Jones Blair Company Case

Topics: Sales, Marketing, Retailing Pages: 8 (1664 words) Published: March 20, 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. Currently, Jones Blair employs 8 sales representatives which responsible for monitoring inventories in each retail outlet, taking order, assisting in store display and coordinating cooperative advertising programs. They are paid a salary and a 1% commission on sales. The company spends approximately 3% of net sales on advertising and sales promotion efforts.

2. Situation Analysis

The problems of the case studies are where and how does the Jones Blair deploy corporate marketing efforts among the various architectural paint coatings markets in their service area. a. Should they target professionals or do-it-yourselfer market? b. Where should they target? Either Dallas-Fort Worth or non- Dallas-Fort Worth area? c. How they going to accomplish this matter?

3. SWOT Analysis

Strengths
Founded in 1980 whereby Jones Blair is an experience company in the industry Strong relationships between sales representatives and Jones Blair retail outlets. High quality of product
Sell to both professionals and do-it-yourselfers
Cooperative advertising programs with retailers
Opportunities
Long-term sales growth projected in the range of 1-2% per year Distributed in 200 independent paint stores, lumberyards and hardware outlets. 40% of the retailers in rural area
Researches indicate that the average dollar paint purchase per purchase occasion is about $74.00 and average dollar sundry purchase by purchase occasion is about $12.00 Researches indicates that do-it-yourself painters first choose a retail outlet for paint and then choose a paint brand Weaknesses

3% of net sales for advertising purposes
Advertising only reach 25% of target audiences
Only 8 sales representatives in retail outlets
Narrow market penetration (DFW areas)
Highest priced of product in the market

Threats
600 different competitors in the industry
Competition is spending more on advertising and is less expensive Do-it-yourselfer purchase paint once every 4 years and get...
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