Key Issues Low market share of the relatively new Professional Tradesman Segment 1. Harvest Professional tradesmen Channels 2. Sub-branding 3. Drop the B&D name from professional segment Environmental Analysis Demographic Men professional tradesmen for the tools. Housewives for Housewares divisional products Marketing Customer Analysis Mainly trade companies rather than individuals- end users are electricians, plumbers, builders etc.

Customer loyal to existing distributors Product Analysis Power tools and housewares- electrical handheld equipment for both professional and consumer use. Colour a product differentiator Distribution Channels Gainer of Skokie, Illinois- 300 branches, stocked more than 32, 000 items Home Depot Home Club Two steps Ace Retailers not positive towards Makita brand Pricing Each of the customers had generally about $3000 invested in tools of the trade. Spending $1000 per annum Strengths Weaknesses Powerful Brand name #7 in USA, #19 in Europe Brand recognition Market leader Exceptional growth 50% product revenues outside of the USA 30% of share of overall market Excellent knowledgeable service In depth field tests. Strong R&D Low market share of the relatively new Professional Tradesman Segment Seen by some as fathers day gifts not professional tools Opportunities Threats Household division Professional Tradesmen segment growing the fastest. Makita holding market share of the Professional tradesman segment&D brand viewed as home use products. Recommendations B&D should look at the possibility of using a sub brand backed by the B&D name- Through this re-branding strategy B&D name would hold the back bone to the core product although a key differentiation would exist through a new or existing sub brand such as De Walt.

Focus sales on Two-Step where Makita has 55% of market share.