Jones Blare Case: Day Two Write Up

Jones Blare Case: Day Two Write Up

2.

Proposal two is to increase advertising to the DIY household segment by $350,000 for corporate brand awareness. This option would implement a pull strategy by focusing mostly television ads. According to research an awareness level of 30% among do-it-yourselfers will materially affect sales.

Jones Blair is currently allocating 3% of net sales ($360,000) on advertising and sales promotion efforts. 55% of that ($198,000) is allocated to cooperative advertising programs with retail accounts. Adding $350,000 to the sales and advertising budget would be doubling the current budget. That is 146% of the $162,000 that is not used to promote cooperative advertising. What I am trying to say is, the $350,000 increase in sales and advertising budget is HUGE.

Pros:

• This approach is targeting two largest market areas, DFW/DIY and non-DFW/DIY. These two markets total 62.8 million dollars in sales. If Jones Blair can capture a small percentage of this market share, they can still drastically increase their sales

• Research shows that brand awareness directly correlates to the last brand bought by a consumer that shops at a retailer store. Because the average DIY painter goes to a retail store then selects their brand among the selection at the store, increasing advertising will almost certainly increase the chances of consumers buying Jones Blair if it is carried in their store.

• Increasing using a pull strategy to advertise to consumers may indirectly increase the retailer’s interest in carrying Jones Blair Paint in their stores especially outside of the DFW area. If more customers demand Jones Blair Paint because they had been exposed to the television advertisements, store owners may be more reluctant to carry our products when they are approached by a sales person.

Cons: