Jones Blair Case Analysis

Jones Blair Case Analysis

Kaushik dutta(2019BLP079)

Background and Problem defination

Jones Blair is a manufacturer of paint coatings located in southwest of US. The headquarters of the company is located in Texas, Dallas and most of the operations take place within the 11 county Dallas-Fort Worth areas. Now the US paint market is considered to be maturing industry and the growth rate has been very sluggish. Although they have managed to perform good in the current year but substitute products and superior quality of paints are coming in the market which would affect their sales and long term sales growth projected in the range of 1-2% only. The competition has also increased over the past few years and some of the big players like K-mart, Wal-Mart, Sherwin-Williams are coming up with department stores, where customers are getting everything under one roof. Now the management of the company needs to decide where and how to deploy the corporate marketing efforts.

Market and Industry Analysis

The estimated dollar volume of architectural paint and allied products sold in Jones Blair’s 50 countries service area in 2004 was 80 millions. From the case we got to know that DFW was estimated to account for 60% of market. Although non-DFW market has been growing, DFW market has slightly decreased. Do-it-your-selfers buyers account for 70% in DFW and 90% in other areas. So in DFW-48 m and Do-it-yourself is 33.6M(70%) and Professional is 14.4M(30%). In case of Non-DFW-32M, Do-it-your-selfers is 28.8M(90%) and Professional is 3.2M(10%). Research by Home-improvement research institute shows that Do-it-your-selfers first chose a retail outlet then chose a paint brand and they are more concerned about the pricing. But Professional painters seek out quality product which would