Marketing Case Study Janmar Coatings

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Janmar Coatings

...Janmar Coatings, Inc. February 14th, 2013 Advanced Marketing Management Industry Background The U.S. paint coatings industry is seen as mature, with growth projected to approximate inflation. It is a $16 billion dollar industry with one to two percent annual growth that is divided into three segments: (1) architectural coatings, (2) original equipment manufacturing (OEM) coatings, and (3) special-purpose coatings. Architectural coatings account for 43 percent of the total industry dollar sales, and estimated to be $12 billion dollar-plus in U.S. sales. About 50 percent of architectural coatings dollar sales are brought in by do-it-yourselfer painters purchases. Professional painters purchases are accounted for about 25 percent of the dollar sales. The rest is from government, export, and contractor sales. The three main types of distributors are mass merchandisers and home improvement centers (50%), special paint stores (36%), and hardware stores and lumberyards (14%). Company Background/Market Segments Janmar Coatings, Inc. is a company that sells architectural paint coatings and sundries (brushes, rollers, paint removers). They market to over 50 counties Dallas, Texas. The major service area is in the 11 county Dallas-Fort Worth (DFW) metropolitan area. The sales volume grew to $80 million in 2004 and DFW made up about 60 percent ($48 million) of those sales, which the non-DFW areas made up the remainder ($32 million). Janmar Coatings has two market segments,...

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Janmar Coatings Case Analysis

...Janmar Coatings, Inc. | Subject: | Janmar Coatings, Inc. Suggestions | Comments: | The problem facing Janmar Coatings, Inc. is deciding where and how to execute corporate marketing efforts in the southwestern United States. Janmar Coatings is currently marketing to 50 counties, their main focus area so far has been the 11 counties in the Dallas-Fort Worth area. The main issue Ronald Burns, the president of Janmar Coatings, is having is trying to come up with a solution to market his company in the most cost effective way during 2005. After 2 long meetings with his executive team he still has no clear direction. He has gathered an approach from each of his team members, including: VP of Advertising, VP of Sales, VP of Operations, and VP of Finance, and now has four solutions to consider. The VP of Advertising has proposed to increase corporate advertising with an large emphasis on television. The VP of Sales proposed hiring a new field representative to help generate new accounts. The VP of Operations has proposed a 20% price cut on all Janmar product sales. The VP of Finance proposed that nothing be done; that the company continue with their current efforts and keep a 35% contribution margin. After looking at the company’s overall goals and finances, I would agree with the VP of Sales. Based on his suggestion, I believe it would be a smart time to hire a new sales representative for Janmar. The cost attributed to company for hiring a new sales representative would be......

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Janmar Coating

...Background The U.S. paint coatings industry is seen as mature, with growth projected to approximate inflation. It is a $16 billion dollar industry with one to two percent annual growth that is divided into three segments: (1) architectural coatings, (2) original equipment manufacturing (OEM) coatings, and (3) special-purpose coatings. Architectural coatings account for 43 percent of the total industry dollar sales, and estimated to be $12 billion dollar-plus in U.S. sales. About 50 percent of architectural coatings dollar sales are brought in by do-it-yourselfer painters purchases. Professional painters purchases are accounted for about 25 percent of the dollar sales. The rest is from government, export, and contractor sales. The three main types of distributors are mass merchandisers and home improvement centers (50%), special paint stores (36%), and hardware stores and lumberyards (14%). Company Background/Market Segments Janmar Coatings, Inc. is a company that sells architectural paint coatings and sundries (brushes, rollers, paint removers). They market to over 50 counties Dallas, Texas. The major service area is in the 11 county Dallas-Fort Worth (DFW) metropolitan area. The sales volume grew to $80 million in 2004 and DFW made up about 60 percent ($48 million) of those sales, which the non-DFW areas made up the remainder ($32 million). Janmar Coatings has two market segments, Dallas Fort Worth and Non-Dallas Fort Worth. DFW has 80 of the stores and Non-DFW 120 of the......

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Janmar Coatings

...| Janmar Coatings, Inc. | | | | 6/12/2014 | | 1. Problem Identification describes the current problem or opportunity facing the organization. The current problem that is facing Janmar Coatings is how to cost effectively market the products and what area is the best place to market. Companies rely on the leadership to help make decisions regarding the market and after two senior executive meetings, there is no resolution. 2. Industry, Market, and Buyer Analysis provides an external analysis of the organization. Consider industry structure and performance; competitors’ strengths and weaknesses, and buyer behavior. Also consider whether the market can be segmented, and if so, whether the segments can be quantified. (15 points) The US paint industry is an established industry. In 2004 it was just over a sixteen billion dollar industry. It is expected to grow steadily in line with the rate of inflation. The US paint coatings industry is divided into three parts or segments: architectural paint coatings, original equipment manufacturing coatings, and special purpose coatings. Forty-three percent of the market is held by architectural paint coatings. Architectural paint coatings are defined as general purpose paints, varnishes, and lacquers. It is used in the residential market, the commercial market and institutional structures. It is sold by wholesalers and retailers. Contractors, professional painters, and do-it yourself painters......

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Janmar Case

...CASE NO. 2 Janmar Coatings, INC Define the Problem Janmar Coatings, Inc is a seller and manufacturer of architectural paint. While the company is small compared to nationally known brands, the service area reach is big with over 50 counties in Oklahoma, Texas, New Mexico and Louisiana. Janmar Coatings, Inc headquarters are in Dallas, Texas where even with mass merchandisers holding 50% of the market, are still able to maintain a competitive advantage. Janmar Coatings, Inc is also a seller of OEM, original equipment manufacturing coatings. The problem Janmar Coatings, Inc is facing today is determining where and how to focus marketing efforts in the architectural coatings markets. Currently Janmar Coatings, Inc is the highest price product in the architectural coatings market and could be looking to expand their efforts in order to keep their contribution margin high and better position themselves to consumers. Especially with the do-it-yourself market only buying paint in certain seasons, price sensitivity could be a major factor in their decision making it hard for Janmar to steadily compete. Alternatives During a meeting with the VP’s of Janmar Coatings, Inc each participant had a different opinion on how this particular strategy should be met. Alternatives ranged from maintaining the status quo to drastically cutting prices. First Alternative From the Advertising VP an increase in the advertising budget of $350,000 could bring a higher awareness to......

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Janmar

...JANMAR COATINGS, INC. In-Depth Case Analysis Prepared by Mallory Eichhorn In partial fulfillment of the requirements of Marketing Management and Policies Submitted October 7, 2014 CASE SYNOPSIS In early January 2005, Ronald Burns faced two key issues pertaining to Janmar Coatings’ marketing strategy. Burns was the president of Janmar Coatings, Inc., a corporation that produces and markets architectural paint. Janmar also sells paint sundries (brushes, rollers, thinners, etc.) and has a division in original equipment manufacturing (OEM) coatings. The issues were mentioned briefly in the first paragraph of the case and again in the last section regarding the planning meeting. Burns needed to: * Decide where to deploy corporate marketing efforts * Decide how to deploy corporate marketing efforts At the time of the case, Janmar sold most of its paint and sundry items in the southwestern United States. It sold these items in over 50 counties in Texas, Oklahoma, New Mexico, and Louisiana. The major business and financial center in this area was dubbed the Dallas-Fort Worth (DFW) metropolitan area, and it consisted of 11 counties. In 2004, architectural paint and allied products provided for $80 million in sales in the 50-county service area that Janmar occupied. Janmar distributed its products through 200 independent paint stores, lumberyards, and hardware outlets and employed eight sales representatives. The company spent approximately 3 percent...

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Janmar Case Brief

...Jake Stainbrook MKTG 4781 Dr. Rochford 10/15/14 Janmar Case Brief Problem Identification: After my analysis with the Janmar Coatings Inc. the problem identified in this instance is the number of sales dollars earned as compared to the number of retailers is not at a satisfied proportion. As shown in (Appendix A) there are 200 retailers that Janmar will distribute too. Of those 200 retailers, 80 of them are located within the Dallas-Fort Worth location, and the remaining 120 retailers are in the surrounding areas outside of the Dallas-Fort Worth segment. Janmar earns a total income of around $12 million dollars a year. As mentioned 50% of this income account for each segment respectively. The 80 retailers in the DFW area earn just as much as the 120 would in the surrounding Non-DFW regions. This should be a concern for Janmar, as they should look to indulge more time into the surrounding areas of DFW, and build up their products overall awareness and status within the market. Not only that, but Janmar’s promotions within these two-segmented areas, could be a big reason why they are more successful in the DFW location. Increase the overall promotional aspect within Janmar. Alternative Identification: * Pull Strategy – Maintain and improve on their promotional pull strategy with retail outlets, by monitoring inventory, order taking, and assisting in in-store displays. * Push Strategy – Increase more awareness with the push strategy, as they call on retailers, not......

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Smart Coatings

...Subject: Surface Engineering TERM PAPER TOPIC: SMART COATINGS Abstract: Materials that are capable of adapting their properties dynamically to an external stimulus are called responsive, or smart. The term "smart coating" refers to the concept of coatings being able to sense their environment and make an appropriate response to that stimulus. The standard thinking regarding coatings has been as a passive layer unresponsive to the environment. The current trend in coatings technology is to control the coating composition on a molecular level and the morphology at the nanometer scale. The idea of controlling the assembly of sequential macromolecular layers and the development that materials can form defined structures with unique properties is being explored for both pure scientific research and industrial applications. Several smart coating systems have been developed, examined, and are currently under investigation by numerous laboratories and industries throughout the world. Examples of smart coatings include stimuli responsive, antimicrobial, antifouling, conductive, self-healing, and super hydrophobic systems. In this paper a number of application-wise prominent smart coatings are discussed with their individual merits & demerits. INTRODUCTION: A new generation of anticorrosion coatings that both possesses passive matrix functionality and actively responds to changes in the local environment has prompted great interest from material......

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Janmar Coatings Inc

...Marketing Management: Case Analysis: Janmar Coatings, Inc. Presented by, Uma M. Venkatesan Tuesday 17th 2015 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. Janmar Coating, Inc. is a privately held organization that 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. Problem/ Issues The current problem that is facing Janmar Coatings is how to cost effectively market the products and what area is the best place to market.   Companies rely on the leadership to help make decisions regarding the market and after two senior executive meetings,......

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Janmar

...Amber Lockhart Dr. Rodriguez Marketing Management January 24, 2014 Case: Janmar Coatings, Inc. Nature of the Industry, Market, and Buyer Behavior The nature of this industry is broken down into three general segments. The first segment is architectural coatings, the second segment is original equipment manufacturing (OEM), and the final segment is special purpose coatings. Architectural coatings are what you would call the general purpose paints, varnishes, and polishes. They are mainly used on housing, commercial, and institutional structures. Original equipment manufacturing is when it is formulated for industrial use and is used on original equipment by manufacturing. You will find OEM being used on automobiles, appliances, furniture, and more. Special Purpose coatings are used for special procedures or ecological conditions. You will find coatings of this nature used on bridges, ships, railroads and more. There are many competitors in this industry. Competitors for architectural coatings would be Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial chemicals, PPG Industries, and there are many more. Lowe’s and Home Depot would be the competitor for selling Special purpose coatings. These competitors have strengths and weaknesses. A few weaknesses were that come of the companies were unable to make money and study and expansion commitments had to sell their paint businesses. One major strength would be that larger firms that can buy the smaller businesses...

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Janmar

...Jamar Coatings Case: Week 2. Assignment 1 Problem: “Another meeting and still no resolution”. After two lenghthy meetings, the executive group still had not decided where and how to deploy corporate marketing efforts among the various architectual paint coatings markets served by the company in the southwestern United States. US Paint Coatings Industry Divided into 3 broad segments: 1. Architectural Coatings • General purpose paints, varnishes, lacquers used on residential, commercial & institutional structures • Sold through wholesalers & retailers • Purchased by do-it-yourself consumers, painting contractors & professional painters • Commonly called ‘shelf goods’ • Account for 43% of total industry dollar sales 2. Original Equipment Manufacturing (EOM) Coatings • Formulated to industrial buyer specifications & are applied to original equipment during manufacturing • Used for durable goods such as automobiles, trucks, transportation equipment, appliances, F&F’s, metal containers etc • OEM Coatings represent total of 35% of industry dollar sales 3. Special Purpose Coatings • Formulated for special applications or environmental conditions e.g extreme temperatures, expose to chemicals or corrosive conditions • Used for automative and machinery refinishing, industrial construction and maintenance, bridges, highway and traffic markings etc • Account for total of 22% of industry dollar sales US Paint coatings industry is generally considered as a......

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Janmar

...States paint industry has three segments: architectural coatings, original equipment manufacturing coatings (OEM), and special purpose coatings. Architectural coatings are used for commercial, institutional structures and residential purposes; it is sold through both wholesalers and retailers. The majority of all sales are made to do-it-yourself consumers and are called shelf goods and this accounts for 43% of total industry sales. OEM coatings are used for durable goods, automobiles, trucks and transportation equipment and are applied directly to original equipment during manufacturing. OEM accounts for 35% of total industry sales. Special purpose coatings are for special applications or environmental conditions. For example they are used for automobile refinishing and maintenance. It accounts for 22% of industry sales. Architectural paint coatings have two factors that affect its demand. This area is facing competition from alternative materials such as vinyl siding, wood paneling, and wall coverings. Also, companies have ben producing higher quality products that require less reapplication. In addition, paint manufacturers are under pressure to reduce VOCs in their paints. Many companies have had to merge with others in order to stay in business. The number of paint companies is declining. The organization Janmar Coatings Inc. is a corporation that produces and advertises architectural paint under the brand name Janmar. They market their own paint and sundry......

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Janmar Coatings

...Robert Gibase Janmar Coatings Discussion Questions 1.) Architectural paint industry is mature, with projected growth rate of 1-2% per year. In 2004, sales were $12billion. Within the industry, competitions is arising from alternative materials. In addition, higher-quality paints are being produced, which is having a negative effect on quantity demanded. Furthermore, government regulations are resulting in profit margins being at an all-time low. On the plus side, the industry is seeing an increase in demand from DIY’s (do-it-yourselfers). Janmar’s trade area consists of 50 plus counties in Texas, Los Angeles, Oklahoma and New Mexico. They have a total of 1,000 outlets, but the majority of their business is within an 11-country DFW metro area. 2.) Market segmentation: 43% architectural 50% sold under private label 35% OEM 36% at specialty stores 22% special purpose 14% at hardware stores/lumberyards Janmar should pursue the architectural segment more heavily. An influx of DIY’s is showing an increase in architectural paint sales. DIY purchases account for 50% of architectural coatings sales. Janmar should also look to increase presence in non-DFW areas. 3.) Hire additional sales reps (60-65K/year) Train in-store employees on Janmar products Obtain additional retail space in non-DFW area Increase amount spent on advertising, and mix up the advertising method. In-store demos Get coverage via local magazines, newspapers, etc. Attend trade......

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Janmar

...Interoffice Memo Date: 7/2/2013 To: Ronald Burns From: 001-78-2434 Subject: JanMar’s Coatings, Inc. Recommendation Company’s Situation The problem that we discussed in our last board meeting dealt with deciding where and how to execute corporate marketing efforts for the year 2005 among the various architectural paint coatings market in the southwestern United States. Industry Background The architectural coatings industry is a mature market that estimates to be a $12 billion dollar industry with 1 to 2 percent annual growth rate which accounts for 43 percent of the total industry dollar sales. About 50 percent of architectural coatings dollar sales are brought in by do-it-yourself (DIY) painters’ purchases. Professional painters’ purchases are accounted for about 25 percent of the dollar sales. The rest comes from the government, export, and contractor sales. Furthermore, there are three main types of distributors: mass merchandisers and home improvement centers (50%), special paint stores (36%), and hardware stores and lumberyards (14%).  Company Background Our company markets to over 50 counties in Texas, Oklahoma, New Mexico, and Louisiana from its headquarters in Dallas, Texas. The major service area is in the 11 county Dallas-Fort Worth (DFW) metropolitan area. Our company is made up of two market segment areas, Dallas Fort Worth and Non-Dallas Fort Worth. The sales volume of architectural paint and products sold in our company’s 50 county service areas was......

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Janmar Coatings Inc

...Contemporary Sustainability Strategies: How corporate responsibility can lead to financial profit and competitive advantages Executive Summary Sustainable, socially responsible corporate programs and tactics are becoming more widespread in professional practice due to increased regulations, scrutiny from Non Government Organizations (NGOs), and a more vigilant and informed customer base. As a result, many firms often have hesitantly embraced sustainable initiatives, largely due in part to an effort to receive positive public recognition and to avoid still penalties. Background of issues Organizational development strategies are changing during current business climates. Business has become more complex, more demanding, and operating speeds have increased, therefore business decisions must be more accurate, timely, and provide competitive advantages. Also businesses have been charged with the challenge of making decisions that are socially and environmentally friendly, which further complicates resources constraints. Key theories The key theory approached on the article is sustainability, the entire set of principles, concepts, and strategies that ultimately aim to produce a competitive advantage for the firm, while producing environmentally and socially responsible results for the greater community, and all of the firm’s stakeholders. Details Some researchers have indicated that business professionals should abandon the pursuit of financial profits as the......

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Introduction

Mr. Ronald Burns, President of Janmar Coatings, Inc., must make a decision regarding the allocation of corporate marketing efforts among the architectural paint coatings markets served in the southwest United States for year 2005. The issue they are faced with is how to determine the most effective marketing strategy to implement and where it should be implemented to reach the most target customers in the most receptive target market.  The executive group still has not reached a decision after several unsuccessful meetings, and Mr. Burns is eager to find an answer that will grow the market share for Janmar Coatings, Inc. His top executives have each provided him with a solution that we have carefully evaluated for him to consider.

The architectural coatings industry is a competitive and mature market with an estimated revenue of $12 billion dollars. The long term projected sales growth is 1-2% a year. 50% of architectural coating sales dollars are from Do-It-Yourself (DIY) painters. Professional painters account for 25% of the remaining dollar sales with the final 25% coming from government, export and contractor sales.

Janmar Coatings, Inc is a privately held corporation headquartered in Dallas, Texas that produces and markets original equipment manufacturing (OEM) coatings, architectural coatings as well as paint sundries. They market to over 50 counties in Texas, Oklahoma, New Mexico, and Louisiana. Dallas Fort Worth (DFW) and the 11 county DFW metropolitan area is their major business service center. There are 1,000 retail outlets that operate in the in the 50 country service area and DFW houses 450 of them. Additionally, Janmar is currently present in 200 independent paint stores, lumberyards and hardware outlets. 80 of these stores are located in DFW area including 66 which carry 2-3 competing brands. The other 120 stores are located outside of the DFW area.  

In 2004, Janmar had $12 million in sales and $1,140,000 in net profit. They have experienced an impressive average 4% dollar sales increase annually for the past decade. However, in 2004, 60% of their net sales were cost of goods sold and freight expenses. Currently, they are the highest price point for paint in their service area.

Janmar’s major competition in the architectural coating segment for DFW outlets include: Sears, Kmart, Sherwin-Williams, and Home Depot. Competition has also increased for retail selling space in paint stores.

Janmar’s current position in the marketplace is summarized in the SWOT Analysis table below:

Strengths

  • Solid distribution network
  • 4% dollar increase in sales per year for last decade
  • 8 knowledgeable sales representatives
  • High quality product

Weaknesses

  • Low margins on products
  • Poor brand recognition and Low brand awareness
  • High price point

Opportunities

  • Increasing demand from DIY-ers
  • Capitalize on good customer relationships and increased presence in retailers
  • Growing number of people looking for high quality products

Threats

  • Government Regulations
  • Environmental Regulations
  • Availability of alternative materials
  • Technological formula advances
  • Larger companies acquiring them
  • Need for ongoing R&D

The following is a summary of the main problem as well as the four alternatives, which will be addresses in our analysis and considered in our final recommendation.

Our goal is to make a recommended the best course of action for Janmar Coatings, which is outlined below:

Problem Statement

As stated above, Mr. Burns is searching for an answer to the issue of where and how to best deploy corporate marketing efforts among the various architectural paint coating markets served by the company in the southwestern United States. He was presented with four options from his top executives. They are as followed:

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