Jones Blair Case

Topics: Marketing, Sales Pages: 3 (946 words) Published: August 3, 2013
Jones Blair Case Analysis
Executive Summary:
Jones-Blair needs to increase their sales while keeping their margins consistent with limited resources on advertising and sales promotion. With the four different alternatives present, the chosen alternative is to hire another sales representative rather than cut prices by 20%, increase advertising to $350,000, or keeping everything the same. WIth the additional sales force, JB should set forth their focus on the non-DFW household market.

Problem Definition:
Currently in the high-end of the trade market, Jones-Blair specializes in higher quality paint products that target the do-it-yourself consumers as well as the professional painters that want high quality products with great service. A high quality product is described as something you only have to go over once, is durable, has longevity, and also is washable. There are four different alternatives that are presented:

1. Spend $350,000 on corporate advertising,
2. Cut price by 20%,
3. Hire an additional sales rep,
4. Keep everything the same.
Our goal is to keep consistent sales margins while increasing our sales revenue with limited resources on advertising and sales promotion. The problem that we face is that sales reports indicate a slight decrease in sales for DFW (Dallas-Ford-Worth) areas. The We are, however, experiencing a positive spike in sales for the non-DFW areas, which could mean a huge potential for growth. Analysis of Alternatives:

The four alternatives are:
1. Spend additional $350,000 on advertising
2. Cut prices by 20%
3. Hire an additional sales representative
4. Keep everything the same.
The purpose of spending an additional $350,000 on advertising would to be create branding, resulting in more people knowing who Jones-Blair is, hoping for higher sales. In order to make up the spending of $350,000, we would need to divide the $350,000 by the contribution margin of 35%, which equals $1M worth of sales; current sales...
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