Jones∙BlairCase #1IntroductionIn 1999, sales of the U.S. paint industry were estimated at more than $13 billion. The industry is experiencing slow sales growth and is constantly evolving due to government regulations. In 1999, Jones∙Blair achieved a sales volume of $12 million with an annual growth rate of 4%. Jones∙Blair produces and sells architectural coatings, OEM coatings and paint miscellaneous items. However, President Alexander Barrett and senior staff know they need to improve in some areas. Problem Statement Jones∙Blair is having great difficulty with sales of his architectural paintings in the DFW areas. This is because they offer the most expensive product in a very competitive market segment in terms of price. Their sales are best with professional painters in non-DFW areas; professionals are much more focused on quality than price. Unfortunately, their market share is very low in the non-DFW household DIY market. They need to decide where and how to deploy their business marketing efforts among the different architectural paint coatings markets. Problem Analysis Assumptions We assumed that their advertising budget allocation is equal. That is, they advertise the same amount in the DFW area and outside DFW. Alternatives 1) Our VP of Advertising suggested that we focus primarily on the DFW DIY market, while reaching 15 counties in the non-DFW area. The vice president suggests that we increase the awareness level to at least 30 percent so that we can increase our sales. A $350,000 increase in corporate advertising should lead to this level of awareness. the non-Dallas Fort Worth region. The area outside Dallas Fort Worth is still relatively untouched by national competitors. This solution would allow Jones-Blair to reach a fairly intact market of home DIYers. Currently, in the Dallas Fort Worth area, paint is distributed through specialty retailers carrying only one brand, so Jones-Blair does not lose out to a cheaper competitor. In the Dallas Fort Worth area, paint is distributed primarily through large retailers where competition is greater and Jones-Blair, the most expensive paint, is almost always undersold. The metro area is not Jones-Blair's primary market and focusing on the intact $12.8 million rural household market could prove effective..