Case Analysis of Jones Blair case (Sarvesh Pingulkar 2013BLP017)
1. Background and Problem Definition:
Mr. Alex Barrett, president of Jones Blair, a coating paint company in U.S., is unable to decide on where and how he should deploy marketing efforts in the coming year. Jones Blair sells top quality architectural coating paints, accessories, and OEM materials, and this has led Jones Blair product to be highest priced product with ease of application and durability. Increased annual sales but relatively steady sales volume has led to high cost of R&D, hence Mr. Alex fears of facing stagnancy in price.
2. Market and Industry Analysis:
U.S. architectural paint coatings and ...view middle of the document...
Also the strategy has little chance of success, since household buyers choose a store first, not a brand; therefore, cooperative ad is required, not brand advertising.
Advertizing expense of $3, 50,000 would need Break-Even of $10, 00,000 (Exhibit-II).
* Price cut by 20% - Price cut by 20% will help company to compete with its competitors in price. But if priced competitively with others, it may not be looked at as of superior quality. Also, it may not be able to sell enough volume to cover cost of goods sold.
* Extra Sales Rep – Extra sales representative would cost $60,000, which is cheaper than other options. It might bring new opportunities through new product development. But as per the plan, the person will not be targeting DFW market.
Extra sales representative would need a break-even of $171428.5 (Exhibit-III).
* Cost Control – This is short term options and quite conservative approach. It does not cost any extra money at the moment.
4. Conclusion and Recommendations:
The first recommendation is to focus on consumers in...