Jones Blair Case Analysis

In: Business and Management

Submitted By shadiabarake
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1. How might one characterize the architectural painting coatings industry and Jones Blair's trade area?

In 2004 the architectural coatings industry was predicted to be lightly above $16 billion in the United States.

The U.S. paint industry could be branched out into (3) three categories:

Architectural coatings (shelf goods): consisting of 43% of total industry dollar sales are more generic purpose paints and are commonly sold at the hand of wholesalers and retailers.

Original equipment manufacturing (OEM) coatings: consisting of 35% of total industry dollar sales are formulated for industrial specifications and they are utilized for long-lasting products such as cars.

Special-purpose coatings: consisting of 22% of total industry dollar sales are for more special applications such as extreme temperatures, exposure to chemicals.

There are (3) three types of distributors that characterizing the market:

Mass merchandisers and home improvement centers = 50% Hardware store and lumberyards = 14% Special paint stores = 36%

Predictions state that approximately 50% of architectural coatings dollar sales are alleged for by do-it yourself painters. In addition, it is estimated that professional painter dollar sales account for 25%, the remaining would go to contractors, government and for exports and other commercial uses.

The Jones Blair sells paint products in approximately 50 counties in the Southern states of the US focusing on Dallas-Fort Worth area. This company strategically emphasizes this area, due to its size and the percentage it represents on the United States.

2. How might one segment Jones Blair's market area?

Based their $12 million dollars in OEM sales, presuming a similar population frequency as mentioned above, and its influence on their overall sales, they look like they are obtaining approximately 6-12%…...

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