Analysis of Jones-Blair Company paint makers

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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 extra effort, knowledge, and service that makes their job easier
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- due to their premium pricing, JBC has relatively low COGS, which creates a higher contribution margin and higher profits

- company utilizes co-operative ads with retail accounts; these types of adds cost JBC less because they split the costs with retail stores based on the dollar amount of purchases that retailer makes from JBC

Weaknesses

- JBC was in an industry dominated by several huge competitors

- the average do-it-yourselfer has an outlook that all paints are the same, and will generally purchase paint based on price

o consumers tend ...

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