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Jones Blair

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Jones Blair Paint Case Study

Cody Danberg
March 5, 2013
Section 2- Spring 2013

Memo

Cody Danberg
March 5, 2013
Jones Blair Case Brief
Linda Rochford

A. Problem Identification
* Who should Jones Blair target and where should they position their product in the future * DIY-ers, Professionals
* DFW Region vs Non DFW

B. Alternative Identification
* Alternative A
* DFW Region Only
* Substantially Increasing advertising budget to that specific region only to target those in the Fort Worth area * Alternative B
* DIY-ers while taking a price cut in order to attract and retain those who enjoy painting and have the time * Possibly enforcing an “At-Market” price strategy * In order to be profitable price cuts would need to be in the range of 20-30% off of their current price * Alternative C

* Addition of another regional Sales Person
* Break Even in terms of monetary value of the acquisition of another representative * Awareness and value placed with addition as another representative could be an important component to exploring potential customers and networking business

C. Evaluation Criteria
* Increasing Awareness
* Satisfaction Surveys
* Break Even Costs
* Maintaining the 35% contribution margin
* Maintaining a 1.4% increase in market growth
* Continue a 4% increase of dollar sales

D. Alternative Evaluation
* Alternative A
* Definite Increase in Awareness
* Break Even
* $3,400,000
* Key Components
* Demographics of DFW Region
* Alternative B
* Increase in Market share of DIY-ers
* Break Even of $4,480,000
* Price cut may affect brand perception
* Attract new customers

* Alternative C
* Addition of Sales Rep
* Financial Stability
* New Sales Rep costs $60,000 per year...