JANMAR COATINGS, INC.
In-Depth Case Analysis
In partial fulfillment of the requirements of
Marketing Management and Policies
October 7, 2014
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 ...view middle of the document...
* How should Janmar proceed with the implementation of its corporate marketing efforts to maintain its market share given the lower prices of its competitors and their ever-increasing presence in the paint industry.
1. Do nothing
Janmar could keep selling to homeowner and professional painter markets for both DFW and non-DFW markets. They could guard their margins and control costs in order to maintain their contribution margin.
2. Increase corporate brand advertising
The company could increase the advertising budget by $350,000, placing a specific emphasis on television, in order to increase awareness. Through an emphasis on advertising via television, Janmar can aim to:
1. Increase the awareness level, for viewers, to 30 percent.
2. Expand awareness into the non-DFW consumer market.
3. Cut current do-it-yourselfer paint prices
Janmar could focus on becoming more competitive by cutting price by 20 percent on all paint products. This could help Janmar compete against national paint brands and appeal more effectively to the price-sensitive consumers. As opposed to price-conscious consumers turning away from the Janmar brand due to its high prices, it could try and capture a greater portion of that market, as well.
4. Add an additional sales representative
The company could add one sales representative whose main focus would be on developing new retail account leads and presentations or trying to attract more consumers from the professional painters market. Janmar can focus on targeting non-DFW markets.
RELEVANT INFORMATION – ENVIRONMENTAL FACTORS
Size & Growth
The paint industry was considered to be a maturing industry in the United States. In 2004, sales were estimated to be just over $16 billion. Of that $16 billion, $12 billion was allocated in the architectural paint coatings and sundries industry. Annual sales growth was approximately 1 to 2 percent per year. Sales, overall, had drastically slowed down. Growth is projected to match inflation rates.
Demand for architectural coatings and sundries was affected by the following factors:
* The level of house redecorating, maintenance, and repair
* Sales of existing homes
* New home, commercial, and industrial construction
* Competition from alternative materials
* Higher-quality paint products had reduced the amount of paint necessary per application, as well as the number of total applications necessary
* The increase of do-it-yourself painting
Culture & Customer
There are three different segments for the paint industry:
* Architectural coatings
* Original equipment manufacturing
* Special purpose coating
This case focuses most often on the architectural coatings segment.
The paint industry manufacturers had been pressured to reduce their emissions of volatile organic compounds (VOCs) from their paints....