22 October 2012
Jones Blair Case Study
Jones Blair Company is a paint manufacturer that distributes paint to Texas, Oklahoma, New Mexico, and Louisiana with its manufacturing plant based in Dallas-Fort Worth (DFW). The main product line of the company is architectural paint with some line depth that they manufacture at their own plant; they also offer the sundries for painting towards their end customers. The sundries offered are not produced by the company itself but carries the Jones Blair brand logo. The management is at a turning point where they need to make a decision about how to get more sales out on the market and if the company is competitive enough in the current market place. They have a strong market share in the DFW area as well as moderate distribution out to the surrounding markets. Jones Blair is also looking into their price points and evaluating if they are currently positioning themselves as a too high-end brand in the market place and if the pricing is set accordingly to the quality that they offer. The management at the firm has had two unsuccessful meetings in hopes of coming up with a future tactical plan for the company’s marketing goals. During the third meeting, management has decided to develop a conclusion on how to pursue a solid plan in the marketing field for architectural paint coating product lines, given that peak season is quickly approaching. The Jones Blair Company has been put into a situation where the peak season for their primary market, paint, is coming up. During some management meetings, they discussed different courses of action to build an effective plan to get more architectural paint out on the market. The alternatives come from different departments and the main proposals are as follows; increase the marketing funding by $350,000, lower the selling price 20%, hire a new salesperson for $60,000 or just keep resuming business as usual. Each and every one of these suggestions was mapped out with their corresponding pros and cons, accompanied by a break even analysis. The conclusion that emerged was that the company is profitable and currently growing strong, but the low risk (and chance of a great outcome) of hiring a new sales person looks most appealing for the company. Jones Blair Company is a producer and manufacturer of paint and offers paint supplies that are bought and sold under their own brand name. They operate both in the market for architectural paint and the original equipment manufacturing (OEM) paint. The architectural paint is distributed throughout fifty counties including Texas, Oklahoma, New Mexico, and Louisiana while the OEM paint has the whole United States and the world as a marketplace. Jones Blair does most of its selling of architectural paint in the Dallas-Fort Worth area. DFW is home to forty percent of the total outlets where product is offered, as well as half of their total dollar sales. The company is stable within the market with over two-hundred accounts with retailers. However, during the last five years only added five new accounts and have had steady sales growth of four percent per year. The company currently has eight sales representatives that have close relationships with most of their accounts. They are working on keeping that strong customer relationship and also keeping track of inventory orders to ensure the customers always have the product available. The market place that Jones Blair’s architectural paint is currently operating in was calculated in 1999 to be an 80.0 million dollar market with both the Dallas-Fort Worth and surrounding areas. The sales are growing in their general market overall but have declined the last couple of years in the Dallas-Fort Worth area. This shows that the surrounding areas and counties are currently a stronger growing market even though the Dallas-Fort Worth is a fairly stable market with a larger drop from 1998 to 1999. Architectural paint is sold towards different types of customers. There...
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