Jones Blair manufactures and distributes paint to 200 independent paint stores, lumber yards, and hardware stores, 40% of which are in the DFW area. Their paint is high priced but their reps are highly respected between their customers and their knowledge about their paints gives them an edge over their competition. 5. Which segment(s) should Jones Blair pursue? Jones Blair should focus on the segments that they have sustained growth in.
Case Analysis – Jones-Blair BACKGROUND AND PROBLEM DEFINITION The case deals with dilemma Jones Blair Company is currently facing with its marketing strategies in to increase its Sales Revenue. Jones Blair is a private organization which is a market leader in paint and coating Industry. It primary deals with production and distribution of architectural, OEM paints and sundry items of high quality. MARKET AND INDUSTRY ANALYSIS The major segment in Paint Industry is Architectural coatings (43%). It is considered to be a mature market and its growth is projected at 1-2% per year.
Kendle Net Income margin of 5.3 % in 1996 is much higher than 1.6% of the Quintiles which is considered to be the “golden standard” of the industry and more than double more than 2.2% net income margins average. These good financial ratios can be explained by the in-depth control of financial performance of the Company by its owners and Kendle preparation to the IPO process. By 1996, Kandle conducted clinical trials for 12 of the world’s 20 largest pharmaceutical companies. Research is a labor-intensive business and Kendle focuses a lot on maximizing labor utilization on 65 % to 70% utulazation rate to make sure that the profit margins are higher, especially on the operational level. With a qualitative and experienced management team Kendle organized the well-defined organizational structure where all the strategic business units carried profit responsibility.
Costco is making the most profit by the high amount of net sales and total revenue. By reviewing the figures in Exhibits 2, 6 and 7, it can be easily calculated that Costco is strongest performer financially. If Costco keeps with this trend then it will be hard for BJ’s to compete and even more challenging for Sam’s Club, which
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.
This is because of a growing of materials that don’t require paint or require little paint such as plastic and aluminum. These are substitute products that can increase consumers’ sensibility to changes in price Jones Blair sells paint products in over 50 countries in the four southern states in the US: Texas, Oklahoma, New Mexico, and Louisiana. 11 countries in Dallas-Fort Worth (DFW) area is their most important market. Competition in this market has increased with the coming of department stores like Sears, K-Mart, and Wal-Mart, as well as Sherwin-Williams paint stores. Competition has also increased in paint stores, lumberyard and hardware stores.
These strategies if used by Company G are the best mix to achieve their objectives because they allow Company G to maximize its profit while supporting the mission statement. The remote control features of the product combined with the variety of colors available and the convenience of not having to place the product near an outlet provide unique high-quality features that will best allow Company G to achieve its goal of increasing its revenue by 25% over the next three years. Using the previously stated price strategies will help Company G sell higher amounts of the product to big retailers at a competitive price, best equipping the company to reach a breakeven point by the second year. By using the place strategies stated earlier Company G will have a fast delivery cycle and get its new product out to more stores enabling them to have the product available in most major retail stores within a few months, and by using these promotion strategies of advertising on television as well as the internet they are best able to increase product awareness among the target audience by at least 30 percent in one
Taking everything into account, effectively marketing to the Baby Boomer generation by appealing to their wants and needs will bring companies customers for life. Boomers have high expectations, especially when it comes to comfort, safety and healthcare. These things are what matter to them most due to the fact that this generation is indeed aging. Coming up advertisement to relay such messages is crucial to attracting and retaining this “golden” generation. References Baby boomers are still the largest consumer group in america -------- even in a recession.
1. Caterpillar’s ability to successfully meet Japanese competition Caterpillar met Japanese competition successfully in several ways. First, the company built the best equipment in the world those customers we willing to pay a “hefty premium” for. Because of this they had been operating at a very high profit margin. To counteract the dollar strengthening against the yen and the Japanese manufactures 40 percent cost advantage they were able to lower the prices, essentially trading profit for market share to insure long term sustainability.
Because they are so careful in the selection process, they also enjoy very high levels of employee retention. In 1998 the attrition rate was below 7%, as opposed to the industry standard of 15% -20%. (Bartlett & Glinska, 2001, pg. 4) Part of ensuring a low turnover rate is not about just hiring the right people, but it is also about keeping them happy. Microsoft believes that “smart, driven people were best developed through challenging and engaging assignments.” (Bartlett & Glinska, 2001, pg.