Where and how should Jones Blair Company engages its corporate marketing efforts among the various architectural paint coatings market? Situation Analysis
Jones Blair Company, JBC, currently faces a unique challenge in which the upper level management must act in order to maintain its profitability. Jones Blair current market position is in the process of being eroded due to the mass merchandising efforts of companies like Kmart and Sears. In developing their strategy forward, Jones must address two key issues to address the problem statement. First, Jones Blair must determine which marketing medium they will use to access their potential customers. Secondly, they must determine the geographic locations in which they will concentrate their efforts. Jones Blair’s current core competency is in the architectural paint industry. This sector has seen a consistent annual growth between 1% and 2% remaining equal to the rate of inflation. This market consists of $80 million annually in net revenue of which Jones Blair commands 15%.
Jones Blair has established a name based on the core values of product quality and the service they provide. Founded in 1928, Jones Blair has become the standard in quality and has earned the reputation of being a fair dealer resulting in long standing relationships with distributors of their products. However, this has created a concern due to the need for high quality products; they have the inability to be flexible with pricing. National retailers due to the mass quantities that they sell have gained an advantage due to this inelasticity of pricing. This is especially visible in the long-lasting and durable market. They are concerned with the ability to continue to market to the professional buyers. Although Jones Blair’s strong ties and outstanding relationships have provided them protection over the years they must address the issues of pricing and market share rapidly. Jones Blair has collaborated...
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