3. Which segment(s) represent opportunities for Jones Blair The main segments that represent opportunities for Jones Blair are professional painter in all their 50 counties, as well as DIYer’s and professionals outside of DFW. 4. What is Jones Blair’s Competitive position in the market? Jones Blair manufactures and distributes paint to 200 independent paint stores, lumber yards, and hardware stores, 40% of which are in the DFW area.
DFW is estimated to contribute 60% of market, wherein DIY buyers account for 70% in DFW and 90% in non DFW area. Although, 50 % of DIY paint market in DFW metropolitan area make their purchases through Mass merchandisers distributions, the distribution network are not able to retain the same in Non-DFW area due to lack of customer relation and service. Since half of architectural coatings dollar sales are from DIY painters, it would be right to target these customers. EVALUATION OF ALTERNATIVE COURSES OF ACTION 1) Increase in Advertisement Expense: An increase in Ad expense ($350,000) seems to be appropriate option. Since DIY buyers contributes maximum purchase share in architectural coating, they would be the first consumers to be targeted.
No competitor in the market was able to supply flowers with this much efficiency. The target group for this product is often high income segment who prefer quality products. So until any company come up with a better offering, chances are that calyx and Corolla would enjoy higher growth. But calyx and Corolla needs continuous product differentiation according to changing taste of the customer and season otherwise it may be loss its privileged position in the market. Threat of the new entrants: Industry with higher returns would attract many new entrants which would increase the competition and reduce the profitability of existing players.
It has even increased its market shares with the rise of military aircraft sales mainly because of its conservative policy and strong working capital position. In September 1979, HMTC asked for an extension of its $1,000,000.00 loan until the end of December of the same year from St. Louis National Bank. Also, the company asked for an additional loan of $350,000 that would be repaid December 1979 with interest rate of 1.5%. II. STATEMENT OF THE PROBLEM How should Mr. Jerry Eckwood respond to Mr. Cowen’s requests of the renewal of the existing loan of $1,000,000.00 and of an additional $350,000.00 loan?
Alternatively, $499 and $600 are also being considered. As we consider the price for the new guitar, we need to keep in mind that Guitar World will be receiving 40% of the sale price from the wholesalers and retailers. Problem * In order for the new product line to be successful, we will need to calculate the break-even point in both, sales and units. This needs be done for all 3 price ranges, $499, $549 and $600. * We will calculate the net profit for the sales target of 2000 units.
To top it the company also has a high wage bill and a very limited customer base in Italy. The company also faced stiff competition from Asian firms in other markets of Europe, which provided better value for money products to the customers. Overall the company faces a problem of high prices of its products with no tangible or intangible value associated. The company is thus confronted by the upward task of restructuring its product line, reducing costs and build scale. Evaluation of alternatives “target” The first alternative “relieve the compression chiller line” The implementation of the strategy suggested by the Italian management who thoroughly understand the industry constraints.The size of the compression chiller industry 20 bn dollars.The compression chiller comprise of 85% of the total market.
(Horniman Horticulture: Chapter 9) Maggie Brown, Horniman Horticulture Horticulture’s bookkeeper, is concerned that future cash flows will not sustain the expected growth. The company’s current cash level is around $9,000, which is under the company’s desired goal of 8 percent of the annual revenue. Maggie also has concerns about the company leveraging its debt. There are a few factors, such as a raise in required salaries for agricultural workers, increased interest rates and adverse weather, which could lead the nursery to not generating enough profit to pay back the loans and interest incurred. Due to her concerns, Maggie has used all of the company’s cash to pay off the increased inventory immediately to receive the two percent discount offered by suppliers.
Also when using the paint is last longer and there are less amount of paint that is being used and a longer amount of time between applications. Jones Blair trade area is affective and they sell in over 50 counties. Competition has increased because of department stores like Wal-Mart, K-Mart and Sears and private paint stores. Competition at the paint manufacturing level has also increased and the mass merchandisers control 50% of the do-it-yourself paint market in the metropolitan area. Also in 2004 the sales volume for architectural paint was at 12,000,000 and the net profit was $1,140,000.
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.
Typical Internet search engines will ask for a range, and if a buyer indicates a range of $300,000 and above, that buyer will not view your property, which is listed at $290,000. In this case, you’ve missed the buyers most qualified to buy your home, while instead attracting the buyers in the next-lower bracket (say, $250,000 to $300,000) where your price is at the high end (Real Estate, 2007). Another method also considered is pricing your home five percent below the estimated market value. This method will usually increase the number of willing buyers to twenty percent (Real Estate, 2007). The value of a home to a buyer comes down to the value he/she gains while living in it.