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 o ...