Background and Problem Definition
The case describes the competition in U.S. paint industry and also about Jones Blair Company which deals in architectural paint and paint sundries. The problem definition in the case study depicts a meeting of company executives where discussions are made that how to deploy corporate marketing efforts of the company in order to increase the sales, as peak painting season is approaching soon.
Market and Industry Analysis
Paint Industry: The industry is divided into three segments: original equipment manufacturing coatings, special-purpose coatings and architectural coatings. The main emphasis of the studies is paid on architectural paint coating and sundries. Industry analysis: The architectural paint segment is considered to be a mature market with projected long term sales growth of only 1-2% per year. The number of companies is also declining at a continuous rate of 2-3% per year in this segment. Hence the industry is majorly driven by merger activities of small companies by large firms to boost their sales although there are some small companies also like Jones Blair who has survived the market. Industry segmentation: The sales of paint products and sundry items takes place mainly from home centers, mass merchandisers, specialty paint stores and lumberyards. The consumers of these products are categorized into professional painters, do it yourself purchasers and contractors.
Evaluation of Alternative Courses of Action
The evaluation of actions and measures suggested for the company are as follows:
The company sales in Dallas-For-Worth (DFW) areas are high as compared to non-DFW areas but there is increase in gallonage volume per year in non-DFW area which makes it high potential area for company’s growth. So the company should work upon strategies for both areas. 2.
Do it yourself customer’s segment forms a large percentage of market share of the company. The company should plan to attract more of these...
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