Janmar coatings Essay

1 . Problem Recognition describes the existing problem or opportunity facing the organization. The latest problem that is facing Janmar Coatings is how to expense effectively marketplace the products and what area is the best destination to market.

Businesses rely on the leadership which will make decisions regarding the market after two older executive gatherings, there is no resolution. 2 . Sector, Market, and Buyer Research provides an external analysis in the organization. Consider industry framework and performance; competitors’ strengths and weaknesses, and buyer tendencies. Also consider whether the market may be segmented, and if so , whether the segments may be quantified. (15 points) The US paint industry is an established industry.

In 2004 it was just over a sixteen billion dollars dollar market. It is likely to grow progressively in line with the speed of pumpiing. The US paint coatings market is divided into three parts or sections: architectural paint coatings, original equipment manufacturing coatings, and exceptional purpose coatings. Forty-three percent of the marketplace is held by simply architectural color coatings.

New paint films are defined as general purpose paints, varnishes, and lacquers. It is used in the residential marketplace, the business market and institutional buildings. It is distributed by wholesalers and retailers.

Contractors, specialist painters, and do-it your self painters will be the buyers. Thirty-five percent from the market is consisting of original equipment production coatings. These are made particularly for an commercial buyer to use on items during manufacturing. These products consist of cars, vans, appliances, household furniture, and tools. This would be used in the industrial market.

It really is sold by the manufacturer to a company making the product. A final segment in the market retains twenty-two percent, the unique purpose coatings. The exceptional purpose films are used for environmental applications. This is certainly used for intense conditions such as temperatures and exposure to chemical substances. It is applied to roads, rooftops, and other products that are impacted by chemicals or temperatures.

A few of the competitors will be Sherwin-Williams, Valspar, Glidden, Benjamin Moore, and PPG Companies. 3. Organizational Analysis provides an internal analysis of the company. Consider the organization’s quest and resources, its strengths and weaknesses, and its past performance. (15 points) Janmar Coatings sells architectural fresh paint coatings and supplies necessary. They are located in Dallas, TEXAS. They at the moment market to over 50 counties in Tx.

The 10 counties in Dallas/Ft Really worth area is definitely the major services area. In 2004 the industry was at 16 Billion, and the product sales for Janmar was 70 million. The business divides in to the Dallas Feet Worth place and no Dallas Ft Worth area. Forty-eight million was made in the Dallas Fortification Worth place, and thirty-two million was performed in the low Dallas Ft Worth place. This is a 60-40 split.

The company’s sales are divided into fifty percent do it yourself artists, 25% professional painters, and 25% federal government sales. some. Alternative Courses of Action explains the viable alternatives the corporation might take to solve the problem. These kinds of options are usually outlined in case.

Provide the positives and negatives as well as the related costs and revenues for each alternative. In case your quantitative evaluation is considerable, please input it in an appendix to your report. (25 points) One alternative the elderly management executives talk about performing is increasing advertising, with an focus on television. This will likely reach non-DFW consumers in 15 countries. This will price them $350, 000 previously mentioned what they are already spending in advertising. The con to the is 75% of consumers are not purchasing paint so spending $350, 500 for advertising may not reach the phone number they are planning to reach.

The Vice President of sales wants to add one particular additional revenue representative to the non-DFW market whose singular responsibility should be to develop new retail account leads and presentations or perhaps call on specialist painters to solicit their particular business through dealers. This will likely cost these people approximately $60, 000 not including commission. The Vice President of Finance alternative was to keep on the strategy they are going by guarding their margins.

He claims they have and will be profitable through controlling costs. The contribution margin is 35%. 5. Recommendation/Discussion outlines and justifies the specific actions required to address the challenge. (20 points)