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Jones Blair Company Case Brief

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Submitted By sheel
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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 more of store loyal rather than brand, and can easily be segmented into two Do-It-Yourself and professional painters, and market can be classified into Urban and rural. Whereas urban market accounts for 60% of sale and rest from rural, however the trend shows that the individual buyer for JBC’s service area is more in rural 90% than urban 70%, rest of the sale comes from contractors.
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