Jones Blair

Jones Blair Company

A Case Study

By

Michael Warfield

Problem:

Jones Blair Company’s critical problem is deciding how to effectively deploy marketing efforts among the various architectural paint coatings markets, within the southwestern United States. A timely decision is necessary to implement a tactical plan quickly, as peak painting season is approaching. With the U.S. paint industry being a maturing industry and more importantly the architectural coatings market being mature, large growth is not expected. The issue, rather, is how to swing the existing market towards Jones Blair brand paint and equipment.

Alternatives:

The alternatives at hand, as presented by the vice presidents in a recent meeting, suggest there are four options on the table.

1) First, as represented by the Vice President of Advertising, marketing efforts must be increased. A proposal of a $350,000 increase in corporate brand advertising; through mostly television in the Dallas-Fort Worth (DFW) area, was deemed necessary to reach an awareness level of 30% in order to get Jones Blair higher brand recognition among buyers.

2) The second alternative, headed by Vice President of Operations, is to target the do-it-yourself segment instead of segmenting by region. The alternative suggests Jason Blair take a price cut of 20% on all paint products. Advertising in newspapers would demonstrate the price cut, favorably comparing Jones Blair paint to the competitors within the paper.

3) The third alternative also suggests the focus be taken off of the DFW area but rather be put on the surrounding counties in the Non-DFW. The Vice President of Sales believes hiring an additional sale representative, at a direct cost of $60,000, to bring in new accounts.

4) Finally, the last alternative suggested by Vice President of Finance is to continue with the current approach. The key to maintaining Jones Blair profitability will be in watching...