1.
Key problems and strategic issues that JB’s management needs to address 2. Analysis of the US paint industry and Jones Blair Co. area 3. Recommandations and arguments Where and how to deploy marketing efforts among the various architectural paint coatings markets served by Jones Blair Co.
in the southwestern united states. The US paint industry: Architectural coatings: 43% - general purpose paints - varnishes - lacquers OEM coatings: 35% - applied to original equipement during manufacturing Special purpose coatings: 22% - special applications environmental conditions Outlook for Architectural Paint Coatings and Sundries: -Mature market with Long-term sales growth -Competition in the market is hard -Several small companies have competed succesfully against paint manufacturers Architectural coatings: Analysis by distribution, customers Distribution: mass merchandisers 50% specialty paint stores 36% lumberyard
...and hardware 14% 1000 outlets in the market Customers: Do-it-yourself consumers 50% Professional painters 25% Painting contractors 25% Jones Blair Company: Regional paint manufacturer -Annual dollar sales had increased 4% over the past decade -JBC market share: 15% total dollar sales -In 1997, Sales volume $ 12 million Margin 9. 5% Diagnostic: Service Areas -Markets : 50 countries divided by geography to two segments: DFW: 11 counties / Market share 12. 5% Non DFW : 39 counties / Market share 18. 75% -High competition Products -Architectural paint under JB brand name -Paint sundries -OEM sells throughout the US and worldwide -Readily available technology and difference in paint formulationsDistribution 200 independent paint stores : - Paint stores - Lumberyards - Hardware outlets 80 stores (40%) in DFW, 120 stores (60%) in Non-DFW Price - highest prices Promotion -8 sales reps : Monitoring inventories Assisting in store display
-advertising and sales promotion efforts : 3% of net sales SWOT Analysis Internal Factors Strengths Weaknesses Management Experienced Offering High- quality -High- price -Limited options Marketing Distribution: Having 200 outlets in service areas/ 20% of the arket 25% awareness of /47% mass merchandiser brand Personnel Good workforce Finance Maintaining the margins Limited resources may restrict growth opportunities when compared to competitors R&D Continuing efforts to ensure quality Recommandations and arguments: Where : DFW & Non-DFW - major Target Marketing: Professional painters - try to gain Do-it-yourself consumers : introduce to mass merchandisers How - Recruiting two reps - Advertising allocated to cooperative advertising programs with retail accounts in mass merchandisers
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