Janmar Coatings

1388 Words6 Pages
I. Problem Statement
How and where will Janmar Coatings Inc. implement their corporate marketing efforts for the Architectural paint coatings business?

II. Situation Analysis
The architectural coating industry in divided into three major consumer segments 1) Do-It-Yourselfer 2) Professional painters and 3) Contractors/Other each making 50%, 25% and 25% respectively. This $16 Billion dollar industry is in the mature stage of the business cycle growing roughly at 1-2% annually. Within the Janmar Coatings service area there is $80 million worth of overall market sales. Janmar controls 15% of this market or $12M specifically. The Janmar service area is constructed of two distinct demographics, Dallas Fort Worth area (DFW) where they
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In 2044 Janmar’s growth has average ~$500K to achieve $1M they we need a growth rate of more than twice the prior year or 8.3%.

Addition of Commercial Sales Representative:
The associated expenditures of adding a commercial sales rep has been identified as $60K. In order to cover these additional expenses, incremental sales of $171.4K must be generated during the year. This is based on maintaining 2004 contribution margins of 35% (60,000/.35 = 171,428). The focus of the Sales Rep could be focused on one of the two customer bases professional painting firms and DIY consumers. There are 600 professional painting firms across the Janmar service area that the competition has not targeted. These “pot and brush guys” are looking for high quality paint and the type of high quality service you find at specialty store. There is opportunity for growth in this market as Janmar currently owns 34% of total market share. There is even greater opportunity if efforts were focus in the DFW area where their market share is at 29.2% v. the 56.3% in the Non DFW area. Servicing these customers caters to the current distribution channel Janmar has set up as well as the reputation of their existing sales reps. A large drawback of this approach is it ignores the DIY consumer market which
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