Case Study - Should JonesBlair Company, a privately held corporation that produces and markets architectural paint increase marketing efforts in the South West of the United States?

Authors Avatar by flamen80yahoocom (student)


From:        207898

To:        Steven Clinton

Date:        June 24, 2013

Re:        Jones-Blair Company

Recommendation:  Jones-Blair Company should continue doing what they are doing, and keep the cost structure the same.

Problem Statement:  Should Jones-Blair Company,  a privately held corporation that produces and markets architectural paint; increase marketing efforts in the South West of the United States by spending an extra $350,000 in corporate brand advertising, cutting prices by 20%, hiring one additional sales representative, or doing nothing?


  1. U.S. Paint Industry
  • The architectural coatings have a projected growth rate of 1-2% each year, and are considered a mature market.
  • Estimated sales of paint in 2004 were $16 billion.
  • Architectural paint coatings and sundries were $12 billion plus in 2004.

  1. Market Segments
  • Two major segments in the paint industry are do-it-yourselfers (DIY), and professional painters.
  • DIY
  • Roughly 50% of architectural coatings are from DIY painters.
  • Buyers view paint as paint and search for the lowest price.
  • Professional painters
  • 25% of architectural coatings came from professional painters
  • Seek quality products.
  • Seek retailers who will put in the extra effort for them.
  • Expect to work with knowledgeable employees when dealing with their paint.
  • Other
  • 25% of sales as a result of government, export, and contractor sales
  • Contractors look for the lowest price.

  1. Consolidation
  • The industry has seen a 40% reduction in the number of paint companies since 1980. This leaves roughly 600 companies still in business, but with a declining rate of 2-3% per year.  This is due to larger companies acquiring smaller ones in order to boost their specific market, or geographic presence.
  • More than 60% of sales in the architectural coating segment came from large national producers such as Sherwin-Williams, Benjamin Moore, the Glidden unite of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert.
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  1. Private  Brands
  • Roughly half of the architectural coatings are sold under private brands. These brands include Wal-Mart, Home Depot, Sears, and Lowes.
  1. Distribution
  • Jones-Blair Company distributes its products through 200 independent paint stores, lumber-yards, and hardware outlets.
  • 40% are located within the 11-county Dallas Fort Worth area.
  • 60% are located in the other 39 counties it services.
  1. Other Products
  • Sundries
  • The company sells brushes, rollers, and thinners. However, these are not manufactured by the company.
  • Original Equipment Manufacturing (OEM)
  • The company also operates a large OEM coatings division.
  • OEM is applied during manufacturing.
  • Used ...

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