Jones Blair
SUMMARY
1) How might the architectural paint industry be characterized? 2
a) The US paint industry 2
b) Architectural paint industry 2
2) How might the JB market area be characterized? 2
3) How can this market be segmented? 2
4) Which market to pursue? 2
a) Non-DFW Household, a high potential for growth 2
b) Urban professional, wants high quality paints 2
c) Non-DFW Professional, already dominant 2
d) Urban Household, very price- sensitive 2
5) What competitive position does Jones Blair have in its market? 2
6) What strategy should JB adopt to reach the segment sought? 2
a) Spend additional $350,000 on corporate advertising 2
Pros 2
Cons 2
b) Cut price by 20% 2
Pros 2
Cons 2
c) Hire one additional sales representative 2
Pros 2
Cons 2
d) Do Nothing (Status Quo) 2
Pros 2
Cons 2
7) Recommendations 2
SLIDES 2
How might the architectural paint industry be characterized?
The US paint industry
The US paint industry is considered to be a maturing industry. Industry sales in 1995 were estimated to be slightly over $13 billion.
The US paint market is divided into three segments: architectural coatings (43%), original equipment manufacturing (OEM) coatings (35%)and special purpose coatings (22%).
[pic] The architectural coatings are general purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures. They are sold through wholesalers and retailers.
[pic] OEM coatings are formulated to industrial buyer specifications and they are used for durable goods such as automobiles, transportation equipment, building products industrial machinery and equipment etc.
[pic] Special purpose coatings are formulated for special applications or environmental conditions (extreme temperatures, exposure to chemicals). They are used for automotive and machinery refinishing, industrial...
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