from: Jane Doe
subject: Proposal for architectural paint
date: September 21, 2011
Jones*Blair Company is a Dallas-Fort Worth (DFW) based paint company. They market their paint in Texas, Oklahoma, New Mexico, and Louisiana. The paint industry is divided into three main segments: Architectural coatings, original equipment manufacturing (OEM), and special-purpose paints. Currently, Jones*Blair is looking for the best plan to strategically market architectural coatings in the current market area.
The architectural coatings paint serves the purpose of redecorating, maintenance, and repair. There are two alternatives to architectural paints: alternative materials and higher-quality paint. Also, there is an EPA requirement to lower VOC’s in paints. Alternatives and regulations both contribute to a decrease in profit.
Architectural coatings are sold at three mediums: private-label, specialty stores, and hardware/lumberyards. The majority of the paints are sold as private-labels. The consumers are divided by do-it-yourself painters and professional painters with do-it-yourselfers accounting for 50% of all sales. Interior paints account for 60% of sales, exterior at 38%, and lacquer and others at about 2%. The senior executive staff needs to figure out whether to target the professional or do-it-yourself customer as well as whether to emphasize sales to the DFW counties (urban) or the counties outside DFW (rural).
The best way to strategically improve marketing efforts for Jones*Blair is with alternative 2. Currently, our company is the highest priced of our competition. We can increase awareness and sales through print advertising with a price-off special. If we use a print ad in a newspaper, then we can target more effectively than with an expensive television ad that alternative suggests. With a 20% price cut, we can drive up sales and since we are not spending any extra advertising and we can balance... [continues]
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