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Jones Blair Case Analysis

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Jones Blair
Case Analysis

January 31, 2012

Table of Contents
I. Factual Summary: 3
How might one characterize the paint coating industry? 3
How might one segment the Jones Blair market area? 3
Which segments represent opportunities for Jones Blair? 4
What is Jones Blair’s competitive position in its market area? 4
II. Case Problems/Opportunities: 4
III. Alternatives: 4
Increase corporate brand advertising by $350,000 4
Reduce price by 20% 5
Add one additional sales representative 5
Control Costs 6
IV. Selected Solution: 6
Which segment should Jones Blair pursue? 6
What strategy should Jones Blair adopt to reach the segment identified? 6
V. Conclusion: 7

I. Factual Summary:
The executives at Jones Blair find themselves at an impasse. …show more content…

A potential problem with this strategy is with a large, non targeted marketing push, 75% of audience the company would be targeting is not purchasing paint. Based on the company’s standard of recovering the costs within a year, if the company doubles its advertising costs, sales should show a significant increase and there is no guarantee of this.
Reduce price by 20%
By reducing the price, Jones Blair will be more competitive with other brands. Right now, Jones Blair is prices significantly higher than all other brands and when a consumer sees the brands side by side at a store, they may not realize the higher quality of Jones Blair paint, just the higher price and immediately select against.
A major issue is since reducing the price 20% reduces the profit margin to 15%, to maintain the same profit while reducing the price, the sales must be $28 million for this year. This is an increase of 233% in one year to justify reducing the price this much. This is a highly unlikely target.
Another potential problem is Jones Blair could lose the consumer’s perception of the company being high quality, high customer focused. Jones Blair has continually put focus on being the leader in quality and customer satisfaction and if the company’s prices are the same as all the other brands, what makes Jones Blair stand out?
Add one additional sales

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