Jones Blair Case Analysis Essay example

3063 Words Jan 9th, 2012 13 Pages
Jones Blair Case Analysis

1) How might the architectural paint industry be characterized?
a) The US paint industry
b) Architectural paint industry
2) How might the JB market area be characterized?
3) How can this market be segmented?
4) Which market to pursue?
a) Non-DFW Household, a high potential for growth
b) Urban professional, wants high quality paints
c) Non-DFW Professional, already dominant
d) Urban Household, very price- sensitive
5) What competitive position does Jones Blair have in its market?
6) What strategy should JB adopt to reach the segment sought?
a) Spend additional $350,000 on corporate advertising
Pros
Cons
b) Cut price by 20%
Pros
Cons
c) Hire one additional sales representative
Pros
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b) Architectural paint industry
Throughout the entire United States, it was approximated that in1995, sales alone for architectural paint coating accounts was about $5.5 billion. The architectural coatings are a mature market. The main characteristic of a mature market is a slow growth rate. Measured in dollars is the sluggish growth rate. This is measured as rate in volume because of the fact that materials are growing that don’t necessarily require paint or require very little, such as plastic or that of aluminum. These are famously known as substitute products, which ultimately tend to increase the sensibility of the consumer to changes in price.
Increasing quality of paints is particularly the reason that less paint is needed for each application and so the time between applications lasts much longer. And last but not least, industrial clients have more effectively developed ways of applying paint and so then less time is needed in between applications. It is predicted that there will be an increased demand for accessories such as rollers as there has been a significant rise in sales of sundries due to the more popular do-it-yourself projects.
Fewer companies is now the trend in sharing of markets as a result of businesses closing and the taking over of smaller companies. However, many businesses have been able to survive as there is readily available technology and the ever-growing need for paint mixtures for