Jones Blair Company

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Introduction

The U.S. paint industry is very large and competition among the coating company is quite intense. Jones Blair Company markets its paint and sundry items in over 50 countries and in order to know which the customers of Jones Blair Company are, we have to break down and build up the potential buyers into groups to structure the market.

Market Segmentation

The market of Jones Blair can be divided to two groups: Dallas-Fort Worth area and Non Dallas-Fort Worth. Among these two areas, we have got the contractor, professional painter and DIY household but the number of contractor is so minimal so we do not focus on this. From the case, we can get the estimated dollar volume of architectural paint and allied products sold in Jones Blair’s 50 countries service area in 1995 was $80 millions; 40% of its outlets are located in the 11-country DFW area and the remaining are in the other 39 countries. So, the estimated dollar volume for the DFW area is $48 millions and for the non-DFW area is $32 millions. Besides, 70% of its sales through the DFW dealers went to the professional painter, while 70% of sales through the non-DFW outlets went to DIY. It means the percentage of the market segment is as following:

DFW ($48 millions) Non-DFW ($32 millions)

Professional Painters 70% ($33.6 millions) 30% ($9.6 millions)

DIY households 30% ($14.4 millions1) 70% ($22.4 millions)

Market pursued

Professional In Downtown

Professional painters in downtown area usually put the focus on the quality of the product rather than the price when choosing suitable painting products. Those professionals choosing the painting products with better quality are because of the outcome of painting may affect their reputation directly. In order to create a better reputation and maintain the high standard quality of apartments furbishing, high-end painting products using is a must, therefore, they have to adopt the inevitable burden over their shoulders by increasing their expenditures. This segment reveals that price is not the first element the customers to consider, but the quality.

Family In Downtown

Customers in this segment make difficulties to the producers since the families are not quality-oriented customers as the professional painters alike.

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