Jones-Blair Case Anaylsis

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Tierha Jones
Thursday, July 26, 2012
Jones-Blair Company Case Analysis
Graduate Marketing Class Snell

Jones-Blair Company Case Analysis

Strategic Issues and Problems:
The Jones Blair Company competes in a 50-county area throughout Texas, Oklahoma, New Mexico, and Louisiana. Their major business and financial center is located in eleven county Dallas-Fort Worth metropolitan areas. Jones Blair Company is a privately held corporation that produces and markets paint under the Jones-Blair brand name. A large portion of the maturing paint industry, $10 billion, is established from architectural coatings and the annual growth rate is expected to equal that of general inflation in the coming years. Dollar sales have increased at an
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Brand image is important to consumers and television ads are a great way to get their name out. Most of this population is aware of this product and only some of this population would purchase it. c) Hire an additional sales representative
Hiring an additional sales representative will allow Jones Blair to focus on new markets. These markets should be outside of the DFW area and allow for new cities and states to recognize Jones Blair. d) Do Nothing (Status Quo)
Since Jones Blair has continually seen profits each year; they should maintain their current marketing objectives and do nothing. Jones Blair has done an excellent job of this in the past by watching the margins and controlling costs. By doing nothing, the company will not need to spend any additional money. e)
Alternative Recommendations a.) Cut price by 20%
In 2004 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%.
($12,000,000)*.15 = ($1,800,000)
If the company drops the price by 20% the company will see a 33% increase in sales.
($1,800,000 * .33) =$4,200,000 ($594,000)
STRENGTHS: Jones Blair will sell more products, because it will be able to compete with its competitors in
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