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Jonas Blair Case Analysis

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Submitted By UjjwalBhandari
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BACKGROUND AND PROBLEM DEFINITION

Jones Blair Company is a privately held corporation that produces and markets architectural paint. It markets its paint and sundry items in over 50 countries. The eleven country Dallas-Fort Worth (WTF) metropolitan area is the major business and financial centre in the country’s south-western service area. The company is struggling on where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company.

MARKET AND INDUSTRY ANALYSIS

The US paint industry is divided into three segments: • Architectural coatings (43%): general purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures. They are sold through wholesalers and retailers. • Original equipment manufacturing (OEM) coatings (35%): 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. • Special purpose coatings (22%): 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.
Industry Sales in 2004 were estimated to be slightly over $16 billion. US sales of architectural paint coatings and sundries were projected to be $12 billion-plus in 2004. Do it yourself accounted for 50% of sales of architectural coatings, professional painters contributed 25% and the remainder comes from government, export and contract sales. The buyer behavior starts from store and then goes to the product.
JBC’s net profit before taxes in 2004 was $1,140,000.

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