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Jones Blair Company

SUMMARY

1) How might the architectural paint industry be characterized? 2
a) The US paint industry 2
b) Architectural paint industry 2
2) How might the JB market area be characterized? 2
3) How can this market be segmented? 2
4) Which market to pursue? 2
a) Non-DFW Household, a high potential for growth 2
b) Urban professional, wants high quality paints 2
c) Non-DFW Professional, already dominant 2
d) Urban Household, very price- sensitive 2
5) What competitive position does Jones Blair have in its market? 2
6) What strategy should JB adopt to reach the segment sought? 2
a) Spend additional $350,000 on corporate advertising 2
Pros 2
Cons 2
b) Cut price by 20% 2
Pros 2
Cons 2
c) Hire one additional sales representative 2
Pros 2
Cons 2
d) Do Nothing (Status Quo) 2
Pros 2
Cons 2
7) Recommendations 2
SLIDES 2


1) How might the architectural paint industry be characterized?
a) The US paint industry
The US paint industry is considered to be a maturing industry. Industry sales in 1995 were estimated to be slightly over $13 billion.
The US paint market is divided into three segments: architectural coatings (43%), original equipment manufacturing (OEM) coatings (35%)and special purpose coatings (22%).
The architectural coatings are general purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures. They are sold through wholesalers and retailers.
OEM coatings are formulated to industrial buyer specifications and they are used for durable goods such as automobiles, transportation equipment, building products industrial machinery and equipment etc.
Special purpose coatings are formulated for special applications or environmental conditions (extreme temperatures, exposure to chemicals). They are used for automotive and machinery refinishing, industrial construction such as factories, railroads, utilities, bridges marine application, highway and traffic machines and roof paints.
b)...