Jones Blair Case Analysis

Introduction to Jones · Blair case # 1 In 1999, US paint industry sales are expected to exceed $ 13 billion. Sales in this industry are slow growth, there is a possibility that government regulation will change. In 1999, Jones Blair's revenue reached $ 12 million, with an annual growth rate of 4%. Jones Blair manufactures and markets building paints, OEM paints, and paint fragments. However, President Alexander Barrett and senior management know that they need to improve some areas.

Jones Blair is competing in 50 counties in Texas, Oklahoma, New Mexico, and Louisiana. Their main commercial and financial center is in the eleven metropolitan areas of Dallas - Fort Worth. Jones Blair Company is a privately held company that manufactures and sells coatings under the Jones-Blair brand. For the most part of the mature paint industry, $ 10 billion is the foundation for building paints, annual growth is expected to be comparable to the general inflation rate over the next few years. Over the past decade, the annual turnover of the US dollar has grown at a rate of 4% per year. Even if R & D expenses and labor costs increase, the company has been very successful in maintaining profit margins. Several local paint manufacturers competed successfully with paint manufacturers who distribute their products nationwide. Market segmentation

As Jones Blair has earned money every year, keep current marketing goals and do not do anything. In the past, Jones Blair has done a wonderful job by monitoring profits and managing costs in this area. By not doing anything, the company no longer needs to spend extra money. e) Advantages: Jones Blair sells more products because it can compete with the competition in price. Weaknesses: It may be insufficient to sell to cover cost of sales. If the price competes with other companies, it may not be considered a high quality product. b. ) Further $ 350,000 for corporate advertising

The marketing department proposed a TV campaign for the DFW self-service market. This will cost another $ 350,000, but the recognition of Jones Blair products will be greatly improved. Studies have shown that brand awareness is the main factor in purchasing decisions. If Jones Blair agrees to use this method, the company will need at least $ 122,500 to pay the fee for the new promotion equally ($ 350,000 / $ 35 = $ 122,500). Most DFW consumers are self-employed, so TV commercials will benefit from this market. Benefit: Consumers will notice Jones Blair. Home self-dealers account for 70% of the transaction volume in the DFW region. Advertising can increase awareness and consciousness is an important element in consumer purchasing decisions. Weakness: Current advertising costs are nearly doubled ($ 360,000 + $ 350,000). c. Hire additional sales representatives