Jones Blair Company
1) How might one characterize the architectural painting coats industry and Jones Blair’s trade area? The US paint industry is divided into three broad segments. According to the book: (1) The architectural coatings which consists of paints only used on residential, commercial, and institutional structures. They are called shelf goods for 43% of total industry dollar sales. (2) OEM coatings which is the original equipment manufacturing are formulated to industrial buyer specifications. This is 35% of the total industry dollar sales. And the OEM coatings are used for transportation equipment, industrial machinery etc. (3) Special purpose coatings are for special appliances used for railroads, bridges, applications. This accounts for 22% of the total industry. This architectural paint industry is a good industry because the sales are quite high. It accounts to 5.5 billion dollars in the industry. They are considered a mature market. As for the accessories (brushes and rollers etc) is about 4.5 billion dollars in the market itself. The demand is also high because many companies and industries all need paint as well as many do-it-yourself consumers. 50% of architectural coatings dollar sales are accounted for by do-it-yourself painters. Since there is a high demand in the market, the competition is very strong. 25% of dollar sales goes to the professional painters purchases. As for Jones-Blair’s markets its paint and sundry items are in over 50 countries in Texas, Oklahoma, New Mexico, and Louisiana from its plant and headquarters in Dallas, Texas. 2) How might one segment Jones-Blair’s market area?
Jones- Blair market is relatively small, high quality paint. The company distributes its products through 200 independent paint stores, lumber yards, and hardware outlets. 40% of its outlets are located in the 11 county DFW area. As for the remaining, they are located in the other 39 counties in the service area (60%). The retail outlets will...
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