Case_Study_J_Blair eng _.pdf - JONES BLAIR COMPANY Jones Blair Company In early January 1997 Alexander Barrett President of Jones Blair Company slumped

Case_Study_J_Blair eng _.pdf - JONES BLAIR COMPANY Jones...

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JONES ° BLAIR COMPANY °±²³ Jones ° Blair Company In early January 1997, Alexander Barrett, President of Jones ° Blair Company, slumped back in his chair as his senior management executives filed out of the conference room. “Another meeting and still no resolution,” he thought. After two lengthy meetings, the executive group still had not decided where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company in the south western United States. He asked his secretary to schedule another meeting for next week. ° THE U.S. PAINT INDUSTRY The U.S. paint industry is divided into three broad segments: (1) architectural coatings, (2) original equipment manufacturing (OEVI) coatings, and (3) special-purpose coatings. Architectural coatings consist of general-purpose paints; varnishes, and lacquers used on residential, commercial, and institutional structures, sold through wholesalers and retailers, and purchased by do-it-yourself consumers, painting contractors, and professional painters. Architectural coatings are commonly called shelf goods and account for 43 percent total industry dollar sales. OEM coatings are formulated to industrial buyer specifications and are applied to original equipment during manufacturing. These coatings are used for durable goods such as automobiles, trucks, transportation equipment, appliances, furniture and fixtures, metal containers and building products, and industrial machinery and equipment. OEM coatings rep- resent 35 percent of total industry dollar sales. Special-purpose coatings are formulated for special applications or environmental conditions, such as extreme temperatures, exposure to chemicals, or corrosive conditions. These coatings are used for automotive and machinery refinishing; industrial construction and maintenance (including factories, equipment, utilities, and railroads), bridges, marine applications (ship and offshore facilities such as oil rigs), highway and traffic markings, aerosol and metallic paints, and roof paints. Special-purpose coatings account for 22 percent of total industry dollar sales. The U.S. paint industry is generally considered to be a maturing industry. Industry sales in 1996 were estimated to be slightly over $ 13 billion. Average annual dollar sales growth was forecasted to approximate the general rate of inflation through 2000. Outlook for Architectural Paint Coatings and Sundries Industry sources estimated U.S. sales of architectural paint coatings and sundries (brushes, rollers, paint removers and thinners, etc.) to be $10 billion-plus in 1996. °±² ³´´µ²¶·¸¹´º ´» ¼´º²½¾¿À·¹¶ ³´Áµ·ºÂ¹º ¸±² µ¶²µ·¶·¸¹´º ´» ¸±¹½ ³·½² ¹½ ö·¸²»Ä ÀÀ·³Åº´ÆÀ²ÇòÇÈ °±¹½ ³·½² Æ·½ µ¶²µ·¶²Ç ÉÂʶ´»²½½´¶ ˴ò¶ ÌÈ Í²¶¹ºÈ Çƹº !È "´#$³±´´À ´» ¿Ä½¹º²½½%$´Ä¸±²¶º &²¸±´Ç¹½¸ ’º¹(²¶½¹¸Â%·½ É·½¹½ »´¶ ³À·½½ ǹ½³Ä½½¹´º ·ºÇ ¹½ º´¸ Dz½¹Ãº²Ç ¸´ ¹ÀÀĽ¸¶·¸² ²»»²³¸¹(² ´¶ ¹º²»»²³¸¹(² ±·ºÇÀ¹ºÃ´» ·º ·ÇÁ¹º¹½¸¶·¸¹(² ½¹¸Ä·¸¹´ºÈ "²¶¸·¹º º·Á²½ ·ºÇ ½²À²³¸²Ç
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