial influence seconds will be
months through requirements Department people enough for B&D
push & pull -Signed -Executives of watching to advertise their
program and contracts B&D the ad. product that will
media exposure corporation cost around
kind of - Research $200 to $1,500
communication and if in local
Development television
department station.

Budget/
Implementing Monitoring Person(s)
Activity/Plan Target Date Resources
Scheme Scheme Responsible
Needed
Implement the By making -Legal -Packaging 1 month to There is no exact
brand some radical requirements and graphics implement or accurate
transitioning changes to -Plan on how - Senior this brand figures of the
on the whatever is to do this Management transitioning budget but this
premium needed to brand Team including the will be costly for
quality items adjust for this transition -Financial schedule the company
first to be brand Department meeting for since they will be
followed by transition to -Kenneth its operation doing two brand
the remaining happen and Homa, to run transitions for
lower-priced schedule a B&D’s vice smoothly this alternative.
items in each meeting for president of since they They would have
product line. planning. marketing must place to consider
- Executives the customer advertising and
of B&D benefit front promoting their
corporation and center at products two
- External all times. times, and this
Consultants would result to
-Management another cash
Team of outflow.
Housewares
Division of
General
Electric Co.
(GE)

Budget/
Implementing Monitorin Person(s)
Activity/Plan Target Date Resources
Scheme g Scheme Responsible
Needed
Create a new By inventing -copy of -Financial 2-3 weeks so This will be
product new platforms the plan Department they can costly since they
development and plans for that they -Kenneth make some would not only
program that is the new came up Homa, changes have the brand
linked to the products that with during B&D’s vice already. transition itself
transition would come the meeting president of but also the
schedule along the brand -new marketing opening of their
through the transition product - Executives new innovation
push & pull through developme of B&D of products.
program and scheduling of nt program corporation
media exposure meetings with - External
kind of the persons Consultants
communication responsible. -Management
that would Team of
facilitate the Housewares
transfer. Division of
 General
Electric Co.
(GE)

Conclusion
After discussing the researchers' proposals, it can be concluded that this alternative would be a
very successful strategy to improve the current circumstances of the organization in question.
Even if it may be expensive, if the plans are executed well, they will undoubtedly have a
significant impact on the business. The use of both inward and outbound tactics must be
coordinated and in alignment. Finally, gaining the patrons' trust is crucial. To be able to do that,
Black & Decker must add value in a way that is understandable, pertinent, and beneficial.