Janmar coatings Essay

1. Problem Identification describes the latest problem or opportunity facing the organization. The true problem that is facing Janmar Coatings is how to cost effectively grocery store the products and what bea is the best place to market. Companies rely on the leadership to help make decisions regarding the market and later on two senior executive meetings, there is no resolution.2. Industry, Market, and Buyer Analysis provides an external analysis of the organization. matter manufacture structure and performance competitors strengths and weaknesses, and buyer behavior. similarly consider whether the market wad be segmented, and if so, whether the segments can be quantified. (15 points)The US key fruit industry is an open up industry. In 2004 it was just over a 16 billion dollar industry. It is expected to grow steady 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 direct coatings. fastnessy-three per centum of the market is held by architectural paint coatings. Architectural paint coatings atomic tote up 18 define as general purpose paints, varnishes, and lacquers. It is routined in the residential market, the commercial market and institutional structures. It is change by wholesalers and retailers. Contractors, professional painters, and do-it yourself painters are the buyers.Thirty-five percent of the market is made up of original equipment manufacturing coatings. These are made specifically for an industrial buyer to use on products during manufacturing. These products include cars, trucks, appliances, furniture, and equipment. This would be used in the commercial market. It is sold by the manufacturer to a order manufacturing the product. The final segment of the market holds 22 percent, the special purpose coatings. The special purpose coatings are used for environmental applications. This is used for extreme conditions such(prenominal) as temperatures and exposure to chemicals. It is used on roads, roofs, and other(a) products that are affected by chemicals or temperatures. about of the competitors are Sherwin-Williams, Valspar, Glidden, Benjamin Moore, and PPG Industries.3. Organizational Analysis provides an internecine analysis ofthe firm. Consider the organizations cathexis and resources, its strengths and weaknesses, and its past performance. (15 points)Janmar Coatings sells architectural paint coatings and supplies needed. They are establish in Dallas, TX. They currently market to over 50 counties in Texas. The 11 counties in Dallas/Ft deserving area is the major service area. In 2004 the industry was at 16 Billion, and the gross sales for Janmar was 80 million. The company divides into the Dallas Ft expense area and non Dallas Ft Worth area. Forty-eight million was made in the Dallas Fort Worth area, and thirty-two million was made in the non Dallas Ft Worth area. This is a 60-40 split. The companys sales are divided into 50% do it yourself painters, 25% professional painters, and 25% government sales.4. ersatz Courses of Action describes the viable options the organization might gather in to solve the problem. These options are often outlined in the case. Provide the pros and cons as well as the cogitate costs and revenues for each alternative. If your quantitative analysis is extensive, entertain put it in an appendix to your report. (25 points)One alternative the senior management executives talk about doing is change magnitude advertising, with an emphasis on television. This forget reach non-DFW consumers in 15 countries. This go out cost them $350,000 above what they are already spending in advertising. The con to this is 75% of consumers are not purchasing paint so spending $350,000 for advertising would not reach the number they are trying to reach.The Vice President of sales wants to add one additional sales arti culation to the non-DFW market whose sole responsibility is to develop spick-and-span retail account leads and presentations or call on professional painters to solicit their business through dealers. This will cost them approximately $60,000 excluding commission.The Vice President of pay alternative was to continue on the approach they are heading by guarding their margins. He claims they have and will still be profitable through dictatorial costs. The contribution margin is35%.5. Recommendation/ interchange outlines and justifies the specific actions needed to address the problem. (20 points)