This was a group project done on a case study of Jones Blair. The goal of the project was to complete a market share assessment, a break even analysis, and identification of core competencies.

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

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

10. 8 sales representatives

11. Salary: $60,000

12. 1% commission on sales

13. 3% of net sales

15. Problem Where and how does Jones-Blair Company deploy corporate marketing efforts among the various architectural paint coatings markets in their service area Should 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 Strengths Experience – Founded in 1928 Strong relationships between sales representatives and retail stores High quality Sell to both professionals and DIYers Cooperative advertising with retailers Motivated, determined and passionate A lot of research available Low Break Even - Excel

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

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.

31. Jones-Blair Market

32. Market Share

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

34. Distinctive Competency Quality Best on the Market 1 Coat Coverage Mildew & Stain Resistant Pleasant Fragrance 1000’s of Colors Good fit with professional painters Service Sales Representatives Well Liked Helpful Professional Knowledgeable 1st name basis with customers Discuss both Business & Family Run the Store Good fit with rural area

35. Create an Ad Best ad wins a tasty treat Inspirational Video

36. Alternatives Increase advertising dollars by $350,000 and use it for TV ads Have an overall 20% price cut Add one more sales representative Continue to guard margins and control costs President Barrett’s suggestions Ad dollars used for print media instead of TV 40% price cut to attract contractors

37. Which Alternative Do You Think Is The Best?

38. VP of Advertising Direct efforts to Dallas Fort Worth DIY Increase awareness to 30 % Advertising Increase of $350,000 Television Coverage in 15 Counties

39. Pros/Cons Pros Low added costs Extra $1 million in BE Break Even: $3,400,000 Increased Awareness Cons Less Focused 75% of audience is not buying paint

40. VP of Operation Advertising isn’t right Need to be competitive in DIY Consumers are Price Sensitive Cut Price by 20%

41. Pros/Cons Pros Competitive Price Gain Market Share In DIY Sectors Cons Break Even: $4,480,000 Huge break even Lowers perception of quality

42. Vice President of Sales Target: Non-DFW areas Where ½ of the sales and most dealers exist right now Solution: Add another sales rep There are already 8 This rep would develop new retail account leads and call on professional painters to solicit their business through our dealers Cost to add another dealer is $60,000

43. Pros/Cons Pros Motivated to inspire team Potential for success Large Market Break Even: $2,571,429 Not affected too much Cons Risky Sales reps aren’t that effective

44. Vice President of Finance Keep everything the same Continue to guard margins and control costs

45. Pros/Cons Pros Not Risky Keep doing what company does best Cons Doesn’t solve the problem Not a lot of results will come

46. President Barrett 40% price cut Redirect Advertising Newspaper & Catalogs Focus on Rural

47. Pros/Cons Pros Attractive for contractors More Focused Advertising Cons Increase cost for competitive bidding Constant Loss Break Even: -$14,280,000

49. Recommendation VP of Sales Extra Sales Associate $60,000 annually Focus on Rural Pro

50. Why Rural Professional Distinctive Competency Good Service & High Quality Good Fit On a 1st name basis with store owners Control 45% of the market Best “Bang for the Buck”

51. Implementation Hire 1 additional Representative – NOW! Sales Training Kick their butts into gear Clarify Roles New focus: Rural Professional Painters Increase personal sales by 5% Projected Sales & New Break Even

52. Recap Focus on Rural Professionals Additional Staff 57.5% Sales Increase Annual Savings of $969,730 Almost $1million!!! Reinvest Growth? An Offer You Can’t Refuse!!!

53. Questions? Comments? Concerns?