Key success factor getting and keeping widespread Competition at manufacturing

Key success factor getting and keeping widespread

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Key success factor: getting and keeping widespreadCompetition at manufacturing level:Competitive behavior change: paint companies sell to contractors serving the home construction industry, aggressively priced products to capture a higher % of home construction market. But they not pursue the DFW and professional outside DFW or DIY.Mass merchandisers control 50% of DIY market in DFW metropolitan. Price is low but quality is low.In 2004, product sold in Janmar’s 50-country service area is $80 million. DFW account for 60% of it. DIY account for 70% of non-contractor-related volume, but 90% in other areas.Janmar detailIn 2004, sales volume was $12 million, net profit was $1.14 million, average annual rate of 4% per year past decade. COGS 60% of net sales. Gallonage remain stable five years. The highest-priced paint in the service area now. Successful in maintain margins, but approaching the threshold on prices.Distributes products through 200 independent paint stores, lumberyards, hardware outlets. 40% located in the 11-country DFW area, remaining outlets are in the other 39 countries.In DFW outlets, decline in gallonage volume. In non-DFW outlets, grown in gallonage volume.
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  • Summer '14
  • AmitSaini
  • Marketing, Sales, DFW, janmar coatings, architectural coatings

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