Jones Blair Company Case Study
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.
Key Issues
Recent research indicated that do-it-yourself painters do not care much about the brand and, consequently, about the quality of the paint (brand reputation was the 4th key criteria mentioned by the buyers to choose a covering) and it has become a commodity for this kind of consumers.
Also, the company has been facing strong environmental pressure due to new regulations about the emissions of volatile organic compounds (VOCs). It is necessary for the company to invest in R&D and it is also likely that the company will not see its costs of production decrease due to the activities of R&D.
- SWOT Analysis:
Strengths
High quality products
High quality service with
Knowledgeable sales representatives that know customers personally
Mature market 1-2% sales growth long-term
Shelf goods 43% of total industry dollar sales
Specialty paint stores & lumberyards most frequently patronized
Distributes through 200 independent paint stores
Maintaining margins while increasing R&D, material, & labor costs
Market to major business/financial center (DFW)
Total sales/year
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.
Key Issues
Recent research indicated that do-it-yourself painters do not care much about the brand and, consequently, about the quality of the paint (brand reputation was the 4th key criteria mentioned by the buyers to choose a covering) and it has become a commodity for this kind of consumers.
Also, the company has been facing strong environmental pressure due to new regulations about the emissions of volatile organic compounds (VOCs). It is necessary for the company to invest in R&D and it is also likely that the company will not see its costs of production decrease due to the activities of R&D.
- SWOT Analysis:
Strengths
High quality products
High quality service with
Knowledgeable sales representatives that know customers personally
Mature market 1-2% sales growth long-term
Shelf goods 43% of total industry dollar sales
Specialty paint stores & lumberyards most frequently patronized
Distributes through 200 independent paint stores
Maintaining margins while increasing R&D, material, & labor costs
Market to major business/financial center (DFW)
Total sales/year