Jones Blair Situation Analysis

Jones Blair Company

Situation Analysis

Internal Analysis

• Overall Objectives

• Delegate marketing dollars available and decide which market segments are most reasonable to pursue and/or to continue to spend money in the architectural market.

• Overall Strategy

Jones Blair is currently using a defending strategy. This is because the industry is in the latter stages and it is becoming increasingly difficult to maintain margins.

• Headquartered in Dallas, Texas

• Operates in the architectural paint and sundry product industry

• Operates OEM coatings division (U.S. and worldwide)

• Target Markets

DFW metropolitan area (50 county area surrounded DFW)

• Product

• Architectural paint and sundries

• Channel

• Distributes products through 200 independent paint stores, lumberyards, and hardware outlets

• 40 % of the stores fall in the DFW area

• 60 % of the stores fall outside of the DFW area

• Sales are distributed evenly between DFW and non-DFW accounts

• Jones Blair products are carried exclusively by retail stores outside of the DFW area that exceed $50,000 of paint products.

• Price

• Jones Blair paint is highest priced in the industry

• Most retailers carry 2 or 3 product lines of Jones Blair products that are the highest priced in the store.

• Promotion

• 8 sales representatives

• 3% of sales is spend on promotional activities and advertising per year

• 55% of sales promotion dollars are allocated to promoting advertising programs with retail accounts.

• Survey results indicate that the sales reps were well liked, helpful, professional, and knowledgeable about paint

• Newspaper advertising and seasonal catalogs distributed in a retailer's immediate trade area

• The remainder of the advertising and sales promotion budget is spend on in-store displays, corporate brand advertising, out-door signs, regional magazines, premiums, and advertising production costs

• Budget