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Jones Blair - Case Summary

            
             There is a company in Paint Industry called Jones Blair Company which has spread its wings in paint industry very well, but due to current slow growth in market has made them think more about their marketing efforts to maintain and grow in this saturated business. All executives met several times in last few days but with no final consensus on the problem. The problem is to understand how & where to deploy corporate marketing efforts.
             Market and Industry Analysis.
             US paint industry divided into three broad segments out of which architectural coatings which constitutes 43% of total industry sales in dollars fetches more business for Jones Blair Company. US paint industry is a maturing industry with total sales over $16 billion & architectural paint coatings and sundries market is estimated to be at $ 12 billion plus in 2004 with growth rate of 1 to 2 % per annum. This is because of the high demand arising out of level of house redecorating, maintenance and repairs as well as sales of existing homes. Home centres and mass merchandisers are the favourite choice by do it yourself group of customers while specialty paint stores and lumberyards are the choice of professionals. Barrett, the president of Jones Blair Company says that for do-it-yourself category of consumers other things such as services and information related to better painting and colour combinations creates lot of difference. Jones Blaire Company sold their products to over 50 counties out of which around 50% of business comes from Dallas Fort Worth (DFW) it means out of 1200 outlet 600 are there in DFW area creating the Jones Blaire company a widespread area. The estimated dollar volume of architectural paints and sundries sold in 2004 by jones Blair Company was $80 Mn and a net profit of $1.14Mn with a growth rate of 4% making it the premium priced brand in paint industry. Company spends 3% of net sales on advertising and out of this 55% goes for cooperative advertising program and rest in in store displays, corporate brand advertising, etc.


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