...Case Analysis of Jones Blair case (Sarvesh Pingulkar 2013BLP017) 1. Background and Problem Definition: Mr. Alex Barrett, president of Jones Blair, a coating paint company in U.S., is unable to decide on where and how he should deploy marketing efforts in the coming year. Jones Blair sells top quality architectural coating paints, accessories, and OEM materials, and this has led Jones Blair product to be highest priced product with ease of application and durability. Increased annual sales but relatively steady sales volume has led to high cost of R&D, hence Mr. Alex fears of facing stagnancy in price. 2. Market and Industry Analysis: U.S. architectural paint coatings and sundries industry is matured and is expected to grow at the rate of 1-2% per year and the industry sales in 2004 is $12billion plus. Architectural coating industry is segmented into Professional painters, do-it-yourselfers, and contractors. The do-it yourselfers prefer paint store as their first choice and brand as a second. The do-it-yourself market is motivated by price while the professional painters segment is motivated by product quality. Acquisition has caused the ~40% reduction in number of companies in coatings segment. Through the product quality and good customer service, Jones Blair has positioned its brand as unique and has priced the product higher. Among the distribution in 200 independent stores, lumberyards, and hardware outlets, 40% are located in the 11-country DFW area and...
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...Business Case 180 degrees: Jones Blair Kenneth De Smet 1. Which are the main characteristics of the U.S. painting products market The U.S. painting products market is a maturing industry with industry sales in 1996 slightly over 13 billion dollars. With average annual dollar sales growth forecasted to approximate the general rate of inflation through 2000. Further more it is divided into three broad segments: - Architectural coatings: this consists out of general-purpose paints. It holds 43 percent of the total industry dollar sales. - Original equipment manufacturing coatings: industrial buyer specifications are applied to original equipment during manufacturing (think automobiles, trucks….). It holds 35 percent of total industry dollar sales. - Special-purpose coatings: for special applications or environmental conditions. It holds 22 percent of total industry dollar sales. Jones Blair is specialised in architectural coatings. 2. How would you segment this local market Architectural coatings segmentation: By end-user: do-it-yourself painters versus professional painters By use: Interior paints versus exterior paints Geographic: DFW (eleven county Dallas-Fort Worth) & non-DFW 3. What is the attractiveness of your identified segments and what are their specific needs and wants? - Do-it-yourself painters: Account for 50 percent of architectural coatings dollar sales. They typically buy in Whse H.C. Home Center and membership clubs. Consumer...
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...Specific Purpose: To inform my audience about the history behind Facebook, how Facebook expanded into a billion dollar investment, and present some of the features the website has offer. Introduction I. Attention Getter: If you are a die-hard Facebook lover you most likely like I am you know all about the end and outs of Face who would live and die by replying Facebook messages, updates and check profiles. Many of is cant imagine our lives without Facebbok. II. Facebook is a social networking website that is operated and privately owned by Facebook, Inc. III. People use Facebook to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. IV. I along with 300 million others am a user of a Facebook. I’ve had a facebook for about four years now. Thinking I knew everything about this when confronted with the question, “Who created Facebook” I realized that actually know nothing about the history and brand of Facebook. V. Preview: Today I will share with what I’ve learned about the social networking Facebook. A. First, I will discuss the history behind Facebook. B. Second, how Facebook has expanded into a billion dollar investment. C. Third, I will discuss the website it self and the features it has to offer. Body I. The history of Facebook A. Hardvard student Mark Zuckerburg founded Facebook in February 2004. 1. Mark Zuckerberg...
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...Situational Analysis A. Industry * The US paint industry is divided into 3 broad segments: * Architectural coatings * Original equipment manufacturing (OEM) coatings * Special-purpose coatings * Architectural coatings account for 43% of total industry dollar sales * OEM coatings represent 35 % of total industry dollar sales * Special-purpose coatings account for 22% of total industry dollar sales * US paint industry is a maturing industry * Industry sales in 2004 were estimated to be slightly over $16 billion. * No new competitors are entering the market, competition decreased by 40% from 1980 to 2004 * The number of paint companies is declining at 2-3% per year * Estimated US sales of architectural paint coverings and sundries are $ 12 billion in 2004 * The 7 biggest companies (Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert) account for 60 % of sales * Architectural coatings are a mature market with long term sales growth projected in the range of 1 -2% per year * Demand depends on: * House redecorating, maintenance, and repair as well as sales of existing homes and home, commercial, and industrial construction * Competition from alternative materials: aluminum and vinyl siding, wall covering, and wood paneling * Development of higher-quality products that reduce the amount of paint necessary...
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...Jones- Blair Case Study 1. How might one characterize or describe the architectural paint coatings industry and Jones Blair’s trade area? * Architectural paint coating industry currently does not have much that differentiates itself from other paint markets * The US paint industry is considered to be a maturing industry. Industry sales in 2004 were estimated to be slightly over $16 billion. * The US paint market is divided into three segments: architectural coatings (43%), original equipment manufacturing (OEM) coatings (35%)and special purpose coatings (22%). * 1- the architectural coatings are general-purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures. They are sold through wholesalers and retailers. * 2- OEM coatings are formulated to industrial buyer specifications and they are used for durable goods such as automobiles, transportation equipment, building products industrial machinery and equipment etc. * 3- Special purpose coatings are formulated for special applications or environmental conditions. They are used for automotive and machinery refinishing, industrial construction such as factories, railroads, utilities, bridges marine application, highway and traffic machines and roof paints. 2. How might one segment Jones Blair’s market area? * The overall U.S paint industry is divided into 3 broad segments: * Architectural coating * Original Equipment manufacturing (OEM) ...
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...Jones Blair Case Study Abstract The Jones Blair Company has been put into a situation where the peak season for their primary market, paint, is coming up. During two management meetings, they discussed different courses of action to build an effective plan to get more architectural paint out on the market. They are now down to their third meeting and a decision must be made. The alternatives come from different departments and the main proposals are as follows; increase the marketing funding by $350,000, lower the selling price 20%, hire a new salesperson for $60,000 or just keep resuming business as usual. Each and every one of these suggestions was mapped out with their corresponding pros and cons, accompanied by a break even analysis. The conclusion that emerged was that the company is profitable and currently growing strong, but the low risk (and chance of a great outcome) of hiring a new sales person looks most appealing for the company. Jones Blair Case Study Problem Statement Jones Blair Company is a paint manufacturer that distributes paint to Texas, Oklahoma, New Mexico, and Louisiana with its manufacturing plant based in Dallas-Fort Worth (DFW). The main product line of the company is architectural paint with some line depth that they manufacture at their own plant; they also offer the sundries for painting towards their end customers. The sundries offered are not produced by the company itself but carries the Jones Blair brand logo. The management is at...
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...Definition The Jones Blair Company is a privately held corporation that produces and markets architectural paint and OEM materials to various markets under the Jones Blair brand name. Currently, Jones Blair Company does its business in the eleven county Dallas-Fort Worth (DFW) and Oklahoma, New Mexico, and Louisiana. The company’s consumers are made up of do-it-yourselfers (50% of sales) and professional painters (25% of sales). Jones Blair’s’ products are the highest priced in the marker due to their efforts if having top quality products. The senior management executives of the company must decide on a method on how and where to apply marketing efforts among the various architectural paint markets in the service area. The problem arose from the company’s paint gallonage being stable in the past five years and reaching a threshold in their prices. Market and Industry Analysis Architectural coating accounts for 43% of total industry sales, making it the largest segment in the paint industry. According to Exhibit.1 in the case, the do-it-yourselfers painters first choose the store and then the brand while contractors look for good quality products. Therefore, a widespread distribution is important in this industry. There are 600 different competitors in the industry, most of them spending more on advertising and offer less expensive products compared to Jones Blair. The company has had a constant annual increase in sales; however, the sales volume has remained constant. Jones Blair...
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...1. How might one characterize the architectural painting coatings industry and Jones Blair's trade area? In 2004 the architectural coatings industry was predicted to be lightly above $16 billion in the United States. The U.S. paint industry could be branched out into (3) three categories: Architectural coatings (shelf goods): consisting of 43% of total industry dollar sales are more generic purpose paints and are commonly sold at the hand of wholesalers and retailers. Original equipment manufacturing (OEM) coatings: consisting of 35% of total industry dollar sales are formulated for industrial specifications and they are utilized for long-lasting products such as cars. Special-purpose coatings: consisting of 22% of total industry dollar sales are for more special applications such as extreme temperatures, exposure to chemicals. There are (3) three types of distributors that characterizing the market: Mass merchandisers and home improvement centers = 50% Hardware store and lumberyards = 14% Special paint stores = 36% Predictions state that approximately 50% of architectural coatings dollar sales are alleged for by do-it yourself painters. In addition, it is estimated that professional painter dollar sales account for 25%, the remaining would go to contractors, government and for exports and other commercial uses. The Jones Blair sells paint products in approximately 50 counties in the Southern states of the US focusing on Dallas-Fort Worth...
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...Jones Blair Case Analysis 1) How might the architectural paint industry be characterized? a) The US paint industry b) Architectural paint industry 2) How might the JB market area be characterized? 3) How can this market be segmented? 4) Which market to pursue? a) Non-DFW Household, a high potential for growth b) Urban professional, wants high quality paints c) Non-DFW Professional, already dominant d) Urban Household, very price- sensitive 5) What competitive position does Jones Blair have in its market? 6) What strategy should JB adopt to reach the segment sought? a) Spend additional $350,000 on corporate advertising Pros Cons b) Cut price by 20% Pros Cons c) Hire one additional sales representative Pros Cons d) Do Nothing (Status Quo) Pros Cons 7) Recommendations 1) How might the architectural paint industry be characterized? a) The US paint industry In all of the United States, paint is without a doubt, one of the most respected industries of its kind growing at a rate so fast, that it outweighs any other. It reached a maximum of 13 billion dollars in sales in 1995. The paint industry is divided into 3 unique segments; architectural, original equipment, and special purpose with each having its own unique percentage. Wholesalers and retailers sell architectural coatings which are more formerly known to the consumer as general purpose paints, varnishes, and lacquers which are used on almost every kind of structure...
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...Jones Blair Case 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 increasing dollars sales rate 4% each year Weakness • Slow sales growth • Reduce emissions of volatile compounds • Compliance w/ EPA = low profit margins • Presence in DFW do it yourself market, in-home centers • Non-DFW market • New accounts, only added 5 in last 5 years • High costs for product • DFW Sales decreased • Paint gallon-age hasn't changed in years • Highest priced paint in service area, especially in DFW • Awareness of the company Opportunities • Need to increase customer awareness by 30% • Increase demand for paint sundries due to trend towards do it yourself painting • Interior more popular than exterior • Expand beyond paint • Primarily in DFW area, so advertising outside of DFW • Increase advertising over all mediums, catalogs etc • Develop new retail accounts leads and penetrations • Professional painters could solicit business to them • Discount coupon offers on every purchase after first to build loyalty • Increase contractor...
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...Jones Blair Company Case Synopsis Jones Blair Company (JBC) is a privately held corporation that produces and markets architectural paint and primarily serves the Southwestern part of United States. The company markets its paint and sundry items in more than 50 counties in Texas, Oklahoma, Louisiana, and New Mexico. Headquarter for the company is located in Dallas, Texas where it does most of it business. The Dallas-Fort Worth (DFW) metropolitan area is the major source of business as well as the financial center in the southwestern service area. JBC mainly target do-it-yourself customers who make up 50% of their sales and professional painters who make 25% of sales. The company sells top quality architectural paint and accessories at the highest price to various markets. They also sell original equipment manufacturing (OEM) materials throughout the U.S and worldwide. Though JBC’s sales have increased on annual basis the sales volume remained same. And since the competition in the industry has increased over the years the company fear facing a plateau in price. The company is also facing a major dilemma and must maintain their growth and profit margin, but in order to do so they have to increase their sales in a mature market. Therefore, the company has to decide what market to target (Southwestern part like Dallas Forth-Worth or surrounding areas), who to target (do-it yourselfers or professionals), and how in order to expand their brand and market share. This case will examine...
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...formulated to industrial buyer specifications and they are used for durable goods such as automobiles, transportation equipment, and building products for the industrial industry. Lastly, Special purpose coatings are formulated for special applications or environmental conditions (extreme temperatures, exposure to chemicals). They are used for automotive and machinery refinishing, industrial construction such as factories, railroads, utilities, bridges marine application, highway and traffic machines and roof paints. The architectural coatings sales are distributed evenly between two-market area segments, Dallas fort-worth area and the non-Dallas-fort worth areas. Jones-Blair’s approximate architectural paint and sundry sales increased by 4.3% from 2000 to 2004 according to the information provided in the case. The Jones Blair trade area has the 7 biggest paint combines accounting for 60 percent of all sales. In the Dallas-Fort worth area the 11th county is the major business and financial center to the company’s southwestern area which also brings in 60% of 80 million dollars sold where 60 percent came from the Dallas-fort worth area. Do it yourself and household buyers were believed...
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...MEMO TO: Senior Management Executives of Jones Blair Company FROM: Marketing Strategy Team DATE: October 8, 2012 SUBJECT: Jones Blair Company Marketing Effort With the peak painting season soon approaching, Jones Blair must decide how to deploy their marketing efforts. Various members of the Jones Blaire executive management team have provided their recommendations as to how the company should proceed with their marketing efforts. Each member of the executive management team has a different opinion on the company’s marketing approach. Ultimately, Jones Blaire’s objective is to increase profitability. The marketing strategy team has been asked by Mr. Barrett to analyze the proposals from the leadership team and provide our recommendation as to which proposal is the most beneficial for Jones Blair. We will be analyzing all of the alternatives to find which alternatives provide the greatest increase in net income for the company. The Market and Consumer: The architectural paint and sundry industry in the 50 county area which Jones Blair markets its products is estimated have a total market size of $80 million. The architectural paint industry is considered to be a mature market with long term sales growth between 1 and 2 percent per year. This market can be segmented into two major segments, the Dallas-Fort Worth (DFW) market segment and the Non-DFW market segment. In addition, both the DFW and Non-DFW markets can be further segmented into two customer...
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...Background & Problem definition Jones Blair Company is a privately held company headquartered in Dallas, that produces and markets architectural paint under the Jones Blair brand name, markets its paint and sundry items, in over 50 counties and 11 DFW metropolitan areas, as the paint industry in USA is reaching towards its maturity and due to Govt. regulations and policies, several paint manufacturing companies have closed shop or have been acquired by big giants. Jones Blair Company is desperately trying to maintain its existence and improve its existing market of architectural paint segment in southwestern United States. Market & Industry analysis US paint industry can be classified into shelf good, comprising of 43% of market share, OEM, 35% and special purpose coating comprises of 22%, the forecasted figure for year 2005 for entire industry is $16billion out of which shelf good or architectural paint and sundries, comprises of $12 billion and more. Monopolistic, patronizing (loyalty) is hard to establish, with over 2 percent growth per year, and competition from substitutes, govt. regulations, the US paint industry is going through major turnaround, survival seems to difficult without innovation and compromising, however Jones Blair Company has stick to its product based pricing and is premium in the specific segment, but as the competition is increasing and mass merchandiser coming into existence, it is tough for the JBC to maintain its market share. Consumer, is...
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...JONES BLAIR COMPANY MKTG 2030 Submitted By: Juzar Saifuddin Student#210301737 3/15/2011 Executive Summary: Jones Blair company is a privately held company that produces and markets architectural paint under the Jones Blair brand name. In addition to producing a full line of architectural coatings, the company also sells paint sundries which are not manufactured by Jones Blair. Lastly, the company also operates a very large OEM coatings division. Company sales volume in 1997 amounted to $ 12million with a net profit before taxes of $1.14 million. Sales have been increasing roughly 4 percent per year over the past decade while paint gallonage has actually remained steady . So the steady growth in dollar sales has been due to inflation. The industry on the other hand is divided into three broad segments: architectural coatings, original equipment manufacturing (OEM) coatings and special purpose coatings. The U.S. paint industry as a whole is considered to be in its maturity stage. This is due to increased competition from alternative materials, such as aluminum and vinyl siding, interior wall coverings and wood paneling. Secondly, paint companies have developed higher quality products that have reduced the amount of paint necessary per application. Jones Blair needs to increase/maintain volume sales as the market goes through some changes. Competition is stiff in metropolitan areas, architectural paint and sundry industry is in its maturity stage and...
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