Jones Blair Case
Re: Jones-Blair Company New Marketing Efforts
Executive Summary
Mr. Barrett faces different propositions of where and how to organize corporate marketing efforts in the architectural paint coatings market under Jones-Blair Company. Each executive has a different proposal such as: increasing brand advertising, lowering paint prices, hiring new representative or keeping status quo. This executive community still has not decided on which proposition to choose. I recommend hiring a new representative in non-DFW areas.
Analysis
Jones-Blair Company, regional paint manufacturer, has successfully competed against paint manufactures despite trends of mergers and purchases of smaller companies by major producers. Architectural paint coatings industry has an estimate of $12 billion-plus sale in 2004, but since it is mature market the growth rate of sales is only 1-2 percent per year. Therefore, it is difficult for companies to have greater sales growth rate than the previous years. In addition, government requirement of lowering emissions of volatile organic compounds causes expensive R&D. Therefore, due to slow sales growth, constant research and development and government regulations on VOCs there are more mergers and acquisitions.
Jones-Blair Company (JBC) markets their paint and sundry items in U.S. states such as Texas, Oklahoma, New Mexico, and Louisiana which totals over 50 counties. In addition, the Dallas-Fort Worth (DFW) area is JBC’s major business and financial center. Competition has increased in construction market where competitors price their products to capture a higher percentage. However, these companies have yet to reach the painting firms in DFW, professional painters in non-DFW areas, or the do-it-yourself market. Therefore, Jones-Blair Company still holds advantage in the market by providing great service to do-it-yourselfers and high quality paint to professional painters. However, due to increased R&D and overhead cost Jones-Blair
Executive Summary
Mr. Barrett faces different propositions of where and how to organize corporate marketing efforts in the architectural paint coatings market under Jones-Blair Company. Each executive has a different proposal such as: increasing brand advertising, lowering paint prices, hiring new representative or keeping status quo. This executive community still has not decided on which proposition to choose. I recommend hiring a new representative in non-DFW areas.
Analysis
Jones-Blair Company, regional paint manufacturer, has successfully competed against paint manufactures despite trends of mergers and purchases of smaller companies by major producers. Architectural paint coatings industry has an estimate of $12 billion-plus sale in 2004, but since it is mature market the growth rate of sales is only 1-2 percent per year. Therefore, it is difficult for companies to have greater sales growth rate than the previous years. In addition, government requirement of lowering emissions of volatile organic compounds causes expensive R&D. Therefore, due to slow sales growth, constant research and development and government regulations on VOCs there are more mergers and acquisitions.
Jones-Blair Company (JBC) markets their paint and sundry items in U.S. states such as Texas, Oklahoma, New Mexico, and Louisiana which totals over 50 counties. In addition, the Dallas-Fort Worth (DFW) area is JBC’s major business and financial center. Competition has increased in construction market where competitors price their products to capture a higher percentage. However, these companies have yet to reach the painting firms in DFW, professional painters in non-DFW areas, or the do-it-yourself market. Therefore, Jones-Blair Company still holds advantage in the market by providing great service to do-it-yourselfers and high quality paint to professional painters. However, due to increased R&D and overhead cost Jones-Blair