Jones-Blair Company sells paint and related products throughout select states in the southern United States. The company's best marketing strategy in an environment of declining paint demand. Not only is demand declining, but the company is also faced with increased competition from national companies, such as Kmart, Wal-Mart and Home Depot, who have the ability to mass merchandize their paint products. The paint industry is divided into three segments: architectural, OEM coatings and special-purpose coatings. Currently, Mr. Barrett is faced with maximizing his marketing efforts to best serve the architectural coating segments.
JBC’s market area and segmentation
The market of Jones Blair can be divided to two groups: Dallas-Fort Worth area and Non Dallas-Fort Worth
JBC’s potential segment(s) and strategy
In order to reach these business goals at a time when growth is nonexistent, Jones-Blair must take immediate action and increase their sales team and refocus their sales energies.
Jones Blair is a regional paint manufacturer that has to compete in a mature market (sales growth are expected to be the general rate of inflation) and also very concentrated, since the seven major producers account for upwards of 60 percent of sales.
Therefore, in this market context, Jones Blair will need to increase its sales in volume, but keep its profit margin. The strategies to be considered in this case can be based on: consumer segmentation, targeting and managing marketing mix.
The company must continue to focus on the NON-DFW areas because the DWF areas are saturated and there is intense competition in this region. Making a $1,000,000 minimum income look like pocket change. Right now Jones Blair can afford this and still have a $400,000 profit.