• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Analysis of Jones-Blair Company paint makers

Extracts from this document...

Introduction

Jones-Blair Company Strengths - JBC offers a high quality product that is seen by those with knowledge of the industry as the premium product available - JBC has an excellent sales representative staff that is seen as knowledgable, friendly, and trustworthy - although architectural coatings are considered to be a mature market, the long-term growth potential in the industry is 1 to 2% per year - competition in the industry is decreasing, with 40% fewer companies in the industry than in 1975 - Smaller specialty paint and hardware stores/lumberyards have outdistanced mass merchandisers in non metropolitan areas, due to the lack of home-improvement centers and mass merchandisers in less populated areas, as well as the customer relations and service the smaller organizations develop in these areas - professional painters often turn to JBC and similar products because they understand and bank their reputation on the quality of the products they use, and appreciate retailers who give the ...read more.

Middle

the dollar sales made in the industry are by people who generally are purchasing paint solely on price - contractors also generally ignore quality and look for lowest price when purchasing paint Opportunities - JBC could increase advertising by $350,000, with an emphasis on television, to achieve higher awareness among the Dallas-Fort Worth do-it-yourselfer market to at least 30 percent o This would almost double the current marketing budget, which is $360,000 (12 mil * 3%), and probably would not help much; brand awareness is not the only issue for JBC, buyer behavior among DIY painters is an issue as well - JBC could cut prices by 20% to reach a price that is similar to many of its competitors, due to the fact that even the sale price of JBC products is higher than the everyday price of paints at mass merchandisers o This would greatly cut into the contribution margin for JBC, and would probably cost ...read more.

Conclusion

market share in this industry, especially for regional companies trying to compete with national companies - may also bite into JBC's position as the premium paint line - 60% of the architectural coatings market is controlled by 7 large companies o half of all architectural coatings are sold under private, controlled, or store brands, all of which the large competitors sell under - Wal Mart has begun to effectively compete in non-metropolitan areas, meaning that other mass merchandisers could soon follow suit - Competition at the retail level has accelerated in recent years within the DFW area - JBC admits that the mass merchandisers, which control half of the DIY paint market in the DFW area, not only have lower prices, but also have good quality - Despite the growth of dollar sales in the past decade, paint gallonage sales have remained the same for the past 5 years, and JBC is reaching the threshold for its prices ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Unit 9: Marketing Strategy

    In order to gain more accurate data larger samples must be taken with an ideal world having every resident of Sutton-on-Sea taking the questionnaire. Whilst looking into secondary research I found that often to gain more accurate results payment is required, this now seems obvious to me as these websites

  2. SWOT Analysis

    Nowadays, soft drinks industry is affected by consumers' rising health awareness to produce healthy and nutritious drinks (Global Market Information Database 2006). Fruit juice and bottled water enjoyed strong growth in soft drinks industry, largely because of this reason. According to Euromonitor International estimates (Global Market Information Database 2006), the

  1. PEST is a planning tool which is used by a business to evaluate and ...

    people may buy their savoury products from other companies that have a larger range of products that are suitable for their needs. Another PEST factor that I think could affect Ginsters is Advertising and publicity. This is the effect that advertising and publicity has on a business.

  2. SWOT and Pestel analysis for Carlton Forum leisure centre

    It would put budgets under strain. New government in place -3 -3 -9 With a new government in place this can put many businesses under strain as legislations, funding and policies could set to change. These are normally negative changes because when anew government come into place it they want

  1. Business plan. The business that I am going to produce is a personalised logo ...

    - I need to be aware of this is my business as I will be putting a short description of the products in which I will sell on my website for customers to read, and so if this is wrong or misleading in any way I could find myself and my business in trouble.

  2. Disneyland and M&S. I am going to investigate customer service in two separate ...

    If an employee is well motivated they tend to work more efficiently increasing the productivity and successfulness of a business. However an unmotivated employee will drag the business down and become unsuccessful as the workforce is unable to carry out the set workload.

  1. Customer Service Analysis Between MacDonald Hotel and Chester Zoo.

    They can hold there conference at Bath and also pick Macdonald hotel over there other competitors. They meet the needs of the business visitors as they offer free break at an award winning restaurant, a room to hold their meeting and then relax in the afternoon at the Spa.

  2. Situational Analysis of Jones Blair Paint Company.

    Distributes to 200 independent paint stores, lumber yards, and hardware outlets out of 1000 in the area, with 40% of retailers in non-DFW 3. 40% of outlets are in the Dallas Fort-Worth Area (DFW) and 60% are in Texas, Oklahoma, New Mexico, and Louisiana.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work