Janmar Coating is a paint manufacturer with headquarters in Dallas, Texas. They serve Texas, Oklahoma, New Mexico, and Louisiana. Their main segments are architectural, OEM, and special-purpose coatings. Architectural coatings make up 43% of their sales. Janmar uses a distribution network of 200 independent paint stores, lumberyards, and hardware outlets, with 40% located in the Dallas-Fort Worth area. They have 8 sales representatives. The presentation discusses Janmar's market share and opportunities to expand in different regions through targeted advertising or adding another sales representative. Various executives provide alternatives for how to improve marketing strategies.

1. Janmar coating, incPresident Ronald Burns
Presented by
EEMAN BALOCH
IKRAM ULLAH KAKAR
SAMAN SAED
TOOBA

2. Janmar coating Paint Industry
Segment Architectural
Coatings
Original Equipment
Manufacturing Coatings
Special-Purpose
Coatings
% of total
industry
dollar
sales
43% 35% 22%
 Architectural Coatings
 General purpose paints and varnishes used on residential
and commercial structures
 OEM Coatings
 Used for durable goods such as automobiles, appliances,
and industrial machinery
 Special-Purpose Coatings
 Used for special applications such as bridges, marine
applications, and highway and traffic markings
 Three Segments of Industry:

3. Customers of Architectural Coatings
50%
25%
25%
0%
Sales
Do-It-Yourselfers
Professional Painters
Government, Export, and Contractor
Sales
Substitutes:
Big Box Retailers, Paint Stores and Lumberyards,
Hardware Stores
Janmar is priced at a premium level compared to
competitors
Market Size:
$16 Billion annual Sales
1-2% Annual Growth

4. •Industry Analysis
• Industry is considered to be established, with growth projected to
match inflation
• Barriers to Entry/Continued Success
•
• High level of competition due to low-cost alternative national
retailers
• Frequent R&D(research and development) Expenditures
• Competition from Alternative siding materials (aluminum & vinyl)
• Increase in higher quality products that reduced number of coats and
application time.
•

5. • Attractiveness/Un-Attractiveness:
• Increased Government and Environmental Regulations
• Slow sales growth
• Increasing number of Do-It-Yourselfers that would purchase
both paint and sundries.
•
• Competitors/Advantages:
• National Retailers: Low Prices, National Reach
• Lumberyards/Specialty Stores/Independent Hardware Stores:
Access to non-metropolitan markets, Customer Service
•

6. About Janmar coating
• Headquarters: Dallas,Texas
• Service Area:
1. Texas, Oklahoma, New Mexico,
and Louisiana.
2. Dallas-Fort worth (DFW) area
• Competition:
• 600 paint companies in the US
• 2004:
• $16 billion net sales of Janmar
coating architectural paint and allied
products

7. Janmar coating
marketing strategies
•Distribution:
• 200 independent paint stores, lumberyards, and hardware outlets.
• 40% outlets are located in 11 country DFW area and other 60% are located in the 39
countries service area.
distribution is the key success factor in this industry which is architectural paint and
sundry
Promotion:
 8 sales representatives Salary: $60,000
1% commission on sales
 3% of net sales
advertising & sales promotion efforts

8. What do you think Janmar
coatings problem is?

9. Where and how does Janmar coating Company deploy corporate marketing
efforts among the various architectural paint coatings markets in their
service area
• Should they target: Professionals or Do-it-yourselfers?
• Where should they target: Dallas FortWorth or surrounding areas?
• How are they going to accomplish this?
Problem
· What tactical plan should be implemented?

10. Internal Strengths
• Large number of stores (40%) in the DFW area
• Strong relationships between sales
representatives and retail stores
• High quality
• Sell to both professionals and DIYers
• Cooperative advertising with retailers
• Motivated, determined and passionate
• Knowledgeable and friendly sales reps

11.  Only 3% of sales goes to advertising
 Ads only reach and influence 25% of target
 Low brand awareness
 Only 8 sales representatives
 Low rate opening accounts (5 in 5 years
 Narrow market penetration with sales reps
 No exclusive rights with retailers
 Highest price in market
Internal Weaknesses

12. External Opportunities
• Market Growth: 1-2% per year
• Distributed to 200 of the 1,000 retail outlets in the area
• 40% of these retailers are in rural areas
• DIY painters first choose a retail outlet for paint and sundries then choose a
paint brand.
• Pro-painters are frequent buyers and look for paint that is high quality, durable
and easy to clean up
• The average dollar paint purchase per purchase occasion: $74.00. Average of
$12.00 on sundry
Market Growth
2000 2001 2002 2003
$75.7 $76.4 $77.6 $78.4

13.  600 different competitors
 Competition is spending more on advertising
 Competition is less expensive
 Major in-house retailers have little knowledge
 Contractors want paint for the lowest price.
 Demand effected by substitutes, long lasting products and
VOC regulations
 Increased Government and Environmental regulations
ExternalThreats

14. Total Market
$80 Million
Net Sales
2004
Profession
al
DIY
Urban
$48,000,0
00
60%
$14,400,00
0
30%
$33,600,00
0
70%
Rural
$32,000,00
0
40%
$3,200,000
10%
$28,800,00
0
90%
$14,400,0
00
$33,600,0
00$3,200,00
0
$28,800,
000
Chart Title
Urban Professional Urban DIY
Rural Professional Rural DIY

15. Janmar coating Market
$12 Million
Net Sales
Professional DIY
Urban
$7,200,000
60%
$5,040,000
70%
$2,160,000
30%
Rural
$4,800,000
40%
$1,440,000
30%
$3,360,000
70%
$5,040,00
0 , 42%
$2,160,00
0 , 18%
$1,440,00
0 , 12%
$3,360,00
0 , 28%
Janmar coating Market
Urban Professional Urban DIY
Rural Professional Rural DIY

16. Market Share
Profession
al
DIY
Urban 35% 6%
Rural 45% 12%
Urban
Professi
onal,
35%
Urban
DIY, 6%
Rural
Professi
onal,
45%
Rural
DIY, 12%
JANMAR MARKET
SHARE

17. year Total
Dollar
sale
DFW
area
sale
NON-
DFW
area
2000 $75.5 50.24 24.8
2001 76.5 50.8 25.6
2002 50.5 50.5 27.1
2003 50.7 50.7 27.7
2004 80.8 48.0 32.0
Industry sale volume
Industry five year average sale volume is 77.62%

18. What do you think Janmar
coatings distinctive
competencies are?

19. Distinctive Competency
• Quality
• Best on the Market
• Solid distribution network
• High quality product
• 1 Coat Coverage
• Pleasant Fragrance
• Good fit with professional
painters
• Service
• Sales Representatives
• Well Liked
• Helpful
• Professional
• Knowledgeable
• Discuss both Business & Family
• Run the Store
• Good fit with rural area

20. Market Positioning
Janmar has two distinct market segments:
 Dallas Fort Worth ~ 80 stores
 70% of Sales to Professional Painters
 Non-Dallas Fort Worth ~120 stores
 70% of Sales to Do-It-Yourselfers

21. Alternatives
of
media planning meeting
1. Increase advertising dollars by $350,000 and use it forTV ads
2. Have an overall 20% price cut
3. Add one more sales representative
4. Continue to guard margins and control costs
5. President Ronald Burns suggestions
1. Ad dollars used for print media instead ofTV
2. 40% price cut to attract contractors

22. Which Alternative Do
YouThink IsThe Best?

23. VP of Advertising
RON
• Direct efforts to Dallas FortWorth DIY market
• Increase awareness to 30 %
• Advertising Increase of $350,000
• Television Coverage in 15 Counties

24. % of DFW population
Brand awareness
mass marchandise
brand
national paint
brand
mass marchandise
brand
janmar brand
local paint brand
50%
45%
35%
25%
15%
Awareness question: what brand come to mind when you think of paint?
Last brand bought: what paint brand did you purchase last time you bought paints?

25. VP of Operation
• Advertising isn’t right
• Need to be competitive in DIY
• Consumers are Price Sensitive
• Cut Price by 20%

26. Vice President of Sales
• Putting our effort into non-DFW areas.
• As we know in non-DFW area is only 16%
• Target: Non-DFW areas
• Where ½ of the sales and most dealers exist right now
• Solution:Add another sales rep
• There are already 8
• This rep would develop new retail account leads and call on
professional painters to ask their business through our dealers
• Cost to add another dealer is $60,000 per year

27. Vice President of Finance
• Keep everything the same
• Continue to guard margins and control costs

28. Recommendation
• VP of Sales
• Extra Sales
Associate
• $60,000 annually
• Focus on Rural Pro

29. Why Rural Professional
• Distinctive Competency
• Good Service & High Quality
• Good Fit
• On a 1st name basis with store owners
• Control 45% of the market

30. Implementation
• Hire 1 additional Representative – NOW!
• SalesTraining
• Clarify Roles
• New focus: Rural Professional Painters
• Increase personal sales by 5%

31. Analysis
• Focus on Rural Professionals
• Additional Staff
• 57.5% Sales Increase
• Annual Savings of $969,730
• Almost $1million!!!
• Invest
• Growth?
An OfferYou Can’t Refuse!!!
40% price cut
Redirect Advertising
Newspaper & Catalogs
Focus on Rural

32. Conclusion
• AS the president Burns say all of you have valid arguments.Vp
of sale, finance, president of sale, advertising give their best
alternative. So for as our concerns we should suggested the
alternative strategy of VP of Sales and vp of advertisement.
• Control 45% of the market
Extra SalesAssociate
• $60,000 annually
• Focus on Rural Pro
Direct efforts to Dallas FortWorth DIY market
Increase awareness to 30 %
Advertising Increase of $350,000
Television Coverage in 15 Counties

33. Questions?
Comments? Concerns?