Jones Blair Case Study

1237 WordsNov 14, 20115 Pages
Problem Statement: Where and how should Jones Blair Company engages its corporate marketing efforts among the various architectural paint coatings market? Situation Analysis Jones Blair Company, JBC, currently faces a unique challenge in which the upper level management must act in order to maintain its profitability. Jones Blair current market position is in the process of being eroded due to the mass merchandising efforts of companies like Kmart and Sears. In developing their strategy forward, Jones must address two key issues to address the problem statement. First, Jones Blair must determine which marketing medium they will use to access their potential customers. Secondly, they must determine the geographic locations in which…show more content…
1. The VP of Advertising Alex, believes that a direct infusion of $350,000 into advertising efforts will increase awareness by 30% in the do-it-yourselfers market. He also would like to reach 15 of the surrounding counties with television commercials. 2. The VP of Operations has suggested a 20% price reduction on all paint products to achieve parity with national brands. 3. The VP of Sales has suggested foregoing the DFW market and adding a sales representative for $60,000 dollars to focus on increasing retail accounts and professional customers. 4. The VP of Finance is very hesitant to any drastic strategy change. He would like to see specific goals tied to results. Jones Blair has the responsibility to analyze these options to evaluate the effect on the overall business operations within the firm. The VP of Advertising’s suggestion of $350k increase in to the marketing budget would create an increase in $1 million dollars to recoup the cost of this venture. His philosophy of accessing the do-it-yourselfers would not bring these individuals away from their primary focus which is retail location. The do-it-yourselfers are going to continue to visit Home Depot and other mass marketing stores despite advertising efforts. The cost benefit analysis would not be beneficial to Jones Blair. The VP of Operations has suggested a 20% decrease in price to better compete with the mass merchants who are gaining a
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