That does mean their break-even point will need to increase with the drop in prices but netting larger sales. A very large threat to the Jones Blair company is the consolidation and competition in the architectural coatings segment. The company employs eight sales representatives whoa re responsible for monitoring inventories in retail outlets as well as taking orders, assisting in store displays and coordinating cooperative marketing efforts. During the third meeting, management has decided to develop a conclusion on how to pursue a solid plan in the marketing field for architectural paint coating product. The advantage of this issue is guarding their profit margin and contribution margin as of controlling costs. Problem Definition: Currently in the high-end of the trade market, Jones-Blair specializes in higher quality paint products that target the do-it-yourself consumers as well as the professional painters that want high quality products with great Price can be adjusted to optimize profit.
The sundries offered are not produced by the company itself but carries the Jones Blair brand logo. Not looking into long term vision of the company. Many of the larger retailers that Jones Blair supply, carry only the Jones Blair line while very few carry several lines with Jones Blair being the premium and higher priced product. 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. Factual Summary: The executives at Jones Blair find themselves at an impasse. It is necessary to cut the prices in order to be competitive with other national brands in rural market with same quality.
The industry has slow sales growth and is constantly changing due to government regulations. Hiring an additional sales person to focus solely on developing new retail account leads and presentations as well as working with professional painting firms has the least monetary risk involved and the ability to produce unlimited results. Recommendations Jones Blair needs to look into the future and envision the company competing with competitors. His works can still be found in the village of historic structures like St. In order to reach these business goals at a time when growth is nonexistent, Jones-Blair must take immediate action and increase their sales team and refocus their sales energies.
This shows that the surrounding areas and counties are currently a stronger growing market even though the Dallas-Fort Worth is a fairly stable market with a larger drop from 1998 to 1999. Jones Blair is in fact the highest prized paints in the market. When it comes down to choose the correct course of action one has to look at the risk of the investment. Background about Panera Bread Case study discussion Suggested Action Plan based on strategy mentioned in the case study Comparing suggested plan with actual plan implemented by Panera Bread Summary Background Panera Bread Company specializes in bakery-cafes and it one of largest food service company in United states. After doing all this analysis, consumer must match his budget with the chosen alternative whether he could purchase it or not. Paint companies that sell to contractors serving the home construction industry have aggressively priced their products to capture a higher percentage of the home construction market.
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. Research has proven that brand awareness is a major factor in purchasing decisions. There are eight currently employed sales representatives; we have only added five new accounts in the last five years. He also suggested becoming more competitive in do-it-yourself market. Jones Blair Company divided the market, which contains more than 1200 outlets, into He could get information from the internet, friends through word of mouth, advertisements in newspaper or magazines or even on media, from professionals, from retailers. This is due to the of research and development in their products. Currently, the company employs eight sales reps to manage the inventory and customer expectation at the companies 200 cooperative retail outlets.
National paint firms are spending nearly ten times the dollar amount in advertising as Jones Blair. Brand image is important to consumers and television ads are a great way to get the name out. Special-purpose coatings - are formulated for special applications or environmental conditions. The architectural coatings sales are distributed evenly between two-market area segments, Dallas fort-worth area and the non-Dallas-fort worth areas. From this small shop, Fred Jones plied his trade, shoeing horses and making wonderful wrought iron works, using simple forges and hand tools. The company is in fear of facing a plateau in price and being able stay competitive in the industry.
In developing their strategy forward, Jones must address two key issues to address the problem statement. Jones Blair Company is a privately held corporation that produces and markets paint under the Jones- Blair brand name. Reduce price by 20% By reducing the price, Jones Blair will be more competitive with other brands. After analyzing the previous options, it is apparently clear that in order to exponentially increase sales the Jones-Blair Company should hire an additional sales representative. Jones Blair distributes its product through over 200 independent paint stores, lumberyards, and hardware outlets.
The main emphasis of the studies is paid on architectural paint coating and sundries. Jones Blair mainly deals with customers looking for a high end product. 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. Promotion should be directed with this in mind Do-it-yourselfers first chose a retail outlet then chose a paint brand. 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. During the third meeting, management has decided to develop a conclusion on how to pursue a solid plan in the marketing field for architectural paint coating product lines, given that peak season is quickly approaching. A slow growth is one of the main characteristic of a mature market.
Also the increase of the advertising costs will not solve the problem because 75% of the audience is not buying paint. The image and character of Mary Harris Jones greatly influenced the early labor movement. There is adequate data to support this fact. With most paint companies becoming so massive, many consumers are looking for a high quality locally produced product. The slow growth rate of industry is because of growing of materials such as plastic and aluminum that require little paint. Also, as mentioned earlier, the high quality and high service can benefit the client to customer relationship, resulting in referrals and higher volumes of sales and branding.