jones case study analysis
BACKGROUND AND PROBLEM DEFINITION
As the architectural coatings industry is reaching maturity, Jones Blair Company is trying to come out with new methods to sustain themselves in the market, and look for opportunities in newer markets. The question is of where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company.
MARKET AND INDUSTRY ANALYSIS
Long term sales growth for architectural coatings industry sales growth is projected at 1 to 2%. The reason for such a growth is that the industry is reaching maturity; paint is now used mostly for redecorating; rise in competition form alternative material; higher quality products in the market reduce the demand for paint. The number of firms are now 600(decreasing at a rate of 2 to 3%) due to mergers and acquisitions. The smaller companies are being acquired by larger firms as they are not able to meet their fixed costs due to the losses made and are way below their break even.
The industry sees a rise in demand for do it yourselfers with them being 50 percent of the buyers and professional painters accounting for 25% of the sales. As the do it yourselfers demand is increasing, indoor painting share to sales is also increasing as people prefer a professional painter for outdoor painting (outdoor painting requiring more quality, durability, knowledge and skills). Due to this the demand for sundries are also increasing.
As most of the households do the painting themselves they require the right kind of servicemen to provide them the best knowledge on the aspect of which brand to buy. Therefore the customers are more inclined on finding the right retail store first and then the brand. The information gathered on the stores are mostly through external sources and word of mouth. On the other hand, the professional painters seek for quality and servicemen who have the knowledge of what are their requirements.
EVALUATION OF ALTERNATIVE
As the architectural coatings industry is reaching maturity, Jones Blair Company is trying to come out with new methods to sustain themselves in the market, and look for opportunities in newer markets. The question is of where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company.
MARKET AND INDUSTRY ANALYSIS
Long term sales growth for architectural coatings industry sales growth is projected at 1 to 2%. The reason for such a growth is that the industry is reaching maturity; paint is now used mostly for redecorating; rise in competition form alternative material; higher quality products in the market reduce the demand for paint. The number of firms are now 600(decreasing at a rate of 2 to 3%) due to mergers and acquisitions. The smaller companies are being acquired by larger firms as they are not able to meet their fixed costs due to the losses made and are way below their break even.
The industry sees a rise in demand for do it yourselfers with them being 50 percent of the buyers and professional painters accounting for 25% of the sales. As the do it yourselfers demand is increasing, indoor painting share to sales is also increasing as people prefer a professional painter for outdoor painting (outdoor painting requiring more quality, durability, knowledge and skills). Due to this the demand for sundries are also increasing.
As most of the households do the painting themselves they require the right kind of servicemen to provide them the best knowledge on the aspect of which brand to buy. Therefore the customers are more inclined on finding the right retail store first and then the brand. The information gathered on the stores are mostly through external sources and word of mouth. On the other hand, the professional painters seek for quality and servicemen who have the knowledge of what are their requirements.
EVALUATION OF ALTERNATIVE