Jones Blair

Problem Recognition

Jones Blair company is small paint catting in the south western U.S. headquarters is located in Dallas, Texas. And it does most of its business in and around 11 countries Dallas forth region. Company sells top quality of paint & accessories.it also sells OEM materials to different customers both nationally and internationally. The company is currently looking for solutions for marketing of sundries and coatings. Company actually deals with high end product, as it uses top quality coatings by continuous R&D solutions. This led company to price its product at high in the market.it has 50%sales to customers and 25% of sales by professional painters with point of purchase service, durability.

Company has increased sales by every year but sales volumes haven’t changed. Due to high cost R&D on its products the company is feared of facing in price and stay competitive in the industry.

Jones Blair needs to determine where and how the company will market its products in the southern US. Currently, the company employs 8 sales representatives to manage inventory and customer expectation at the company’s 200 cooperative retail outlets.

The company spends 3% of its net sales ($12,000,000*.03= $360,000) of this 55% is spent on cooperative advertising ($360,000*.55= $198,000). This is spent on newspaper advertising and catalogues. The rest is spent on in-store displays, brand advertising, website, outlet signs, regional magazines, premiums, and advertising production costs. This case analysis will determine where and how the company should market its products.

Alternatives

Jones Blair has developed four alternatives to relieve the company’s marketing problem.

a) Spend additional $350,000 on corporate advertising:-This money will be used to increase awareness. Most of it will be spent on television ads targeted mainly in the Dallas Fort Worth (DFW) area at the do-it-yourself market. Brand image is important to consumers and television ads are a...