Jones Blair Case Study

| The problem facing Janmar Coatings, Inc. is deciding where and how to execute corporate marketing efforts in the southwestern United States. Janmar Coatings is currently marketing to 50 counties, their main focus area so far has been the 11 counties in the Dallas-Fort Worth area. The main issue Ronald Burns, the president of Janmar Coatings, is having is trying to come up with a solution to market his company in the most cost effective way during 2005. After 2 long meetings with his executive team he still has no clear direction. He has gathered an approach from each of his team members, including: VP of Advertising, VP of Sales,

The company markets its unique products to youth markets which it feels are underrepresented and inadequately reached by its competitors. The company uses innovative and creative, and it effectively set Jones Soda apart from the competition. By allowing consumers to assist in package design, Jones Soda became a brand that concerned itself more with the consumer than with the actual product. This has made consumers feel more relevant, has given them a sense of ownership over the brand, and has encouraged customer loyalty. Due the field is so competitive with several ways to stay competitive in their designated field. Through distribution, brand name, brand image, price, labeling and packaging, advertising, quality of the beverage, and new ideas they have accomplished this. Jones Soda competes for customer appreciation, retail shelf space and for marketing focus by their distributors, who also distribute other beverage brands. Jones Soda currently distributes their products in several retail outlets. These outlets include Barnes and Noble, Panera Bread Company, Cost Plus World Markets, Starbucks and Target Corporation. As well as these mature locations, Jones Soda also distributes to other independent vendors.

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

2. If the department that produces Item 345 was a profit center and if you were the manager of that department, would it be to your financial advantage to lower the price?

 ReferencesKerin, R. A., Peterson, R. A. (2013). Strategic marketing problems cases and comments (13th ed.). New Jersey: Pearson Prentice Hall

Hiring an additional sales rep would cost Jones-Blair $60,000 per year. $60,000 divided by the contribution margin of 35% is, $171,428. In order to maintain the same profits, Jones-Blair must increase their sales by $171,428. This is significantly less than the 1M in sales increase and 16M sales increase presented in alternative 1 and 2.

1. How might one characterize or describe the architectural paint coatings industry and Jones Blair’s trade area?

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.

Trade promotions and cooperative advertising are part of a push strategy. Trade promotion is directed towards retailers and takes the form of catalogs, trade magazine advertisements, booklets for consumers, and displays. Using gallery stores will attract and serve their target customers, the 40- to 59-year-old homeowner with an annual household income over $100,000. Also, 78% of the survey respondents state that displaying furniture in individual room settings is somewhat important to very important. Half of the $225,000 deducted from cooperative advertising will be added to the trade promotions fund. Also, an amount of $12,000 is added to the trade promotions fund to assist their salespeople servicing the 50 new accounts. The trade promotions fund will have a total of $591,500. Cooperative advertising is usually spent on newspaper advertising in a retailer’s city. The reduced funds of cooperative advertising for BatesManor will diminish the amount of newspaper advertisements.

The 10% price cut for the mass merchandiser could hurt their reputation with all of their current suppliers. Cutting the price 10% for one type of retail outlet will cause all other stores to want the same treatment. This would be a disruptive change to Fe’nix’s business and their overall profit.

You are the president of the McKinstry Advertising Agency, a medium sized firm that specializes in preparing the marketing strategies, performing the market research studies, arranging the distribution channels, and designing the advertising and promotional materials for industrial companies that have developed ”off-shoot” consumer products. You obviously serve a very specific niche. Your clients are industrial companies- that is, they sell primarily to other manufacturing firms and government agencies- that have developed- as unintended outcomes of their R&D programs- products for the retail trade. Dow Chemical Company, while not a client of your agency, is an almost ideal example of this type of firm.

AHC have limited amounts of promotion for its business and currently only rely on its website as well as word of mouth which could realistically only attract a certain number of consumers however if Andy wishes to expand or even increase the number of sales, alternative methods of advertising should be taken into account, for example, below the line promotion such as posters, local radio advertisements, local newspapers and magazines to make people aware of the business, and this way, AHC can widen their market. Andy knows that some facilities offered only target specific people, e.g. the beauty salon is aimed at mostly female members so instead of advertising within the mass market, he could implement personal selling to allow customers to

I can 't pass on those costs to my customers. Paul should really want this business. I know things have been relatively slow for him. But all he does is quote list prices and then complain when I do what is best for my division. Near the end of the meeting, Mr. Bauer reminded We 're wasting our time here. Let 's stop fighting everybody of the company 's policy of freedom of amongst ourselves and instead spend our time figuring out how to survive in these difficult business conditions. sourcing. He pointed out that this was not such a big deal, as the volume of business to be derived Mr. Fettinger asked Mr. Halperin why he from this new product was only a small fraction could not match Display Technologies ' price. Paul (less than 5%) of the revenues for each of the divireplied as follows: sions involved, at least for the first few years. And he also did not like the potential precedent of his Conrad is asking-meto shave my price down to below cost. If we start pricing our jobs this way, it won 't be being forced to source internally because it could long before we 're out of business. We need to price adversely affect his ability to get thoughtful quotes our products so that we earn a fair return on our from outside suppliers in the future. investment. You demand that of us; our plan is put together on that basis; and I have been pleading with my sales staff not to offer deals that will kill our mar- THE DECISION gins.

This method is short term oriented and in conflict with the company’s intention to focus on investing in the company’s future

OnSite Marketing, Inc. (OMI) aims to provide advertising, marketing, and public relations services to targeted business environments in the Automotive Aftermarket industry. OMI intends to leverage the thirty plus years that co-owner Steve Crain has in the automotive arena, especially as it related to his position as the Director of Marketing for SEMA (Specialty Equipment Market Association) where he helped SEMA, the non-profit organization that is the core of the Automotive Aftermarket, market and grow their trade show into the industry’s largest trade only show. SEMA afforded Steve Crain the networking goldmine that continues to follow and serve him today. OMI’s plan seeks to generate company sales and