Marketing Case - Jones Blair

Topics: Marketing, Retailing, Sales Pages: 3 (577 words) Published: October 7, 2012
Marketing case : Jones Blair
33

The US paint industry is a maturing industry (13 billion – slow growth rate) divided into three segments : * 43% : architectural coatings
* 35% : original equipment manufacturing coatings
* 22% : special-purpose coatings

There are 3 types of distributors :
* 50 % : mass merchandisers
* 14 % : specialty paint stores
* 36% : hardware and lumberyards
The are 3 types of clients :
- 50% : do-it yourself painters
- 25% : professional painters
- 25 % : government, export, contractor sales
The main producers (Sherwin-Williams, …) have 60% of sales in the architectural coatings segment. The popularity of do-it yourserlf painting has increased the paint and sundry item product line carried by retail outlets. Do-it yourself painters first choose a retail outlet, then choose a paint brand. Do-it yourself painters try to get the best price.

Professional painters do seek out quality product since their reputation in on the line. The quality of services is also very important.

Contractors want the lower price.

Jones Blair markets its product in over 50 counties in Texas, Oklahoma, New Mexico and Louisana. The major business center is the eleven county Dallas-Fort Worth (DFW). Competition has increased and mass merchandisers control 50% of the do-it-yourself market in the DFW area.

Paint industry : 80 M $
DFW = 60% x 80 M $ = 48 M $
DFW / Do-it-yourself = 70% x 48 M $ = 33.6 M $
DFW / Professional = 30% x 48 M $ = 14,4M $
NON DFW = 40% x 80 M $ = 32 M $
NON DFW / Do-it-yourself = 90% x 32 M $ = 28,8 M $
NON DFW / Professional = 10% x 32 M $ = 3,2 M $
JBC Market segment shares :
DFW = 6 M / 48 M = 12,5 %
DFW / Do-it-yourself = 1,8 M / 33,6 M = 5,4% -> to develop / low price market DFW / Professional = 4,2 M / 14,4 M = 29,2 % -> keep quality, services and training NON DFW = 6 M / 32 M = 18,8 %

NON DFW / Do-it-yourself = 4,2 M / 28,8 M = 14,6% -> to develop / low...
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