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JONES BLAIR COMPANY
Jones Blair Company is a Paint Manufacturer in the Architectural Coatings segment of the paint industry. ... In the company’s southwestern service area DFW and its surrounding counties are the main service areas. ... Exhibit 3 in the case shows that market size is 80 million and 60% of the volume is urban. Jones Blair controls 12. ...
Management is trying to decide on a plan of action to maintain or increase profitability without raising prices by deciding what segment(s) of the Architectural Coatings market Jones Blair should target.
PLAN OF ACTION
There are four alternatives open to Jones Blair are:
1. ... Continue current approach
The advantages and disadvantages of the options available to Jones Blair can be outlined as follows:
1. Increasing advertising by $350,000
Advantages
Ø Increased awareness by consumers of Jones Blair Brand. ... Therefore it is unlikely Jones Blair will capture the 1. ...
Advantages
Ø Jones Blair paint will be more competitive in pricing when compared with other brands. ...
Disadvantages
Ø Jones Blair channel of distribution are lumber yards, hardware outlets etc which are not the ones frequented by the household consumer. To attract households to increase purchases of paint from these outlets Jones Blair would have to set their price considerably lower than that of the mass merchandisers who control 50% of the market and are price competitive.
Approximate Word count = 991
Approximate Pages = 4
(250 words per page double spaced)
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