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Paint Industry

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Autor:   •  April 21, 2011  •  471 Words (2 Pages)  •  289 Views

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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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