Janmar Coatings Case Study
MK3101-Cases in Marketing Strategy.Dr. Declan FlemingCase study two: Janmar CoatingAuthors: ¬†¬†¬†¬†¬†¬†¬†¬†¬†Clare-Marie Leonard 15382326¬† ¬† ¬† ¬†¬†¬†¬†¬†¬†¬†¬†¬†Andrew Wilson 17102694¬† ¬† ¬† ¬† ¬†¬†¬†¬†¬†¬†¬†¬†¬†Matthew Hourigan 15510103Paul Kelly 14350001Date: ¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†19th¬†September 2017Group: ¬†¬†¬†¬†¬†¬†¬†¬†UG 5Janmar Coatings CaseSituation analysis The U.S paint coating industry is divided into 3 different segments. Architectural coatingsOriginal equipment manufacturing (OEM)Special purpose coating Industry sales of $16 billion per annum.Market segmentation: [pic 1][pic 2][pic 3][pic 4]Focusing on Architectural coatings:A maturing industry. $12 billion industry with growth expected of between 1-2% per annum. Janmar Coatings sales and financials: In 2004 $12,000,000 in sales and net profit before taxes was $1,140,000Dollar sales had climbed at an annual rate of 4% over the last decade. Maximum priced paint in service area. In 2004 paint cost of goods sold including freight expenses was 60% of net sales.Janmar Coatings distribution: Janmar coating issues its products through 200 independent paint stores, lumberyards and hardware outlets. 40% of outlets located in the 11 county DWF areaThe remaining outlets situated in the other 39 counties. ¬†Janmar Coatings promotional effort: Employs eight sales representatives. (Paid a fixed salary plus 1% commission on sales) ¬† The company spends 3% of net sales on advertising and sales promotion efforts. 55% goes to corporate advertising and the remaining 45% goes to instore displays. Janmar Coatings competition and threats:US paint manufactures are under growing pressure to reduce emissions of volatile organic compounds from paints and to limit the consumption of solvents. Compliance with EPA regulations eroded historically low profit margins in the paint industry. ¬† Hardware stores and big firms marketing their own paint brands. Janmar‚Äôs IssueWhere and how should Janmar Coatings position corporate marketing efforts in the architectural paint market to advance their position in the industry?Suggestions: Vice President of advertising:Increase of $350,000 in corporate brand advertising focused on TV adverts. Strengthening the company‚Äôs presence in the DWF ‚Äėdo it yourself ‚Äėmarket. Vice President of operations:We decrease ¬†prices by 20% to remain competitive.

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