Punit Sharma Blpm035 Case Brief Jones Blair
Autor: punitsharma1987 • July 10, 2015 • Case Study • 539 Words (3 Pages) • 1,079 Views
Facts:
United States paint industry is divided to three major categories: a) Architectural coating, b) Original Equipment manufacturing coating and c) Special purpose coating. 43% of the total industry sales come from Architectural coating paints (will be referred as ACP hereafter); while the other two is OEM and Special propose paints at 35% and 22% respectively. Being the maximum contributor, ACP has a saturated market growth rate that stands at 1-2% annually. The intense competition is leading to mergers and acquisitions reducing the total number of players by 2-3% every year. The number of paint companies is currently 600 approx. Major manufacturers like Sherwin Williams, Benjamin Moore, etc. hold 60% sales in the ACP. About 50% of ACP are sold under private, controlled or store brands.
About 50% of ACP sales come from do-it-yourself painters and 25% come from professional painters. Almost 60% of annual ACP sales are for interior painting purposes and 30% for exteriors.
History:
Jones•Blair is one of the companies which is a participant seller in the above mentioned industry. Jones•Blair’s market consists mainly of DFW region and non DFW region. The company, even after such intense competition, is able to not only survive but also thrive in the market, however, now the situation is getting a little tensed as, firstly, the industry has reached a maturing stage. Secondly, mass merchandisers and other such setups are eating into the market share of Jones•Blair.
Problem:
Already the demand of the paints are getting reduced, majorly for two reasons, a) introduction of good quality paint which reduces the amount of paint required and frequency of painting and by b) introduction of alternative material like wood, steel, vinyl sliding etc., and now this intense competition is mutually creating problems for the sustenance of Jones•Blair as a brand.
Because of the above mentioned issues, the board continuously conducted meetings to bring out a solution for the same and failed in every effort to do so. The board of directors in the John Blair is discussion majorly on below mentioned alternatives in order to increase sale in the ACP division.
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