MARK4210, 2014 Spring, L1/L2

[Class #6/7]

Segmentation, Targeting, Position: Jones-Blair

MARK4210: Strategic Marketing

2013 Spring, Section L3

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Jones-Blair Case Learning

Objectives

Recognize how a market can be segmented

Analyze the attractiveness of a market segment;

based on competitive activity, buyer needs,

organization capabilities

Recognize when metrics/measurements can be

misleading

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Jones-Blair Case – Key Questions

for Discussion

How would you characterize the architectural paint coatings industry?

How would you characterize the market area that Jones Blair serves?

How should Jones Blair’s market area be segmented?

Which segment(s) should Jones Blair pursue? Why?

• First, how attractive is each segment to JB? Consider the following factors: size of

each segment (need to calculate), characteristics of each segment, future growth

• Second, what is JB’s competitive position in each segment? Consider the following

factors: Jones Blair’s current market share in each segment (need to calculate), the

fit between each segment’s need and the company’s capabilities

Among the four different plans proposed by VP of Advertising, VP of

Operations, VP of sales, VP of finance, what strategy should Jones Blair

adopt? Apart from qualitative assessment, you also need to make a

quantitative assessment of the various options (e.g., break-even).

NOTE: It would be helpful for you to write down notes and calculations

and bring them to class for discussion.

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1. How would you characterize the

architectural paint coatings industry?

CONTEXT

COMPETITION

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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1. How would you characterize the

architectural paint coatings industry? (2)

COLLABORATORS

CUSTOMERS

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2. How would you characterize the

market area that Jones Blair serves?

GEOGRAPHY

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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2. How would you characterize the

market area that Jones Blair serves? (2)

COMPANY SALES

COMPETITION

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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3. How should Jones Blair’s market

area be segmented?

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4.a. How attractive is each segment

to JB? – Size

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4.a. How attractive is each segment

to JB? – Segments Share

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4.a. How attractive is each segment

to JB? -- Quantitative

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4.a. How attractive is each segment to

JB? – Qualitative

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4.b. What is Jones Blair’s

competitive position in the market?

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4. Which segment(s) should Jones

Blair’s pursue? Why?

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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Which strategy should Jones Blair

adopt?

1. Do nothing (VP Finance)

2. Increase advertising to household segment by

$350,000 with emphasis on corporate brand

advertising (VP Advertising)

3. Price reduction of -20% across-the-board (VP

Operations)

4. Add additional sales reps at $60,000 each (VP

Sales)

Key case limitations:

Maintain gross profit at a minimum

Realistic projections relative to market situation

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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1. Do nothing – Pros/Cons

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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2. Increase household advertising

+$350k – Quantitative Analysis

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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2. Increase household advertising

+$350k – Pros/Cons

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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3. Price reduction -20% --

Quantitative Analysis

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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3. Price reduction -20% -- Pros/Cons

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4. Add sales representatives –

Quantitative Analysis

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

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4. Add sales representatives –

Pros/Cons

IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.