Jones Blair
Case Analysis
January 31, 2012
Table of Contents
I. Factual Summary: 3
How might one characterize the paint coating industry? 3
How might one segment the Jones Blair market area? 3
Which segments represent opportunities for Jones Blair? 4
What is Jones Blair’s competitive position in its market area? 4
II. Case Problems/Opportunities: 4
III. Alternatives: 4
Increase corporate brand advertising by $350,000 4
Reduce price by 20% 5
Add one additional sales representative 5
Control Costs 6
IV. Selected Solution: 6
Which segment should Jones Blair pursue? 6
What strategy should Jones Blair adopt to reach the segment identified? 6
V. Conclusion: 7
I. Factual Summary:
The executives at Jones Blair find themselves at an impasse.
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A potential problem with this strategy is with a large, non targeted marketing push, 75% of audience the company would be targeting is not purchasing paint. Based on the company’s standard of recovering the costs within a year, if the company doubles its advertising costs, sales should show a significant increase and there is no guarantee of this.
Reduce price by 20%
By reducing the price, Jones Blair will be more competitive with other brands. Right now, Jones Blair is prices significantly higher than all other brands and when a consumer sees the brands side by side at a store, they may not realize the higher quality of Jones Blair paint, just the higher price and immediately select against.
A major issue is since reducing the price 20% reduces the profit margin to 15%, to maintain the same profit while reducing the price, the sales must be $28 million for this year. This is an increase of 233% in one year to justify reducing the price this much. This is a highly unlikely target.
Another potential problem is Jones Blair could lose the consumer’s perception of the company being high quality, high customer focused. Jones Blair has continually put focus on being the leader in quality and customer satisfaction and if the company’s prices are the same as all the other brands, what makes Jones Blair stand out?
Add one additional sales
Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.
Facts: Antoine Jones (defendant), a nightclub owner in the District of Columbia was suspected for drug trafficking by the FBI and Metropolitan Police Department task force. As a joint task-force investigation, the FBI applied for a warrant that authorized the use of an electronic tacking device on the Jeep Grand Cherokee registered to Jones’s wife. The United States District Court for the District of Columbia issued the warrant, in which authorized an installation of the device on Jones’s vehicle within in the District of Columbia and and within 10 days of the issuance of the warrant. However, the government did not install the device on the undercarriage of Jones’s vehicle until the eleventh day
Todd Wates, now 28 years old, has been treated for Cystic Fibrosis (CF) since he was eight years old. He currently resides with his mother Sarah, and father Anthony, in a two-bedroom apartment close to the hospital where he receives treatment.
I would put Porsche Winter Equipment sale promotion advertisement on three different newspapers for a 12-week campaign so that to make more people watching Porsche advertisement every week. Then, 24,000 direct mails will be sent to the current Porsche owners. As drivers usually have a habit of listening to the radio, I plan to choose 14 rotators to play Porsche’s advertisement. Because the mid-high income people are the Porsche’s target users, who would have the habit of reading magazines, such as luxury car, real estate, tourism, the economist and business management, I decide to put Porsche’s advertisement on five different magazines. In addition, outdoor wallboard and online advertisement would be effective to attract more potential buyer. Therefore, the total advertisement fee is $379,940; and I think this marketing plan and strategy is acceptable and reasonable.
What alternatives are available to Brent in regards to the audit of payables? What are the pros and cons of each alternative?
This case is about Janmar Coatings, a paint coatings company based in the southwester United States. The company has come across a dilemma on how to deploy marketing efforts among the various architectural paint coatings markets served in the southwestern United States.
United States v. Jones had helped established what would be considered intrusive and it would be easy to see that the accumulation of such personal information through cell phone location data would qualify as overly invasive. In Smith v. Maryland, the court had stood by the decision that “a personal travelling in an automobile on public thoroughfares has no reasonable expectation of privacy in his movements from one place to another because he voluntarily conveys to anyone who wants to look the fact that he was traveling over particular roads in a particular direct, the fact of whatever stops he made, and the fact of his final destination.”
2. The VP of Operations has suggested a 20% price reduction on all paint products to achieve parity with national brands.
Since the paint market has shown that consumers are price sensitive, cutting our price by 20 percent should in fact drive up sales. Perhaps we can achieve a larger market share if more people are drawn to our higher quality product, which is now at the similar price of the rest.
* Hence, we decided to increase the sales force percentage time for segment D to 40% and for segment A to 30%. We decreased the sales force time percentage for segments B and C to 15% each. Also, we reduced the list price from $142 to $136.
In the first scenario, with pricing reduction of BG400 the total margins are clearly reducing. So, the current pricing should be retained. In the second scenario, a price reduction in the range of $23,000 may be considered to achieve slightly better revenues with the same total margins. Even at the $15,000 pricing level of Sony 1270, changing the price of BD600 would not do any difference to its total margins. So the pricing of BD600 should be retained at the current levels in both scenarios.
Because of inconformity in target customers and price strategy, reducing price may increase demand of M5, but it will not be a big change for M5 because it already has a large loyalty customer base.
Increasing the price to commercial customers to $1,000 per hour would reduce demand by %30.
If Terry decides to use the specialty paint supplier then the best promotion strategy would
During this Period We decreased the price of our product from$ 5.45 to$ 5.29 to be more competitive in compare to our rivals and increased the sales force in chain drugstores and Grocery stores since they were receiving more sales than the other channels. As a result we increased our sales $29 million.