Jones Blair Case Analysis

1402 WordsApr 14, 20126 Pages
Statement of the Problem Decide where and how to deploy corporate marketing efforts among the various architectural painting coatings markets serviced by the company in the southwestern United States. Situation Assessment The US paint industry is a very mature market. The case goes as far to say that paint is can now be considered a commodity. There are 3 main sectors of the paint industry with 2, Architectural coatings and OEM coatings, holding more then 3 quarters of the market and Special purpose paints at 22% Being a mature industry they are not expecting any growth in sales figures except for the growth to stay inline with inflation. It would be useful to know where the 3 segments are at now in 2012 after the…show more content…
The distribution of sales in this area are relatively split between mass merchandisers and the specialty stores. I think a population analysis of the area would be beneficial to see what areas have a growing population as this would have focus sales efforts for not only contractors developing land but also DIYers who are moving out of the metropolitan area. Over all the sales are relatively split relatively even between the DFW metropolitan areas and the surrounding counties. Jones Recommendations Jones Blair should hire an additional salesman to create new leads to grow the business outside the DFW area in an effort to increase sales. Analysis Increase Marketing Dollar Effort Per the Case Jones Blair Contribution Margin is 35% I decided to analyze each suggestion put forth in the 3rd and final executive meeting. The first suggest was put forth by the VP of advertising and no surprise he requested more advertising to reach the DIY (do it yourself) market in the DFW and 15 other counties area by $350,000. In order to break even Jones Blair would have to sell $1,000,000=$350,000/.35 of additional product for this to be cost effective in the next year since it is company policy to recoup the expense in the same year. With this advertising they hope to get an awareness level of 30%, which is a 5% increase in awareness. Assuming that this 5% awareness increase leads to a 5% increase

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