1. Describe/Characterize
A. Architectural paint coatings industry:
• Includes: general purpose paints, varnishes and lacquers that are used on residential, commercial and institutional structures.
• Products are sold through: wholesalers, retailers, do-it-yourself consumers, paint contractors, and professional painters.
• Also called shelf goods
• Account for 43% of total dollar sales
• Industry estimates for architectural paint coatings & supplies to be $10 billion plus in 1999.
• Long term sales growth of 1% to 2% per year
• Demand is affected by: 1. Competition from alternative materials 2. Higher-quality paint is being developed which reduce the amount of paint necessary and frequency.
• Number of companies is declining at 2% to 3% per year (mergers, acquisitions)
• 50% are sold under private, controlled or store brands
• 50% of these paint coatings are sales from do-it-yourself painters
• 25% are professional painters
• 25% from remainder, government, export and contractors
• 60% for interior paints 38% for exterior paints
• Industry sales $5.59 B
• Slightly less than 1 in 4 households purchase interior house paints in any given year
B. Jones-Blair trade area
• Headquartered in Dallas Texas. Markets in Oklahoma, New Mexico & Louisiana.
• DFW – Dallas-Fort Worth district is the 11 county
• There is competition for Jones-Blair from: 1. Department st ...