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janmar coatings

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by

Kelly Hoogeveen

on 2 January 2014

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Transcript of janmar coatings

Janmar Coatings
Case Analysis
Kelly Hoogeveen, Gracie Barstad, Cathryn Kitchka, Brooke Staffeld
Overview
President, Ronald Burns needs to determine how to deploy corporate marketing efforts among the various architectural paint coatings markets in SW U.S
As a maturing industry. in 2004 the U.S. paint coatings industry sales were approximately $16 billion.
Our major competitors are:
Sherwin- Williams
Benjamin Moore
Glidden Unit of Imperial Chemicals
PPG Industries
Valspar Corporation
Grow Group
Pratt & Lambert
Competitive Landscape


Our determination will be based on profitability potential and whether the option is congruent with our business.
Key strategic issues that need to be addressed:
• Should Janmar increase advertising?
• Should Janmar cut prices?
• Should Janmar increase their sales force?
• Should Janmar do nothing?
Analysis
Specialty paint stores, lumberyards, and independent hardware stores.
Target Market
Positioning

Geographic Area
United States (Southwest concentration)
Industry Type
Architectural Coatings
Original Equipment Manufacturing (OEM)
Special Purpose Coatings
Product Type
Paint
Sundries
Product

Paint
Varnishes
Lacquers
Product Line:
Advertising and Promotion
Co-op Advertising
Newspaper Advertising
Seasonal Catalogs
Point of Purchase Displays
Outdoor Advertising
Regional Advertising
Figure C: Architectural Sales
Buyer
% of $ Sales
DIY Painters
Professional Painters
Government, Export
& Contractors
50
25
25
Figure D: Types of Architectural Sales
Buyer
% of Sales
Interior Paints
Exterior Paints
Lacquers & other applications
60
38
2
Recommendations
Channel/Distribution
50 Counties
Texas, Oklahoma, New Mexico & Louisiana
11 County DFW (Dallas Fort Worth) Metropolitan Area
Distribution Channel
Specialty Paint Stores
Lumberyards
Independent Hardware Stores
We recommend that Janmar hire one new sales representative to focus on reaching new accounts outside the DFW metropolitan area.
According to the VP of sales,
“We have added only five new accounts in the last five years; over account penetration in non-DFW areas is only 16%.”
Thank you!
Questions?
Full transcript