Janmar Coatings Inc Name: Chengyan Zeng Course: MKTG 6641 1.How might the architectural paint coatings industry be characterized? The architectural paint coatings industry is generally considered to be a maturing industry, with the sales in 2004 were estimated to be slightly over $16 billion. And its average annual dollar growth was forecasted to approximate the general rate of inflation through 2005. The architectural paint coatings industry can be characterized as a mature industry, with annual growth in sales ranging from 1% to 2% per year.The industry is divided into three broad segments: 1) Architectural coatings representing for 43% total sales in the industry. 2) Original equipment manufacturing(OEM) coating, representing for 35% total sales and 3) special-purposecoating, representing for 22% total sales. The breakdown of sales in this industry comes from 3 groups. 50% of sales are to “Do it Yourselfer” painters, 25% of sales are to professional painters, and the remaining 25% of sales come from Government, Export and Contractor sales. In the architectural paint coatings industry, 60% of sales come from interior paints, 38% from exterior paint, and the remaining 2% from lacquers and all other applications.Speaking with competitive structure, there are currently 600 companies in the industry, with presently declining at a rate of 2 to 3 percent per year. Major producers of paint for the architectural coating segment include Sherwin- Willams, Benjamin More, the Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert. And they account for upwardof 60% of sales in the segment. Also, 50% of architectural coatings are sold under private, controlled or store brands, major marketers are Sears, Lowe’s, Walmart, and Home Depot. Home centers and mass merchandise are frequently patronized by do-it-yourself painters. Moreover, Specialty paint store accounts for about 36% of total sales in the industry,and lumberyards and independent hardware stores account for 14%. And they are mostly patronized by professional painters. Research indicates thatthere is a specific buying pattern for the DIY segment. They focus on finding a
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