MEMORANDUMFrom: 253478To: Steven ClintonDate: October 12, 2017Re:Janmar Coatings, Inc.Recommendation: I recommend that Janmar Coatings Inc. adds a new sales representative to the Dallas-Fort Worth, Professional Painter segment.Problem Statement: What corporate marketing efforts should Janmar Coatings, Inc. deploy for the architectural paint coatings markets? Also, should they introduce these efforts only in the Dallas-Fort Worth Area, non-Dallas-Fort Worth areas, or both?Facts: Competitive Situation: Competitive brands include Sherwin-Williams, PPG, Valspar Corp., Benjamin Moore, the Glidden unit of Imperial Chemicals, Grow Group, and Pratt & Lambert. Altogether these companies account for 60% of sales in the architectural coatings market. Material competition for architectural coatings include aluminum, vinyl sliding, interior wall coverings, and wood paneling. Slow sales growth, ongoing research and development, and compliance with government regulations fueled merger and acquisition activities for many companies. There are currently 600companies, which is 40% less than in 1990. The number of outlets available are declining at 2-3% per year. Market Conditions: The U.S. paint coatings industry is mature, however sales were over $16 billion in 2004. 50% of architectural coatings sales come from do-it-yourself painters, 25% of sales are from professional painters, while the remainder of sales are from government, export, and contractor sales. 60% of architectural coating sales are for interior paints, while 38% are for exterior paints. The 11-county Dall-Fort Worth Metropolitan area is the major business and financial center where competition has increased in recent years. Competitors such as Sears, Kmart, Sherwin-Williams, and Home Depot have outlets in the DFW area. 450 out of 1,000 outlets are in this area. Mass merchandisers control 50% of the do-it-yourselfers market in DFW.
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