Submitted by: Submitted by shanelynch12
Views: 955
Words: 2189
Pages: 9
Category: Business and Industry
Date Submitted: 01/30/2011 06:35 AM
Marketing 4434 (01)
Jones Blair Company
Shane Lynch
L0506007
Prof. M. Das
Jan. 19, 2011
I. Executive Summary
Blair Jones Company needs to decide where and how to deploy corporate marketing efforts among their markets, while gaining market share and recouping noncapital expenditures within a one-year time horizon.
Blair Jones Company exists in a highly competitive market that is hard to enter. This industry has been plagued with mergers and acquisition activity. Mass merchandisers are making moves and lumberyards and specialty paint stores have been able to compete, especially in non-metropolitan areas where they have distanced themselves from big box stores like Kmart and Home Depot.
There are three types of consumers in this market:
1) Do-it-yourselfers
2) Painting professionals
3) Painting contractors
Jones Blair wants to increase market share through corporate marketing efforts while recovering the costs associated with the chosen option.
The options presented for implementation in 2000 were:
1) Increase advertising in the DFW area by $350,000
2) Cut prices on paint and supplies by 20%
3) Add an additional sales representative at a cost of $60,000
4) Status quo
Based on a quantitative and qualitative analysis Jones Blair Company should choose the forth option, status quo. This option assumes the least risk and allows for the likelihood of making a profit and possible increased sales. This option would be a conservative move towards their long-term goals. This would allow them to observe market trends more closely for an extended period of time in order to make better decisions next year while remaining competitive in the market.
This plan would be evaluated with a sales comparison to last year, after every quarter. If sales are down by more than $150,000 after the second quarter than the hiring of a contract sales person for the latter part of the year would be recommended.
II. Problem...