Jones Blair is a manufacture and distributor of architecture paint. ... Jones Blair sales are $12 million and is split evenly between the DFW and non-DFW regions. ... Jones Blair has been able to survive as a regional paint distributor due to the lack of mass merchandisers in this region.
Jones Blair needs to decide how they intend to increase their market share and profits in the future. ... Jones Blair already has a premium product and by introducing the sales representative they will then fill the need of good customer service.
Problem
Jones Blair is faced with a decision as to how and where to proceed with their corporate marketing efforts among various architecture paints. The region currently served by Jones Blair is Southwestern United States. Jones Blair must be able to recoup gross profit from an increase in values if they decide to lower prices. ...
Situation Analysis
Company
Jones Blair is a regional paint manufacturer in the southwestern United States. ... Jones Blair’s total sales were $12 million. ...
With in the Jones Blair market there are a total of 1200 outlets in this regions, 600 of which are in the DFW areas. ... Jones Blair could decide to increase advertising and promotional efforts. ... Jones Blair could decrease the selling price by 20%. ... Jones Blair had mentioned the option of decreasing their price by 40% in an attempt to capture more of the contractor business. ... Status Quo – Jones Blair could do nothing. If they decided not to change their strategies in any of their current business methods Jones Blair may be exposed to loosing some of their market share. ... Currently Jones Blair has been able to successful capture 70% of their sales in DFW from professional painters. ... Jones Blair’s product is a premium product with a premium price, which will satisfy that demand from professional painters. ...
In addition the case states that within the DFW region Jones Blair products are sold in retail locations that carry two or three lines of product. Jones Blair is the premium product and is often the highest priced. ... There prices are much lower and based on the proforma income statements for alternative 3 and 4 it appears as if Jones Blair can not afford to cut prices to match the mass merchandisers lower prices.
Implementation
As stated Jones Blair will target professional painter in the non-DFW area. As this market is a mature market Jones Blair will need to capture market share from their competitors. Jones Blair currently has 5. ...
Jones Blair has a premium product that is priced higher than competitors. Professional painters seem to be a fit for the Jones Blair product. Jones Blair is offering this premium product which is one of the determining factors for this customer. ...
If Jones Blair is not successful in increasing their accounts of professional painter in the non-DFW area it does not seem likely that they would be able to increase it in the DFW area either. ... Jones Blair may want to do a customer survey directed towards do-it-yourself painters to get feed back as to want they want in a paint and how they choose a product.
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