Janmar Coating, Inc.
Case Study Report
The Janmar Coatings company is in the process of deciding where their marketing dollars will be best used when building sales in a populated market place. The executives decision has four options. They can do nothing and continue at their current pace, Increase the advertising of products to households in the areas serviced, cut prices to compete with the common brands or add additional sales representatives at $60,000 per salesman. As a privately held company, Janmar Coatings will need to conclude how they will continue to sell a luxury paint at the one of the highest prices on the market.
The Coatings industry is a 80 million dollar a year market with Janmar accounting for 12 million. Sales are split between the do it yourselfers and professional painters. The DIY painters make up 50% wile professionals account for an additional 25% of the market place. Distribution channels include Home improvement centers, specialty stores, and hardware stores and lumber yards. Janmar Coatings Sells to Dallas Fort Worth and the surrounding metropolitan areas.
Janmar Has a solid distribution network and is located in one geographical location. Although they are feeling the stress of a mature and slowly declining industry the company has a number of opportunities in view as the number of people who do their painting themselves is on the rise along with the increase of contractors and other professionals that are in the market for high quality paints. The company does suffer from low brand awareness as well as low margins on their products. This accompanied my Increasing costs for things like research and development an tighter government regulations is all playing a factor into the companies decision on how to allocate their marketing dollars best.
Increase in Advertising
To increase advertising by an additional $350,000 would have a number of positive effects on the brand. In doing so you with see an increase in brand awareness among mass merchandisers which would internet attract