Problem Definition
How can we increase brand awareness, and gain market share given limited funds for advertising and sales promotion?
The architectural paint coatings industry is in the maturity stage of the life cycle. There is high competition from alternative materials (aluminum and vinyl siding, wall paper, ect) and the higher quality of paint on the market has reduced the need for repainting or touch up. EPA has created government regulations to reduce volatile organic compounds by 45 percent by 2003, which, has increased research and production costs. Larger firms within the industry have merged with smaller, regional specific firms in efforts to increase their reach. 50 percent of architectural coating sales are from do-it-yourself painters. Professional painters are 25 percent of architectural coating sales. 25 percent is from government, export and contractor sales. 60 percent of architectural sales are for interior paint and 38 percent for exterior paints. The average sundry purchase is 16 percent of the total paint purchase ($16:$74). Research shows do-it-yourself painters decide on a project first, conduct research second, chose a retail outlet third, and chose paint last.
Jones Blair currently markets its paint and sundry items in over 50 counties in Texas, Oklahoma, New Mexico, and Louisiana, with focus in the Dalas-Fort Worth area. There are 1,000 outlets operate in the 50-count service area, and 450 of them are in DFW. Jones