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Developing A Brand New Product Idea / Category - Black & Decker's Cleaning Business

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This case study discusses the importance of keeping your product line evergreen through a combination of both updating your current line plus exploiting new product categories. If you don't continually innovate, you competitors will do it for you and your business will suffer. This shows how the "Buster" franchise at Black & Decker not only found a way to update their hugely successful Dustbuster business; they were able to use consumer and attitudinal segmentation to find completely new and unexploited adjacent product categories. The result was a huge hit with consumers since it addressed new trends in everyday household cleaning

Rick Steinbrenner - The Global Brand Guy

Publicada em: Negócios, Diversão e humor
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Developing A Brand New Product Idea / Category - Black & Decker's Cleaning Business

  1. 1. 1 Developing A Brand New Product Idea / Category In Household Cleaning Tools “The Buster” Family Of Cleaning Tools Dustbuster, Scumbuster, Floorbuster
  2. 2. 2  Black & Decker invented the Dustbuster franchise in 1979.  Dustbusters had eroded from $100M to only $35MM by 1996.  Handheld vac competition – (Royal, Hoover, Eureka, China imports) was mainly responsible.  Moreover, there had not been any real innovation in handheld vacs for years. i.e. corded or cordless , amps and accessories.  Strategic Imperatives:  Re-vitalize Dustbusters  Expand into new “non-served” adjacent product categories exploiting “need gaps”. Cleaning Tools Business Situation
  3. 3. 3 Consumer lifestyle shifts were driving changes in traditional household cleaning behaviors. Key Consumer Trends:Key Consumer Trends: Help consumers clean faster & better with less time & effort Speed Bumps Speed Bumps Cleaning Business Actions  Working parents & single parent householdsWorking parents & single parent households  Time constraintsTime constraints  Casual living attitudes & priorities - “I can live with some dirtCasual living attitudes & priorities - “I can live with some dirt””
  4. 4. 4 Consumer Household Cleaning Tasks/Markets VacuumVacuum Manual Wet MopsManual Wet Mops Sweep/Dry MopSweep/Dry Mop DustingDusting Wet CleanWet Clean  Upholstered furniture  Wall-to-wall carpeting  Area rugs  Major/small kitchen appliances  Heater, radiator  Window coverings  Woodwork  Electronic equipment  Light fixtures/ceiling fans  Hardwood floors  Tile floors  Linoleum  Entry way/ mud room  Major/small kitchen appliances  Sink, toilet, tub& tile walls  Windows  Kitchen countertops  Glass/wood tops  Shower doors  Sliding glass doors  Fireplace/hearth  Hardwood floors  Tile floors  Cement floors OutdoorOutdoor  Deck and patio  Outdoor furniture  BBQ  Siding  Gutters  Fences  Driveways/sidewalks Source: 1994 B&D Cleaning A&U Study Cleaning Business Actions These tasks were already being addressed by current products Opportunities existed to “Invent & Market” In Adjacent Categories Traditional Served Cleaning Markets Unserved, Adjacent Markets
  5. 5. 5 Cleaning Category Consumer Segmentation  Consumer attitudinal segmentation showed both an emotional and rational need for new cleaning solutions beyond handheld vacs.  Convenient hard surface floor and wet cleaning needs were not being addressed. Source: 1994 Cleaning A&U Study Sweeping/ Dry Mop Sweeping/ Dry Mop Corded/Cordless Handheld Vacs Corded/Cordless Handheld Vacs Wet Cleaning Tools Wet Cleaning Tools Dirt/Messes are important to clean up - emotional Thecleaningtaskitselfisannoying-rational Low High High Anti-CleanersAnti-Cleaners CleaningCleaning FanaticsFanatics TolerantTolerant CleanersCleaners DiligentDiligent CleanersCleaners Cleaning Business Actions
  6. 6. 6  Scumbuster invented the “wet cleaning” category – $60MM business – single largest $ SKU in Black & Decker’s 100 year history.  Unique product design/manufacturing process resulted in a waterproof product up to 3 feet in water – competition couldn’t duplicate it. First to market.  Scumbuster was the first Black & Decker product on QVC – result $1MM of sales in one day  Floorbuster was the first cordless stick vac using the patented versapack rechargeable battery technology and new bagless technologies before Dyson vacs. - $5MM business  Achieved highest profitability return in history of the business - $100MM with >20% ROS. Cleaning Business Results
  7. 7. 6  Scumbuster invented the “wet cleaning” category – $60MM business – single largest $ SKU in Black & Decker’s 100 year history.  Unique product design/manufacturing process resulted in a waterproof product up to 3 feet in water – competition couldn’t duplicate it. First to market.  Scumbuster was the first Black & Decker product on QVC – result $1MM of sales in one day  Floorbuster was the first cordless stick vac using the patented versapack rechargeable battery technology and new bagless technologies before Dyson vacs. - $5MM business  Achieved highest profitability return in history of the business - $100MM with >20% ROS. Cleaning Business Results

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