Building an ecosystem with brand
Building appropriate brand is important to gain customers’ support. It depends on the features of customers. Some people would prefer reliable, durable goods even their appearance is not appealing, while others would prefer appearance. Same situation happened in professional tradesmen industry of power tools. For the tradesmen, the power tools are like another themselves, not just consumable goods. The brand like B&D established for consumers and professional industrial segments is matched with majority who tends to pay attention to popularity, but not matched with tradesmen’s perception. On the other hand, Makita carefully build its brand with high quality products appealing to tradesmen, which leads it to success in the professional tradesmen segment.
Building brand also depends on products. Differentiated products attract customers. In this case, product color is one of key attributes in purchase decision. Considering its market share, simply imitating the color would be an effective strategy for the time being like cafe industry, followed by creating a new color for the tradesmen.
B&D should set a distinct strategy on the professional tradesmen industry. First, a new brand should be established for the professional tradesmen segment, since it is quite different from the other markets. The brand of B&D is regarded as the one for consumers and industries, not for expertise, and a new brand for the professionals is required. We can use existing powerful resource, the brand of DeWalt, which already receives high awareness rating and one of the best agreement from tradesmen.
Second, B&D should improve its products. The color should be changed because current color is relatively somber to appeal to customers. For example, yellow is favorable because it is bright and impressive, and implies high safety and uniqueness from competitors’ color. Maintaining high quality, durable aspects which make tradesmen be proud to own, B&D can attract them as obsessive customers.
Third, home center should be focused as a distribution channel. To gain satisfaction of tradesmen, hiring and training talented people is important, since they can communicate the firm’s value to tradesmen, which is evaluated good in the research, and get feedback from them for the next development and improvement.
Making community would work well. Utilizing membership club is one option. The other option is to create online social network, allowing them to share their idea and rating each other to extract their motivation.
Not only branding, but also the harmony and combination of all factors such as identity, resource, marketing position, created value, delivering value, coalition and customers’ preference is significant for the success.