Paper: A Case Analysis of the Jones-Blair Company in the United States of America

Case Analysis: Jones-Blair Company Jones-Blair Company sells paint and related products throughout select states in the southern United States. Alexander Barrett, president of JBC, is trying to identify the companys best marketing strategy in an environment of declining paint demand. Not only is demand declining, but the company is also faced with increased competition from national companies, such as Kmart, Wal-Mart and Home Depot, who have the ability to mass merchandize their paint products. The paint industry is divided into three segments: architectural, OEM coatings and special-purpose coatings. Currently, Mr. Barrett is faced with maximizing his marketing efforts to best serve the architectural coating segments. A few of the issues that face Mr. Barrett are: Segmentation The company needs to identify its target markets by deciding if their market is urban or rural, household or professional. Each market needs to be evaluated based on size, growth potential and influences of possible buying behavior. Using this information, JBC will be better informed as to which segments will provide the best opportunities to increase sales and therefore increase profits. Opportunities and Threats The current environment possesses many opportunities and threats which will need to be considered when formulating marketing plan. For instance, the competitive pressures as a result of the increased presence of private and store brands sold by national companies could be viewed as a threat or an opportunity depending on the companys decision as to product positioning and which markets they try to capture. Conflicting recommendations from Company officers Mr. Barrett and his officers have been unable to reach a decision in their discussions over marketing strategy. Conflicting proposals from the companys key officers are to add more sales representatives, increase advertising, reduce prices, or maintain the status quo. In light of the information presented, it is obvious that JBC sells a premium paint product. More importantly, sales data shows that the household and professional painters, as opposed to the contractor, are very receptive to the premium paint offered by JBC. Furthermore, because such a drastic price increase would be necessary to cultivate the contractor market, any increase in sales would be offset by the reduction in margin. The current market opportunities are the household painters in the DFW area and the professional painters in the non-DFW areas, with the threats being the national distributors/stores catering to those same markets. As a result, maintaining the status quo is not an option. Instead, a combination of increased advertising and pressure sales, while maintaining premium pricing, should be implemented to capture the additional buyers in these markets. ...