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Questions On Jones Blair Case

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Jason Ridinger
Jones- Blair Case
Problem/Issue
Jones-Blair is a paint company headquartered in Dallas, Texas that sells architectural paint. Jones-Blair markets its paint to fifty counties in Texas, Oklahoma, New Mexico, Louisiana, and eleven county Dallas-Fort Worth (DFW) metropolitan areas. Jones-Blair has branded itself as having a high-end paint product. Increased R&D, material, and labor cost have allowed Jones-Blair to have the highest price among competitors in its service area and still obtain a great amount of business. Jones-Blair is focused on providing architectural paint to a market that is fifty percent segmented, which half consists of “do it yourself” consumers and the other fifty percent spilt among professional painters and government contracts. Jones-Blair has enjoyed dollar sales rising at an annual rate of four percent over the past five years. Even though Jones-Blair has enjoyed a successful rise in dollar sales, it has seen a decline in the gallon volumes in DFW areas due to a rise in competition. Jones-Blair is aware that it is approaching the threshold in its prices. Jones-Blair is afraid that once the threshold price is reached, then the decline in volume sales will lead to Jones-Blair unsuccessfully meeting its sales margins. Jones-Blair needs to determine how and where to adjust marketing efforts to raise sales volume amounts in the DFW and Non-DFW areas. Jones-Blair currently spends approximately three percent of net

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