Jones Blair Case Analysis

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1.Key problems and strategic issues that JB’s management
needs to address
2.Analysis of the US paint industry and Jones Blair
Co.area
3.Recommandations and arguments

Where and how to deploy marketing efforts among the various architectural paint coatings markets served by Jones Blair Co. in the southwestern united states.

The US paint industry:
Architectural coatings: 43%
- general purpose paints
- varnishes
- lacquers
OEM coatings: 35%
- applied to original equipement during
manufacturing
Special purpose coatings: 22%
- special applications
- environmental conditions
Outlook for Architectural Paint Coatings and Sundries:
-Mature market with Long-term sales growth
-Competition in the market is hard
-Several small companies have competed succesfully
against paint manufacturers
Architectural coatings:
Analysis by distribution, customers
Distribution: mass merchandisers 50%
specialty paint stores 36%
lumberyard and hardware 14%
1000 outlets in the market
Customers:
Do-it-yourself consumers 50%
Professional painters 25%
Painting contractors 25%
Jones Blair Company:
-Regional paint manufacturer
-Annual dollar sales had increased 4% over the past
decade
-JBC market share: 15% total dollar sales
-In 1997, Sales volume $ 12 million Margin 9.5%
Diagnostic:
Service Areas
-Markets : 50 countries divided by geography
to two segments:
DFW: 11 counties / Market share 12.5%
Non DFW : 39 counties / Market share 18.75%
-High competition
Products
-Architectural paint under JB brand name
-Paint sundries
-OEM sells throughout the US and worldwide
-Readily available technology and difference in
paint formulations
Distribution
200 independent paint stores :
- Paint stores
- Lumberyards
- Hardware outlets
80 stores (40%) in DFW, 120 stores (60%) in Non-DFW
Price -...
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