Opportunity Analysis, Market Segmentation, and Market Targeting

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The paint industry in the United States is what’s considered a “maturing industry” that’s divided into three segments: architectural coatings, original equipment manufacturing (OEM) coatings and special purpose coatings. Throughout the later portion of the 1980’s to the early 90’s strict regulations fell into place that would affect industrial paint users directly due to the enormous quantity of solvents released during the surface covering process. As a result manufactures began demanding paint that not only performed well but had a low amount of solvent exposure. The Jones-Blair Company (JBC) is a manufacturer of high quality paint in Dallas- Fort Worth area providing services to the 50 counties surrounding it. In this paper I will analyze and state the marketing situation and key issues in the Jones Blair case. Out of the three segments in the paint industry the Jones-Blair Company focuses mainly on architectural coatings and occasionally on OEM coating fields. Architectural paint in the Jones-Blair service region was estimated at a dollar volume of 80 million dollars in 1995 with the professionals market accounting for 22 percent and the do-it-yourself market accounting for 78 percent in sales. At one point the Jones-Blair region accounted for just about 60 percent of the market. In the mature market Jones-Blair competes in sales have steadily increased at the rate of inflation, which is a good however the problem is maintaining their growth and keeping the profit margins on the rise. To do so, upper level management cultivated a marketing strategy that will not only increase sales but maintain the profit margin as well. Paint selling companies like Sherwin-Williams, Benjamin Moore, Glidden, Sears, and Wal-Mart has caused the paint market to be more competitive. Merchandisers of the masses have control of at least 50 percent of the do-it-yourselfer paint market in the Dallas Fort-Worth metropolitan area. The market that Jones Blair is positioned in can be...
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