Jones Blair
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- Date Submitted: 11/09/2008 03:23 AM
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Jones Blair
Jones Blair research
Jones-Blair Company
Central Problem Statement
Jones Blair is a regional paint manufacturer that has to compete in a highly mature market, where sales growth is expected to parallel the general inflation rate (about 4%). Their market is also very concentrated, due to the fact that the seven major paint producers in total account for over 60% of market sales. In order to ensure market success, Jones Blair will need to boost its sales volume while maintaining its profit margin. Three strategies should be considered in this case: consumer segmentation, managing the marketing mix, and targeting.
Key Issues
Recent studies indicated that DIY painters care very little about the paint brand, and therefore, the quality of the paint. Architectural paint has become a commodity for this kind of consumer. Currently, the firm has been able to capture 70% of their DFW-based sales from professional painters, representing a market segment that needs to be successfully targeted. Jones Blair provides a premium product at a premium price, which should satisfy that demand from professional painters. What Jones Blair must do is successfully differentiate their product as a value-based brand, providing its professional users with clear and concise benefits to the use of Jones Blair products.
The Company has also been facing strong environmental pressure due to recent regulations about the emissions of Volatile Organic Compounds. It is necessary for Jones Blair to invest in research and development in this area. It is also highly likely that Jones Blair will not see its costs of production decrease very much due to the research and development breakthrough activities.
Alternative Courses of Action
Jones Blair’s most important market is Dallas-Fort Worth, which accounts for 60-67 percent of total sales from 1992-1996. This percentage has been declining throughout the years, and has been doing so on an average basis of 1.43% per year. The DFW...
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