mba652 CASE STUDY JONES BLAIR

mba652 CASE STUDY JONES BLAIR - Problem statement: define...

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Problem statement: define the market target Jones-Blair Company (JBC) needs to decide where and how to deploy additional corporate marketing efforts among the various architectural paint coatings markets. Strengths, Weaknesses, Opportunities and Threats JBC has been profitable over the past decade, and sales growth in the architectural coatings market is expected to grow 1 to 2 percent per year in the long term. But JBC’s competitive advantage is disappearing due to market maturity, a high pricing point, and their inability to add new accounts in a market where competitors are failing at the rate of 2-3 percent per year. Internal Factors Strengths Weaknesses Management Experienced, company advertisement says the have been in business since 1928 Significant disagreement on how to focus marketing efforts. Sales team Great reputation; well-liked, helpful, professional and knowledgeable about paint. Only added 5 new accounts in last 5 years; not being aggressive. Product High quality is preferred by professional painters. Highest priced product on the market. Marketing Significant research data available for decision makers. DIY market is unaware of the product; people see ads but don’t buy paint. Personnel See sales team strengths. See sales team weaknesses. Finance $12 million in sales last year on architectural paints, $1.14 million net profit before taxes. Cost of Goods Sold is equal to 60 % of net sales. External Factors Opportunities Threats Consumer / Social DIY painters comprise about 70 - 90% of purchase volume in DFW and non- DFW; JBC has not touched DIY painters do not purchase JBC paint. They visit well-known home repair stores and then buy
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this market. A strong trend for DIY painting exists. whatever is sold there. Competitive Number of paint companies is decreasing at 2-3% per year; paint industry is still growing at same time. Someone is going to get
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This note was uploaded on 11/13/2011 for the course MBA 652 taught by Professor Brown during the Spring '08 term at Bellevue.

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mba652 CASE STUDY JONES BLAIR - Problem statement: define...

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