Jones-Blair case

Jones-Blair case

Background

Blair Jones is a privately held U.S. manufacturing industry operating in the market trading paint under the brand Blair Jones. The latter markets its products in 50 counties in Texas, Oklahoma, New Mexico, Louisiana, and which constitute its Dallas Fort Worth market. Blair Jones is faced with increasing competition, the turnover of the company has been relatively stable, and prompting the president of Jones Blair, Alexander Barrett to call a meeting to discuss the disagreement of the steering committee on the distribution marketing efforts within the various segments of trading paint the Company serves.

Question # 1

American Paint Industry

The U.S. paint industry is divided into three large sections: (l) architectural layers, (2) original equipment manufacturer (OEM) and layers (3) layers of a particular purpose. Layers consist of architectural paints universal, varnishes and lacquers used on residential, commercial and institutional, sold by wholesalers and retailers and purchased by consumers DIY, painting contractors and professional painters. Architectural layers are generally referred to goods shelf and represent sales of total industry dollar of 45 percent (Yerak, 2002). OEM layers are made to the specifications (specifications) of industrial purchaser and are applied to the original equipment during manufacture. These layers are used for durable goods such as automobiles, trucks, transportation equipment, appliances, furniture and fittings, metal containers and construction products (building) and industrial machinery and equipment. OEM layers represent 35 percent of dollar sales of total industry.

In 1995 all over in America the sales for only architectural paint coating was near to 5.5 billion. This market was more of like mature market because it had slow growth which is a main characteristic of mature market. Analysis of the local market states that in 1984, the market is $ 55 million, mature as that of the country. The secteurrural ($ 22 million) is growing rapidly (30% per year) and the urban area ($ 33 million) is rather declining. Jones Blair Company markets its paints and preferably several related articles in the state of Texas. In this state serves both the metropolitan area of ??Dallas-Fort worth (DFW) as well as the rest of the state's rural areas. Blair Company's paintings are of high quality but in turn have the highest market price. According to the information provided, the optimal variables to segment the market are of a geographically and by type of user. Specifically distinguish between the DFW area and away from consumers and between professionals and "do it yourself.

Question # 2

The paint industry of American is divided into Special purpose coating, Architectural coating, and Original Equipment manufacturing (Sheth, 2010). We have focused on Architectural coating for analysis of this paper. There are two geographic areas of Jones Blair's market. Non Dallas-Fort Worth and Dallas-Fort Worth which is also headquarter of company. By focusing on people in and out of DFW is segmented according to geographical Variable should focus outside DWF. You should also psychographic segmentation so as to be oriented to DIY consumers, because they represent about 50% of ...