With the Sears brand experiencing a slow and painful demise, it became necessary for the company to sell its valuable, 90 year-old store brand, Craftsman. seeing an opportunity to gain instant market share, Stanley Black & Decker bought its competitor and has decided to market both brands to the tool-wielding public. Ideally, these brands should be positioned somewhat differently and should appeal to somewhat different segments of consumers if Stanley really wants to maximize its investment. But even if these brands are going after the same customers, the parent company can insure that it gets most of the market share, and that it doesn't have to spend lots of money fending off a major competitor. Such cannibalization of one product by another is planned by the marketer and can make for sound strategy.
But I digress. Not happy with selling exclusively to a retailer (Sears) that endeavors to become smaller and smaller as it tries to cheat death, marketers at Craftsman have made enhancing the brand's relevance a top priority. Recently, marketers introduced the first 1,200 products in a completely new line of Craftsman tools. In addition, Craftsman will now be available through a number of retailers including Lowe's and Ace hardware. Clearly, the divorce from Sears is nearing its completion, and unfortunately for Sears, this is just one more indication that the brand won't be around for very much longer. For Craftsman, it represents the beginning of a journey onward.
Discussion: Was buying Craftsman a good idea move for Stanley? How would you position each brand so as to minimize the potential for cannibalization?
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.