Black & Decker: Inspired Merchandising

It's not unusual for Black & Decker's entire product staff to check out a retail store en masse. The unusual part comes when everyone heads for the power tool aisle -- except for the merchandising staff. They head for other aisles."There are a few companies and brands that we try to compare ourselves to and learn as much as we can," explains Denise A. Ryan, director of marketing communications for the U.S. Power Tools Group at Black & Decker. "And they're all outside of our aisle. Our products don't have much in common, but we can learn from them."According to Beatrice Inglis Dorsey, merchandising supervisor, "Some companies and retailers are doing just phenomenal work. We get some great ideas when we visit Toys "R" Us." Companies that have given the merchandising staff inspiration in the past include Mattel, Nike, Nintendo, Coca-Cola and Pepsi. "But it's not unheard of for us to stop at a car dealership or something wacky like that to see what works for them, too," adds Ryan.To some extent, those diverse muses are being tapped for application to a relatively blank canvas, they explain. "Ten years ago, there was very little merchandising being done for power tools," says Ryan. "Now we're really starting to see the entire thrust of P-O-P become more and more important to all kinds of products, and tools is one of those."New Packaging DebutsThat attitude has led the Towson, Md.-based company to revamp both its packaging and some of its display approaches for 1998. "We've made a huge, huge change in the last year to provide a more consistent look in our packaging, message and overall image," says Dorsey. The most noticeable result will be seen incrementally this year as the company introduces revamped packaging for its entire tool line. "Our goal has been to create design consistency, simplify the messages and reduce the cluttered look in the aisle," Ryan says.The new packaging focuses on two key colors: the traditional Black & Decker orange and the jade hue introduced in recent years. The corded tools will feature an orange package with a jade horizontal stripe, while the cordless products will use a jade background with an orange stripe. New products will receive the updated looks as they are launched, with existing products being converted as production runs allow. All packaging is expected to be converted by the end of the year.The concept was sparked by a visit to Mattel's Barbie aisle at Toys "R" Us. "The impact Mattel achieves with all that pink [packaging] is very dramatic," says Dorsey. "Our goal is to turn our walls into a sea of Black & Decker jade and orange.""Virtually every tool company has a signature color, but very few carry that through to their merchandising," adds Ryan. "There's great equity there, but they don't use it the way Mattel does."In addition to consolidating and unifying color designs, the team is evolving the packaging's function. More four-color product application photos are being added to every package, showing different benefits or uses. These photos will also carry over for use in P-O-P materials, Ryan notes. "Application photography is our number-one priority across the board. We still have a way to go on that, but we're making progress."With this change, the team can develop an idea it picked up from Coke and Pepsi: Make the package the star. "In a sense, we want our P-O-P materials to create a canvas on which the packaging and product stand out," Dorsey explains. "We haven't had that opportunity in the past." That will result in smaller components and cut-away displays, she says, reducing the display elements so the packaging takes center stage.Channel ChangesOne of the forces driving the changes in merchandising and the overall commitment to refocusing comes from the distribution channels themselves, which have undergone dramatic revolutions. Black & Decker's two key markets are mass merchants and home centers, and these channels receive the majority of the company's merchandising focus, Dorsey says. Home centers are consolidating to a few key players, which the mass merchants have already done. For the key mass merchants -- Wal-Mart, Kmart and Target -- Black & Decker serves as the category manager for tools."Being the category manager means we have a lot of input into how the planogram should look, but we also have to consider the competitors' needs and what will work for them," Ryan says. Each retailer is serviced by a Black & Decker national account team that receives feedback from the competing manufacturer. In essence, the three entities -- Black & Decker, the retailer and the competitors -- negotiate the SKU list and percentage of space each company will receive, and Black & Decker manages that SKU list for each retailer.Wal-Mart OpportunitiesThe revampings Wal-Mart has instituted in every aisle have created a great opportunity for Black & Decker to rethink how it merchandises its own segment of the tool aisle, Ryan says. "Wal-Mart's number-one focus is on education and making the aisle more shoppable for the light do-it-yourselfer. If we put our resources behind that goal completely, too, it will happen."Educating the consumer means more than adding extra signs -- it means rethinking the entire presentation. "We aren't going to change our number of SKUs or the amount of space we have to work with," Ryan points out. "So we want to shuffle the deck and create an approach that appears less cluttered and supplies more information with its basic layout."To achieve that, the company will introduce new Wal-Mart planograms later this year. In the past, a typical layout has featured 20 linear feet of power tools and another 20 linear feet of accessories, such as drill or router bits. This let Black & Decker compress accessories into less space, using waterfall-style displays to stack them. The new approach will peghook each accessory and display it near the proper tool."We think this is the way most consumers shop," Ryan explains. "They want to buy all the pieces together. They don't want to pick up a tool and then go to another section and be overwhelmed with accessory choices that don't apply to their purchase." The new planograms won't be more complicated than current ones, she stresses, and may even be easier for stores to handle due to the commonsense layout.Home Center EvolutionMerchandising changes are also coming in the evolving home center channel. As regional players shake out and the major warehouses expand, Black & Decker has begun putting more focus on personally serving those big players. That centers on the company's 350 Direct Service Representatives (DSRs). They are full-time company employees who service all outlets for the major warehouse chains, including Home Depot, Lowe's, Menard's and several others. That includes checking stock, ensuring signs are in place, and assembling and maintaining displays.A new key weapon in the arsenal for this channel is what Black & Decker calls its Sign Kit. The kit consists of a variety of banners, photos, lettering and other pieces that allow the DSR to create any size or shape of sign necessary for the store, regardless of the space available.The company has also developed a concept for displaying a single power tool on slatwall, which was inspired by a Nike display. The display features an all-metal stand with a curving metal backer that fits a variety of header cards. The tool sits on the base -- much as a sneaker fits into a shoe rack -- with the Black & Decker name across the faceplate. Seven headers are currently offered, one for each of six key tools plus a generic version."Power tools are a very tactile category," explains Ryan. "Customers want to feel the heft and grip so they know what they're buying. We're trying to find new and more versatile ways to allow retailers to achieve that goal." The frame, measuring about 10 inches wide, 14 inches high and 8 inches deep, attaches to slatwall, sits on a counter or can be screwed into a pedestal base (as is required by Home Depot).Two StrategiesThese two merchandising approaches reflect the differing needs of each channel segment and Black & Decker's corresponding response, Dorsey notes. "Mass merchants need merchandising programs that are easy to execute, but they want more permanent pieces that will stay up longer. The home centers want programs to change more often and target more expert customers, and our DSRs allow us to react quickly and build in more flexibility for those accounts. So we're doing more temporary, but they are flexible programs for that market that can be adapted to the individual store."These adaptations are aided by improved and expanded retail feedback. Some of that comes from the buyers, who are providing more in-depth input, but some also comes directly from the Black & Decker merchandising staff's personal experiences in the stores. Many mass merchants and warehouse home centers encourage the Black & Decker staff to work in the store, particularly between Thanksgiving and the end of the year.Dorsey, for instance, worked four weekend days in local Home Depots during the last holiday season. "We may do demonstrations as part of that experience, but usually it's simply working the aisle," she says. "It's a great chance to hear what customers say and to see how they respond to what they see. We learn how salespeople explain features and how customers interact with the products. We see what they look at first on the packages and the overall dynamics of their selection process."Adds Ryan, "Obviously, we can't react to any one consumer comment. But in the aggregate, you begin to see threads appear. By being there, we receive information and insight that we can't receive any other way."Feedback also comes through the DSRs, who report any logistical problems displays may create that were overlooked in design stages. "They're on the front lines and know what really gets into the stores and why," Ryan says. This feedback comes through both formal methods -- such as twice-yearly surveys and meetings -- as well as informal ones, such as random calls to DSRs and reports left on the company's voice mail system."We are a voice-mail driven company," Ryan says. "It's a big help in getting feedback, because it doesn't require sitting down to write a report. It can be done when they have a moment or have something to report, any time of the day or night. You can also hear the enthusiasm in their voice, which gets lost in a report. It helps us stay on top of everything."Vendor SelectionsBlack & Decker also relies on vendors for feedback. The company typically works with a core group, but leaves the door open for new ideas and innovations. Its key suppliers include Alliance Display & Packaging and Decision Point Marketing, both in Winston-Salem, N.C.; LLB Group, Philadelphia; and Force Manufacturing, Cleveland. "Who we use varies by goal, and they range from manufacturers to designer/brokers to specific printers," Dorsey says. "Some people are surprised that we use such a range, and there are pros and cons to each approach."Opportunities to bring in new vendors also exist. Usually, these are companies who have created long-term relationships with Black & Decker despite not having any specific work to show for it until then. "We have talked with a company for as long as two years before finding the right place to use them," Dorsey says.Dorsey notes that she's had great success recently simply brainstorming with vendors on the phone, working back and forth until they hit on an approach that meets the needs and solves the challenges. A banner display for the company's new StormLight to be introduced for Father's Day, shows one result of that interaction. The banner features lightning images that have been inset with a material that allows them to strobe electrically when the banner is plugged in.Another avenue for experiments and innovations will be coming from the company's factory stores, which operate as outlet shops in outlying markets. There are currently 55 shops and that number is expected to grow, Ryan says. "They give us a merchandising laboratory to see what works and what shops well. It's a very low-risk approach." A bulletin board in the company's merchandising department features snapshots from each store, showing successful customized displays.These new inputs, evolutions and innovations are leading the company into new territory. "I would hope that a year from now, Black & Decker will be known for having a much more consistent, simplified, educational and focused look," Ryan says. "We say we make 'relevant innovations' that result in cool tools. We need to project that in our displays."

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