Background and Problem Definition: Jones • Blair Company distributes architectural, original equipment manufacturing (OEM) paint and paint sundries under its brand name over 50 counties in 4 states of US while operating from its plant and headquarters in Dallas. Changing market and industry trends were posing a threat to many regional companies. JBC competed successfully with other national paint companies banking on its different paint formulation and readily available technology. However survival could be a challenge in future. The case reflects on the decision to be made in 2005 by J• BC of where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company.
Market and Industry Analysis: In 2004 US architectural paint industry estimated 12 billion USD sales. Mature market with 1-2% growth pa. This was straining the survival of regional companies, leading to M&As. Major producers accounted for 60% market share. No. of paint companies was at a decline of 2-3% pa. A trend towards do-it-yourself painting by household consumers was on an upsurge and contributed 50% sales. 50% architectural paints were sold by private store brands which majorly stocked market leaders. Specialty paint stores and Hardware & Lumberyards contributed 36% & 14% respectively. Approx. 50% of business for JBC comes from 11 counties of DFW and remaining from 39 non DFW counties.
Evaluation of Alternative Courses of Action: Increasing the presence in DFW do-it-yourself market by spending USD 350,000 on advertising on TV to increase awareness could be one option as this is a high growth segment. ). Hence apart from advertising just in newspaper & on floor (retail outlets) promotions will be more effective as the consumer decides the retail outlet to procure the paint first and following that the brand. Employing additional sales representatives to increase aggressive selling was another alternative suggested, but this would...
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