Jones Blair Case Study Analysis Essay example

919 Words Jul 18th, 2013 4 Pages
The US paint market is divided into three segments: architectural coatings which is 43% of the market, original equipment manufacturing (OEM) coatings which is 35% and special purpose coatings which is 22%. The U.S paint industry is considered to be a maturing industry. Industry sales in 2004 were estimated to be slightly over $16 billion and average annual dollar sales growth was forecasted to approximate the general rate of inflation through 2005. The architectural coatings are general purpose paints, lacquers used on residential commercial and institutional structures as well as varnishes. These types of coatings are mainly sold through wholesalers and retailers. The OEM coatings are formulated to industrial buyer specifications and …show more content…
This company is privately owned and produces everything under its own name enabling it to distribute its products through 200 independent paint stores and 8 sales representatives. Industry sources estimate that the number of paint companies is currently 600, or about 40 percent fewer companies than in 1980. The number of paint companies is presently declining at a rate of 2 to 3 percent per year. Major producers of paint for the architectural coatings segment include Sherwin-Williams, Benjamin Moore, the Glidden unit of imperial chemicals, PPG industries, Valspar Corporation, Grow Group, and Pratt and Lambert. These producers account for upwards of 60% of sales in the architectural coatings segment.

About 50 percent of architectural coatings are sold under private, controlled or store brands, sears, Lowes, Wal-Mart, and Home Depot are major marketers of these brands. Industry sources estimate that specialty paint stores account for about 36 percent of paint and sundry sales; hardware and lumberyards account for 14 percent.
The company distributes its products through 200 independent paint stores, lumber yards and hardware outlets. 40% of its outlets are located in the 11 county DFW area. The remaining outlets are situated in the other 39 counties in the service area. Jones Blair sales are distributed evenly between DFW and Non DFW accounts.

The Jones Blairs market area can easily be divided into 3 broad segments which include

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