Jones Blair Case Study with Swot

1627 WordsSep 22, 20107 Pages
Jones – Blair Case Analysis Davenport University Case Recap Jones Blair company is a privately held company that produces and markets architectural paint under the Jones Blair brand name. In addition to producing a full line of architectural coatings, the company also sells paint sundries although they are not manufactured by Jones Blair. Sales for the company in 2004 were $12 million with a net profit before taxes of $1.14 million. Sales have been increasing roughly 4 percent per annum over the past decade while paint gallonage has actually remained rather steady. In 2005, Alexander Barret, the president of Jones Blair decided after a meeting that the company needs to deploy new corporate marketing efforts. This case…show more content…
The strategy of lowering prices to increase market share or at the least maintain current market share is based in part on research. A shopper research program that the company created shows that customers will completely back off from the brand when they are the slightest bit price sensitive. Currently, the Jones Blair brand is priced about 20% higher than the mass marketed national brands. Lowing the prices by such amount would increase market share that would hopefully be compensated for by increased number of purchases. Increasing presence in the do it yourselfer market could most easily be achieved by increasing brand awareness through increased marketing efforts. Research from the company has shown that a large number of do it yourselfers choose a store before even selecting a brand. This is important because in the same research, it was shown that customers do think about paint they have seen advertised when they are choosing a brand. This being said, increasing brand awareness would ultimately increase bottom line profits and this can only be achieved by increasing marketing expenditures. Recommendation The most beneficial of all the alternatives in marketing strategy would be to focus on the non DFW areas. Currently half of the sales and more than half of the paint dealers exist outside of the DFW market. The DFW market is already heavily saturated with paint suppliers, further still, Jones Blair has an excellent market share there

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