Jones Blair Company Case

Topics: Sales, Marketing, Retailing / Pages: 7 (1664 words) / Published: Mar 20th, 2014
GROUP:
BM7702P
1. Company Description

1.1. U.S Paint Industry The US paint industry is divided into three broad segments which are:

a. Architectural coatings consist of general-purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures, sold through wholesalers and retailers, and purchased by do-it-yourself consumers, painting contractors and professional painters.

b. Original equipment manufacturing (OEM) coatings are formulated to industrial buyer specifications and are applied to original equipment during manufacturing. These coatings are used fro durable goods such ad automobiles, trucks, transportation equipment, appliances, furniture and fixtures, metal containers and building products, and industrial machinery and equipment.

c. Special-purpose coatings are formulated for special applications or environmental conditions. These coatings are used for automotive and machinery refinishing, industrial construction and maintenance, bridges, marine applications, highway and traffic markings, aerosol and metallic paints and roof paints.

Segment
Architectural coatings
Original equipment manufacturing (OEM) coatings
Special-purpose coatings
% of total industry dollar sales
43%
35%
22%

1.2. Jones Blair Company

The Jones Blair Company is a privately held corporation that produces and markets architectural paint under the Jones Blair brand name. The company distributes its products through 200 independent paint stores, lumberyards and hardware outlets. 40% of its outlets are allocated in the 11-country Dallas-Fort worth (DFW) area and the remaining is situated in the other 39 countries in the service area. Retail outlets outside the DFW area with paint and sundry purchases exceeding $50,000 annually carry only the Jones Blair product line but except for 14 outlets in DFW which carry the Jones Blair line exclusively, the retailers only carry two or three lines with line being premium priced.

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