Janmar Coatings

Janmar needs to focus all their current energies on the DIY consumers and professional painters. Hiring a new sales representative would be the smartest decision right now because they will know every detail of the products and have the ability to market that properly to each of those consumer segments.However, I have also considered the Vice President of Advertising’s suggestion that they should increase advertising expense by $350,000. While initially, increasing advertising expenses sounds like a good thing to do, this decision would almost double the current advertising expenditure. Janmar is spending around 3% of revene on advertising and sales promotions efforts; which comes out to nearly $360,000. And while it may By increasing advertising expenses by $350,000, an additional $1,000,000 in sales will need to be recovered to make up for this expenditure. Mr. Burns makes a valid point by saying that 75% of the audience advertised too is not buying paint. With 25% of your audience only looking to buy paint, it would not be worth the risk of not increasing sales by $1,000,000, to implement the extra advertising expense.Also, I considered the Vice President of Operations proposal for a 20% price cut on all Janmar Coatings, Inc products. Price cuts are always something that needs to be entered into with extreme caution. Even the slightest 1-2% drop in price

Beside suggestions stated by the senior executives and the president of Janmar Coatings, Inc., there are three ways to deploy Janmar products (Paints and sun-dries). First, since 60% ($80 million) of Janmar’s architectural coatings products were sold in DFW area, the company should distribute more of its products to that area in order to maximize sales. Regarding the non-DFW area, the majority (90%) of that area deals with “do-it-yourself” method to paint their houses or rooms, and usually the decision effected by the price of the product. Therefore, Janmar has two options for the non-DFW area, either to cut the prices of their products, or to develop a new lower quality category that has the same brand name but cheaper than the premium category. The competition in Architectural coating segment are increasing. Companies seeking growth and a higher sales base to support increasing costs are making acquisition. Major products of paint for the architectural coatings segment include Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow group and Pratt & Lambert. These producers account upward for 60% of

Sales from North America Wholesaler: 492 Units, If we start the office we will forego the revenues from the wholesaler, i.e., 492*8572 = $4,220,094 or contribution of $1,514,906. So as to achieve the BEP we need to sell 384 units at $10990 and 72 units to recover the annual cost of 3 employees (Margin = $220,000). So we need to achieve 150% of the current sales in order to reach BEP. This sounds risky and the competition is already intense. Exhibit 2

This case is about Janmar Coatings, a paint coatings company based in the southwester United States. The company has come across a dilemma on how to deploy marketing efforts among the various architectural paint coatings markets served in the southwestern United States.

Although margins have been maintained, sales have not increased. There is a threat of losing consumers do to now being the highest-price paint in the service area. Therefore, Jones/Blair must draw attention to their core competencies to leverage themselves in the marketplace.

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.

Mr. Barrett faces different propositions of where and how to organize corporate marketing efforts in the architectural paint coatings market under Jones-Blair Company. Each executive has a different proposal such as: increasing brand advertising, lowering paint prices, hiring new representative or keeping status quo. This executive community still has not decided on which proposition to choose. I recommend hiring a new representative in non-DFW areas.

A minimum increase in profits of $972,000 ($1,852,000 less $880,000) would largely have to be traceable to the new product. This represents a profit margin of approximately 23% based on sales of $4,200,000. One must question whether the estimated sales levels and profit margins are attainable. Perhaps you should advise your client to propose a revised profit agreement that does not risk previous levels of profit participation to such an extent.

* Create a well-rounded sales team that could sell to National accounts as a whole creating a total solution, one stop shopping for

After many years of many highs and lows of operating in Canada, S/M Architecture was positioned to pursue new ventures and business opportunities and had to consider marketing research and the process of implementation. Although it's not easy to determine which step in the research process is most important; each step has value and relevance. Step 1 is research purpose; step 2 is to determine the research objective; and step 3 is estimating the value of information (McDaniel & Gates). Therefore to begin the process, the company identified areas of opportunity and issues to address.

Andy should present the historical data showing that the cost of sales has been steady at seven percent for the past several years in an effort to convince the CEO to revise the five percent target and set a new and more realistic target percentage. Andy should also present a restructure plan that allows some, or all of the following: key sales representatives to manage the larger retail accounts, implementing new technology such as the Cisco System to allow for more direct sales relationships with customers, offer a different commission structure to the sales team to include new membership incentives and lower commission splits on already established accounts, incorporate regular training opportunities for the sales representatives, redistrict the sales territories, consider lay-offs, use an online customer support medium within their website, and also offer an option for assistance in buying products through the web.

The location of our store will be in the downtown area where customers mainly shop. We will target customers that need home improvement supplies. We don’t want to have the store located where we have too much competition. Having too much competition can cause prices to drop low to the point where you are making little to no money. The lower the price the more customers you will get, but the less money you will earn. Our short term goal is to increase our advertising budget each month for the next four months. Our long term goal is two receive 95 percent positive feedback from our customers and to get community recognition in three to five years.

In strategic marketing planning, operations and management teams focus on coming up with and implementing practical marketing strategies that can assure a steady flow of business for the organization. In order to do this, these teams determine the primary objectives of the organization and what methods / resources are necessary to put to action to achieve these objectives. A key part of strategic planning in marketing is finding attractive opportunities. The four basic alternatives are seen in the following bullets including a brief description / examples of each one in the sub-bullet.

Today’s customers may not always be right, but they certainly know what they want. Both consumers and commercial customers have virtually instant access to product and pricing information, they demand products and services customized to their individual needs. They expect high levels of service. That makes capturing and retaining their business more challenging than ever. To succeed, marketing and sales organizations must combine forces and use all the talents, tools, technologies, and channels at their disposal to win in today’s increasingly competitive marketplace.

Recent advances in science and technology have stimulated the development of new coating materials, surface and interface engineering processes, and thin film systems, that provide ever-improving performance in numerous areas, ranging from optics and optoelectronics to aerospace, automotive, biomedical, microelectronics, and other applications.