Due Date: 07/08/2015 (extended)
Summer B 2015
Introduction: Jones Blair Company is a United States paint industry. It focuses on three major segments, which include architectural coatings, original equipment manufacturing (OEM) coatings and special purpose coatings. The U.S. paining industry is becoming a maturing industry. There focus is to decide weather the company should focus on deploying marketing efforts among the various architectural paint coatings marketing that are served in the southwestern part of the United States.
1. How might one characterize the architectural painting coatings industry and Jones Blair’s trade area?
Based on the case provided a slow growth rate would be a characteristic of a mature market because the architectural coatings are part of mature markets. The slowing growth rate in volume happens because of the sluggish growth rate in dollars. Also when using the paint is last longer and there are less amount of paint that is being used and a longer amount of time between applications. Jones Blair trade area is affective and they sell in over 50 counties. Competition has increased because of department stores like Wal-Mart, K-Mart and Sears and private paint stores. Competition at the paint manufacturing level has also increased and the mass merchandisers control 50% of the do-it-yourself paint market in the metropolitan area. Also in 2004 the sales volume for architectural paint was at 12,000,000 and the net profit was $1,140,000.
1. Knowledgeable staff who knows a lot about the product and quality and good relationship with clients (knowing by first name)
2. Continuous contribution to local market by improving their product and brand.
1. They only have eight sales representatives, which causes a lot let sales that could be made and can cause employees to be comfortable.
2. Very little and no advertising on the television
1. Large market share in the DFW area
2. Market growth of 1-2% yearly
3. Paint companies are decreasing by 2-3% yearly which provides a larger market for the company
1. Larger competition against brands that are lower in price
2. Higher quality paint leads to less amount that people are painting
2. How might one segment Jones Blair Market area?
This Jones Blair market can be broken down into the following market segments and also sub segments. This market can be divided into two geographic areas: DFW (urban) and non-DFW (rural). The segment can be divided into two sub-segments, which are the do-it-yourselfers and professional. Jones Blair’s trade area of its paint and sundry products has states such as Louisiana, Oklahoma, Texas, and New Mexico. They market in over 50 counties in these states. There main head quarters are in Dallas Texas. Jones Blair distributes its products through 200 independent stores, hardware outlets and lumberyards. 40 percent of its sales are in the 11 counties in Dallas-Fort Worth. The remaining 60 percent of sales comes from the 39 other counties outside of DFW. The consumers are professional painters, do-it-yourself purchasers and contractors.
3. Which Segments represent opportunity for Jones Blair?
The segments that represent effective marketing opportunities are the non-Dallas Fort Worth household and the urban professional. The non-DFW household has a lower population mass and the large volume distribution is not present. The relation between the client and the seller is the key element in this area and not price. Jones Blair has been known to knowing their employees for there first name and this provides strength for the company. People would also prefer paying more for a better quality product. Also in sales people like to buy from places that feel confortable so they can feel that satisfaction.
4. What is Jones Blair Competitive Position in its market area?
There main focus in that they cater to clients and painters that want high quality types of