Marketing Stragegies

Nader Annous

Professor Ziad Haddad

MKT 450 – Strategic Marketing Management

January 23, 2014

Jones Blair Case Study

The Jones Blair Company is an exclusive paint manufacturer that sells premium paint at the highest quality to its prospects (Architectural and OEM materials) . They’re base operations and headquarters are established in Dallas, Texas with most of its business flourish in the 11 country zone. Jones Blair’s Company also has businesses launched in different states including Oklahoma, Louisiana and New Mexico.

At the moment Jones Blair is facing very elaborate issue. What can be deduced from the case is that the company is making 12 million dollars in Net Sales and the funds are being allocated to different departments and expenses. Currently they have invested heavily on research and development causing their products quality to increase significantly but also forcing prices to reach an all-time high. An increase in sales volume has been noted over the years but it has been overshadowed by the increase in price thus keeping it on par with its past financial reports. At the moment Jones Blair accommodates its do-it-yourself customer range whom are made up of households and people who purchase the high-end paint to refurbish the interiors of their homes. 50% of Blair’s market is soaked by the do-it-yourself prospects. 25% of their clientele are professional hired painters whom are looking for quality over efficiency. To break it down the company’s Net Sales is 12 million $. 8% of net sales is allocated to the sales representatives as commission for their efforts. This entails an amount of 960, 000 dollars to be given as commission to the sales reps. Also, present advertising plans are between 2-3% of net sales (we’ll assume 3%). Thus, we can conclude 360,000 $ are spent on advertising (12million x .03) of which 198, 000 is spent on catalogs and newspaper ads (55%) and 162,000 $ being spent on store displays, regional magazines, brand image...