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The Industry:
Jones Blair Company is part of the Paints & Coatings industry (Datamonitor Industry Market Research, 2001). As mentioned in the case, the industry structure is split into three segments: architectural, OEM, & special purpose. Architectural coatings make up 43% of industry sales, OEM 35% of sales, and special purpose 22% of sales.
The case focuses on the architectural coatings market. ... The U.S. Paints & Coatings market is forecast to increase only 4. ...
Wall Paints, a segment of the architectural coatings market, is the largest sector in the U.S. Paints & Coatings market, representing 79. ... There have been increased levels of home ownership in the US, which has spawned a general rise in spending on Do-It-Yourselferfs (DIY) products, particularly in the paints and coverings market. ... Fashion is also important, as consumers have more money to spend and are increasingly image conscious (Datamonitor Industry Market Research, 2001). Although, the current state of the economy and continuing war with Iraq have put a halt to the increased levels of spending and thus could slump sales growth in the industry as a whole. ... All of the above companies seem to be experiencing slow sales growth, a necessity for ongoing R&D, and compliance with governmental regulations fueling merger and acquisitions in the industry. Due to the available technology and difference in paint formulas, some have been able to sustain regular sales on their own without the need to merge or sell their company.
As you can see, the main competitors in this industry are US national organizations. ... The growth in sales from the professional sector is also favoring the larger, national companies (Datamonitor Industry Market Research, 2001). ... This is due to consumers buying behavior and lack of exterior painting knowledge (Datamonitor Industry Market Research, 2001). ...
Earlier we mentioned that Wall Paints is the largest sector of the United States Paints & Coatings market, representing 79. ... Below is a breakdown of the Market Segments in the industry (Datamonitor Industry Market Research, 2001).
United States Paints & Coatings Market Segmentation: % by Value, 2000
Sector % Share
Complements 1. ... 00%
Wall Paints 79.20%
As mentioned earlier, Jones-Blair Company will be focusing on architectural coatings, which consist of general purpose paints, varnishes, and lacquers for residential, commercial and institutional structures. Architectural coatings are sold through wholesalers, such as wholesale home centers, and retailers, such as lumberyards, hardware stores, specialty stores, department stores, membership clubs and retail home centers. ...
Sales and profit from sales of architectural coatings can be quantified in several ways to help understand trends, and develop marketing plans. The type and amount of each product sold, such as interior paints, exterior paints, lacquers and all other applications, can be segmented and compared. ... When comparing retail stores, the distinction can be made as to whether or not the store carries multiple brands, or only the Jones-Blair product line.
Another way architectural coatings sales can be quantified is by geographic location. In this case study, Jones-Blair paint is sold in over 50 counties in Texas, Oklahoma, New Mexico, and Louisiana. Jones-Blair defines the locations as either inside the Dallas Fort Worth (DFW) area, or outside the DFW area (non-DFW). ...
Success for this industry would be to increase sales, increase profit, and minimize marketing costs while maximizing effectiveness and profit. ...
The Organization:
Since 1928, the mission of Jones-Blair has been to provide the business community with the highest quality products accompanied by unparalleled customer service. According to Jones-Blair president, Jerry Jones, the company has four main goals:
1. ... They are flexible, ready to adapt to changing requirements as dictated by their customers (Jones, 2003).
The Vice President of Finance mentions that it is the companyfs financial objective and policy to recoup non-capital expenditures within a one-year time frame (Kerin, 2004). The overall objective put before senior management in this case study, is to find the best strategy in applying their marketing efforts to create the best scenario possible for the architectural coatings division of Jones-Blair.
Jones-Blairfs distinctive competency has evolved because of their mission to provide the business community with the highest quality products accompanied by unparalleled customer service. The companyfs ability to go the extra mile for their professional painting customers as well as their high quality products gives their company the distinctive competency of being preferred by professional painters.
The Jones Blair Company offers the market a high quality premium brand of architectural paint and OEM coatings. ... The OEM coatings are sold in the United States and worldwide. In addition to the premium paint and coatings they offer a diverse selection of paint supplies (Jones, 2003).
Over 200 independent paint stores, lumberyards, and hardware outlets carry Jones Blair paints and supplies (Kerin 2004). The companyfs market area is broken down into Dallas-Fort Worth (DFW) and non-DFW.
Jones Blair has an experienced sales staff that services both the DFW and non-DFW outlets. ...
Jones Blair has the potential to increase its market share in the architectural paint market. ... Jones Blair could also increase its spending on advertising and promotions with the goal of capturing more market share.
There is the potential for Jones Blair to acquire a competitor to gain market share and expand into new markets. Also, the company could acquire a supplier in hopes it could reduce the cost of producing its product. This could help the company either reduce the price of its products or increase its profits.
As mentioned earlier, the company finds itself in a mature market where projected sales are estimated to be 1-2% (Kerin 2004). ... However, Jones Blairfs competitors have not actively marketed to the painting professional firms in the DFW and non-DFW areas. ...
Jones Blair finds that its paints and supplies are the premium brand and have the highest price. The companyfs products might be at the point of being priced out of the market. ... Jones Blairfs sales, in gallons, have declined. Customersf needs are being met with similar quality paints but at a lower cost. ... It appears that the company is only maintaining their market share. ...
There are several factors that have contributed to companyfs present situation. ...
Also, increased legislation by the Environmental Protection Agency (EPA) to reduce the amount of volatile organic compounds (VOCs) has increased pressure on Jones Blair. ... Jones Blairfs paint dealers view them as competent and knowledgeable. ...
The senior management of the Jones-Blair Company is questioning gwhere and how to deploy corporate marketing efforts among the architectural paint coatings markets served by the company. ... Any change in the marketing plan of a strategic business unit within a company needs a carefully thought out plan. ... Barrett needs to take care of is to get his entire senior management team on the same page with regard to the desire to increase market share and sales in the architectural coatings unit of their business. ... Barrett needs to make clear to his staff what his desire for the architectural coatings business unit is. ...
Current Status of Blairfs architectural coatings business
• Blair has a presence in 200 independent paint stores and outlets of the 1,200 located in the 50 county area.
Approximate Word count = 5903
Approximate Pages = 23.6
(250 words per page double spaced)
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