June 14, 2011
Dr. Martin T. Topol
Jones Blair Company is a privately help corporation known to produce and market architectural paint and paint sundries under the brand name called “Jones Blair.” The problem in this case is that Alexander Barrett, president of Jones Blair Company, is having difficulty deciding where and how he should deploy the corporate marketing efforts among the variety of architectural paint coatings markets served by the company located in the southwestern part of the United States. Therefore, my purpose here is to help Barrett make a decision that will help him resolve the situation and ease his mind.
First and foremost, there are several issues that need to be addressed. Two questions that we need to have in mind are: “Should they target professionals or Do-it-yourself customers?” and “Should they target in Dallas Forth Worth (DFW) or surrounding areas?”
Each segment as well as sub-segment has its own interests and anticipations of the product. Due to the minor experience each households experience, the do-it-yourself consumers’ main concern is focused on price, quality of the goods, and the grade of difficulty in use. On the other hand, for the professional painters, the key element is the quality of the goods and no longer the price because their reputation is at risk. Professional use also requires bigger quantities. However, bigger quantities usually imply reduced prices. Thus, price would come before quality. Main challenge here for the Jones Blair Company is that they would need to expand the market without exposing the company’s competitive edge.
Before laying out the alternative courses of action, one must clarify the competitive position the company holds in a maturing market. The main one would be its slow growth rate. If you look at Jones Blair Company’s five year product sales volume provided in the textbook, we realize that the sales in non-Dallas... [continues]
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