Post on 17-Jan-2015
description
1
Developing A Brand New Product CategoryIn Household Cleaning Tools
“The Buster” Family Of Cleaning ToolsDustbuster, Scumbuster, Floorbuster
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
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
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 beingaddressed by current products
Opportunities existed to “Invent& Market” In Adjacent Categories
Traditional Served Cleaning Markets Unserved, Adjacent Markets
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/CordlessHandheld Vacs
Corded/CordlessHandheld Vacs
Wet CleaningTools
Wet CleaningTools
Dirt/Messes are important to clean up - emotional
Th
e cl
ean
ing
task
itse
lf is
an
noy
ing
- ra
tion
al
Low
High
High
Anti-CleanersAnti-CleanersCleaningCleaningFanaticsFanatics
TolerantTolerantCleanersCleaners
DiligentDiligentCleanersCleaners
Cleaning Business Actions
6
Scumbuster invented the “wet cleaning” category – $60MM business – single largest $ SKU in Black & Decker’s 100 year history.
Unique product design/manufacturing processresulted in a waterproof product up to 3 feet in water – competition couldn’t duplicate it. First to market.
Scumbuster was the first Black & Deckerproduct on QVC – result $1MM of sales in one day
Floorbuster was the first cordless stick vac usingthe patented versapack rechargeable battery technologyand new bagless technologies before Dyson vacs.- $5MM business
Achieved highest profitability return in historyof the business - $100MM with >20% ROS.
Cleaning Business Results