Stainmaster - Case Analysis Essay examples

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Introduction and Problem According the Wallstreet journal, the purchase of carpet is one of the most expensive purchases that people make in their lifetime, yet this product as remained mostly undermarketed with only 5 million dollars spent on customer advertising for 15 billon dollars in revenue for the industry. In 1988 the industry saw a major change with the introduction of Du Pont’s Stainmaster carpeting, which allowed it to gain a strong foothold and marketing advantage within the industry. But there are still some issues that the company needs to address; mainly 1) the best use for its brands 2) the impact of the competition and 3) how Stainmaster should be positioned versus the rest of the market. Indeed, faced with the…show more content…
These small retailers are also the ones who tend to suffer the most from the “warehouse” effect that customers tend to shy away from. Also, due to their small size, these retailers are the ones who are the most likely to complain from margins since their small structure do not allow them to have economies of scales that can be done at larger retailers. Du Pont has tried to enhance its channel of distribution by providing a large amount of marketing materials to be used on site such as in store demonstration unit. But here again the number of small retailers is a problem to make the impact of such materials noticeable without incurring huge costs. Overall, the retail industry seems to be healthy, as surveys have shown that there is a significant growth in sales. But there does seem to be a problem in the sense the despite growth in sales volume there is no growth in net profit.
Four C’s Summary Overall, Stainmaster appears to be a strong brand on several aspects. First of all, it is backed by a big corporation with the means to support its development. The brand has the benefit of being the first to enter the market and has a very strong awareness amongst consumers; it is also recognized as being a technically superior product, even though the competition seems to be close behind in terms of innovation. Distribution is a bit more problematic as its disparity does not allow Stainmaster to have a good control over it and to efficiently promote its
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