Paint Industry
Essay by 24 • April 21, 2011 • 471 Words (2 Pages) • 1,591 Views
1. How is the architectural paint industry to be characterized?
o The industry is matured, i.e. the sales are high and no longer growing
o Competition is fierce as the market is very profitable
o Prices tend to drop due to proliferation of competing products
o 43% of total industry dollar sales account to architectural painting = 559 Million
o Growth amounts to 1-2%
o 50% of brands in this industry are private brands
o The market is dominated by do it yourself shops and home centres
o Still specialty stores manage to surveive (36% of total sales within the market).
o There are currently 600 companies on the market, whereas this no. is declining (2% - 3% yearly)
2. How might one segment Jones BlairÐŽ¦s market area
o Small company
o Specific paint, special formulation
o Mid- to high income customers who value quality
o specialists
o focusing on the DFW area (450 companies)
o Distribution through 200 independent paint stores, lumberyards, and hardware outlets
o 40% of outlets in the DFW area (11 country)
o 60% in the other 39 countries
o 14 stores in the DFW carry Jones Blair exclusively
3. Which segments represent opportunities for Jones Blair
o non-metropolitan areas
o non DFW areas, where 70% went to do it yourselfers
o professional painters, due to their high quality goods and services
o do it yourselfers are interesting, hence the trend is upward sloping
4. What is Jones Blair competitive position in this market area (find out what their market share is)?
o Total sales in 1997 = $80Mil. (whereas 60% out of DFW)
o Market share = 6.9%
5. Which segment or segments should jones Blair pursue
o Blair should pursue the non-metropolitan areas as total sales in the DFW are declinging (see p. 83, Exibit 3). Whereas non DFW areas are growing
o Focus on professionals
o Focus on Accessories (to make margin)
6. What strategy should Jones Blair adopt to reach the segments sought?
o Cut prices a little bit to reduce cost
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