In 1 page, discuss the marketing research steps DeWalt used to find and target its customers.

By the late 1980s the DeWalt brand of power tools was failing. The production of the line was halted, and the brand was shelved. Makita, a Japanese tool company, had taken over the market. It “had eaten our lunch throughout the ’80s,” says Nola Archibald, CEO of Black & Decker, which owns the DeWalt name. “So we started doing a bunch of research.” The findings were surprising. Consumers were lukewarm about DeWalt tools, but professional tool users had a high regard for the brand. “The light went on,” says Archibald. Black & Decker launched a line of portable electric power tools under the DeWalt name in 1992, and then an innovative line of cordless tools two years later. In a short time, the company has become one of Black & Decker’s most profitable divisions. With $1 billion in annual sales, it commands a 35% share of the professional-tool market. How did DeWalt fix itself? The company decided to market DeWalt primarily to professionals—who make up 69% of U.S. tool sales. It followed up by making the tools more rugged and reliable. That was important to people who use tools every day; it also allowed the company to charge a higher price. Then the company got creative. An army of tool guys in bright-yellow trucks swarmed construction sites around the country to get workers to test and critique DeWalt tools on the spot. They camped out in Home Depot and Lowe’s parking lots, inviting passersby to test their tools. To reach the Hispanic population—who represent nearly 20% of DeWalt’s customers—DeWalt hired Ethnic Marketing Group (EMG), a Los Angeles–based agency. DeWalt and EMG launched a contest to find the most dedicated, respected Spanish-speaking construction worker in the Southeast. The contest has expanded into other cities, from San Diego to Orlando, and Black & Decker has doubled DeWalt Hispanic marketing budget along the way. What DeWalt doesn’t do is just as interesting. It doesn’t do TV commercials, and it doesn’t sell at Walmart. The strategy is all about controlling distribution and protecting the brand, and keeping its marketing efforts directly focused on the correct target market—the professional user.   In 1 page, discuss the marketing research steps DeWalt used to find and target its customers.

Style:
APA 7th edition

Don't use plagiarized sources. Get Your Custom Essay on
In 1 page, discuss the marketing research steps DeWalt used to find and target its customers.
Just from $13/Page
Order Essay
Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)