Jones-Blair Case Anaylsis

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.

The initial investment and the yearly administrative cost are needed before even the new company is starting to generate revenues. Harrison had average net sales for the last 4 years of $ 34,097,000. Harrison has a loyal customer base built in its 80 years of existents. It will be very hard to enter the market because the new company doesn’t have a customer base yet. We estimate the new company can generate approximately $ 5,000,000 in net sales for the first year.

I would suggest the third option to increase their in store advertising ,merchandising and sales support because a 20% price cut would require an additional sales on 28 million to maintain the $4.2 million. This strategy would be rather difficult for the company as they spend a lot of money on research and fine quality of products.

Thus a sales reduction of 33.33% percent at initial price of $10 is equivalent to losses brought about by a price reduction of 1.5.

First, the subject of the commercial deduced after watching it is one, which cannot be ignored. Almost everyone was affected by the September 11 attack and paid attention to any opportunity that shows respect for the victims. Secondly, the audience only realized that it was an advertisement at the end of the commercial when the company logo is shown. But more influential is the use of rhetorical appeals.

The $320,000, on the other hand, is a fixed cost associated with the proposed addition.

Jones-Blair needs to increase their sales while keeping their margins consistent with limited resources on advertising and sales promotion.

The VP of Operations has suggested a 20% decrease in price to better compete with the mass merchants who are gaining a

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

Since our company’s main focus is premium products we will aim for high contribution margins, around 50%, on average, over all five products. After establishing our company brand and products within the market we will look to increase contribution margin to be between 55%-60% over all five products.

Persuading an audience can be done in several different fashions, one of which is Hugh Rank’s Model of Persuasion. Rank’s model states that two major strategies are used to achieve the particular goal of persuasion. These strategies are nicely set into two main schemas; the first method is to exaggerate an aspect of something, known as “intensify.” While the second is to discredit it, which is referred to as “downplay.” Al Franken, Jeffrey Snyder, Harlan Ellison, and George Will, have all written persuasive articles about gun control.

the company’s margins have shrunk by 10% in the past year due to rising costs and growing competition.

Although margins have been maintained, sales have not increased. There is a threat of losing consumers do to now being the highest-price paint in the service area. Therefore, Jones/Blair must draw attention to their core competencies to leverage themselves in the marketplace.

Increasing the price to commercial customers to $1,000 per hour would reduce demand by %30.

Over the last few decades, American culture has been forever changed by the huge amount of advertisement the people are subjected to. Advertising has become such an integral part of society, many people will choose whether or not they want to buy a product based only on their familiarity with it rather than the product’s price or effectiveness. Do to that fact, companies must provide the very best and most convincing advertisements as possible. Those companies have, in fact, done