Background and Problem definition:
Jones-Blair is privately held corporation which produces architectural paint coatings and markets them under Jones Blair brand name. Addition to that it also sells paint sundries under Jones Blair brand name even though these items are not manufactured by them. Apart from these the corporation also operates on OEM coating division. The problem in front of the company is to decide where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company in the south western United States.
Market and Industry Analysis:
The total paint industry in the US is a 16 billion dollar industry and the Architectural paint comprises 43% (refer exhibit 1) of the totals paint industry. The total Architectural paint and sundries item consisted of 12 billion dollars of sales and Jones Blair hold only .1% of this market. (See exhibit 2), which is a very small market share. This was due to the lack of awareness among the buyers about the product. Jones Blair spent 3% of its net sales in advertising. Jones Blair Company markets its paint and sundry items in over 50 counties. The eleven county Dallas–Fort worth (DFW) metropolitan area is the major business and financial centre in the company’s south-western service area. The sellers were varying from big corporation which hold the market share of Architectural paint to 60% to Small Corporation like Jones Blair which holds a minimal market share. Buyers for architectural paint were defined in three categories A) do-it-yourself painters B) Personal Painters and C) Government and exporters (refer exhibit 3 for details percentage).
Evaluation of alternative courses of action:
The different options that Jones Blair can chose as the solution are A) Increasing the advertising, which will increase the awareness of the product thus increasing the chance to maximise its sales in DFW and Non-DFW area. B) To decrease the cost by 20% and getting...
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