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  • Essay / Jones Blair Company - 1267

    IntroductionThe American paint industry is very large, and competition among coating companies is quite intense. Jones Blair Company sells its paints and sundries in over 50 countries and in order to know who Jones Blair Company's customers are, we need to break down and group potential buyers into groups to structure the market.Market SegmentationThe Jones Blair market can be divided into two groups: the Dallas-Fort Worth region and the non-Dallas-Fort Worth region. Among these two areas we have the contractor, the professional painter and the home handyman but the number of contractors is so small that we do not focus on that. From this case, we can infer that the estimated dollar volume of architectural paint and related products sold in Jones Blair's 50-country service area in 1995 was $80 million; 40% of its points of sale are located in the DFW area which includes 11 countries and the rest in the other 39 countries. So, the estimated dollar volume for the DFW area is $48 million and for the non-DFW area is $32 million. Additionally, 70% of its sales through DFW dealers were to the professional painter, while 70% of sales through non-DFW outlets were to the DIY trade. This means the market segment percentage is: DFW ($48 million) Non-DFW ($32 million) Professional Painters 70% ($33.6 million) 30% ($9.6 million) )Do-it-yourself households 30% ($14.4 million1) 70% ($22.4 million) million)Continued MarketDowntown ProfessionalDowntown professional painters generally emphasize product quality rather than price when choosing appropriate paint products. Professionals who choose higher quality paint products because of the paint result can directly affect their reputation. In order to create a better reputation and maintain the high quality of apartment furnishings, the use of premium paint products is essential. So they have to shoulder the inevitable burden on their shoulders by increasing their spending. This segment reveals that price is not the first element to be considered by customers, but quality..