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Janmar Coatings

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Submitted By robertgibase
Words 312
Pages 2
Robert Gibase
Janmar Coatings
Discussion Questions

1.) Architectural paint industry is mature, with projected growth rate of 1-2% per year. In 2004, sales were $12billion. Within the industry, competitions is arising from alternative materials. In addition, higher-quality paints are being produced, which is having a negative effect on quantity demanded. Furthermore, government regulations are resulting in profit margins being at an all-time low. On the plus side, the industry is seeing an increase in demand from DIY’s (do-it-yourselfers).
Janmar’s trade area consists of 50 plus counties in Texas, Los Angeles, Oklahoma and New Mexico. They have a total of 1,000 outlets, but the majority of their business is within an 11-country DFW metro area.

2.) Market segmentation: 43% architectural 50% sold under private label
35% OEM 36% at specialty stores
22% special purpose 14% at hardware stores/lumberyards

Janmar should pursue the architectural segment more heavily. An influx of DIY’s is showing an increase in architectural paint sales. DIY purchases account for 50% of architectural coatings sales. Janmar should also look to increase presence in non-DFW areas.

3.) Hire additional sales reps (60-65K/year)
Train in-store employees on Janmar products
Obtain additional retail space in non-DFW area
Increase amount spent on advertising, and mix up the advertising method.
In-store demos
Get coverage via local magazines, newspapers, etc.
Attend trade shows, conventions, etc.

Janmar has historically been successful in specialty stores, but their lack of brand recognition in retailers is concerning. Efforts to obtain shelf space in larger retailers would boost brand recognition and increase profit margin.

SWOT ANALYSIS

Strengths: High-quality product, Popular among specialty stores, diverse distribution
Weaknesses: Poor brand

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