Jones Blair Case Brief

Sean Vicario

Marketing 489

Case Brief – Jones Blair Company

Jones Blair Company is a prosperous paint company that takes great pride in their quality paint. They market their paint and sundry items in over 50 counties including Texas, Oklahoma, New Mexico, Louisiana, with their plant headquarters located in Dallas Fort Worth. Corporate has realized competition has increased tremendously and feel there needs to be changes done to their marketing efforts among the various architectural paint coating markets in the southwestern United States.

In 2004 this 50-county area had $80 million in sales volume and DFW alone accounted for 60% of this. With DFW being overly saturated, I feel that it is necessary to take advantage of this opportunity and expand more business into non-DFW counties. In the DFW County the do-it-yourself market holds 70% of sales while in the non-DFW counties the do-it-yourself holds 90% of sales. Fortunately for Jones Blair, do-it-yourself is where this company truly excels because they have high quality paint, which requires fewer appliances while being more attractive when used. After calculating, Jones Blair has a very strong market share of 15% (see exhibit 1) and only increasing per year. This means if Jones Blair were to expand their business more in non-DFW counties they would have the potential to increase their sales in the do-it-yourself segment as well as expand vastly in the professional segment as well. Reason being, the professional segment only holds a 10% market share.

Recommendation 1: The Vice President of Advertisement would like to increase spending on corporate advertising to $350,000. If this were to be done there would need to be $1,000,000 in additional sales per year to break even (see exhibit 3). This would bring an 8.3% increase in current sales (see exhibit 4).

Recommendation 2: The Vice President of Operations would like to cut the prices of their quality paint by 20%. If this were to be done there...