1. How is the architectural paint industry to be characterized?
o The industry is matured, i.e. the sales are high and no longer growing
o Competition is fierce as the market is very profitable
o Prices tend to drop due to proliferation of competing products
o 43% of total industry dollar sales account to architectural painting = 559 Million
o Growth amounts to 1-2%
o 50% of brands in this industry are private brands
o The market is dominated by do it yourself shops and home centres
o Still specialty stores manage to surveive (36% of total sales within the market).
o There are currently 600 companies on the market, whereas this no. is declining (2% - 3% yearly)
2. How might one segment Jones Blair¡¦s market area
o Small company
o Specific paint, special formulation
o Mid- to high income customers who value quality
o specialists
o focusing on the DFW area (450 companies)
o Distribution through 200 independent paint stores, lumberyards, and hardware outlets
o......
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