Essay About Market Penetration And Market Development.Swot Analysis Of Jones.Blair Company

Jones Blair Company Case
Brief description: Jones.Blair Company is basically into the business of Architectural Paint functional in the US. This case study on the overall paint industry of the US and Jones.Blair in specific is a wonderful example which makes us decide that which marketing strategy they need to follow.Likely marketing strategy: The possible approaches as per my understanding could be the market penetration, market development or the new product offering and the best one out of this case is the market development.SWOT Analysis of Jones.Blair Company:Strengths:1. Strong brand value in the US2. Presence in multitude of locations3. Strong liking for the brand within big retailers4. Good financial strength5. Well established in terms of R&D6. The friendly salesperson7. Self owned very large OEM coatings divisionWeaknesses:1. Not so strong brand advertisement structure2. Non availability of brand specialty stores3. Very high prices of paints4. Sharing retail stores carrying multiple brandsOpportunities:1. A very slightly touched non-metropolitan market2. Market of contractors and professionals serving the home construction industry3. OEM coating market in bulkThreats:1. Competitors planning for market development2. More stringent governmental norms with respect to the use of chemicals3. Diversion of salespersons to some competitorDescription of Analysis: Based on the above SWOT analysis and as per the data given in the case study it is well understood that Jones.Blair Company has a very strong market hold in over 50 counties, especially in Dallas-Fort Worth (DFW). Out of this the majority of the sales that they get is from DFW that counts to around 60% as per the statistics of 2004. In these sales the major buyers are the do-it-yourselfers and the rest being the contractors. Despite investing huge amounts in R&D, they are able to increase their sales at an average rate of 4% per year. This shows how well sought brand they are as even at increased prices the customers are willing to purchase their products. Now, to give the answer of the question of where and how to deploy corporate marketing efforts, I would suggest to go for market development strategy. They should step into the untapped market of non-metropolitan counties and serve the customers with the best quality products and operate the existing market as it is. This is because in their core market of DFW it could be seen that in the past 5 years the sales is approximately stagnant and shows very little change. This shows that the market at DFW has grown mature and thus if Jones.Blair Company need to grow they have to penetrate deep in to the market or get into a new market. The penetration would be very difficult as this could be done only by the use of technology which would further increase the cost and the cost levels have already touched saturation. The only way remaining is to get into the new market and non-metropolitan counties would be the best place to get into. They should firstly develop strong relations with the retailers using their brand name to attract the do-it-yourselfers, open specialty brand stores at certain places to attract the professionals, increase the number of well-trained salespersons and advertise their brand extensively in this market. To collaborate with the retailers they should come up with different promotional offers and better margins. Also in order to get deeper in to the market they should establish tie-ups, with attractive offers, with the professionals and the contractors so that they can help in capturing a large portion of the home construction segment too. They should also try and expand their OEM coatings market by establishing exclusive tie-ups with the OEMs and further enhance their revenue base which could be utilized in the expansion of the market for architectural paints.