...Memorandum From: 207898 To: Steven Clinton Date: June 24, 2013 Re: Jones-Blair Company Recommendation: Jones-Blair Company should continue doing what they are doing, and keep the cost structure the same. Problem Statement: Should Jones-Blair Company, a privately held corporation that produces and markets architectural paint; increase marketing efforts in the South West of the United States by spending an extra $350,000 in corporate brand advertising, cutting prices by 20%, hiring one additional sales representative, or doing nothing? Facts: 1. U.S. Paint Industry * The architectural coatings have a projected growth rate of 1-2% each year, and are considered a mature market. * Estimated sales of paint in 2004 were $16 billion. * Architectural paint coatings and sundries were $12 billion plus in 2004. 2. Market Segments * Two major segments in the paint industry are do-it-yourselfers (DIY), and professional painters. * DIY * Roughly 50% of architectural coatings are from DIY painters. * Buyers view paint as paint and search for the lowest price. * Professional painters * 25% of architectural coatings came from professional painters * Seek quality products. * Seek retailers who will put in the extra effort for them. * Expect to work with knowledgeable employees when dealing with their paint. * Other * 25% of sales as a result of government...
Words: 1237 - Pages: 5
...1) SEGMENTATION END USERS The first criteria of customers selection is : price sensitivity The trend is to increase the private labels (brand from the retailers) and increase the discount. When you cannot differentiate on the products than you do it on the price. In many markets, this is the most important criteria. In this case, painting is a commodity and it is very difficult to differentiate on the product for commodities. Thus, they will play on the price. 1) DIY - Price sensitive segment - Value : perceived quality = brand DIY Value PRICE SERVICE BRAND mass merchandiser Small shops Mass merchandis * low cost structure * good distribution network * high marketing * mass production (people who know their job) budget * private label -> confidence, proximity DIY buy these products on a non regular basis because they are not everyday products, not FMCG, they are Slow MCG, that a consumer buy every 4/6 years. How this characteristic (SFMG) influence the way the industry brands its products and communicates about the products? What is the impact on the brand and the communication? Customers will forget about the brand. Ex: A survey run for mattresses shows that 30% of the population in Belgium does not remember the brand of the mattress they bought after...
Words: 915 - Pages: 4
...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...
Words: 1246 - Pages: 5
...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...
Words: 672 - Pages: 3
...Moriel Hoffman Case Analysis 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...
Words: 1029 - Pages: 5
...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...
Words: 1294 - Pages: 6
...How might the architectural paint industry be characterized? The US paint industry The US paint industry is considered to be a maturing industry. Industry sales in 1995 were estimated to be slightly over $13 billion. The US paint market is divided into three segments: architectural coatings (43%), original equipment manufacturing (OEM) coatings (35%)and special purpose coatings (22%). The architectural coatings are general purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures. They are sold through wholesalers and retailers. 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 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. Architectural paint industry In 1995, the U.S. sales for architectural paint coating accounts for about $5.5 billion (without sundries). The architectural coatings are mature market. A slow growth rate is the main characteristic of a mature market. The sluggish growth rate measured in dollars can be traced back to a slowing growth rate in volume. This is because...
Words: 2646 - Pages: 11
...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...
Words: 819 - Pages: 4
...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) ...
Words: 1260 - Pages: 6
...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...
Words: 901 - Pages: 4
...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...
Words: 2823 - Pages: 12
...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...
Words: 1128 - Pages: 5
...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...
Words: 893 - Pages: 4
...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...
Words: 3064 - Pages: 13
...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...
Words: 286 - Pages: 2
