MKTG 494 MW Shield Bryan Culbertson Sara Jacobson Melody Jefferson Desiree Juarez Blake Richards
Target Market ................................. .................................................. ................................... ................................... ............................. ............ 3 Competitive Analysis ................................................. ...................................................................................................... ..................................................... .......3 Porter's 5 Forces ................................................ ...................................................................................................... ...................................................... ...............6 SWOT ....................................................................................................................................8 Market Definition...................................................................................................................10 Segmentation..........................................................................................................................12 Strategy ..................................................................................................................................15 VALS .....................................................................................................................................15 Market Potential ................................................ ...................................................................................................... ...................................................... ...............16 Market Share ..........................................................................................................................18 Defense/Offense Strategy ......................................................................................................18
Product Strategy ................................ ................................................. .................................. .................................. ........................... .......... 20 Product Classification ............................................................................................................20 Differentiation ................................................... ......................................................................................................... ...................................................... ...............22 Positioning .............................................................................................................................23 Packaging ...............................................................................................................................24 Logos, Trademarks, Slogans ................................................ ..................................................................................................2 ..................................................26 6 Line Strategies .......................................................................................................................27 Brand Strategies .....................................................................................................................28 Product Strategy ................................................ ...................................................................................................... ...................................................... ...............30 Product Life Cycle and Strategies..........................................................................................31
Price Strategies ................................... .................................................... .................................. .................................. ........................... .......... 33 Price Objectives .....................................................................................................................33 Price Range ............................................................................................................................33 Suggested Retail Value ..........................................................................................................34 Factors Affecting Price ..........................................................................................................34 Elasticity of Demand..............................................................................................................36 Price Method/Pricing Strategy ...................................................... .........................................36 Channel Discounts .................................................................................................................37
Distribution Strategy .................................. ................................................... .................................. .................................. ................... 39 Criteria for Channel Choice ...................................................................................................39 Channel Members ..................................................................................................................42 Degree of Distribution ...........................................................................................................44 Supply Chain Management .................................................. ....................................................................................................4 ..................................................45 5 Ordering System ....................................................................................................................46 Inventory Control .............................................. .................................................................................................... ...................................................... ...............47 Logistics .................................................................................................................................48 Transportation ........................................................................................................................49 1
Channel Integration .................................................... ..................................................... .......49 Push/Pull ................................................................................................................................50
Promotion Strategies.......................... Strategies........................................... .................................. .................................. ........................... .......... 52 Promotional Mix ....................................................................................................................52 Promotion Objectives.............................................................................................................52 Channel Promotions ................................................... ........................................................................................................ ..................................................... .......53 Creative Strategy ............................................... ..................................................................................................... ...................................................... ...............54 Media Schedule ................................................. ....................................................................................................... ...................................................... ...............55 Advertising ............................................... ..................................................................................................... ...................................................... ........................56 Sales Promotion .....................................................................................................................57 Personal Selling .....................................................................................................................60 Public Relations .....................................................................................................................60 Direct Marketing ....................................................................................................................61 Support Promotions ...............................................................................................................63 Budget ....................................................................................................................................64
2
Competitive Analysis Behr Paint (Home Depot) Depot)
Strengths (Internal) o
Consumer Reports has ranked Behr Paint #1 for quality and price
o
Industry leader that offers high quality, premium paint
o
Experience-founded in 1947
o
Strong internal practices such as R&D, marketing, manufacturing, and purchasing
o
Partners with Home Depot and Disney
o
Behr offers delivery of their products to customers’ door
Weaknesses (Internal) o
Limited to certain customers being that it is partners with Home Depot-i.e. Lowe’s customers
o
Doesn’t apply as well as some other top competitors
o
Higher price than most competitors
o
Not as durable as some competitors
Sherwin-Williams
Strengths (Internal) o
Largest architectural coatings producer and marketer in North America
3
o
Has 3,254 company-owned paint stores and has branches in North and South America
o
Maintains a strong position in architectural a rchitectural paint sales to DIY consumers, contractors, and industrial coatings and automotive refinishes
o
Has strong positions in industrial-maintenance coatings, auto-refinish and aerosol paints
Weaknesses (Internal) o
Some higher quality paint products don’t meet customers perception, as they are “watery” and run off walls
o
Paint not as durable as some competitors
o
Low operating margins around 10% average per year
o
Repeat purchase paint rarely matches original
o
Costly products in comparison to competitors
Benjamin Moore Moore
Strengths (Internal) o
Founded in 1883
o
Produce high quality paint and deliver to customer
o
Eliminated lead, formaldehyde, and mercury from their paints and met VOC standards
o
Continuous innovation of products
Weaknesses (Internal) o
Products are more expensive than most competitors
4
o
Not as big a presence in professional painter market when compared to competitors
o
Small presence in professional painter market
Valspar
Strengths (Internal) o
Well-known brand that produces high quality paint product
o
Founded in 1877
o
Products are asthma and allergy friendly
o
Signature colors rated #1 among national paint brands by Shapiro & Associates
o
Always forward-looking and innovating
o
Found in Lowe’s stores
Weaknesses (Internal) o
Since products are higher quality, price is higher
o
Paint is not as durable as competitors; some customers complain about bubbling
o
Bad coverage so more paint is needed
o
Long duration of drying time
Jones Blair has many competitors in the paint industry, but we chose a few to highlight for the analysis. Sherwin-Williams, Benjamin Moore, Valspar, and Behr are some of the biggest and should be watched closely. Three of those four are included in the seven controlling the majority of sales in the industry
5
Porter’s 5 Forces
Rivalry Among Firms o
Rivalry among firms in the U.S. paint industry is high due to the number of switching costs and economies of scale
o
Switching costs are low because of the number of competitors offering like products at same or lower price
o
There is a slight oligopoly in the paint industry with 7 brands controlling the majority of sales
o
Paint is the maturity stage of the product life cycle so the market is broadened, increasing the amount of competitors
o
Because some manufacturers of paint have close relationships with retail outlets, such as Sears, competition is increased
Threat of New Entrants o
The threat of new entrants in the paint industry is medium to low.
o
Barriers of entry are low for small businesses, business es, but medium to high for larger large r ones.
o
EPA regulations, such as the requirement of contractors to be Lead Certified when working in environments with lead-based products, entry barriers are increased
o
Since the industry is mature and la rge, it’s unattractive for new firms to enter
o
Assets, such as facility, equipment, and product, can increase exit barriers
o
Hard for new entrants to succeed in the industry due to numerous well-known brands already dominating market share
o
Large amount of initial capital is necessary, especially for specialized equipment
6
used in paint production
Threat of Substitutes o
The threat of substitutes in the paint industry is low, mostly due to switching costs. For example, a person painting their house by themselves avoids labor costs of professional contractors
o
Vinyl windows, aluminum siding, composite decking, and other materials act as substitutes for paint, but incur higher costs
o
Paint comes in many different forms and textures, but there are no other substitutes for it than what are mentioned above
Bargaining Power of Buyers o
Bargaining power of buyers is fairly high in the paint industry
o
Switching costs are low for consumers buying paint as there are numerous options with little differentiation
o
In the residential paint industry, consumers’ buying power is increased with larger jobs, such as painting the exterior of a house in comparison to painting one room. They can negotiate a lower price since the job is so big
o
Stores that have their own in-store brands, such as Target, have power over buyers
o
Since specialty paint stores and mass merchandisers account for over 85% of paint sales, buying power is increased for them
o
The majority of people make their brand decision for paint in-store, which gives the retailer some power in that process
7
Bargaining Power of Suppliers o
Bargaining power of suppliers in the paint industry is medium
o
Big box stores, like Home Depot, serve numerous industries like landscape, appliances, and decorating so their supplier power is increased
o
Paint stores gain their revenues solely so lely from the paint industry, so their power is limited. However, they tend to be less expensive
o
Switching costs are low in the painting industry. With most products being standardized, it’s unlikely for businesses to be dependent on one or few suppliers
SWOT
Strengths (Internal) o
Unique, premium product that is higher quality than most mass marketed brands’
products o
Knowledgeable sales staff who know a lot about product and are on first name basis with clients
o
Good marketing techniques, such as personal selling with sales representatives
o
Experience-founded in 1928
o
Contribution margin of 35%
o
Specializes in Do-it-yourself paint applications
o
Big presence in the professional paint market
o
Large local market share in Texas (DFW)
o
Continuous improvement to their product/brand
8
Weaknesses (Internal) o
Small number of sales representatives (8)
o
Small geographic reach of 50 counties in Texas
o
Products are priced higher than similar products from competitors
o
Very little or no advertising on television and print
o
Can’t compete well for consumers who base their decision to buy on price rather
than quality
o
Only about 3% of budget is spent on advertising
o
Only offers architectural paint
o
Not productive: only 5 new accounts in 5 years
o
High cost of goods sold, 60% of net sales
Opportunities (External) o
Large market share in the DFW area
o
U.S. paint industry accounts for about $16 million annually
o
Paint companies per year are decreasing by about 2-3%
o
Mass marketers make lower quality, less specialized paint
o
Most mass merchandisers focus on urban Do-it-yourselfers only
o
Primarily focused on DFW area, so advertising outside DFW area
o
Market Growth: 1-2% per year
Market Growth 2000
2001
2002
2003
$80,000,000
$80,800,000
$81,608,000
$82,424,060
9
Threats (External) o
Increased competition among paint brands, especially less expensive ones
o
Sears, Kmart, Sherwin-Williams, and Home Depot all h ave multiple outlets in DFW
o
Competition for retail selling space in paint stores, lumberyards, and hardware stores has increased
o
Consumers tend to choose paint store first, then choose brand
o
Over 600 paint companies in U.S.
o
Alternative options to replace paint
o
Mass merchandiser chains like Wal-Mart and Target growing in the paint market
o
Higher quality paints lead to decreased repainting
o
Nearly all competitors have lower prices
o
Mass marketers are beginning to create their own paint lines
o
Increased EPA and other regulations on the paint industry
o
Do-it-yourselfers purchase paint on average every 4 years and usu ally get what’s convenient and inexpensive
Market Definition Paint Industry (Overall) Demographics/Behavior
Market is mature so sales are high and have little to no growth
50% of paint sales in the industry are from Do-it-yourself painters
25% of paint sales in the industry are from professional painters
10
The last quarter of sales accounted for comes from contractors, exports, and government
7 producers account for about 60% of sales in the architectural coatings segment
Nearly 50% of architectural coatings are sold u nder private, controlled, or store brands
Specialty paint stores account for about 36% of paint and sundry sales while hardware stores and lumberyards account for 14%
The average dollar paint purchase per purchase occasion is about $74
Professional painters seek quality in their products because their reputation is on the line
Contractors and do-it-yourselfers tend to view paint as a commodity and look for the lowest price
Market Breakdown $12 Million
Professional
Do-it-yourselfers
Urban
$5,040,000
$2,160,000
$7,200,000
70%
30%
Rural
$1,440,000
$3,360,000
$4,800,000
30%
70%
Net Sales
60%
40%
Jones Blair Company (DFW Area and Non-DFW Area)
Mass merchandisers control 50% of the do-it-yourselfer paint market in the DFW metropolitan area
Jones Blair distributes its products to 200 independent paint stores, lumberyards, and
11
hardware outlets
J.B markets to over 50 counties in Texas, Oklahoma, New Mexico, and Louisiana
Since contractors view paint as a commodity and search for the lowest price possible, they are less likely to be successfully targeted by Jones Blair
Professional painters accounted for 70% of paint sales in urban areas
Do-it-yourself painters accounted for 70% of paint sales in rural areas
Jones Blair customers seek quality and durability in products and are willing to spend an extra buck for premium paint
Segmentation Demographics
Gender and age o
No specific age range will be targeted
o
We think that about 60% of painters are male and 40% are female, so males will be targeted heavily
Life cycle cycle stage o
Consumers in different stages of their life cycle c ycle will be targeted: Married couples with no kids, married couples with kids, single consumers, homeowners and non-homeowners
Education Education o
High school diploma minimum and higher
Income Level Level o
We think this particular market needs at least a yearly income of
12
$50,0000
Ethnicity/Racial Ethnicity/Racial group group o
There will be no segmentation based on ethnic or racial background
Generation o
We will be targeting all generations, but Baby Bab y Boomers and Generation X are more likely to buy our product and also are more likely to be homeowners who will be Do-it-yourselfers
Social Class o
In connection with income level, consumers consu mers in our target market are middle to upper class
We chose to target all ages because any age can become Do-it-yourself painters and get involved with projects. Condo/Homeowners are especially important to target because they will likely paint or repaint their house at some time. Since Jones Blair paint is premium and more expensive, an income of at least $50,000 per year is necessary, as smaller income levels may not be able to afford the higher prices. That correlates to why our target market has an education level of high school minimum or higher
Behavior/Brand Perception
Consumers in our target market will lead active a ctive lifestyles who like hands-on activities, are social, seek quality in products, value tradition, and enjoy American-made, sound products
13
Consumers in the target market tend to have low brand loyalty due to low switching costs of paint products. Brand choice for paint is usually made in-store
Do-it-yourselfers like to “get their hands dirty,” and find fulfillment in doing tasks themselves o
They live within a traditional framework of family, functional work, and p hysical recreation and have little interest in what lies outside that
Professional painters seek quality in their products and value durability and service
Geographic Region o
The market for Jones Blair paint will be divided between two geographic areas: DallasFort Worth (DFW) and non-DFW areas
Urban market consists of 11 counties in the Dallas-Fort Worth area that Jones Blair serves. Professional painters account for 70% of sales in this area
Rural market consists of 39 counties outside the DFW area, which has it’s
highest sales from Do-it-yourselfers
The rural market should be stressed because it accounts for 60% of Jones Blair’s retail accounts
Frequency
Professional painters buy more often and in larger quantities so they will be targeted
The frequency of Do-it-yourselfers is inconsistent and purchases are usually small
14
Strategy
Differentiated o
Since we are marketing to two different segments which are both different from one another, a differentiated strategy will help to reach both in different ways
o
Professional painters buy large, in bulk, and price isn’t a main issue. Doit-yourselfers buy in small quantities and somewhat view paint as a commodity so they are concerned with price
o
Our new square-shaped can with detachable spout will be marketed to both segments
VALS Do-it-yourself painters
Makers o
The makers are motivated by self-expression, experience the world by working on it, and have energy to perform physically demanding tasks. They live traditionally and value family, work, and physical recreation. Although they have less resources than other lifestyle groups, they the y still prefer value making them a prime target for Jones Blair
Experiencers o
This lifestyle group is also motivated by self-expression. They are young, enthusiastic, impulsive consumers who like outdoor recreation, exercise, and social activities. Purchases from this group of consumers reflect the emphasis
15
they place on looking good go od and having “cool” stuff. DIY painters partially fall
into this lifestyle category so they will be targeted
Professional Painters
Thinkers o
In regard to the professional painters, the thinkers will be focused on the most. They are mature, satisfied, reflective people who value order, knowledge, and responsibility. Like professional painters, they analyze and seek out information, especially in big purchases. They look for durability, functionality, and value in the products they buy
Believers o
The second lifestyle group Jones J ones Blair will target (partially) is the group of Believers. They are conservative, conventional people with concrete beliefs based on traditional, established codes like family, religion, community, and nation. They favor U.S. products and are generally loyal customers
Market Potential o
Opportunity for brand extensions
o
Opportunity for line extensions
Hobby paint, kids paint, arts and crafts paints, spray paints, different textures and/or more
o
Do-it-yourselfers Do-it-yourselfers (DFW)
Account for 15% of all Jones Blair sales
Mass merchandisers focus heavily on DIY painters in the DFW area, controlling
16
50% of the market
DIY painters in DFW area are more focused on price instead of quality, so there isn’t as much potential there
o
Do-it-yourselfers Do-it-yourselfers (Rural)
DIY painters account for 50% of industry sales s ales
Rural DIY painters account for 35% of Jones Blair sales
Sales in the Non-DFW areas increased by over $9 million from 2000-2004
Increasing trend of Do-it-yourself painting, leading to more profit potential in Non-DFW areas
o
Professional Painters (DFW)
Accounts for 35% of all of Jones Blair’s sales
400 professional painting firms in the DFW area aren’t being targeted, leaving room for Jones Blair
40% of retailers Jones Blair distributes to are in Non-DFW areas
Professional painters are frequent buyers and look for paint that is high quality, durable, and easy to clean up
o
Professional Painters (Non-DFW)
Account for 15% of all of Jones J ones Blair sales
There are many painting firms in Non-DFW Non -DFW areas not being targeted
The emphasis professional painters place on quality, the large ratio of specialty stores to mass merchandisers, and the high frequency of purchases they make all contribute to potential for Jones Blair
17
Market Share
Jones Blair has 12.5% market share in 11 county DFW market. Do-it-yourselfers account for 5.4% while professional painters account for 29.2%
Jones Blair has 18.8% market share in 39 county Non-DFW areas. 14.6% is accounted for from Do-it-yourselfers and 56.3% from professional pa inters
Sherwin-Williams, Benjamin Moore, the Glidden Unit of Imperial Chemicals, PPG Industries, Valspar, Grow Group, and Pratt & Lambert are responsible for 60% of industry sales, giving them large market share over their competitors
Jones Blair has 15% market share among its 50 county service area
Jones Blair has 9.6% market share in its service area among Do-it-yourselfers with 5.3% in DFW and 14.6% in Non-DFW
Jones Blair has 34.1% market share in its service area among professional painters with 29.2% in DFW and 56.3% in Non-DFW
Market
Do-it-yourself
Professional
Total
Urban
5.3%
29.2%
12.5%
Rural
14.6%
56.3%
18.8%
Total
9.6%
34.1%
15%
Defense/Offense Defense/Offense Strategies Market Leader Defensive Strategy
Professional Painter Market (Non-DFW) o
Jones Blair will use a position defensive strategy in this market
o
Professional painters value great service and a high quality, premium product that
18
is durable and washable. These values are satisfied through specialty stores in the Jones Blair rural service areas
Market Challenger Offensive Strategy
Professional Painter Market (DFW) o
Jones Blair will deploy an offensive flank attack in this market
o
Since competition is focused on DIY painters in this area, Jones Blair has a chance to attack the professional painter market and gain share
o
Since price is stressed over quality among mass merchandisers in the DFW area, Jones Blair will attack with its high quality, premium product
19
Product Classification Durability and Tangibility o
Nondurable Nondurable good
Product is used in one use or over a few uses
Consumer purchases paint when there is a call for it
Uses – Interior, Exterior, Furniture Paint
Product can be used frequently by single consumer, depending on the task at hand
Recurring users would classify into Professional Painters and Do-ItYourself (DIY) consumers
Strongest category consists of professional painters and business painters in the urban and rural marketplace
Product needs to be available at as many locations as possible over the 50 counties in Texas, Oklahoma, New Mexico, and Louisiana in order to create brand salience
Location needs to be differentiated for the marketplace o
Professional painters seek specialty paint stores to purchase paint
20
Decision credentials based on amount of coats needed to cover, service, durability, and ease of clean up
o
DIY market utilizes the retail home improvement stores
Decision on what brand to purchase is usually made on the spot in the store
Decision credentials based on ease of use, price, and availability of product
If product is not available consumer will simply move to next product
Premium price point is utilized due to brand performance allowing product to be seen as a premium product
Price breaks, promotions, and advertisements will be utilized in the DIY retail locations
o
Consumer Good
Shopping Good
In this classification the consumer compares the product on the basis of suitability, quality, price, and style st yle o
Heterogeneous product
When consumers are looking to purchase a paint product they are highly concerned with the price. Jones Blair needs to ensure that the paint sales representatives at these locations are knowledgeable
21
in what differentiates the product from lower cost competitors
Differentiation o
The differentiation of Jones Blair paint product should be based on design of packaging, the quality of product, and services provided to consumer
Features emphasize more on the ease of use, transportation, and storage of the product
Product will offer an easy pour spout allowing you to easily transfer from storage container to paint tray
Container will be cube-shaped instead of cylindrical in order to provide retailer and consumer ease and efficiency of storage
New fold down handle on the lid will provide for easy lid removal
The quality of the product is to remain the same
Jones Blair already has an established name and product with premium level quality
More emphasis will be put on quality in store and through advertisements
Services provided will set Jones Jo nes Blair apart from the rest of the competitors in the paint industry. Jones Blair must differentiate itself from the rest of the industry by providing unrivaled service in the DIY and professional painting industry
Differentiation of Service
22
For the DIY market, there will be training provided to sales people at home improvement stores who sell Jones Blair in order to help assist customers with questions about the product. When questions are asked, straightforward and knowledgeable responses will be given
For the professional marketplace, ordering will be easier. Products can be delivered to the jobsite for free within a 45 mile radius of the Dallas Fort Worth area
o
Differentiation Differentiation Strategy: Jones Blair will strive to obtain a competitive advantage in the market with altered package design, premium paint, and knowledgeable sales representatives
Package design change will set Jones Blair apart from typical paint cans. Some companies may attempt to follow with one or two aspects, but few will employ all three
Positioning o
The Jones Blair Company will provide premium paint at a competitive price to both DIY painters and professional painters
o
To achieve the appropriate market share Jones Blair will also offer a kids room paint to make their rooms more attractive and kid-friendly
o
To achieve market share we will identify Points of Parity and Points of Difference o
Points of Parity: Paint products do not differ from competitors a very significant amount therefore Jones Blair must position pos ition their product with
23
an eye catching design and distribution strategy that makes itself available to all customers o
Points of Difference: Difference: Labeling and packaging are essential here. The packaging must clearly state that this is a premium product and will apply easily and efficiently in one coat, and customers will be guaranteed satisfaction. Also a timeline guarantee will be prov ided as well to educate the consumer on how long they should expect the paint to last.
New packaging will be implemented with a distinguishable cube shape that makes for efficient storage.
An easy pour top will be added to decrease amount of spills and maintain cleanliness
With a clean pour, Jones Blair label can be easily seen in storage when repeat uses are needed
Packaging o
The package should be a marketing tool in itself o
Packaging must be attractive and eye catching
Must point out number one attribute – Premium Paint
With an attractive package the product will be able to sell itself
By labeling the product, consumers will easily be able to locate its features
The new logo, emphasizing the state of Texas, will stand out, especially to American-made brand loyal consumers
24
o
When providing a premium product customer affluence must be kept in mind during design. By combining the easy pour spout, a cube-shaped container, and an appealing label design the customer cus tomer will feel as if they are getting their moneys mo neys worth. In addition, there will be a new fold down handle on the top. o
Consumer is more willing to pay for features provided in regards to easy pour - Time will be saved during clean up
o
o
Consumer will be willing to pay more for ease of removing the lid
Company and Brand Image: The Jones Blair product will be seen as a company who provides a premium quality product but also keeps the consumer in mind with the features and services provided.
o
Packaging Objectives o
The packaging should immediately identify that the product is a premium product and the quality is assured
o
Side labeling will provide descriptive information for the product
“Easy application”
“Easy pour and easy store”
Packaging will be transported more easier than before with the new cubeshaped container
When shipping from warehouses paint will be stacked on pallets and wrapped in cellophane
o
Labeling o
Will identify the Jones Blair premium quality
o
Identify the target quality: Premium Paint
25
o
”Easy pour and easy store” slogan
o
Colors to attract patriot, made in the USA mindset that Texas has already established
Logo, Trademarks, and Slogans o
The Jones Blair logo will depict a “Texas Paint Since 1928” to collaborate with consumer pride in Texas and that of its country o
Texas, Jones Blair’s primary geographic regio n, is a very prideful state
where consumers tend to be favorable of products that emulate that spirit o
The kids paint collection logo will include a ch ild’s hand instead of the state of
Texas
26
o
Paint containers as follows
o
Slogan o
o
"Texas Paint Since 1928"
Slogans, Trademarks, and Logos will be registered with trademark and patent offices in the U.S. in order to prevent imitators and companies from stealing the Jones Blair product name
Line Strategies o
Line Filling Strategy: Effort to capture a larger market s hare through missed sales o
A kids line will be introduced in cooperation with the Fort Worth Zoo which is our corporate sponsor
27
The line will incorporate paint names that correspond corresp ond to different animals at the zoo
Brand Strategies o
The Jones Blair brand will be classified into two different focus groups o
The Do-it-yourself painters
In locations with a strong presence of DIY painters, a kids line of colors will be released emphasizing a child’s input when it comes to painting their rooms
o
Professional Painters
Strong emphasis will be put in the satisfaction and ease of purchase for professional painters because it is a very large part of sales
o
Ease of purchase and delivery
Various sizes offered
The brand image for Jones Blair will be a professionally used product available to the everyday DIY consumer o
Jones Blair is known for their quality but is also taking the consumer into consideration when producing the product
o
Brand Objectives o
Professional Painters
Provide a quality product to the people who use it most and make it readily available when and where they need it
28
o
Do-it-yourself painters
Provide a quality product that’s used by professionals and offered
to the general public in a way that makes their lives easier in regard to paint projects o
Brand Barriers o
Competition from competitive brands such as Valspar and Sherwin Williams as well as brands provided by Lowes, Sears, and Home Depot
Some brands offer paint at a lower price and are all viable competitors to Jones Blair, especially for the customer who is on a tight financial budget
o
Vision and Mission o
Vision: To be the number one paint brand in the DFW and Non-DFW areas through competitive advantage and positive customer experience
o
Mission: To provide a product that is accepted and utilized by the professional community as well as the DIY market
o
Plan o
Successful orientation and instruction provided to paint sales people at retail outlets
o
Distribution to as many paint suppliers and retail locations throughout all Jones Blair’s 50 counties served
o
Through promotions, establish kids line of paint, an effective solution to painting a kids bedroom
o
Effective packaging providing product appeal as well as ease of use
29
o
Maintain premium quality paint in order to maintain loyal customers’ satisfaction with product
Product Strategy o
The product strategy is to differentiate the product from other competitors by maintaining premium quality and ease of use. Methods of maintaining premium quality and ease of use are discussed in previous sections
o
Benefits of Jones Blair Paint o
A premium product that is highly accepted among the professional community
o
Paint covers with one coat, which will appeal to the consumer who is more concerned with price over quality
o
For the professional painters, on-site delivery as well as in-store pick up will be provided to increase product and service satisfaction
o
Sales people will be trained on the benefits of Jones Blair paint compared to competition
o
New packaging allows for easy storage and easy pouring, taking away most of the hardships of paint projects
30
Product Life Cycle and Strategies o
Currently the paint market is in the maturity stage of the product life cycle c ycle
o
With the introduction of the kids product line, new packaging design, and emphasis on professional satisfaction it will push the product to the second stage of the life cycle, which is growth o
Growth Stage strategies
Offer promotions in cooperation with the Fort Worth Zoo to establish kids room paint line
Introduce and implement new packaging pointing out new features
Make professional consumers aware of the new delivery options as well as sizes available for purchase
Maintain paint chip kiosks location in retail locations at the front of aisles in order to be the first product seen by consumers
o
Introduction Stage Strategies
Provide incentive compensation training for retail sales people to appropriately train personnel on differentiation characteristics of Jones Blair paint
Obtain aisle front location for paint chip kiosks making Jones Blair the first paint seen by consumer
Establish product quality within professional paint marketplace
Introduce kids room brand paint in association with Fort Worth Zoo to impose a frontal attack against a gainst other competitive paint companies product lines
31
o
Product Market Expansion o
Market Penetration: Focus will be put on o n the professional paint market in order to maintain market share within the industry indus try
By focusing efforts on professional market Jones Jo nes Blair will be able to significantly increase market presence and share with little money invested
o
Market Development: Focus will be put in establishing itself among the DIY market. By introducing kids lines, we will be able to capture kids as well as adults attention when it comes to selecting appropriate brand
o
Product Development: The Jones Blair product already has established its reputation as a premium quality product. Efforts must be made to maintain the reputation and increase demand
o
Diversification Diversification Strategy: Currently Jones Blair operates in a rather small south region of Central U.S. Efforts must be put into effectively establishing brand and product, as well as obtaining 50% of the market in both professional and DIY markets in the operating regions before expanding out of region
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Price Objectives
Jones Blair will be setting out to maximize profit, which will reflect where prices are set. With a premium price as well as a 35% contribution margin, Jones Blair will seek s eek profit as the highest objective over sales and status quo.
Jones Blair will focus on creating an image that stands out among competitors because customers are not going to purchase the brand without awareness. This includes price because many customers view paint as price sensitive, but with awareness they can understand the price of Jones Blair products and why they are in a higher price range.
Additional sales will be induced with the introduction of the new kids line of paint, JB Junior, which will focus on indoor paints themed with animals and cartoons characters aimed towards children.
Price Range/Price Point
Jones Blair is going to remain with a premium price
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Celebrity endorsements will aid in the process of making Jones Blair a well-known brand to entice customers who are price sensitive to understand the premium price and quality of paint
Suggested Retail Value
Jones Blair
JB Junior
1-gallon $39.99
1-gallon $39.99
3-gallon $99.99
3-gallon $99.99
5-gallon $159.99
5-gallon $159.99
JB Junior will have an equal price point to keep the extension equivalent with the quality of the Jones Blair paint brand, but will include kid’s paints themed with animals from the zoo and
cartoon characters
Factors Affecting Price
Competition o
Competitors will not have a large part in the pricing strategy because we will keep premium pricing
Economy o
With the current economy, prices may be forced to rise or decline due to demand for certain products, including paints. Due to approximately 50% of architectural
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coatings dollar sales being attributed to Do-it-yourself painters, many of these jobs can be decreased depending on the econom y
Labor Cost o
If the cost of labor does increase, prices will also have to increase to maintain the same contribution margin. This increase in labor cost will also affect competition
Materials o
Changes in the cost of raw materials will require changes in price to mainta in a 35% contribution margin. These changes will also affect competition
Suppliers o
Due to strong relationships through our sales reps we can anticipate better relationships with suppliers in due time. With channel discounts we can also continue to increase this strength. If for some reason these relationships were to fall, we would have to seek out new suppliers, which would be costly
Weather o
In certain destinations it may be costly cos tly to ship paint due to weather restrictions during transportation as well as storing the paint. This may increase certain costs
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Elasticity of Demand/Breakeven
Working with a 35% contribution margin, Jones Blair will calculate all expenditures based on such margin o
Expenditures will be divided by 35% contribution margin, which will determine a breakeven price
Demand will be more inelastic with a higher price
Price Method/Pricing Strategy
Markup Pricing Method o
Markup pricing will be used because Jones Blair paint is a specialty item and storage and handling costs can be pricey, even with the new cube-shaped cans
o
Paint is not a product that is used daily except in professional industries, and even then purchases are in bulk with high handling costs
o
When expected sales quotas are made then the markup pricing strategy will be successful
Prestige Pricing Strategy (Premium Pricing) o
Prices will be set higher than normal for a quality product
o
Lowering prices would hurt the reputation of Jones Blair. The only discounts will be within the channels and promotions. Prices will not be lowered for quality assurance and stature.
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Channel Discounts
Cash Discounts o
Jones Blair will offer a traditional cash discount discoun t of 2/10 net 30 to maintain prosperous accounts receivable.
Quantity Discounts o
To the professional painters, we will offer a 5% discount on 150 gallons or more of paint purchased. In addition, if enrolled enrolled in our frequency program, painters will receive a free gallon for every 10 purchased
o
To retailers, Jones Blair will offer a 10% discount on 500 gallons or o r more of paint purchased
Functional Discounts o
Jones Blair will award discounts to distributors for the selling and storing of products. Also, with the promotion of the new JB Junior extension, functional discounts will be given to retailers
Seasonal Discounts o
Discounts during the slow winter season will be given due to less demand with weather conditions, which will aid in increasing sales during the slower season
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Allowances o
In-store promotional displays will be given to retailers promoting the brand and new kids line extension as well as a portion of current advertising focused on it
o
Slotting allowances given to our major accounts acco unts will position Jones Blair at a prime location on shelves
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Define the Channel The main objective of the channel chosen is to distribute Jones-Blair paint and paint sundry products to retailers, with intentions of reaching potential consumers as well as our current end consumers. This will involve a two-level channel, involved in this channel are the distributors and retailers who act as middlemen between the manufacturer and the consumers. Currently Jones-Blair serves over 50 countries and distributes its products through a variety of 200 independent paint stores, lumberyards, and hardware stores
Criteria for channel choice The use of the indirect, two-level marketing channel is influenced by four factors:
1. Manufacturer
Reliability and efficiency will ensure cost effectiveness in manufacturing the product
Possess an internal quality program that consists of a completely documented quality system. This program will provide control of all aspects of producing the product and ensure consistent fulfillment of high quality, which will always result in customer satisfaction
Convenient location with suitable distance to distributors and retailers
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2. Markets
Paint industry
Jones-Blair serves 400 firms in the Dallas-Fort Worth urban areas and 200 firms in the Non-Dallas-Fort Worth areas
Jones-Blair sales are distributed evenly between professional painters and Doit-yourself painters. In rural areas Do-it-yourself painters accounted for 70% of sales and in urban areas 70% of sales were contributed by professional painters
Half of industry sales are accounted for by Do-it-yourself painters, 25% by professional painters, and 25% by government, contractors and exports
3. Product
Jones-Blair paint products will continue to maintain top quality to ensure that product always meets the consumer’s needs and expectations
Product quality will remain held to the absolute highest consistency
Packaging issues will be addressed between all channel members as well as online commerce. These issues may include, but are not limited to, paint bucket designs, packaging and label displays, pour spouts making the container less messy and more convenient to open and close. Any intermediary issues concerning product movement will also be addressed with the channel members
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4. Competitive Forces
Competition will be stronger in retail areas and manufacturing m anufacturing levels.
The level of retailers has grown as a result of national retailers expanding in Dallas-Fort Worth area. Because of the increase in competition between many different paint brands, retail selling spaces in paint p aint stores, lumberyards, and hardware outlets are limited
Bargaining power of buyers in the paint industry is at an all time high due to the options and variety of paint brands. It is easy for buyers of the paint industry to switch brands they are currently selling if the switching costs are low. Unless the stores have a written contractual agreement that they will sell a specific brand, all are fair game. If a store has its own acquired brand, it's going to guarantee shelf space for their brand, bumping a competing brand off the shelf
Bargaining power of suppliers in the paint industry is medium. Suppliers control the raw materials, which provide such great quality, therefore giving them control of the product. However, it is unlikely that a company will have one supplier. Standardization of materials adds to increased power in the hands of the buyer
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Channel Members The Paint industry consists of four major participants:
1. Manufacturer
The manufacturer will be in charge of selling and shipping products to distributors for retailers who will provide selling space to get Jones-Blair products to end consumers
The manufacturer is also in charge of producing pigments and bases for coating, primers, and other specialty Jones-Blair paint products. They will also be producing all accessories and paint sundry items
Research and development (R&D) will play a big role in providing adequate laboratories for new product development and product testing. This will allow the R&D lab capabilities to perform quality control tests on all products before they are packaged and released for shipment
2. Distributor
Distributors will be in control of selling products to those buying for resale or business use. The distributor will also provide warehouse space for Jones-Blair products
The distributors, or wholesalers, will handle the flow of products to retailers or business users
The distributors are key aspects in adding extra value to the product and distribution process by:
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o
Ensuring prompt and efficient delivery of products to retailers by company vendors allowing a higher chance for repeat customers
o
Providing contact information of potential customers
o
Help with sales and promotional strategies s trategies
The distributors are also capable of scanning the market and giving information to suppliers and customers about competitors and, new products, and price developments
3. Retailers and internet commerce (company website)
Retailers are responsible for meeting the needs of the target consumer by selling the desired product to potential and current consumers
Other responsibilities of the retailer may include, bu t are not limited to: o
Creative promotion of products
o
Accurate information regarding the products
o
Convenience through store location and operating hours
o
Paint product customization
o
Samples and trials of paint products and accessories
o
Product guarantee through merchandise return policies
The company website will allow professional painters and consumers the ability to order paint and customize orders. The website will have a log of previous orders for each specific customer that way they have a reference file to make their shopping convenient. The website will be interactive allowing consumers to explore paint pallets and aid them in paint selection. Utilizing online resources
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will enable users to purchase, customize, and track orders, all adding to customer satisfaction
Degree of Distribution Differentiated Market Coverage:
Jones-Blair will use the differentiated strategy to reach both professional painters and doit-yourself painters. By continuing to use a differentiated strategy, Jones-Blair is able to reach professional and do-it-yourself painters in many different ways. They are able to operate in several market segments and design different products for each ensuring customization to fit each segments needs
Selective Distribution strategy Jones-Blair will employ a selective distribution strategy, which relies on more than a few, but less than all of the intermediaries willing to carry a particular product. This is a smart move for Jones-Blair because they are able to gain adequate market coverage with more control and less cost than intensive distribution. They will focus solely on independent paint stores, lumberyards, hardware outlets, and nationally recognized retailers. The selective distribution strategy will also help with the worry of price-cutting. They will also be able to attain decent working relationships with all other members of the th e distribution channel
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Supply Chain Management
Customer Relationship Management (CRM) Jones Blair will employ many different value added ad ded activities to ensure customer cu stomer satisfaction including:
1. Value proposition to customers customers
Keep constant users and/or customers by providing consistent product quality for all Jones Blair products. The company will gain positive brand equity by concentrating on quality and consistency
Jones Blair is large enough to provide technical support and special needs, yet small enough to respond quickly to any problems. If a customer is not satisfied Jones Blair is able to fix the problem by sending out a replacement or money back
Customer and technical services achieve value by working hard to answer questions, providing immediate feedback, and paying close attention to small detail, which add satisfaction to end consumers
2. On-time delivery standard
Jones Blair can establish and on-time delivery standard by using the Internet and company website to track orders made online
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3. Business to Business
Jones-Blair will maintain valuable relationships with its professional painters and clientele by offering incentives and price deals. They will also offer promotions conducted specifically to create value for business consumers
They will provide premiums on products that will come with additional sundry products for each Jones Blair paint purchase
Price deals will allow customers to use value points that can be used as currency on the Jones Blair website
Ordering System Jones Blair will provide two major ways to order their products rather than shopping physically in-store:
1. Catalogs
The catalogs will be different based on who is receiving the catalog. Each will be customized to fit the needs of its consumers
Business-to-Business will be distributed to retailers an d professional painters
They will be able to order orde r from a tailored catalog to fit their professional ne eds
The Do-it-yourself catalog will be tailored to fit the needs of this clientele
Phone orders will be made available to all end consumers
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2. Internet/Company website
Customers will be able to view paint pallets and interactively engage in the website by painting mock-up rooms in all areas of a basic home. The online experience will serve to enhance efficiency for product selecting, ordering, and tracking
The website also helps Jones Blair communicate its products creating brand awareness, information, and interest. If a customer has never heard of Jones Blair, this website will speak loud enough leaving enough curiosity for the customer to want to try to the product as opposed to competing brands
Reorder Point System
By using a reorder point system retailers are able to contact distributors once they are low on inventory and the system can help the distributor reorder the paint product or sundry item in a quick and efficient manner
Inventory Control
Inventory control of products will help to ensure that retailers are focusing primarily on keeping the shelves stocked s tocked at all times. It is to maintain an efficient product flow to retailers in stores and directly to consumers who have placed online orders
For larger scale retailers that have much higher demand for the product and have higher inventory level needs, vendors will be able to update inventory every day of the week by observing the location and shelf space
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For smaller scale retailers, vendors will be responsible for keeping track of in store inventory levels on a weekly basis to ensure sufficient supply for consumers at all times
Distribution centers have readily available products for consumers who purchase Jones Blair products from the website, or online in general. Products will always be made readily available or easily easil y accessible for the distribution center to obtain. o btain. For special customized orders such as special paint textile or color, it might take a little longer for shipping but not too long lon g to upset the customer since they will already have been given a specific delivery date
Logistics
Paint will be shipped via ground service, as paint is considered to be a hazardous product. All shipping and handling of paint will comply with all rules and regulations regarding the handling of hazardous materials
A strong focus on on-time delivery, careful handling of the merchandise, recovering for emergency needs and orders, and willingness to allow returns of defective goods
Importance in establishing agreement among all channel members regarding pricing and territorial rights.
In order to ensure prevention paint leakage, which may occur in the shipping process, Jones Blair products will be using Hazmat paint shipping boxes. These boxes will allow the paint to sit snuggly in place. The boxes will be labeled with care instructions and mandatory warning information
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Transportation
The distribution members will be conveniently placed in locations that can easily reach appropriate retailers in the Dallas-Fort Worth area as well as Non-DallasFort Worth areas. Other cities that will host dis tribution centers will include Oklahoma City, Oklahoma; Houston and Amarillo, Texas; and Lafayette, Louisiana
Large trucks will be used for efficient and safe physical movement of transporting products between intermediaries o
The use of large trucks will allow an easier delivery for higher volume orders for large-scale retailers
o
The larger trucks will also help ship to retailers warehouses, where the shipments will wait for the retailer to send them to their stores upon needs and requests
Direct store delivery by company vendors o
Smaller trucks will be used to transport the lower volumes of paint products to smaller retailers. The smaller trucks aid in quick everyday shipments
Channel Integration
The Jones Blair distribution channel uses a vertical marketing system because it acts as a unified system, which comprises the producer, wholesaler, and retailer working closely together to get their products to the end consumer. By using this system, Jones Blair eliminates conflicts that can arise from independent
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objectives. They also are able to achieve economies through size, bargaining power, and elimination of duplicated services
Business buyers also appreciate vertical marketing systems because they are able to obtain an extensive exchange of information
Jones Blair will include both corporate and contractual vertical marketing systems. Jones Blair will be the channel leader where it will be able to take charge of a few locations and be in complete control of selling to the end consumer. Contractual arrangements will be made to distributors in order to achieve more economies or sales impacts they wouldn’t be able to get on their o wn. The type of
contractual vertical marketing system that will be complied is the wholesalersponsored voluntary chain of independent retailers, which in our case would be independent paint stores, lumberyards, and hardware outlets. This will help Jones Blair compete with large chain organizations by achieving buying economies. This will also help Jones Blair to standardize their prices
Jones Blair will also use a combination of push and pull strategies. The reason for using both is that push strategies will be supported by the proper execution of pull strategies to facilitate consumer demand of their thei r products
o
Push strategy: By enforcing this strategy Jones Blair will attract consumers who are not brand loyal and more apt to switching brand choice. This will generate in-store decisions by consumers who tend to be indecisive about purchases. To maintain a strong image, we will keep close, intact relationships with all our intermediaries and do our best to
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carry, promote, and successfully sell our products to as many target market consumers we can reach
o
Pull Strategy: We plan to draw attention to our brand through promotions, advertising, coupons, samples, and trial runs. This strategy will attract high involvement customers who are brand loyal and have done their research on paint brands. These customers have already made their decision as to what product they absolutely want before they have even gone into the store.
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Promotional Mix
Advertising Sales Promotion Personal Selling Public Relations Direct Marketing Support Promotions
Promotion Objectives Advertising
Create at least 50% awareness of our product among our target audience
Gain a 5% market share in the children's paint market
Sales Promotion
Gain 25% of competitor's customers through POP P OP and premiums
Create a database of frequent customers
Personal Selling
Stock Jones Blair in a prime location at every Ace Hardware store
Gain 1 new account every 6 months 52
Public Relations
Be a corporate sponsor of the Fort Worth Zoo
Become known for being Texas' paint
Direct Marketing
Increase traffic to Jones Blair website by 25%
Increase professional purchases by 15%
Support Promotions
Appear on every episode of Extreme Makeover: Home Edition that takes place in Texas
Increase the perceived sense of goodwill of Jones Blair
Channel Promotions Trade Shows
Dallas Home and Garden Market - March o
This trade show focuses on home and garden remodeling. By exposing ourselves to designers, landscapers, and architects, the brand will be more recognizable when seen in the store. By providing samples, professionals will become more familiar with our product and will recommend to their clients
Dallas Build Expo - December o
The nation's largest and most respected commercial trade show for the construction and building industry. industry. Through offering samples to builders,
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painters, and others in the field, we can create a relationship and future customers
Samples - provide retailers with samples to distribute to customers interested in products Allowances - slotting allowances and POP display allowances will be provided to the retailers
Co-Advertising - Jones Blair will contribute money in co-advertising campaigns in some weekly circulars with key accounts
Trade Magazines
Jones Blair will put ads in trade magazines targeted to the Dallas-Fort Worth painters market. This will let painters know about our new ordering system online, our delivery to job sites, and our points program for receiving free gallons of paint. In addition, the ads around the time of the trade shows will let painters know they can try our product at the expo
Creative Strategy
Rational Appeal - Jones Blair's quality is what sells the product. Only 1 coat is needed and the product lasts a long time. In addition, our great customer service service and helpful website put us above the competition. competition. For professionals, Jones Blair will be a convenience company since we will deliver paint to their job sites.
Emotional appeal - Jones Blair is a Texas product, thus our new label will clearly identify with Texan pride. In advertisements, Texan pride and an overall American feel will be conveyed. In addition, Jones Blair will be projected as a family brand, valuing the time parents spend with their children. To further
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promote this, we will sponsor the Fort Worth Zoo and be featured on Extreme Makeover: Home Edition.
Media Schedule Jan
Feb Mar Apr May Jun Jul Aug Aug Sept Oct Nov Dec
Advertising Co-advertising
X
x
Radio TV Commercials
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Personal Selling Sales people
X
x
x
x
x
Sales Promotions POP Zoo Coupon Premium
x X
Frequency Coupons
x
x
x
x
x
x
x x
x
Public Relations Adopt an animal
x
Paint the Zoo Day Sponsor the Zoo
x X
x
x
x
x
x
x
x
x
x
X
x
Website
X
x
x
x
x
x
x
x
x
x
X
x
Facebook
X
x
x
x
x
x
x
x
x
x
X
x
Direct Marketing
Support Promotions
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Jan
Feb Mar Apr May Jun Jul Aug Aug Sept Oct Nov Dec
Sponsorship
x
x
x
Channel Promotions Trade Shows
x
Trade Magazine Ads Allowances
x
X
x x
x x
x
x
x x
x
X
x
We feel that most people who are planning on repainting their homes will do it in the spring and summer. This is also a time time where children can be more involved in the process. Because of this, we plan to have most of our promotions occur during this time, with peaks in May and June. These peaks will coincide with the "Paint a Zoo Day" which we plan to be an annual event.
Advertising Objectives:
Create at least 50% awareness of our product among our target audience
Gain a 5% market share in the children's paint market
TV Commercials
To position Jones Blair as Texas' paint, it is important to show this through visuals on channels viewed by makers. These include HGTV and TLC. TLC. Messages will focus on things that make Texas great, including patriotic people, courteous drivers, the Alamo, barbecue, and lastly, Jones Blair paint, since 1928
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In May, the month before "Paint a Zoo Day," commercials will run showing a dad and son riding horses, eating ice cream, and then painting the zoo. This will create awareness of the event, and show an emotional reason to use Jones Blair
In addition to these, country music celebrities will appear in commercials to endorse our brand. Country music embodies that Texas feel and will best represent Jones Blair
Co-Advertising
Jones Blair will co-advertise with retailers in weekly circulars. circulars. This will bring consumers into the retailer, and thus come in contact with the brand
Radio
Radio will be used to notify Dallas-Fort Worth residents about current deals at retailers, and the “Paint a Zoo Day”
Country stars including Texas natives na tives Miranda Lambert and George Straight will also endorse the brand and the zoo
Trade Magazines
Paint magazines targeted at the Dallas-Fort Worth area will emphasize the unique service Jones Blair offers its highly valued professional painters including delivery to job sites and frequent purchaser discounts.
Sales Promotion Objectives
Gain 25% of competitors customers through POP and premiums
Create a database of frequent customers
’
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Point of Purchase
The point of purchase display will involve a portion of a wall painted with an unnamed competitor paint, and a portion of a wall painted with Jones Blair paint. This will demonstrate the quality of the product
JB Junior - the paint strip samples will be in shapes of animals to not only appeal to children, but to allow them to play with the papers after painting their rooms. rooms . The paint colors will have unique names to JB Junior, including Lime Green Lizard and Bright Yellow Fish
JB Junior POP
POP for JB Junior will include a sample of a painted wall and cut out animals in each color for the children to play p lay with and pick their favorite color in which to paint their room. These POPs will be at the beginning of the paint aisle.
Premiums
Included with each gallon of paint will be a removable paint pourer 58
Coupons
For a limited time, when customers purchase a gallon of JB Junior paint, they will receive a printout coupon to the Fort Worth Zoo
On the website, users who take a quiz to figure out their ideal color, or those who paint a virtual room, will be able to print out a coupon for 10% off that they can bring with them to the store. This coupon allows the store to see what color they picked out online
Frequency Program
For our professional painters, a loyalty loyalty program will be put in place. No matter where they purchase Jones Blair, online, at Ace Hardware, Home Depot, or small retailers, their purchases will be kept track of and will receive a free gallon of paint for every 10 they buy
DIY painters can also accumulate points that will never expire. In addition to the free gallon after 10, they will receive coupons by email or mail
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Personal selling Objectives
Stock Jones Blair in a prime location at every Ace Hardware store
Gain 1 new account every 6 months
With 8 sales people, we plan to split them up according to our biggest accounts. Our most important account is Ace Hardware since Ace is a national but local hardware store. store. Ace would be a great company to complement Jones Blair's Blair's high quality product. We plan to put 3 sales people on the Ace Hardware account team to deal with the 32 stores within 50 miles of the Dallas-Fort Worth area. One person will be solely responsible for for the Home Depot account, and another for the Lowe's account. The last three sales people will float float among the rural areas local hardware stores. These sales people are responsible for training store employees and maintaining a favorable relationship.
Public Relations Objectives
Be a corporate corporate sponsor sponsor of the Fort Fort Worth Zoo Zoo
Become known known for being being Texas' Texas' paint
Corporate Charity
Fort Worth Zoo We plan to be a long-term corporate sponsor of the Fort Worth Worth Zoo. Each year, we will choose a different different animal to sponsor for $500. During that
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year, a plaque will be by the animal's cage stating it is sponsored by Jones Blair paint. In addition, Jones Blair will come out with a stencil pack based on that animal, to be sold at both the zoo gift shop and in paint retailers. For our first year, year, we plan to sponsor the Aldabra Tortoise
Event
Paint a Zoo Day o
Once a year, we will put on a "Paint a Zoo Day." We will focus on professional painters and their children, as well as the local community, to help get involved in repainting a part of the zoo. Since Jones Blair paint is non-toxic and eco friendly, the zoo’s animals won't be harmed by the paint. Those who participate will receive a free day at the zoo.
o
Professional painters who participate will receive 1 free gallon of paint on their next purchase from Jones Blair
Direct Marketing Objectives
Increase traffic to Jones Blair website by 25% 25 %
Increase professional purchases by 15%
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Webpage
Professionals - Professional painters can order however much they need for their next job. As an added service, free of charge, Jones Blair will deliver it to their job site as long as it is within 45 miles of the DFW area
Original - features our original paint selections JB Junior - displays a wide array of new, ne w, bright colors for kids to enjoy. enjo y. Included in this section are interactive games and a "paint your playhouse" application
What color? - A section for DIY painters who don't know what color they wish to paint a room, or don't know which colors to accent. They can answer a few simple questions to find out the color best suited for them. Then, the customer can print out a slip with the color number and a coupon for 10% off a gallon of paint to use at their local hardware store
Paint a Room - a fun feature for customers to be able to visualize the color in their home will will be a virtual room room to paint. This room will be customizable as to its function (bathroom, bedroom, kitchen, living room), and then users will be able to choose the number of windows and which 62
way the room is facing. This will allow them to see how the light will hit their walls. Finally, customers will be able to to furnish the room to the best of their ability and test test different wall colors. colors. Once they choose a wall color, they can print out the same coupon as the one from the "What Color?" section
Fort Worth Zoo - a section devoted to letting our customers know more about our sponsorship of the Fort Worth Worth Zoo. This will also advertise our "Paint the Zoo day," and allow people to to sign up to participate. In addition, there will be a poll as to which animal Jones Blair should adopt for the upcoming year, starting in February
Facebook
On the Facebook page, users can upload pictures of rooms they've painted and get ideas of new creative painting projects
Support Promotions Objectives
Appear on on every episode episode of Extreme Extreme Makeover: Makeover: Home Edition Edition that takes takes place in Texas Texas
Increase Increase the perceived perceived sense of of goodwill of of Jones Blair Blair
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Sponsorship/Product Placement
Any episodes of Extreme Makeover Home Edition taking place in Texas will be partially sponsored by Jones Blair paint. This will serve to get get the name out there, and and solidify Jones Blair's Blair's place as Texas' paint. We expect Extreme Makeover: Home Edition to be in Texas 3 times in the coming year, providing 3 unique opportunities to show the brand
Budget
Budget
Advertising -20% Sales Promotions - 20% Personal Selling - 10% Public Relations - 15% Direct Marketing - 10% Support Promotions - 10% Channel Promotions - 15%
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