Case Analysis Jones Blair Company

The President of Jones Blair Company, Alexander Barrett and his team of senior executives are currently reflecting on the best course of action to decide where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company in the southwestern United States. Characteristics of the Architectural Paint Coatings Industry The architectural paint coatings industry parallel the trend of the U.S. paints industry manifesting maturity in growth level, with only one to two percent growth rate per annum. The demand is reported to be affected by: (1) competition from alternative materials and (2) development of high quality products that require lesser paint applications. There are decreasing numbers of paint companies, currently totaling 600, with a two to three percent declining rate. Opportunities are seen in the do-it-yourself segment by household consumers for paint sundries. There is a trend for merger and acquisition especially for large paint companies seeking growth and a higher sales base to support increasing costs (Case Facts: Consolidation, n.d., 1). … par. 1). Segmentation for Jones Blair’s Market Area VARIABLE SPECIFIC DETAILS Geographic Region 50 counties in Texas, Oklahoma, New Mexico, and Louisiana from its plant and headquarters in Dallas, Texas. Eleven county Dallas–Fort Worth (DFW) metropolitan area Density DFW, metropolitan, and non DFW, rural areas Demographic Occupation Professional painters, contractors, household consumers (do-it-yourself painters) Distribution Independent specialty stores, lumberyards, hardware Purchase per annum Less than $25,000, $25000 – $50,000, $50,000 above Behavioristic Purchase type Interior paints, exterior paints, lacquer, other applications Buying preference High quality, known brand, Promotional efforts Sales representatives, cooperative advertising for retail accounts, newspaper advertising and catalogs, in store displays, outdoor signs, regional magazines Segments Representing Opportunities for Jones Blair Brand The segments representing opportunities for Jones Blair brand are the non DFW areas where total dollar sales potentials are increasing as shown in Exhibit 3. It could be noted there that DFW sales had been declining since 1995 to 1999. Likewise, retail accounts for non DFA also show that 60% is contributed by that sector. Jones Blair Competitive Position The competitive position of Jones Blair is in brand awareness when compared to local brands. It should be noted that Jones Blair is considered a regional paint manufacturer that should emphasize strengths in knowledge and expertise in paint formulation depending on climatic needs. Despite its high price, the image perceived by customers is high quality and appropriately distributed and