Janmar Coating INC Essay

Janmar Coating INC is surely facing a problem of where and how to enact embodied marketing efforts among various paint coatings market. Several top executives cannot come to an compact on if they should expand to non-Dallas Fort Worth (DFW) areas or construct additives to the current budget for advertising, hiring a salaried employee, or cutting prices so that the customers and retailers who are price sensitive provide not be discouraged to drill the reaping. According to the case study the U.S. paint coating industry has triplet segments. The smallest of the three with only 22% of the market is the special coatings segment. This group is particularly used on items that may withdraw fundamental temperature fluctuation or environmental factors. The middle segment with 35% market share is the real Equipment manufacturing (OEM). OEM is used on objects such(prenominal) as cars, trucks, building products and more.The largest segment with 43% market share is the architectural c oatings used on dwelling houses, buildings, industrial structures and more. labor sales for paint coatings in 2004 were around 16 million with anticipate sales to increase in the next year. Analyzing the data reflects that the segment of architectural Paint coatings and sundries suffer a strong position in the industry. This 12 billion plus group is expected to grow more with the extreme demand of maintenance and repairs on new and old homes increase. Although its competition such as aluminum and vinyl siding appears to stimulate a bewitch on the market solely APC is still holding steady. In addition, the do it yourself painters are increasing in popularity making the trend in(predicate) and providing stability in the market.Knowing the competition is not hurting but this segments growing concerns are the mandatory regulations regarding a reductionin e charges caused by the production of paint. This has stigmatized the industry causing sales to decrease which resulted in ump teen business closing or merging with bigger firms. Janmars mission is to gain more market share across the industry. With sales world steady in the DFW area there should be an emphasis on the non DFW area which may provide an increase in sales which will result in increased revenue. A strength of the gild is capital customer relationships.Many believe to sell a particular product you must know the product very well and Janmars representatives has exhibitthis according to several internal customer surveys. Team perseverance believes a weakness in this company may be its inability to part penetrating the market outside the DFW area. Also the indecisiveness of the leadership of the company may prevent them from taking advantage of the upcoming peak season. In the past before the specialty stores or the big retailers like Walmart and home depot were around Janmars competition was minimal. Although they have many professional painters that corrupt their product it may be consider ed a weakness because it limits gaining more share. The substitute course of action in the Janmar case are being commensurate to excel their social movement in the DFW do-it-yourself market. A con to this option is that many consumers select a store before selecting the brand.With many stores having more than one brand this may leave the consumer a chance to purchase a less priced product. It is very common for consumers to purchase from advertising they have also seen although a very small percentage. A pro would be the increasing of brand awareness. The court to enact this preference is around $350,000 in brand advertising over the current budget. Another alternative which replica acts the previous mentioned alternative is to issue a special coupon in the newspaper. A con may be that in the time of the profit print marketing is out of date and seen as less effective. The alternative is tohire a new sales representative that may be aggressive in the non DFW area may be a fa ll in suggested alternative. A pro to this alternative is the direct cost in lucre vs $350,000 in addition to the budget which the salary is dramatically lower in price. The final alternative is to continue with the current approach.Team recommends that Janmar Coating Inc. should chose the die alternative with a twist. Keep everything the same with small increments of motley. The first change would be adding a new sales rep. We believe this individuals role to autograph new accounts may show a faster result in revenues via new accounts than advertising on the television which carries a higher cost and more time to see sales increase. This representative may have the ability to get more accounts in one year than they have in five years. One of the strengths of Janmar is its ability to satisfy its retailers. It is crucial that Janmar begins to aggressivelyattack the non DFW area in order to get there presence and product known. With globalization it is very easy for a company to be left behind.