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Market Testing

By | Feb. 2013
Page 1 of 2
EBM 587: Strategic Business Management

Assignment 3

For this assignment read the case “Jones Blair Company” from the textbook page 109

Student name: STAALI MAHDI
Instructor: Dr. Ali Khorsand

Stratford University
Master of Business Administration

1-How might the Jones Blair market be characterized?
Before we need to know that the US paint industry is considered to be a maturing industry. Industry sales in 2004 were estimated to be slightly over $16 billion. The US paint market is divided into three segments: architectural coatings (43%), original equipment manufacturing (OEM) coatings (35%) and special purpose coatings (22%). Jones Blair Company markets its paint and sundry items in over 50 countries in Texas, Oklahoma, New Mexico, and Louisiana from its plan and headquarters in Dallas, Texas. 11 countries in Dallas-Fort worth (DFW) metropolitan area is the major business and financial center in the company’s southwestern service area. Competition in this market increased with Sears and Kmart stores, as well as Sherwin-Williams and Home Depot paint stores. Competition has also increased in paint stores, lumberyard and hardware stores. The estimated dollar volume of architectural paint and allied products sold in Jones Blair’s 50 countries service area in 2004 was $80 millions which is divided in 2 categories.

1-DFW (urban) was estimated to account for 60% of the market divided on: a) Do-it-yourself household buyers account for 70%.
b) Other (professionals) account for 30%.
2-No DFW (rural) was estimated to account for 40% of the market divided on: a) Do-it-yourself household buyers account for 90%.
b) Other (professionals) account for 10%.

2-How might one segment Jones Blair’s market area?
At this level we can distinguish 2 categories or areas:
1-DFW (urban) market which we can divide on 2 types of consumers: a) Amateurs (Do-it-yourself, householder…).
b) Professionals.
2-No DFW (rural) market which we can divide on 2...
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