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JANMAR COATINGS, INC.A Case Study Analysis
I)Statement of ProblemJanmar Coatings, Inc. carry on business in paint industry in U.S. Firstly, I will discuss paintindustry in U.S., secondly and more importantly in the following sections I will review theproblem which company faced with, in scrupulous attention to detail.A)The U.S. Paint IndustryThe U.S. paint industry is divided into three different segments;a) Architectural Coatings;these items are designed for general purpose paints, vanishes,and lacquers which used on residential, commercial, and institutional structures. These itemssold thoroughly wholesalers and retail stores.b) Original Equipment Manufacturing (OEM) Coatings;these items designed for durablegoods in using industrial purposes such as automobiles, transportation equipment, industrialmachinery and furniture etc.c)Special – Purpose Coatings;these items are designed for special purposes as in extremeconditions, exposure to chemicals, or corrosive conditions for automotive and machineryfinishing, industrial construction etc.The industry considered as a mature industry and in the year of 2004, sales were estimated tobe marginally over $16 billion and sales growth was projected between the 1% to 2%increases yearly.B)Architectural Coatings Segment and Purchase Behavior in the MarketIndustry sources estimated that U.S. sales in architectural coatings and sundries to be $12billion in 2004 which its share on the whole paint industry nearly 75% in dollar sales. Thearchitectural coatings also accepted as a mature market, one of the main characteristic of thesegment is slow change in growth rate. Competition within this segment has been as a resultof slow sales growth and new government regulations on manufacturing process. In thissegment, demand level has been reflected by the level of home improvements andredecorating, sales in new houses, adding to this commercial and industrial construction.2/8
C)Janmar Coatings, Inc. and their ProblemJanmar Coatings, Inc. located it’s headquarter in Dallas, Texas is a private company thatmarkets its architectural paint coatings and sundry items in over 50 counties in thesouthwestern U.S. The company has operated in Janmar brand name and have operations indifferent states such as; Texas, Oklahoma, New Mexico, and Louisiana. The companydesigned its marketing strategy in two different region which are Dallas – Fort WorthMetropolitan Area (DFW) and the non-DFW Area. The 11 county which located in the DFWarea is the leading and most important area for the company.