The document discusses Jones Blair, a paint company based in Dallas, Texas, outlining its market segments, competitive landscape, and financial performance. It highlights the internal strengths and weaknesses of the company, as well as external opportunities and threats. The analysis culminates in recommendations to address marketing effectiveness, targeting rural professionals, and the addition of a sales representative to boost growth and market share.

1. Jones BlairBy: Adam Aldrete, Angela Davis, Jaimee Robinson, Mi Lin

2. U.S. Paint IndustryThree Segments of Industry:

3. Architectural Coatings

4. General purpose paints and varnishes used on residential and commercial structures

5. OEM Coatings

6. Used for durable goods such as automobiles, appliances, and industrial machinery

7. Special-Purpose Coatings

8. Used for special applications such as bridges, marine applications, and highway and traffic markingsJones BlairHeadquarters: Dallas, TexasService Area: Texas, Oklahoma, New Mexico, and Louisiana.Dallas-Fort worth (DFW) areaCompetition:600 paint companies in the US1999: $12 million net sales of Jones Blair architectural paint and allied products

9. Jones BlairDistribution:200 independent paint stores, lumberyards, and hardware outlets.40% of outlets are in DFW areaPromotion:

10. 8 sales representatives

11. Salary: $60,000

12. 1% commission on sales

13. 3% of net sales

14. advertising & sales promotion effortsWhat do you think Jones Blair’s problem is?

15. ProblemWhere and how does Jones-Blair Company deploy corporate marketing efforts among the various architectural paint coatings markets in their service areaShould they target: Professionals or Do-it-yourselfers?Where should they target: Dallas Fort Worth or surrounding areas?How are they going to accomplish this?

16. Internal StrengthsExperience – Founded in 1928Strong relationships between sales representatives and retail storesHigh qualitySell to both professionals and DIYersCooperative advertising with retailersMotivated, determined and passionateA lot of research availableLow Break Even - Excel

17. Internal WeaknessesOnly 3% of sales goes to advertising

18. Ads only reach and influence 25% of target

19. COGS is 60% of sales

20. Only 8 sales representatives

21. Narrow market penetration with sales reps

22. No exclusive rights with retailers

23. Highest price in marketExternal OpportunitiesMarket Growth: 1-2% per year Distributed to 200 of the 1,000 retail outlets in the area40% of these retailers are in rural areas DIY painters first choose a retail outlet for paint and sundries then choose a paint brand.Pro-painters are frequent buyers and look for paint that is high quality, durable and easy to clean upThe average dollar paint purchase per purchase occasion: $74.00. Average of $12.00 on sundryMarket Growth

24. External Threats600 different competitors

25. Competition is spending more on advertising

26. Competition is less expensive

27. Major in-house retailers have little knowledge

28. DIYers purchase paint once every four years and get what’s convenient and inexpensive

29. Contractors want paint for the lowest price.

30. Demand effected by substitutes, long lasting products and VOC regulationsTotal Market

31. Jones-Blair Market

32. Market Share

33. What do you think Jones Blair’s distinctive competencies are?Hint: There are 2!

34. Distinctive CompetencyQuality Best on the Market1 Coat CoverageMildew & Stain ResistantPleasant Fragrance1000’s of ColorsGood fit with professional paintersServiceSales RepresentativesWell LikedHelpfulProfessionalKnowledgeable1st name basis with customersDiscuss both Business & FamilyRun the StoreGood fit with rural area