Jones Blair Company

Jones Blair Company

Length: 1212 words (3.5 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Problem Recognition

The Jones Blair Company is a small paint (coatings) producer in the southwestern United States. The company plant and headquarters are located in Dallas, Texas; and it does most of its business within this 11 county Dallas-Fort-Worth region, and also Oklahoma, New Mexico and Louisiana. Currently the company sells top quality architectural paint and accessories to various markets. The company also sells OEM materials to domestic and international customers. Jones Blair is currently looking for solutions for marketing their architectural coatings and sundries.
Jones Blair mainly deals with customers looking for a high end product. They strive to produce top quality coatings by continually researching and developing new solutions. This has led the Jones Blair product to be the highest priced product on the market. Jones Blair caters to mainly do-it-yourself customers (50% of sales) and professional painters (25% of sales) looking for great point of purchase service, ease of application, and durability.
The Jones Blair Company has increased sales on an annual basis, but the sales volume has stayed the same. This is due to the high cost of research and development in their products. The company is in fear of facing a plateau in price and being able stay competitive in the industry. Jones Blair needs to determine where and how the company will market its architectural products in the southern US.
Currently, the company employs eight sales reps to manage the inventory and customer expectation at the companies 200 cooperative retail outlets. The company spends roughly 3% of net sales ($12,000,000*.03= $360,000). Of this 55% is spent on cooperative advertising ($360,000*.55= $198,000). This is spent on newspaper advertising and seasonal catalogs distributed by retailer. The rest of the advertising budget is spent on in-store displays, corporate brand advertising, a website, outlet signs, regional magazines, premiums, and advertising production costs. This case analysis will determine where and how the company should market its architectural products.

Jones Blair has developed four alternatives to relieve the companies marketing problem.
a) Spend additional $350,000 on corporate advertising;
b) Cut price by 20%;
c) Hire one additional sales rep.;
d) Do Nothing (Status Quo).
a) Spend additional $350,000 on corporate advertising
This money will be used to increase awareness. Most of it will be spent on television ads targeted mainly in the Dallas Fort Worth (DFW) area at the do-it-yourself market. Brand image is important to consumers and television ads are a great way to get the name out.

How to Cite this Page

MLA Citation:
"Jones Blair Company." 22 Apr 2019

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Jones Blair Company Essay

- Introduction The U.S. paint industry is very large and competition among the coating company is quite intense. Jones Blair Company markets its paint and sundry items in over 50 countries and in order to know which the customers of Jones Blair Company are, we have to break down and build up the potential buyers into groups to structure the market. Market Segmentation The market of Jones Blair can be divided to two groups: Dallas-Fort Worth area and Non Dallas-Fort Worth. Among these two areas, we have got the contractor, professional painter and DIY household but the number of contractor is so minimal so we do not focus on this....   [tags: Business Market Analysis]

Free Essays
1267 words (3.6 pages)

Strategy and Action Plans for Panera Bread Company Essay

- Introduction This report draws the action plans required to implement strategy for Panera Bread Company introduced in the case study included in strategic planning course. The following topics are discussed in this report. 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....   [tags: business analysis]

Research Papers
1181 words (3.4 pages)

Jones Blair Case Analysis Essay

- Jones∙Blair Case #1 Introduction In 1999 the U.S. paint industry sales were projected to be more than $13 billion. The industry has slow sales growth and is constantly changing due to government regulations. In 1999, Jones∙Blair had sales volume of $12 million with an annual growth rate of 4%. Jones∙Blair produces and sells architectural coatings, OEM coatings and paint sundries. However, the President, Alexander Barrett and the senior management executives know that there are some areas that they need to improve on....   [tags: Business Management Strategy Analysis]

Research Papers
1224 words (3.5 pages)

Essay on The Outcast By Sadie Jones, A Critical Analysis

- THE OUTCAST Sadie Jones He put his hand onto the cold glass pane. He felt far away from himself. He imagined putting his fist through it and the jagged hole in the pane and the points of the glass still attached to the wood. He imagined dragging his wrist and his arm against them so they would cut into him. He didn’t think he would feel it. He pictured putting his face through the glass and wondered if he would feel all the pieces cut him. He closed his eyes to stop imagining it, but it was the same, picturing the glass going into him, needing to do it....   [tags: Sadie Jones]

Free Essays
1944 words (5.6 pages)

Essay about The Blair Witch Project

- The Blair Witch Project As writers and producers saw the amazing popularity and success of the movie Scream many other copy cat versions were made. Movies such as I Know What You Did Last Summer and Urban Legend all followed the same teen slasher format. Nothing is being left up to the movie viewer’s imagination anymore. Everything for the past thirty years was spelled out and given to the viewer, leaving the identity of the killer as the only form of mystery. The genre of horror was losing a very important battle....   [tags: Film Movies Horror Blair Witch Essays]

Research Papers
1034 words (3 pages)

Essay on The Emperor Jones

- The Emperor Jones In Eugene O'Neil's play, The Emperor Jones, he presents a crucial lesson to mankind: one should not pretend to be someone who he is not. Multiple repercussions may occur to someone who denies their background and race. For example, in The Emperor Jones, the character, Brutus Jones, dissembles as a free white man (Jones was really black and was supposed to be in slavery during that time). Because of Jones' denial, he encounters numerous illusions in the forest of his black heritage, which haunt him until he is finally killed by his natives, under the accusation of an insurgence against his people....   [tags: Emperor Jones Essays]

Free Essays
526 words (1.5 pages)

Marriage Issues in Tom Jones Essay example

- Marriage Issues in Tom Jones        Throughout Tom Jones by Henry Fielding, there are many examples of marriage. There is Squire Western's marriage, Mr. and Mrs. Fitzpatrick's marriage, the mentions of Allworthy's wife, the marriage of Nightengale and Nancy, and the marriage of Nightengale's cousin and the clergyman, and finally the marriage of Tom and Sophia. Some of these marriages end with a happy ending and some do not and we, the reader, are supposed to look at these marriages and see why they went wrong or why they are good....   [tags: Tom Jones Essays]

Research Papers
935 words (2.7 pages)

The Known World by Edward Jones Essay

- A new outlook on pre-Civil War slavery is portrayed in Edward Jones' novel "The Known World". Unlike many well-known novels that cover slavery, Jones chose to focus on the thoughts and emotions of both the slaves and slave-owners and how they interact with each other. Set in a wealthy Virginia county, the practice of owning slaves is common to the white man and the black man as well. The main focus of the story is Henry Townsend, a black former slave that was bought out of slavery by his father, who was also a former slave....   [tags: Edward Jones Known World Book Review]

Research Papers
1018 words (2.9 pages)

Mother Mary Jones Essay

- Mother Mary Jones: Hell-raiser Extraordinaire The Mother Jones Magazine website suggests that perhaps Mother Jones’ “greatest achievement may have been creating the persona of Mother Jones” (Gorn). The image and character of Mary Harris Jones greatly influenced the early labor movement. “Mother” Jones as she became called, presented herself as a stately, older woman wearing only black dresses in public and perhaps even “exaggerated” her date of birth and age to appear older than she was (Gorn)....   [tags: Mary Jones Essays Humanitarianism Unions]

Free Essays
719 words (2.1 pages)

Bridget Jones Diary Essay

- 135 lbs., alcohol units 0 (v.g.), cigarettes 0 (would be difficult because I don't smoke), calories 2250 (must do better tomorrow!). These are the inner thoughts of some women on a daily basis and in Bridget Jones's Diary; Helen Fielding makes single women feel like they are not alone. Through incidents of self doubt, heartache, and the anxiety of being single forever, Fielding allows readers who have faced or are facing the same situations to take a break, sit back and have a laugh at Bridget's expense....   [tags: Movie Film Book Analysis Bridget Jones Diary]

Free Essays
1182 words (3.4 pages)

Related Searches

A recent survey noted that only 25% of this population is aware of this product and only about 12% of this population would purchase it.
b) Cut price by 20%
Compared to other leading national brands, Jones Blair is priced relatively high. This is based on the extremely high quality and performance of the products. By cutting price, Jones Blair will be able to stay competitive in price with other the other products on the market.
c) Hire an additional sales rep
Hiring an additional sales rep will allow Jones Blair to focus on new markets. These markets should be outside of the DFW area and allow for new cities and states to recognize Jones Blair.
d) Do Nothing (Status Quo)
Since Jones Blair has continually seen profits each year, they should maintain their current marketing objectives and do nothing. Jones Blair has done an excellent job of this in the past by watching the margins and controlling costs. By doing nothing, the company will not need to spend any additional money.

Alternative Analysis
a) Spend additional $350,000 on corporate advertising.
The marketing department proposes a television campaign targeted at the DFW do-it-yourself market. This will cost an additional $350,000, but will significantly increase the awareness of Jones Blair products. Research has proven that brand awareness is a major factor in purchasing decisions. If Jones Blair does agree to use this method the company will need to make at least $1,000,000 to break even and cover the cost of this new promotion ($350,000/.35= $1,000,000). Most of the DFW consumers are do-it-yourselfers, so a television ad will be beneficial in this market.
• Consumers will become aware of Jones Blair.
• Do-it-yourselfer's account for 70% of volume in the DFW area.
• Advertising is proven to increase awareness, and awareness is a critical factor in consumer purchasing decisions.
• Almost doubling current advertising costs ($360,000+$350,000).
• Strategy requires a large budget and has little guarantee of results because about 75% of the viewing audience does not buy paint.
• Consumer buying process shows household buyers choose a store first, not a brand; therefore, cooperative ad is required, not brand advertising.
b) Cut price by 20%
In 1997 architectural product sales volume was $12,000,000. Jones Blair has a current net profit of $1.14 million, and to stay profitable it must maintain this amount.
$12,000,000*.35= $4,200,000
If Jones Blair reduced its price by 20% the contribution margin will drop to 15%.
($12,000,000 + x)*.15 = $4,200,000
($1,800,000 + .15x) =$4,200,000
-$1,800,000 - $1,800,000
.15x/.15 = $2,400,000/.15 = $16,000,000
If the company drops the price by 20% the company will see a 33% increase in sales. (16,000,000-12,000,000=4,000,000…12,000,000/4,000,000= .33)
• The company will sell more products, because it will be able to compete with its competitors in price.
• May not be able to sell enough in volume to cover cost of goods sold.
• If priced more competitively with other companies, may not be looked at as superior quality.
c) Hire an additional sales rep
Sales outside of our home territory DFW are crucial for maintaining competition in the market. A sales rep would cost the company $60,000 a year. So the company would need ($60,000/.35) about $171,428.58 of additional profits to cover this. 120 retailers are located outside of DFW. If we look at our current dollar amount needed to stay profitable $4,200,000 and divide that by stores…$4,200,000/120= $35,000
So… $171,428.58/$35,000 = about 5. So the company would require a new sales rep to acquire at least 5 new accounts a year to breakeven.
• New clients may bring more opportunity to the table through word of mouth.
• Does not cost the company a significant amount of money to do.
• Does not promise new clients.
• Is not concentrating on most profitable market, DFW.
d) Do nothing (Status Quo)
Jones Blair will not change any of their marketing strategies.
• Does not cost the company any extra money to maintain current objectives.
• Jones Blair is currently making money, why change?
• Jones Blair will not always be profitable in the future; the cost of research and development will only increase.
• Needs to stay competitive in the market.
• Not looking into long term vision of the company.

Jones Blair needs to look into the future and envision the company competing with competitors. Its best bet is to focus on the consumers in its main home market, DFW. If they can gain awareness of the home market, sooner or later word will spread through out all of their markets and business will boom. Making a $1,000,000 minimum income look like pocket change. Right now Jones Blair can afford this and still have a $400,000 profit.
Return to