This presentation was the first part of a group case study project in our marketing strategies course at Northern Kentucky University. The goal was to introduce the class to the main concepts of the case study and represent what ideas were brought forward by the management staff and how they would influence the company's profits/sales.

1. JUSTIN
DIAL
A MARKETING ANALYSIS
ASHLEY
FARNSLEY
TONY
HINKEL
NICOLE
MALOTT

2. SUMMARY
THE PAINT
INDUSTRY
JONES BLAIR
MARKET

3. U.S. PAINT INDUSTRY
THING OF THE PAST DOLLAR AMOUNT CATEGORIES
The manufacturing of
paint is generally
considered an aging
industry
Sales estimates from
2004 are slightly above
$16 Billion total
The paint industry can be
divided into three broad
segments:
1. Architectural Coatings
2. Original Equipment
Manufacturing
Coatings (OEM)
3. Special Purpose
Coatings

4. ARCHITECTURAL COATINGS
RESIDENTIAL
‘DIY’ CONSUMERS
COMMERCIAL
PAINTERS
GENERAL PURPOSE PAINTSVARNISHES LACQUERS
DIY = DO-IT-YOURSELF
43% OF TOTAL INDUSTRY SALES

5. OEM COATINGS
INDUSTRIAL
SPECIFICATIONS
USED
FOR
OEM Coatings are formulated to the
industrial buyer’s unique specifications
Durable goods that architectural
coatings paint isn’t suited for
35% OF TOTAL INDUSTRY SALES

6. SPECIAL-PURPOSE COATINGS
SPECIAL APPLICATIONS OR ENVIRONMENTAL CONDITIONS
22% OF TOTAL INDUSTRY SALES
FOR

7. OUTLOOK FOR ARCHITECTURAL
SALES
TYPE
Mature Market
Estimated sales of architectural paint &
sundries to be more than $12Billion in
2004
DEMAND
GROWTH
Sales expected to grow roughly 1-2% per
year
Reflects levels of housing redecorating,
maintenance, repair, and sales of existing
homes
FACTORS THAT DECRESE DEMAND
1. ALTERNATIVE MATERIALS 2. HIGHER QUALITY PRODUCTS

8. ARCHITECTURAL COMPETITION
NOW AND THEN OTHER PRODUCERS HOW SELLING WORKS
Rough estimate of
current paint supply
companies : 600
Roughly 40% fewer
companies than in in
1980
Rate of decline is
estimated to be 2% a
year
The producers account
for upwards of 60% of
sales
Market paint under
own brand name as
well as private labels
for retailers
50% of architectural
coatings are sold under
private labels
36% sold by speciality
paint stores
14% sold by hardware
stores and lumberyards
FREQUENCY
Speciality paint stores
outdistanced mass
merchandisers and home
improvement
Home centers and mass
merchandisers are more
frequently visited by
“DIY’ers”
Speciality shops and
lumberyards most visited
by professionals

9. WHO PURCHASES PAINT?
ARCHITECTURAL COATINGS PURCHASING BEHAVIOR
50.00%
25.00%
25.00%
Do-It-Yourself Painters Professional Painters Government, Export, and Contractor Sales

10. WHAT TYPES OF PAINT?
ARCHITECTURAL COATINGS PURCHASING BEHAVIOR
60.00%
38.00%
2.00%
Interior Paints Exterior Paints Lacquers and other applications

11. HOW MUCH IS BOUGHT DIY AVERAGE DOLLAR
Just short of 25% of
households buy
interior paint each year
DIY’ers have increased
product lines
Average dollar per
paint purchase roughly
equals $74
WHAT’S THE MARKET LIKE?
ARCHITECTURAL COATINGS PURCHASING BEHAVIOR

12. JONES BLAIR MARKET
DALLAS , TEXAS TEXAS
OKLAHOMA
MAJOR BUSINESS/FINANCIAL CENTER
BUSINESS FOCUS ON
SOUTHWEST STATES
NEW MEXICO
LOUISIANA
50 COUNTIES IN:

13. COMPETITION MAN. COMPETITION CONTROL OF DIY
1,000 outlets operate in
JBC 50 county operating
area
Aggressive pricing to
capture home construction
industry for manufacturing
competition
Low prices = attraction
50% control by mass
merchandisers
JONES BLAIR SERVICE AREA
THE JONES BLAIR MARKET

14. JONES BLAIR SERVICE AREA
JBC DOLLAR VALUE
KEY TO SUCCESS
Getting/keeping widespread distribution is
key
Dollar value in volume in architectural
coatings and allied products was $80
Million in 2004; 60% of which was DFW
area
DIY BUYERS
Made up 70% of non-contractor sales in DFW area
Made up 90% of non-countractor sales in other
areas
THE JONES BLAIR MARKET

15. JONES BLAIR COMPANY
ARCHITECTURAL RISE IN SALES/PRICE COG
Architectural paint and
allied supplies sales
volume in 2004 was
$12 million with a net
profit of $1,140,000
Dollar sales increased
by 4% per year in the
past decade
Successful in
maintaining margins
but reaching the price
threshold as they are
the highest priced in
the service area
2004 paint Cost of
Goods Sold was 60% of
net sales ($7.2 million)

16. JONES BLAIR DISTRIBUTION
DFW
INDEPENDENT
200 independent paint stores, lumberyards,
and hardware stores
40% of outlets located in the DFW area
PREMIUM
EXCLUSIVE
Non-DFW area outlets that exceed purchases
of $50,000 annually, only carry the Jones
Blair brand
Except for 14 outlets, all other outlets
carry 2-3 other names and the Jones Blair
name is the premium priced brand
THE JONES BLAIR MARKET

17. PROMOTION AND SALES
INVENTORY
ORDERS
IN-STORE DISPLAYS
8 SALES REPS
MONITOR
COORDINATE
ADVERTISING
PROGRAMS

18. JONES BLAIR WORKOUT
GROUP A
THANK YOU
JUSTIN
DIAL
ASHLEY
FARNSLEY
TONY
HINKEL
NICOLE
MALOTT