SlideShare une entreprise Scribd logo
1  sur  10
FACULTY OF BUSINESS MANAGEMENT


  STRATEGIC MARKETING MANAGEMENT
                  (MKT 750)


                 CASE STUDY
         JONES BLAIR COMPANY


                PREPARED BY:
             ROSAZILA BINTI MUSA
                 2011627906
     SITI NORHABIBAH BINTI HASSAN
                 2011822068
NURULAIN BINTI MAZLAN
2011772643
     NURATIQAH NABILAH AB MANAN
                 2011370547
       AHMAD MUSTAPHA A.WAHAB
                 2011174185
PREPARED FOR:
                                  DR ANIZAH

                                     GROUP:
                                    BM7702P
1.       Company Description


     1.1.   U.S Paint Industry
     The US paint industry is divided into three broad segments which are:


a. Architectural coatings
     -   consist of general-purpose paints, varnishes, and lacquers used on residential,
         commercial, and institutional structures, sold through wholesalers and
         retailers, and purchased by do-it-yourself consumers, painting contractors and
         professional painters.


b. Original equipment manufacturing (OEM) coatings
     -   are formulated to industrial buyer specifications and are applied to original
         equipment during manufacturing. These coatings are used fro durable goods
         such ad automobiles, trucks, transportation equipment, appliances, furniture
         and fixtures, metal containers and building products, and industrial machinery
         and equipment.


c. Special-purpose coatings
     -   are formulated for special applications or environmental conditions. These
         coatings are used for automotive and machinery refinishing, industrial
         construction and maintenance, bridges, marine applications, highway and
         traffic markings, aerosol and metallic paints and roof paints.
Segment           Architectural       Original equipment           Special-purpose
                               coatings          manufacturing                 coatings
                                                 (OEM) coatings

% of total industry             43%                    35%                       22%
dollar sales


    1.2.           Jones Blair Company


          The Jones Blair Company is a privately held corporation that produces and
markets architectural paint under the Jones Blair brand name. The company distributes its
products through 200 independent paint stores, lumberyards and hardware outlets. 40%
of its outlets are allocated in the 11-country Dallas-Fort worth (DFW) area and the
remaining is situated in the other 39 countries in the service area. Retail outlets outside
the DFW area with paint and sundry purchases exceeding $50,000 annually carry only
the Jones Blair product line but except for 14 outlets in DFW which carry the Jones Blair
line exclusively, the retailers only carry two or three lines with line being premium
priced. Currently, Jones Blair employs 8 sales representatives which responsible for
monitoring inventories in each retail outlet, taking order, assisting in store display and
coordinating cooperative advertising programs. They are paid a salary and a 1%
commission on sales. The company spends approximately 3% of net sales on advertising
and sales promotion efforts.


    2.       Situation Analysis


          The problems of the case studies are where and how does the Jones Blair deploy
corporate marketing efforts among the various architectural paint coatings markets in
their service area.
          a. Should they target professionals or do-it-yourselfer market?
          b. Where should they target? Either Dallas-Fort Worth or non- Dallas-Fort
             Worth area?
c. How they going to accomplish this matter?




   3.       SWOT Analysis


Strengths                                     Opportunities
        -   Founded in 1980 whereby Jones           -   Long-term sales growth projected in the
            Blair is an experience company              range of 1-2% per year
            in the industry                         -   Distributed in 200 independent paint
        -   Strong relationships between                stores, lumberyards and hardware
            sales representatives and Jones             outlets.
            Blair retail outlets.                   -   40% of the retailers in rural area
        -   High quality of product                 -   Researches indicate that the average
        -   Sell to both professionals and              dollar paint purchase per purchase
            do-it-yourselfers                           occasion is about $74.00 and average
        -   Cooperative advertising                     dollar sundry purchase by purchase
            programs with retailers                     occasion is about $12.00
                                                    -   Researches indicates that do-it-yourself
                                                        painters first choose a retail outlet for
                                                        paint and then choose a paint brand
Weaknesses                                    Threats
        -   3% of net sales for advertising         -   600 different competitors in the industry
            purposes                                -   Competition is spending more on
        -   Advertising only reach 25% of               advertising and is less expensive
            target audiences                        -   Do-it-yourselfer purchase paint once
        -   Only 8 sales representatives in             every 4 years and get what’s convenient
retail outlets                               and inexpensive
         -   Narrow market penetration                -   Contractors want large quantities of
             (DFW areas)                                  paint for the lowest price
         -   Highest priced of product in the         -   Demand effected by substitutes, long
             market                                       lasting products and volatile organic
                                                          compounds (VOC)regulations



    4.       Core Competency and Sustainable Competitive Advantage


         In terms of core competency, Jones Blair seeks to achieve a unique ability a) to
provide distinctive, high-quality of paint which is the best on market and good fit with
professional painters and b) provide excellent sales representatives (well liked, helpful,
knowledgeable, and can run the store) in retail outlets for them to help customers and
they also good fit in rural area.




    5.       Alternatives


    Jones Blair senior management team has developed four different suggestions to
lighten the companies marketing problem as below:-


5.1.     Spend additional $350,000 for television advertising


         The advertising department proposes a television campaign targeted at the DFW
do-it-yourself market to increase customer’s awareness. A recent survey noted that only
25% of this population is aware of Jones Blair product range and only about 12% of this
population would make a purchase. This cost for television advertisement targeted mainly
in the Dallas Fort Worth (DFW) area at the do-it-yourself market and also to reach non-
DFW customer as well which will significantly increase the awareness of Jones Blair
products. Research has proven that brand awareness is a major factor in purchasing
decisions.


       If Jones Blair does agree to use this method the company will need to make at
least $1,000,000 sales to break even and cover the cost of this new promotion
($350,000/.35= $1,000,000). Most of the DFW consumers are do-it-yourselfers, so
television advertising will be beneficial in this market.


5.2   Have an overall 20% price cut


       Compared to other leading national brands, Jones Blair is priced relatively high.
This is based on the extremely high quality and performance of the products. By cutting
price, Jones Blair will be able to stay competitive in price with other the other products
on the market.


       In 1997 architectural product sales volume was $12,000,000. Jones Blair has a
current net profit of $1.14 million, and to stay profitable it must maintain this amount.
$12,000,000*.35= $4,200,000


If Jones Blair reduced its price by 20% the contribution margin will drop to 15%.
New contribution margin = 35 % (current contribution margin) – 20% (price reduction)
                          = 15%


How much sales will John Blair achieve with this new contribution margin?
($ 12,000,000 + X) * 15% = $ 4,200,000
$ 1,800,000 + 0.15X = $ 4,200,000
0.15X = $ 2,400,000
X = 16,000,000 (New Sales Volume)


$16,000,000 – $12,000,000      = 4,000,000 (Sales Increase Amount)
$4,000,000 / $12,000,000       = 0.33
= 33% (Sales Increase)


Referring to the above simulation, 20% price reduction will drive the company to a 33%
increase in sales.




5.3      Hire additional sales representatives
         Hiring an additional sales rep will allow Jones Blair to focus on new markets.
They would develop new retail account leads and call on professional painters to solicit
their business through our dealers.


         Sales of non-DFW territory are crucial for maintaining competition in the market.
A sales rep would cost the company $60,000 a year. So the company would need about
$171,428.58 ($60,000/.35) of additional profits to cover this yearly cost. Current existing
120 retailers are located outside of DFW. From the current achievement, $4,200,000 is
the amount needed to be maintained in order for Jones Blair to stay profitable. Profit
amount required from each retailers in order to maintain the profit is $35,000
($4,200,000/120). From the figure, Jones Blair would acquire at least 5 new accounts in
order to get breakeven return on new representatives’ investment ($171,428.58/$35,000 =
4.89).


5.4      Continue to guard margins and control costs
         Jones Blair has continually making profits year by year; so they should maintain
their current marketing objectives and operate their business as usual. Jones Blair has
done an excellent job in the past by watching the margins and controlling costs. The
company will not need to spend any additional money.


Jones Blair will not change any of their current marketing strategies and practices. By
guarding margins and cost controlling, Jones Blair will still continue to make profit.
5.5        President Barrett’s suggestions whereby additional dollars used for print media
                   (newspapers and catalogs) in non-DFW areas instead of television advertising and
                   40% price cut to attract contractors to buy large quantities of paint from Jones
                   Blair outlets




              6.      Alternatives Analysis


Alternatives                                       Strengths                      Weaknesses
a) Spend additional $350,000 on          •    Increased customer              •   Almost doubling current
corporate advertising                         awareness                           advertising costs
                                         •    Low added cost (extra               ($360,000+$350,000).
                                              1million in break-even)         •   Has little guarantee of
                                                                                  results because about
                                                                                  75% of the viewing
                                                                                  audience does not buy
                                                                                  paint.
b) Have an overall 20% price             •    The company will sell           •   May not be able to sell
cut                                           more because of                     enough in volume to
                                              competitive price                   cover cost of goods sold.
                                         •    Gain more market share in       •   Lower perception of
                                              do-it-yourself market               quality because of
                                                                                  cheaper price in the
                                                                                  market
c) Hire additional sales                 •    Potential for success           •   Risky
representatives                          •    Does not cost the company       •   Sales representatives
                                              a significant amount of             aren’t that effective
                                              money to do.
d) Continue to guard margins             •    Not risky                       •   No solution for the
and control costs                        •    Keep doing what company             problem
does best
e) President Barrett’s                       •   Attract more contractors to       •   Increase more cost,
suggestions                                      purchase paint from Jones             expertise of competitive
                                                 Blair                                 bidding for large jobs
                                             •   More focused advertising          •   Will continue losses
                                                 in rural areas

                7.      Suggestion for Jones Blair Company to Solve the Problem


           i.        Actively pursue non-DFW Household and Professional markets




          ii.        Seek more retail accounts in non-DFW markets.
                     Jones Blair should concentrate on increasing the number of distributors of its
                     products in rural areas. The Dallas-Fort Worth market may be saturated and place
                     importance on quality and service, but the rural market is still in expansion and in
                     need of a producer to fill the quality-service niche. Any producer that wants to
                     secure this niche needs to be present. Being present which means selling paints in
                     a large percentage number of retail stores. Jones Blair is currently lacking in this
                     area, and should be able to improve its position by hiring a new representative.


         iii.        Hire one additional sales representative who is in charge of developing new
                     accounts. If budget permits, hire two. Each can be assigned to Professional and
                     Household markets respectively.


         iv.         Engage in cooperative advertising with current advertising budget.
                     Four facts have led us to a preference for in-store promotion. First, the audience
                     reached by expensive television campaigns is made up essentially of people who
                     don't by paint. More precisely, 75% of the viewing audience falls into this
                     category. Secondly, the majority of consumers decide which brand they will buy
                     before entering the store. Thirdly, the majority of advertising is based on price
competition. Lastly, other forms of publicity, such as mailers and newspaper ads,
     are often overlooked or find their way directly to the trash. In order to counteract
     these advertising inconveniences, we feel that in-store promotion should be tested
     and further developed if resultants are positive. In-store promotion is more
     economical than an expensive television campaign. And most importantly, it
     counteracts the brand decision that many customers have supposedly already
     made before entering the store. Also, in-store advertising can be more easily
     based on quality and service.


v.   Maintain prices

Contenu connexe

Tendances

Aqualisa Quartz: Simply a Better Shower
Aqualisa Quartz: Simply a Better ShowerAqualisa Quartz: Simply a Better Shower
Aqualisa Quartz: Simply a Better Shower
Akshay Hiremath
 
Pharmasim final presentation
Pharmasim final presentationPharmasim final presentation
Pharmasim final presentation
AuT Tanwichit
 

Tendances (20)

GINO SA: CHANNEL DISTRIBUTION MANAGEMENT
GINO SA: CHANNEL DISTRIBUTION MANAGEMENTGINO SA: CHANNEL DISTRIBUTION MANAGEMENT
GINO SA: CHANNEL DISTRIBUTION MANAGEMENT
 
Aqualisa Quartz: Simply a Better Shower
Aqualisa Quartz: Simply a Better ShowerAqualisa Quartz: Simply a Better Shower
Aqualisa Quartz: Simply a Better Shower
 
Pharmasim final presentation
Pharmasim final presentationPharmasim final presentation
Pharmasim final presentation
 
Barco Projection Systems Case Study
Barco Projection Systems Case StudyBarco Projection Systems Case Study
Barco Projection Systems Case Study
 
Black & Decker 1990 Strategy (MBA Case)
Black & Decker 1990 Strategy (MBA Case)Black & Decker 1990 Strategy (MBA Case)
Black & Decker 1990 Strategy (MBA Case)
 
Natureview Farm : Harvard Business School Case
Natureview Farm : Harvard Business School CaseNatureview Farm : Harvard Business School Case
Natureview Farm : Harvard Business School Case
 
Unilever Brazil Case
Unilever Brazil CaseUnilever Brazil Case
Unilever Brazil Case
 
Boots: Hair Care Sales Promotion | Analysis
Boots: Hair Care Sales Promotion | AnalysisBoots: Hair Care Sales Promotion | Analysis
Boots: Hair Care Sales Promotion | Analysis
 
Cree Inc - Management Decisions
Cree Inc - Management DecisionsCree Inc - Management Decisions
Cree Inc - Management Decisions
 
Unilever in Brazil: Marketing Strategy
Unilever in Brazil: Marketing StrategyUnilever in Brazil: Marketing Strategy
Unilever in Brazil: Marketing Strategy
 
Boots: Hair-Care Sales Promotion- Case Analysis
Boots: Hair-Care Sales Promotion- Case AnalysisBoots: Hair-Care Sales Promotion- Case Analysis
Boots: Hair-Care Sales Promotion- Case Analysis
 
Colgate palmolive case analysis
Colgate palmolive case analysisColgate palmolive case analysis
Colgate palmolive case analysis
 
Optical distortion, inc
Optical distortion, incOptical distortion, inc
Optical distortion, inc
 
Natureview farm-A Hbr Case Study
Natureview farm-A Hbr Case StudyNatureview farm-A Hbr Case Study
Natureview farm-A Hbr Case Study
 
Reed Supermarkets - A New Wave of Competition
Reed Supermarkets - A New Wave of CompetitionReed Supermarkets - A New Wave of Competition
Reed Supermarkets - A New Wave of Competition
 
Metabical Case study
Metabical Case studyMetabical Case study
Metabical Case study
 
Biopure corporation
Biopure corporationBiopure corporation
Biopure corporation
 
S'well Presentation
S'well PresentationS'well Presentation
S'well Presentation
 
Case analysis :Gino SA distribution channel management
Case analysis :Gino SA distribution channel managementCase analysis :Gino SA distribution channel management
Case analysis :Gino SA distribution channel management
 
Natureview Farm Case Analysis
Natureview Farm Case AnalysisNatureview Farm Case Analysis
Natureview Farm Case Analysis
 

Similaire à The jones blair company

Berager paints project report
Berager paints   project reportBerager paints   project report
Berager paints project report
Mohan Suyamburaj
 
[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win
[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win
[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win
Biswadeep Ghosh Hazra
 
Case Study 2 Final 2
Case Study 2 Final 2Case Study 2 Final 2
Case Study 2 Final 2
katrinaalbert
 
Distribution channel of dominos
Distribution channel of dominosDistribution channel of dominos
Distribution channel of dominos
Chanda Singh
 

Similaire à The jones blair company (20)

Jhon's blair
Jhon's blair Jhon's blair
Jhon's blair
 
strategic marketing management
strategic marketing managementstrategic marketing management
strategic marketing management
 
Berger paints
Berger paintsBerger paints
Berger paints
 
49855059-berger-paints.ppt
49855059-berger-paints.ppt49855059-berger-paints.ppt
49855059-berger-paints.ppt
 
ecomulsion-business plan
ecomulsion-business planecomulsion-business plan
ecomulsion-business plan
 
Jones Blair Case Study
Jones Blair Case StudyJones Blair Case Study
Jones Blair Case Study
 
Brand Valuation Fundamentals
Brand Valuation FundamentalsBrand Valuation Fundamentals
Brand Valuation Fundamentals
 
Beacon October 2015
Beacon October 2015Beacon October 2015
Beacon October 2015
 
Paints
PaintsPaints
Paints
 
Paints And Coatings Global Market Briefing Report 2016
Paints And Coatings Global Market Briefing Report 2016Paints And Coatings Global Market Briefing Report 2016
Paints And Coatings Global Market Briefing Report 2016
 
Brands vs private labels
Brands  vs  private labelsBrands  vs  private labels
Brands vs private labels
 
Nerolac Marketing Mix
Nerolac Marketing Mix Nerolac Marketing Mix
Nerolac Marketing Mix
 
Berager paints project report
Berager paints   project reportBerager paints   project report
Berager paints project report
 
Financial Analysis Paint Industry
Financial Analysis Paint IndustryFinancial Analysis Paint Industry
Financial Analysis Paint Industry
 
Indian Paint Industry
 Indian Paint Industry Indian Paint Industry
Indian Paint Industry
 
Asian paints
Asian paintsAsian paints
Asian paints
 
[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win
[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win
[Project] Retail Management Report Brands Versus Private Labels- Fighting to Win
 
A Study on Retailers and Builders perception towards Paints
A Study on Retailers and Builders perception towards PaintsA Study on Retailers and Builders perception towards Paints
A Study on Retailers and Builders perception towards Paints
 
Case Study 2 Final 2
Case Study 2 Final 2Case Study 2 Final 2
Case Study 2 Final 2
 
Distribution channel of dominos
Distribution channel of dominosDistribution channel of dominos
Distribution channel of dominos
 

Dernier

Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...
Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...
Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...
Klinik kandungan
 
Obat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di Jakarta
Obat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di JakartaObat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di Jakarta
Obat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di Jakarta
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di PasuruanObat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
nafizanafzal
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
vineshkumarsajnani12
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 
obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...
obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...
obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...
yulianti213969
 

Dernier (20)

Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
 
Moradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in PenacovaMoradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in Penacova
 
Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...
Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...
Jual obat aborsi Hongkong ( 085657271886 ) Cytote pil telat bulan penggugur k...
 
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdfThe Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
 
Obat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di Jakarta
Obat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di JakartaObat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di Jakarta
Obat Aborsi Jakarta 0851\7696\3835 Jual Obat Cytotec Di Jakarta
 
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di PasuruanObat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
 
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptxThompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
 
Presentation on cross cultural negotiations.
Presentation on cross cultural negotiations.Presentation on cross cultural negotiations.
Presentation on cross cultural negotiations.
 
Progress Report - Oracle's OCI Analyst Summit 2024
Progress Report - Oracle's OCI Analyst Summit 2024Progress Report - Oracle's OCI Analyst Summit 2024
Progress Report - Oracle's OCI Analyst Summit 2024
 
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
 
Sex service available my WhatsApp number 7374088497
Sex service available my WhatsApp number 7374088497Sex service available my WhatsApp number 7374088497
Sex service available my WhatsApp number 7374088497
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deck
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deckPitch Deck Teardown: Goodcarbon's $5.5m Seed deck
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deck
 
What are the differences between an international company, a global company, ...
What are the differences between an international company, a global company, ...What are the differences between an international company, a global company, ...
What are the differences between an international company, a global company, ...
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
 
obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...
obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...
obat aborsi jakarta wa 081336238223 jual obat aborsi cytotec asli di jakarta9...
 
A DAY IN LIFE OF A NEGOTIATOR By Pondicherry University MBA Students.pptx
A DAY IN LIFE OF A NEGOTIATOR By Pondicherry University MBA Students.pptxA DAY IN LIFE OF A NEGOTIATOR By Pondicherry University MBA Students.pptx
A DAY IN LIFE OF A NEGOTIATOR By Pondicherry University MBA Students.pptx
 

The jones blair company

  • 1. FACULTY OF BUSINESS MANAGEMENT STRATEGIC MARKETING MANAGEMENT (MKT 750) CASE STUDY JONES BLAIR COMPANY PREPARED BY: ROSAZILA BINTI MUSA 2011627906 SITI NORHABIBAH BINTI HASSAN 2011822068 NURULAIN BINTI MAZLAN 2011772643 NURATIQAH NABILAH AB MANAN 2011370547 AHMAD MUSTAPHA A.WAHAB 2011174185
  • 2. PREPARED FOR: DR ANIZAH GROUP: BM7702P 1. Company Description 1.1. U.S Paint Industry The US paint industry is divided into three broad segments which are: a. Architectural coatings - consist of general-purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures, sold through wholesalers and retailers, and purchased by do-it-yourself consumers, painting contractors and professional painters. b. Original equipment manufacturing (OEM) coatings - are formulated to industrial buyer specifications and are applied to original equipment during manufacturing. These coatings are used fro durable goods such ad automobiles, trucks, transportation equipment, appliances, furniture and fixtures, metal containers and building products, and industrial machinery and equipment. c. Special-purpose coatings - are formulated for special applications or environmental conditions. These coatings are used for automotive and machinery refinishing, industrial construction and maintenance, bridges, marine applications, highway and traffic markings, aerosol and metallic paints and roof paints.
  • 3. Segment Architectural Original equipment Special-purpose coatings manufacturing coatings (OEM) coatings % of total industry 43% 35% 22% dollar sales 1.2. Jones Blair Company The Jones Blair Company is a privately held corporation that produces and markets architectural paint under the Jones Blair brand name. The company distributes its products through 200 independent paint stores, lumberyards and hardware outlets. 40% of its outlets are allocated in the 11-country Dallas-Fort worth (DFW) area and the remaining is situated in the other 39 countries in the service area. Retail outlets outside the DFW area with paint and sundry purchases exceeding $50,000 annually carry only the Jones Blair product line but except for 14 outlets in DFW which carry the Jones Blair line exclusively, the retailers only carry two or three lines with line being premium priced. Currently, Jones Blair employs 8 sales representatives which responsible for monitoring inventories in each retail outlet, taking order, assisting in store display and coordinating cooperative advertising programs. They are paid a salary and a 1% commission on sales. The company spends approximately 3% of net sales on advertising and sales promotion efforts. 2. Situation Analysis The problems of the case studies are where and how does the Jones Blair deploy corporate marketing efforts among the various architectural paint coatings markets in their service area. a. Should they target professionals or do-it-yourselfer market? b. Where should they target? Either Dallas-Fort Worth or non- Dallas-Fort Worth area?
  • 4. c. How they going to accomplish this matter? 3. SWOT Analysis Strengths Opportunities - Founded in 1980 whereby Jones - Long-term sales growth projected in the Blair is an experience company range of 1-2% per year in the industry - Distributed in 200 independent paint - Strong relationships between stores, lumberyards and hardware sales representatives and Jones outlets. Blair retail outlets. - 40% of the retailers in rural area - High quality of product - Researches indicate that the average - Sell to both professionals and dollar paint purchase per purchase do-it-yourselfers occasion is about $74.00 and average - Cooperative advertising dollar sundry purchase by purchase programs with retailers occasion is about $12.00 - Researches indicates that do-it-yourself painters first choose a retail outlet for paint and then choose a paint brand Weaknesses Threats - 3% of net sales for advertising - 600 different competitors in the industry purposes - Competition is spending more on - Advertising only reach 25% of advertising and is less expensive target audiences - Do-it-yourselfer purchase paint once - Only 8 sales representatives in every 4 years and get what’s convenient
  • 5. retail outlets and inexpensive - Narrow market penetration - Contractors want large quantities of (DFW areas) paint for the lowest price - Highest priced of product in the - Demand effected by substitutes, long market lasting products and volatile organic compounds (VOC)regulations 4. Core Competency and Sustainable Competitive Advantage In terms of core competency, Jones Blair seeks to achieve a unique ability a) to provide distinctive, high-quality of paint which is the best on market and good fit with professional painters and b) provide excellent sales representatives (well liked, helpful, knowledgeable, and can run the store) in retail outlets for them to help customers and they also good fit in rural area. 5. Alternatives Jones Blair senior management team has developed four different suggestions to lighten the companies marketing problem as below:- 5.1. Spend additional $350,000 for television advertising The advertising department proposes a television campaign targeted at the DFW do-it-yourself market to increase customer’s awareness. A recent survey noted that only 25% of this population is aware of Jones Blair product range and only about 12% of this population would make a purchase. This cost for television advertisement targeted mainly in the Dallas Fort Worth (DFW) area at the do-it-yourself market and also to reach non- DFW customer as well which will significantly increase the awareness of Jones Blair
  • 6. products. Research has proven that brand awareness is a major factor in purchasing decisions. If Jones Blair does agree to use this method the company will need to make at least $1,000,000 sales to break even and cover the cost of this new promotion ($350,000/.35= $1,000,000). Most of the DFW consumers are do-it-yourselfers, so television advertising will be beneficial in this market. 5.2 Have an overall 20% price cut Compared to other leading national brands, Jones Blair is priced relatively high. This is based on the extremely high quality and performance of the products. By cutting price, Jones Blair will be able to stay competitive in price with other the other products on the market. In 1997 architectural product sales volume was $12,000,000. Jones Blair has a current net profit of $1.14 million, and to stay profitable it must maintain this amount. $12,000,000*.35= $4,200,000 If Jones Blair reduced its price by 20% the contribution margin will drop to 15%. New contribution margin = 35 % (current contribution margin) – 20% (price reduction) = 15% How much sales will John Blair achieve with this new contribution margin? ($ 12,000,000 + X) * 15% = $ 4,200,000 $ 1,800,000 + 0.15X = $ 4,200,000 0.15X = $ 2,400,000 X = 16,000,000 (New Sales Volume) $16,000,000 – $12,000,000 = 4,000,000 (Sales Increase Amount) $4,000,000 / $12,000,000 = 0.33
  • 7. = 33% (Sales Increase) Referring to the above simulation, 20% price reduction will drive the company to a 33% increase in sales. 5.3 Hire additional sales representatives Hiring an additional sales rep will allow Jones Blair to focus on new markets. They would develop new retail account leads and call on professional painters to solicit their business through our dealers. Sales of non-DFW territory are crucial for maintaining competition in the market. A sales rep would cost the company $60,000 a year. So the company would need about $171,428.58 ($60,000/.35) of additional profits to cover this yearly cost. Current existing 120 retailers are located outside of DFW. From the current achievement, $4,200,000 is the amount needed to be maintained in order for Jones Blair to stay profitable. Profit amount required from each retailers in order to maintain the profit is $35,000 ($4,200,000/120). From the figure, Jones Blair would acquire at least 5 new accounts in order to get breakeven return on new representatives’ investment ($171,428.58/$35,000 = 4.89). 5.4 Continue to guard margins and control costs Jones Blair has continually making profits year by year; so they should maintain their current marketing objectives and operate their business as usual. Jones Blair has done an excellent job in the past by watching the margins and controlling costs. The company will not need to spend any additional money. Jones Blair will not change any of their current marketing strategies and practices. By guarding margins and cost controlling, Jones Blair will still continue to make profit.
  • 8. 5.5 President Barrett’s suggestions whereby additional dollars used for print media (newspapers and catalogs) in non-DFW areas instead of television advertising and 40% price cut to attract contractors to buy large quantities of paint from Jones Blair outlets 6. Alternatives Analysis Alternatives Strengths Weaknesses a) Spend additional $350,000 on • Increased customer • Almost doubling current corporate advertising awareness advertising costs • Low added cost (extra ($360,000+$350,000). 1million in break-even) • Has little guarantee of results because about 75% of the viewing audience does not buy paint. b) Have an overall 20% price • The company will sell • May not be able to sell cut more because of enough in volume to competitive price cover cost of goods sold. • Gain more market share in • Lower perception of do-it-yourself market quality because of cheaper price in the market c) Hire additional sales • Potential for success • Risky representatives • Does not cost the company • Sales representatives a significant amount of aren’t that effective money to do. d) Continue to guard margins • Not risky • No solution for the and control costs • Keep doing what company problem
  • 9. does best e) President Barrett’s • Attract more contractors to • Increase more cost, suggestions purchase paint from Jones expertise of competitive Blair bidding for large jobs • More focused advertising • Will continue losses in rural areas 7. Suggestion for Jones Blair Company to Solve the Problem i. Actively pursue non-DFW Household and Professional markets ii. Seek more retail accounts in non-DFW markets. Jones Blair should concentrate on increasing the number of distributors of its products in rural areas. The Dallas-Fort Worth market may be saturated and place importance on quality and service, but the rural market is still in expansion and in need of a producer to fill the quality-service niche. Any producer that wants to secure this niche needs to be present. Being present which means selling paints in a large percentage number of retail stores. Jones Blair is currently lacking in this area, and should be able to improve its position by hiring a new representative. iii. Hire one additional sales representative who is in charge of developing new accounts. If budget permits, hire two. Each can be assigned to Professional and Household markets respectively. iv. Engage in cooperative advertising with current advertising budget. Four facts have led us to a preference for in-store promotion. First, the audience reached by expensive television campaigns is made up essentially of people who don't by paint. More precisely, 75% of the viewing audience falls into this category. Secondly, the majority of consumers decide which brand they will buy before entering the store. Thirdly, the majority of advertising is based on price
  • 10. competition. Lastly, other forms of publicity, such as mailers and newspaper ads, are often overlooked or find their way directly to the trash. In order to counteract these advertising inconveniences, we feel that in-store promotion should be tested and further developed if resultants are positive. In-store promotion is more economical than an expensive television campaign. And most importantly, it counteracts the brand decision that many customers have supposedly already made before entering the store. Also, in-store advertising can be more easily based on quality and service. v. Maintain prices