Jones Blair Case

 Essay regarding Jones Blair Case

Jones Blair Case

SWOT Analysis:

Strong points

•High top quality products

•High quality support with

•Knowledgeable revenue representatives that know clients personally •Mature market 1-2% sales progress long-term

•Shelf goods 43% of total industry money sales

•Specialty paint retailers & lumberyards most frequently patronized •Distributes through 200 self-employed paint shops

•Maintaining margins while increasing R& G, material, & labor costs •Market to major business/financial center (DFW)

•Total sales/year increasing dollars sales price 4% annually Weakness

•Slow sales growth

•Reduce emissions of risky compounds

•Compliance w/ ENVIRONMENTAL PROTECTION AGENCY = low profit margins

•Presence in DFW do it yourself market, in-home centers

•Non-DFW market

•New accounts, only added 5 in last 5 years

•High costs for product

•DFW Sales reduced

•Paint gallon-age hasn't changed in years

•Highest listed paint in service area, especially in DFW

•Awareness of the firm

Opportunities

•Need to increase customer awareness by simply 30%

•Increase demand for paint sundries because of trend toward do it yourself portrait •Interior more popular than external

•Expand past paint

•Primarily in DFW area, therefore advertising outside of DFW

•Increase advertising over all mediums, catalogues etc

•Develop new price tag accounts prospects and penetrations

•Professional painters could get business to them

•Discount coupon gives on every obtain after 1st to build commitment •Increase builder sales

•Number of color companies are weak at a rate of two to 3% a year •US Paint sector is maturing, over $13 billion in 1997

Dangers

•Research & design= low profit margins

•Customers choose retail outlet first, in that case brand

•Companies like Wal-Mart becoming greater

•Competition by cheaper paint brands

•More options besides painting

•Competition in DFW market

•Competition in non-DFW market

•Sherwin Williams, Benjamin Moore, Sears, Kmart, Residence Depot and so forth, strong manufacturers & retail department possess recently improved competition

PEST:

Politics

•Compliance with government regulations is definitely partially accountable for the combination and buy activity inside the U. T. paint industry since 1990 Economic

•The EPA suggested plan for 25% reduction of VOC in 1996, 35% in 2000, and 45% in 2003, furthering the lower profit margins in the paint industry Social

•Do-it-yourself painters initially choose a retail outlet for paint and paint sundries, in that case choose a fresh paint brand •4 Step Buying decision method: decide on project/product, gather info (first by friend/relatives), choose store, after which decide on merchandise Technology

•New distribution approach

•Lack of available technology and the difference in paint formulations for regional climatic needs, a small number of regional paint producers can successfully compete against the nationally releasing paint manufacturers

3 C's:

Consumers

•200 independent color stores, lumberyards, & equipment outlets •40% of retailers in the DFW area

•Markets paint & sundry items in more than 50 states including Texas, Oklahoma, New Mexico, & Louisiana Rivals

•60% of sale in architectural coating segment head to Sherwin-Williams, Dernier-ne Moore, the Glidden unit of Soberano Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert •50% of sales in the new coatings can be purchased under private controlled, or store brands in Pep boys, Kmart, Wal-mart, and House Deport •Retail outlets away from DFW area with color and sundry purchases exceeding $50, 500 annually carry only this system line. •Only 14 retailers in DFW carry the Jones/Blair line specifically, other carry two or three lines of which Jones Blair is most expensive. •All other brands inside the service location are less costly than Jones/Blair. Company

•Architectural paint & allied product sales volume in 1997 was $12 , 000, 000 & fresh profit prior to taxes was $1140000 •Dollar sales acquired increased in a average annual rate...


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