Marketing for Managers:
Case: JONES BLAIR COMPANY
JONES BLAIR COMPANY, early January 2005
Management of Jones Blair Company needs to decide how to deploy marketing efforts among the various architectural paint coatings markets served by the company in the Southwestern United States.
THE US PAINT INDUSTRY and its segments
Paint industry is considered to be maturing industry, growing 1-2 percent annualy.
Total sales in 2004 were slightly over $16 billion.
The US paint industry is divided into three broad segments:
1.) Architectural coatings called also shelf goods selling general purpose paints, varnishes, lacquers used on residential, commercial and institutional structures, sold through wholesalers and retailers and purchased by do-it-yourself consumers, painting constructors and professional painters.
2.) Original equipment manufacturing (OEM) coatings for industrial buyers. Coatings are used for durable goods applied to original equipment during manufacturing. Automobiles, trucks, transportation equipment, appliances, furniture and fixtures, metal containers, building products, endustrial machinery and equipment.
3.) Special purpose coatings for special applications or environmental conditions - extreme temperatures, exposure to chemicals or corrosive conditions. These coatings are used for automotive and machinery refinishig, industrial construction and maintainance, bridges, marine applications, highway and traffic markings, aerosol and metalic paints, roof paints.
2004 US PAINT INDUSTRY TOTAL MARKET VALUE $16 BILLION
Table1: Market Shares of three main Segments
ARCHITECTURAL COATINGS SEGMENT COMPETITIVE LANDSCAPE
Slow sales growth, necessity for R&D, low margins and new regulations have fueld the mergers and acquisiton activity in the US paint industry. Larger firms are buying smaller companies to boost specific market or geographic presence. Currently the...