Secondary emphasis on DFW-Professional market
Seek more retail accounts in non-DFW markets. Jones Blair should concentrate onincreasing the number of distributors of its products in rural areas. The Dallas-Fort Worth market may be saturated and place importance on quality and service, but the rural market is still in expansionand in need of a producer to fill the quality-service niche. Any producer that wants to secure this niche needs to be present. Being present means selling paints in a large percentage of stores.Jones Blair is currently lacking in this area, and should be able to improve its position by hiring a new representative.
Hire one additional sales rep who is in charge of developing new accounts.If budget permits, hire two. Each can be assigned to Professional and Household markets respectively.
Engage in cooperative advertising with current advertising budget.
Four facts have led us toa preference for in-store promotion. First, the audience reached by expensive television campaigns is made up essentially of people who don't by paint. More precisely, 75% of the viewing audiencefalls into this category. Secondly, the majority of consumers decide which brand they will buy before entering the store. Thirdly, the majority of advertising is based on price competition. Lastly,other forms of publicity, such as mailers and newspaper ads, are often overlooked or find their way directly to the trash.
In order to counteract these advertising inconveniences, we feel thatin-store promotion should be tested and further developed if resultants are positive. In-store promotion is more economical than an expensive television campaign. And most importantly, it counteractsthe brand decision that many customers have supposedly already made before entering the store. Also, in-store advertising can be more easily based on quality and service.
Maintain prices. See 6.b)