Jones Blair Case

1880 WordsSep 8, 20068 Pages
Jones Blair Case SWOT Analysis: Strengths • High quality products • High quality service with • Knowledgeable sales representatives that know customers personally • Mature market 1-2% sales growth long-term • Shelf goods 43% of total industry dollar sales • Specialty paint stores & lumberyards most frequently patronized • Distributes through 200 independent paint stores • Maintaining margins while increasing R&D, material, & labor costs • Market to major business/financial center (DFW) • Total sales/year increasing dollars sales rate 4% each year Weakness • Slow sales growth • Reduce emissions of volatile compounds • Compliance w/ EPA = low profit margins • Presence in DFW do it yourself market, in-home centers •…show more content…
• Successful in maintaining margins even with increased research and development, material and labor costs, but could be approaching the threshold on prices. • Paint cost-of-goods sold, including freight expenses, was 60% of net sales • Spends 3% of net sales on advertising and sales promotion efforts. 55% of advertising and sales promotion dollars are allocated to cooperative advertising programs with retail accounts. • Employs eight sales reps who are paid a salary and a 1 percent commission on sales. The Problem: Need for larger market share to increase sales volume of paint gallonage, which has not changed over the past five years. What 's behind the symptoms? 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. Alternatives to Solving the Problem: Proposal 1- What are the Pros and Cons of maintaining the Status Quo? Total dollar sales = $80,000,000 Current funds allocated to advertising and sales promotion is 3% of net sales ($80,000,000) = $360,000 Pros: • They have maintained margins while increasing R&D, material, & labor costs. • Total dollar sales per year is increasing rate 4% each year. • Option with the least risk and effort attached. Cons: • Paint gallonage will most likely not increase, as it

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