IntroductionThe U.S. paint industry is very large, and competition among coating companies is quite intense. Jones Blair Company markets its paints and sundries in over 50 countries and to know who are the customers of Jones Blair Company, we need to divide and group the potential buyers into groups to structure the market.Market SegmentationThe market of Jones Blair can be divided into two groups: Dallas-Fort Worth area and non-Dallas-Fort Worth area. Between these two areas we have the contractor, professional painter and home DIY, but the number of contractors is so minimal that we don't focus on that. From this case, we can infer that the estimated dollar volume of architectural paints and related products sold in Jones Blair's 50-country service area in 1995 was $80 million; 40% of its stores are located in the DFW area of 11 countries and the rest in the other 39 countries. Therefore, the estimated dollar volume for the DFW area is $48 million and for the non-DFW area is $32 million. Additionally, 70% of sales through DFW retailers went to professional painters, while 70% of sales through non-DFW outlets went to do-it-yourselfers. This means the market segment percentage is as follows: DFW ($48 million) Non-DFW ($32 million) Professional Painters 70% ($33.6 million) 30% ($9.6 million) DIY Households 30% ($14.4 million1) 70% ($22.4 million) Market PursuedDowntown Professional Professional painters in the downtown area usually focus on product quality rather than price when choose suitable painting products. Those professionals who choose the best quality paint products because the painting result can directly affect their reputation. To create a better reputation and maintain the high quality standard of apartment furnishings, using high-end painting products is a must, so they have to take the inevitable burden on their shoulders by increasing their expenses. This segment reveals that price is not the first thing customers consider, but quality. Family Downtown Customers in this segment create difficulties for manufacturers as families are not quality-oriented customers like professional painters.
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