focuses on architectural pain coatings and sundries. With a growth rate at the approximate rate of inflation expected for 2005. Of the national $12 billion market‚ Dallas Fort-Worth (DFW) regional sales were estimated at $80 million dollars with Jones Blair capturing $12 million dollars. It is characterized by a slow growth rate that be attributed to a number of things such as the housing market‚ and the increase in products and materials that don’t require paint (aluminum siding for houses‚ injection
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Jones Blair Company Jones-Blair Company sells paint and related products throughout select states in the southern United States. The company’s best marketing strategy in an environment of declining paint demand. Not only is demand declining‚ but the company is also faced with increased competition from national companies‚ such as Kmart‚ Wal-Mart and Home Depot‚ who have the ability to mass merchandize their paint products. The paint industry is divided into three segments: architectural‚ OEM coatings
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Jones Blair Company The US paint industry was in a mature stage of life cycle. During 1999 sales were around $13 billion. The following are three different segments of the US paint industry. 1. Architectural Coatings:used for general purpose which accounts for 43% of total sales‚ sold through wholesaler and retailer to end consumer. 2. OEM coatings: formulated for industrial purpose which represent 35% of total sales. 3. Special Purpose Coatings: designed for special or environmental conditions
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Case: Jones Blair Company Question: 1. What share does Jones Blair have of the rural household market segment? Rural professional market? Answer: Rural Household Market Segment 14.6% Rural Professional Market Segment 56.3% Rationale: Household Professional TOTAL DFW (non-rural) $1‚800‚000/$33‚600‚000 = 5.4% $4‚200‚000/$14‚400‚000 = 29.2% $6‚000‚000/$48‚000‚000 = 12.5% Non-DFW (rural) $4‚200‚000/$28‚800‚000 = 14.6% $1‚800‚000/$3‚200‚000 = 56.3% $6‚000‚000/$32‚000‚000
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Background and Problem Definition: Jones • Blair Company distributes architectural‚ original equipment manufacturing (OEM) paint and paint sundries under its brand name over 50 counties in 4 states of US while operating from its plant and headquarters in Dallas. Changing market and industry trends were posing a threat to many regional companies. JBC competed successfully with other national paint companies banking on its different paint formulation and readily available technology. However survival
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is based on the extremely high quality and performance of the products. By cutting price‚ Jones Blair will be able to stay competitive in price with other the other products on the market. In 1997 architectural product sales volume was $12‚000‚000. Jones Blair has a current net profit of $1.14 million‚ and to stay profitable it must maintain this amount. $12‚000‚000*.35= $4‚200‚000 If Jones Blair reduced its price by 20% the contribution margin will drop to 15%. New contribution margin
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October 2012 Jones Blair Case Study Jones Blair Company is a paint manufacturer that distributes paint to Texas‚ Oklahoma‚ New Mexico‚ and Louisiana with its manufacturing plant based in Dallas-Fort Worth (DFW). The main product line of the company is architectural paint with some line depth that they manufacture at their own plant; they also offer the sundries for painting towards their end customers. The sundries offered are not produced by the company itself but carries the Jones Blair brand logo
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Background and Problem definition: Jones-Blair is privately held corporation which produces architectural paint coatings and markets them under Jones Blair brand name. Addition to that it also sells paint sundries under Jones Blair brand name even though these items are not manufactured by them. Apart from these the corporation also operates on OEM coating division. The problem in front of the company is to decide where and how to deploy corporate marketing efforts among the various architectural
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The case describes the competition in U.S. paint industry and also about Jones Blair Company which deals in architectural paint and paint sundries. The problem definition in the case study depicts a meeting of company executives where discussions are made that how to deploy corporate marketing efforts of the company in order to increase the sales‚ as peak painting season is approaching soon. Market and Industry Analysis Paint Industry: The industry is divided into three segments: original equipment
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1. How might one characterize or describe the architectural paint coatings industry and Jones Blair’s trade area? • Architectural paint coating industry currently does not have much that differentiates itself from other paint markets • The US paint industry is considered to be a maturing industry. Industry sales in 2004 were estimated to be slightly over $16 billion. • The US paint market is divided into three segments: architectural coatings (43%)‚ original equipment manufacturing (OEM) coatings
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