Justin Stark

1

• Justin Stark
• Daphnee Mondevil
• Hunter Winchester
• Jackie Isphording

2
Vision Statement

• Black and Deckers objective is to establish
  itself as the preeminent global manufacturer and
  marketer of power tools and accessories, hardware
  and home improvement products, and technology
  based fastening systems.

3
Market Segments

• Three marketing segments
• Power tools and accessories
• Hardware and Home Improvement
• Fastening and Assembling Systems
• Account for 72, 16, and 12 respectively

4
Power Tools and Accessories

• Manufacture and sell consumer and professional
  power tools and accessories
• Lawn and garden tools
• Home products
• Accessories and attachments for power tools
• Distributed at Large Retailers, mainly Home Depot
  and Lowes

5
Hardware and Home Improvement

• Manufacture and sell security hardware
• General and decorative plumbing products
• Also sold through large retailers, wholesalers,
  and distributors

6
Fastening and Assembling Systems

• Manufacture and sell metal and plastic fasteners
  and engineered fastening systems
• Riveting and welding systems
• Manufactured for professional use, no consumer
  products
• Automotive, transportation, aerospace, machine
  tools, and appliance industries

7
Target Markets

• Target Markets separated by segments.
• Power tools and Home Improvement sell consumer
  goods.
• Black and Decker goods are marketed towards
  personal consumers
• Weekend warriors, Do-it-yourselfers
• Dewalt products marketed towards professional
  users.

8
Marketing Strategy

• Mass market retailing
• Home Depot and Lowes
• Making Name and product visible
• Acquisitions
• Baldwin Hardware Corporation
• Weiser Lock Corporation

9
Competitors

• Power Tools and Accessories
• Operate mainly in professional grade market
• Danaher, Makita, Stanley Works
• Hardware and Home Improvement
• Most amount of competitors because of the number
  of products in segment
• Cleaning products, appliances, home comfort, lawn
  care, pest control

10
Financials

• Total Sales for 2003 rose to 4.48 billion
• Power tools- 3.1 billion
• Hardware and Home Imp- 700 million
• Fastening- 500 million

11
2003 Financial Highlights

• Record earnings per share
• 7 consecutive quarters of EPS growth
• Record free cash flow, 800 mill last 2 years
• Three years of working capital improvement
• Acquisition of Baldwin and Weiser
• Repurchase of 2 million shares and 75 increase
  in dividends

12
Recommendations

• Focus marketing on Power Tools and Home
  Improvement Segments
• Maintaining Brand recognition and build brand
  loyalty.
• Weekend Promotional Tents
• Advertising and sponsorship with the increase of
  home improvement television.

13

• Questions?