Jones Blair Companys Sales Growth Issues

Table of Contents

Introduction
Problem identification
Case analysis
Conclusion
Reference list

Introduction

Jones Blair Company is a privately owned firm that manufactures and sells architectural paints under the Jones Blair brand name. On this basis, the American paint industry is segmented into three parts which include; architectural coatings, original equipment manufacturing, and special-purpose coating. In this case, the architectural coatings consist of wide-ranging function paints and varnishes used in residential and commercial structures. In this relation, these paints account for around 43% of the total industry sales. On the other hand, OEM coatings are prepared to the manufacturing buyers stipulations and are used in original equipment during manufacturing. On this basis, these paints are commonly applied to durable goods like trucks, furniture, and fixtures; hence they account for 35% of the total companys sales. Additionally, the special purpose paints are prepared for particular functions or ecological conditions like severe temperatures, contact with chemicals, or an acidic environment. In this case, special purpose paints are used machinery refinishing and industrial construction where they account for 22% of the companys total sales (Kerin & Peterson, 2010).

Problem identification

A point worth noting is that architectural coatings have a full-grown market which has long-term sales growth anticipated in the range of 1-2 percent each year. In this case, the architectural coatings were facing stiff competition from alternative materials which included; aluminum, inner wall coverings, and timber paneling. Additionally, this company faced pressure in the reduction of the release of explosive organic compounds from paint and decreases the utilization of solvents. To counter these competitions, this company developed high-quality paints that helped in reducing the quantity of paints essential per application and the regularity of repainting (Kerin & Peterson, 2010).

Case analysis

It is of importance to note that the sluggish sales growth, the importance of research and expansion, and the current observance with legislative regulations; have geared to amalgamation and achievement of activity in the American paint industries. As a result of these, the number of paint industries in this country has decreased at the rate of 2-3 % per year. Despite these factors, Jones Blair Company has competed successfully against other paint companies and distributes its products nationwide (Kerin & Peterson, 2010).

It can be revealed that most of the architectural sales come from do-it-yourself painters who account for approximately 50% of sales. On the other hand, around 60% of the architectural sales per year are for inner paints while exterior paints account for only 38% of the companys sales. From research conducted in this company, it was well indicated that do-it-yourself painters choose a retail outlet for paints before choosing a paint brand (Kerin & Peterson, 2010).

From the company, it can be revealed that there is a difference between painting contractors and professional painters; where professional painters look for quality paints. On the other hand, Jones Blair Company supplies its paints to more than fifty countries in Texas, Oklahoma, and New Mexico among others. It is clear from the case that, competition in the retail sales and selling space has increased in recent years. Moreover, competition at the manufacturing level has also increased where the main change is in the paint companies that sell their paints to suppliers serving the domestic construction industry (Kerin & Peterson, 2010).

Conclusion

To wind up, the increased promotion in this company seems rational as nationwide paint firms and mass merchandisers outspend them tenfold in total terms. In this case, this advertisement has resulted in Jones Blair Company distributing its products to all the countries where they have markets.