INTRODUCTION
In early January 1998, Alexander Barrett, President of Jones Blair Company (JBC), was not satisfied with the meeting which is still has no resolution. The executive group still had not decided where and how to deploy the corporate marketing efforts among the various architectural paint coatings markets serves by the company in the Southwestern United States.
The critical issues that JBC should look into in the current situation is whether to:
(i) Segment the market ~ identify and profile the groups of buyers who differ in their needs and preferences.
(ii) Target the market ~ select one or more market segments to enter
(iii) Position the market ~ for each target segment, establish and communicate the key distinctive benefits of the company's market offering.
OVERVIEW OF THE PAINT INDUSTRY
Paint is known as durable goods, which infrequently purchased. Thus, it is also perceived as a commodity good. The industry is growing mature and the volume growth is slowing down with limited potential for differentiation. Increasing competition at both manufacturing and retail levels requires further concentration in manufacturing sector and vertical integration at retail level. There was also an increasing competition from substitute products as for example aluminum and vinyl sliding, interior wall coverings and wool paneling. The paint industry faced a strong price competition between paint manufacturers. The paint purchase behaviors are as follows:
ù Industrial Sales ~ electrical households goods, cars, ships, furniture etc.
ù Trade Sales ~ for three groups of buyers i.e. households, professional painters, contractors.
OVERVIEW OF JBC MARKET AREA
The overall sales volumes in dollar are growing at 6% ...