Jones and Blair Company Essays

Jones and Blair Company Essays Jones and Blair Company Essay Jones and Blair Company Essay Blair Company distributes architectural, original equipment manufacturing (MEMO) paint and paint sundries under its brand name over 50 counties in 4 states of US while operating from its plant and headquarters in Dallas. Changing market and industry trends were posing a threat to many regional companies. JOB competed successfully with other national paint companies banking on its different paint formulation and readily available technology. However survival could be a challenge in future. The case reflects on the decision to be made in 2005 by J BC of where and how to deploy corporate marketing forts among the various architectural paint coatings markets served by the company. Market and Industry Analysis: In 2004 US architectural paint industry estimated 12 billion USED sales. Mature market with 1-2% growth pa. This was straining the survival of regional companies, leading to MAs. Major producers accounted for 60% market share. No. Of paint companies was at a decline of 2-3% pa. A trend towards do-it- yourself painting by household consumers was on an upsurge and contributed 50% sales. 0% architectural paints were sold by private store brands which major stocked market leaders. Specialty paint stores and Hardware Lumberyards contributed 36% 14% respectively. Apron. 50% of business for JOB comes from 1 1 counties of UDF and remaining from 39 non UDF counties. Evaluation of Alternative Courses of Action: Increasing the presence in UDF do-it- yourself market by spendi ng USED 350,000 on advertising on TV to increase awareness could be one option as this is a high growth segment. . Hence apart from advertising just in newspaper on floor (retail outlets) promotions will be more effective as the consumer decides the retail outlet to procure the paint first and following that the brand. Employing additional sales representatives to increase aggressive selling was another alternative suggested, but this would increase non capital cost. Reducing the contribution margin will reduce the prices of the paints, will benefit the consumers, however will lead to decrease in net profit. As a result so as to cover up for reduction in contribution volumes will have to be increased which is also not quite possible because the industry is more or less flat (mature stage). Conclusion and recommendations: So as to increase the sales JOB have to focus on both UDF and non UDF market. Since do-it-yourself painting by household nonusers is on an upsurge and they mainly procure their requirements from retail shops, this is an area that needs attention and can be tapped. The UDF market has been contributing significantly in terms of sales volume (50%). More emphasis should be given to the non UDF market as that market is not well penetrated yet. Awareness should created among the do-it-yourself market of the non UDF market by spending USED 350,000 on advertising in newspaper in store (retail outlets) promotions as it first and following that the brand. Price reduction is not a very feasible option as for this sales volume have to be increased significantly.