Imad Harrouk ID: 12100230
Jones Blair case study
Jones Blair Company is a privately held corporation that is a world leader in the
paint and coatings industry. Jones Blair Company produces, markets, and distributes architectural paint and coatings under the name brand of Jones Blair. The organization is currently headquartered in Dallas, Texas. Since 1928 their mission has been to provide the business community with the highest quality products while providing unparalleled customer service. Jones Blair consists of two divisions; Jones Blair high performance coatings and NEODARD. Their OEM, ...view middle of the document...
Approximately 50% of architectural coatings dollar sales are accounted for by do-it-yourself painters. Professional painter’s purchases account for 25 % of dollar sales. The remainders of architectural coatings dollar sales result from government export and contractor sales. Almost 60 % of annual architectural coatings sales are for interior paints. Exterior paint represents 38 % of sales. The percentage of households purchasing exterior house paint is considerably less than that for interior paint. The popularity of do-it-yourself painting particularly for interior applications has increased the paint and sundry item product line carried by retail outlets. Paint industry consumer research indicates that the average dollar paint purchase per purchase occasion is about 74.00$. The average dollar sundry purchase per purchase occasion is about 12.00$.The buying decision process for home improvements products is 1- Decide on project/ Product 2- gather information 3- decide on store 4- decide on product.
Segmentation describes the division of a population into more or less homogenous segments based on their acceptance and buying patterns of products or services. This JB market can be broken down into the following market segments and sub-segments.
This market can be divided into two geographic areas: DFW (urban) and non-DFW (rural). And each segment can be divided into two sub-segments: household (do-it-yourselfers) and professional.
To calculate market segments in % and in value, we know that
- JB sales volume in 1955 was $12 million;
- JB sales are distributed evenly between DFW and non-DFW accounts;
- Moreover Mr. Barrett indicates that in the survey of retail outlets 70% of sales through JB’s DFW dealers went to the professional painter while 70% of JB’s sales through non-DFW outlets went to Do-it-yourselfers.
Thus here are the results of the calculation of the market segments in % and in value.
| Household | Professional | |
DFW | $ 1.8 M / 33.6M
= 5.4 % | $ 4.2 M / 14.4 M
=29.2 % | $ 6 M / 48 M
= 12.5 % |
Non-DFW | $ 4.2 M / 28.8 M
=14.6 % | $ 1.8 M / 3.2M
= 56.3 % | $ 6 M / 32M
= 18.8 % |
| $ 6 M / 62.4 M
= 9.6 % | $ 6 M / 17.6 M
= 34 % | $ 12 M / 80 M
= 15 % |
Market share varies greatly among four markets.
According to the calculation, JB is strong in professional market with a 34% market share. There is a weak in the DFW area for the household segment with 5.4% and that is most probably due to mass merchandisers. Another weakness is that JB only represent 12.5% in the DFW area compared to non DFW area (18. 8%).
There is a relatively weak competition in rural markets. However Wal-Mart, an effective competitor in non-metropolitan areas, is probably not a major threat in non-DFW.
JB dominates in rural professional market with 56.3% share.
Jones Blair holds the high-end trade market catering mostly to do-it-yourself customers that want good service (information about how to...