estimated dollar quantity of architectural paint and associated products sold in Janmar’s 50- county service area in 2004 was $80 million. Here we can see that getting and keeping extensive distribution is a key success factor in paint coating business. Janmar Coatings, Inc. sells paint sundries under the Janmar their own brand name, even though these items are not manufactured by the company. They are successful in maintaining their margins, but they are accessing the threshold about their prices. They are now on the highest-priced paint in paint coating service area. However, except for 14 outlets in DFW, DFW retailers carry two or three lines with Janmar’s line being premium priced. The effect of multiple lines has been to cause a decline in gallonage volume. However, the non-DFW outlets have grown in gallonage volume. Janmar have eight sales representatives who monitor inventories of Janmar paint and sundry items in each retail outlet especially for order taking, assisting in store display, and coordinating cooperative advertising programs. The company spends approximately 3 percent of net sales on advertising and sales promotion efforts. Also, the cooperative program where Janmar pays a portion of an account’s media costs. Key Problem By the way, key problem of Janmar Coating Inc. is able to stated like this. Senior management executives of Janmar Coatings, Inc. assembled again to consider the matter of where and how to organize business marketing efforts among a variety of architectural paint coatings markets served by the company. It was absolutely necessary to resolve this matter at the meeting in order for the premeditated plan to be developed by the meeting. Each vice president of each department of Janmar Coatings, Inc. insisted certain different one based on their profits from that in every meeting.
Analysis of Options/Alternative Strategies We can see the five different opinions (options) about arranging corporate marketing efforts among the various architectural paint coatings markets served by the company. First, Vice president of advertising said that the brand name is important to consumers in the aspect that that they have seen advertised when choosing a brand, so an awareness level of at least 30 percent among do-it-yourselfers to significantly affect the sales. Awareness is related to paint purchase behavior, so a large number of do-it-yourselfers choose a store before selecting a brand. This becomes very important information in those stores carrying
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