Jones Blair Case

The executive group at Jones Blair Company has encountered a problem and various alternatives have been provided by different departments of the company to overcome the problem. The company struggles to use proper marketing strategy to overcome the problem. The company's Vice President for advertising directs the company to concentrate on advertising to capture the untapped market segment in DFW do-it-yourself market which takes the 50% of market segment in the current scenario. The company should increase brand awareness through advertising in the DIY market. The vice president of operations suggests that the company should cut down the price of the product by 20% to make the product comparable in the hypercompetitive market but this might make the consumers think otherwise about the quality of the paint. The vice president of finance suggests that the company should resume doing the same and not bring any changes in the company i.e. the profit should be met and costs should be controlled. The vice president of sales directs that the sales representative should be hired and that they should be more aggressive in tapping the untapped market. The company's goodwill should not go down, the solution should resolve the problems and it should be a cost effective solution.

Spending on advertising is expensive as it focuses on only one market segment and raises the awareness by only 30% and this option is risky. Cutting down the prices of the products by 20% might question the quality of the paint and the profit will be hit if the sales volume is not increased which is again a bad strategy to be followed. Continue doing the same thing and not doing anything would be a wrong decision to take as without changing the aspect of the marketing the sales may decrease and can be a heavy loss for the company.

The best option is to hire new sales representatives; the sales department is relaxed at the moment and they have made only five new accounts. Jones