Jones Blair Case Analysis Essay

Decide where and how to deploy corporate grocerying efforts among the various arc walk discoverectural ikon coatings securities industrys serviced by the company in the southwestern United States. Situation appraisal The US paint sedulousness is a very spring up market. The typeface goes as far to say that paint is can now be considered a commodity. There be 3 main sectors of the paint exertion with 2, architectural coatings and OEM coatings, holding more then 3 quarters of the market and Special purpose paints at 22% Being a mature industry they are not expecting any growth in sales figures except for the growth to stay inline with inflation.It would be useful to know where the 3 segments are at now in 2012 after the financial crisis hit and use for paint materials must have declined when housing formulation (architectural) car manufacturing (OEM) and state budgets (special purpose coatings) saw a large decline. Also with customers lacking a thicker coating with less pa int at a cheaper hail and strict EPA guidelines balancing R&D cost and maintaining a strong contribution margin is becoming increasingly difficult.Jones Blair is particularly bear on with how to grow their market share in the Architectural describestone coatings segment. This is the largest of the 3 segments at 43% of the market with minimal expected future growth. The conquest of this industry is tied to the housing market as most of the materials sell in this segment are used in relation with construction and residential and commercial property remodeling. It would be useful to know more of a hit this segment took with the recent housing crisis. For a slice in that location was no new lending or construction so this segment must have been hit hard.Now that the economy is offset to grow again and people/business are starting to make water on approach projects and buy new properties It would be interested to checker what kind of growth is expected over the next few a ge and if it is considered to be sustainable growth. The competition in the Architectural Coatings market follows the industry standard as being a mature market and there is minimal organic growth within companies. Since R&D costs are high and market segments are well genuine most growth is seen with the acquisitions of competitors.The number of paint companies has almost been cut in half since the 1980s as companies continue to merge together. The paint itself is exchange with a 50/50 mix mingled with consumer store fronts and oddity yards. I have a feeling this may also be changing as stores like The Home Depot and Lowes append to the do it yourself market along with pressors. Mom and Pop hardware stores, and Paint Brand (I. E. Sherman Williams) store fronts are starting to diminish. The direct to consumer sales are taking place in super centers like Wal-Mart, Sears and Lowes, while contract and industrial sales are primarily seen in distinguishing characteristic stores and timbre yards.The case says the sales are set off between private brands and specialty stores, but I have a feeling as these superior Stores become more prevalent and more people looking to the profit to learn how to do the jobs themselves that sales would shift towards these larger stores. A trending deal over the past 10 years with the sales dollars in Architectural paint sales I think would help show this shift. I think it would also be beneficial to see just how many another(prenominal) people are painting their homes.It say roughly the average panther will spend $86 on paint and sundries, but I wonder just how many homes are taking on improvement projects. Jones Blair is primarily based in the in the South West grocery store primarily around the Dallas Fort Worth Area. With ontogeny competition its harder to standout in the DFW area as brands battle with in Super Stores ascribable to the number of stores merging or going out of business. The competition is mooring their prices to gain market share making sure you are in as many stores as possible has become a key factor to success.Full product penetration in all areas of the market will be key to ensure strong sales figures and growth. The scattering of sales in this area are relatively split between mass merchandisers and the specialty stores. I think a population synopsis of the area would be beneficial to see what areas have a growing population as this would have focus sales efforts for not still contractors developing land but also DIYers who are moving out of the metropolitan area. Over all the sales are relatively split relatively even between the DFW metropolitan areas and the surrounding counties.