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MKT750CASE STUDY ANALYSIS JANMAR COATINGS INC. -PREPARED FOR:PM NORUDIN BIN HJ MANSORPM DR SITI HARYATI SHAIKH ALI

PREPARED BY:IRSYADDUDDIN BIN WAN NOORMAZIDAH BINTI WAN YACOB

INTRODUCTIONUS PAINT COATINGS INDUSTRYEstimated 2004- Over $16 billion in total industry salesConsidered a mature market

In 2004, sales = $12 billion plusProjected long-term sales growth of 1% - 2% per year.The demand for architectural coatings and sundries reflects :Level of house redecorating, maintenance and repairSales of existing homesFaced competition from alternative materialsDeveloped higher-quality productsIncreasing demand for paint sundries due to a trend toward do-it-yourself paintingCompliance with EPA regulationsARCHITECTURAL PAINT COATINGS AND SUNDRIESJANMAR COATINGS INCPROBLEM DEFINITIONSWOT ANALYSISInternal FactorsStrengthsWeaknessesPaint companies had developed higher-quality products that reduced the amount of paint necessary per application and the frequency of repainting. Produces and markets architectural coatings paint under the Janmar brand name, low brand awarenessDiverse distribution, 200 independent paint stores, lumberyards and hardware outlets.Highest-price paint in service area. Of Janmars competitors, do-it-yourselfers shop at mass improvement centers most frequently, and professional painters shop at specialty paint stores and lumberyards most often merchandisers and homeHighest of paint cost-of-goods sold, including freight expenses, were 60% of net sales.Distribution reaching 25% awareness in DFW External FactorsOpportunitiesThreatsIncreasing demand for paint sundries due to a trend toward do-it-yourself painting by household consumers.The architectural coatings segment faced competition from alternative materials.Excellent customer relationship, the sales representatives were well liked, helpful, professional and knowledgeable about paint.The purchase of small companies by larger firms to boost their specific market or geographic presence.Readily available technology and difference in paint formulations associated with regional climatic needs.Compliance with EPA regulation eroded historically low profit margins in the paint industry.