Jones Blair Case Analysis Essay

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Jones∙Blair Case #1 Introduction In 1999 the U.S. paint industry sales were projected to be more than $13 billion. The industry has slow sales growth and is constantly changing due to government regulations. In 1999, Jones∙Blair had sales volume of $12 million with an annual growth rate of 4%. Jones∙Blair produces and sells architectural coatings, OEM coatings and paint sundries. However, the President, Alexander Barrett and the senior management executives know that there are some areas that they need to improve on. Statement of the Problem Jones∙Blair has a major struggle with the sales of their architectural paints in the DFW areas. This is because they have the highest priced product in a very price competitive segment…show more content…
If we can assume that most households have a television set, then our advertising should increase of our brand awareness. However, just because the consumer is aware of the product/brand doesn’t mean that they are going to purchase it. Because of this, we believe that while the DFW do-it-yourself market is important to reach, this marketing plan excludes a more profitable, untouched segment that is the non DFW household consumers. We feel that 15 counties is too few and leaving much room for improvement in the rural areas. 2) The vice president of advertising suggested that we go another route, and that we neglect advertising and focus on sales price and volume. She suggests that we can achieve parity with our competitors if we cut prices by 20 percent. 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. However we feel that this strategy also has several weaknesses. Compared to the first option presented by the VP of Advertising, we would still need to advertise that our product is coming down in price. If we don’t advertise, the consumer is still going to be drawn to our competitors because they will remain unaware of the new parity in pricing. Also, if we

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