Jone Blair Case

One might characterize the architectural paint coating industry as mature and as an industry where sales are high. The competition is strong because the market is profitable. The prices seem to drop because of an increase in competing products. The market is dominated by do it yourself shops and home centers. Forty three percent of total industry dollars account for architectural paint. Fifty percent of brands in the industry are private brands. Jones-Blair’s trading area markets its paint and sundry items in over fifty counties in Texas, Oklahoma, New Mexico, and Louisiana.

One might segment Jones-Blair’s market area as small, specific paint, special formulations, mid-to-high income customers who want quality paint, specialists, and focuses on the DFW are. Jones-Blair’s distribution is through two hundred independent paint stores, lumber yards, and hardware. Forty percent of outlets are located in 11 county DFW area, sixty percent of outlets are located in the other thirty nine counties. Fourteen stores in the DFW area carry Jones-Blair exclusively.

The segments that represent opportunities for Jones-Blair are non-metropolitan areas, non DFW areas where seventy percent went to do it yourself and the trend is upward sloping. Professional painters because of their high quality goods and services.

Jones Blair’s competitive advantage is its existing customer relationships. The firm’s relationship with retailers distinguishes the brand and allows them to be more profitable than competitors by building value of the brand. Also these existing relationships would be difficult for competitors to follow on a broad scale without significant time and investment.

Jones Blair should pursue the do-it-yourself market segment. The recommendation of increasing awareness by 30% through $350,000 of advertising, which nearly doubles the current advertising and sales promotion budget. Also Jones Blair focuses on professionals and accessories to make margin.

Jones Blair...