Jones Blair Case

The Jones Blair Company produces and markets architectural paint under the Jones Blair brand. In addition to architectural paint, the company sells paint sundries as well as operates a very large OEM coatings division. Jones Blair Company markets its paint and other items in over 50 counties in Texas, Oklahoma, New Mexico and Louisiana. While dollar sales have increased, the sheer number of paint gallonage sold has remained stable. While costs continue to increase, The Jones Blair Company remains successful due to their high prices; however, Jones Blair is reaching their price maximum. The main problem facing the senior management of Jones Blair Company is where and how to implement corporate marketing efforts.

The U.S paint industry is divided into three segments; architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose coatings. Architectural paint dominates the market with 43% in total sales dollars, and this is what Jones Blair is focusing their marketing efforts on. This industry is maturing, meaning that there is a lack of growth. The paint industry faces competition from alternative materials, as well as high-quality products and paints that reduce the amount of paint necessary. An important note for retailers that sell this product is that consumers will first choose a retailer and then choose a paint brand. Jones Blair Company markets their product in two different areas, The Dallas-Forth Worth (DFW) area consisting of 11 counties, and the non-DFW are containing of 39 counties. Competition in the retail level has increased significantly, both in large retail stores as well as smaller individual stores. The Do-it-yourself painter is responsible for large percentages of sales in both areas, meaning that the trend is towards individuals and retailers, not professional painters or contractors. With little growth in this mature market, Jones Blair needs a marketing strategy to get the most sales with the least cost.

Alternative 1: An increase of $350,000 in corporate brand advertising would emphasize a presence on television.