Janmar Coating case study

1165 Words Nov 7th, 2013 5 Pages
1.0 Case Summary
This case is about an organization doing business on paint coatings market served by company in the southwestern United States. The organization has some challenges on how to deploy marketing efforts among the various architectural paint coatings markets served in the southwestern United States. 1. Janmar Coating, Inc.
Janmar Coating, Inc. is a privately held organization produces and markets architectural paint under Janmar brand name. In addition to producing a full line of architectural coatings, the company sells paint sundries (brushes, rollers, thinner, etc.) under the Janmar name, even though these item are not manufactured by the company. 2. Architectural painting
Industry sources
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Therefore, they cannot cut price this year.

3. Hire a sale representative costing $60,000 a year in non DFW areas.
Vice President of Sales wants to develop a new retail account in non DFW areas after only five accounts for the last 5 years. They want to focus on non DFW areas because half of their sales and dealers exist in that particular area. It has been asking by Mr. Burns on what the sale representative will do, either focusing on retail account side or on recruiting the professional painter. 70 percent of sale is through their professional painters in DFW areas, while 70 percent of sale went to do-it-yourselfers in non DFW areas. They would need 40 percent price cut to attract contractors since they have minimum number of contractor sale in DFW and other areas.

4. Maintaining their current approach.
Referring to Vice President of Finance, he want to pursue the current approach because they are in profitable based on contribution margin by 35 percent. The company just needs to monitor their margin in control their cost well.

4.0 Choose the best alternative
The best alternative is sales representative, since it focuses on non DFW areas because half of their sales and dealers exist in that particular area.

5.0 Implementation of the alternative:
Based on the case study, the way to implement the problem is through market targeting. There is the way of target the market which is:
1. Where to compete
Janmar Coating

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