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Jones Blair

Problem Statement
Jones-Blair is a regional paint manufacturer that focuses on high quality paint in the Dallas-Fort Worth area and the surrounding 50 counties. Jones-Blair competes in a mature market, where sales have steadily increased at the rate of inflation. Jones-Blair has seen continuous growth in sales dollars due to increasing prices, of which are the highest in the market. Jones-Blair faces a major dilemma in that they must maintain their growth and profit margins, but in order to do so, they must increase their overall sales in a very mature market that is facing increased competition from commodity priced brand name paints that significantly undercut Jones-Blair prices throughout the region. The Jones-Blair management staff is determined to find the proper solution through the proper sales strategy and marketing mix within the architectural paint market.

Situation Assessment
The market which Jones-Blair competes is sub-divided into two distinct markets. The DFW area has seen steady declining sales while in the non-DFW area, sales have steadily increased (Exhibit 1). The market for do-it-yourself consumers is forecasting growth and it seems to be the best segment for Jones-Blair to focus its efforts since it represents 90 percent of non-contractor related volume outside the DFW area and 70 percent in DFW (Exhibit 1). Additionally, competition is growing in the DFW area and provides a significant threat to Jones-Blair's emphasis on quality, thus higher prices. Research suggests that do-it yourself painters view paint as a commodity, thus are not as focused on quality and are not as willing to pay higher prices. In order to increase sales, the company must focus on increased advertising and sales support. At the same time, the company also faces external threats due to strong environmental pressure to increase regulation on the emissions of volatile organic compounds (VOCs). The company is required to spend R&D in this area therefore...