Burns discussed the DFW outlets and the effect of multiple lines has been to cause a decline in gallonage volume. Ultimately, the company should do what ever will increase the most profits for Janmar. We think there is a disparity between what Janmar wants to do and what they can do.
Research shows that there is typically a 4-step process in the consumer purchasing behavior. It is also found in the improved quality of paints in recent years, making necessary painting less frequent.
When a consumer sees two competing adds right next to each other, most of the time they will go with the cheaper product.
The price reduction will allow Janmar to gain more customers that were originally purchasing their competitors products, whereas adding a new sales person outside of the DFW area Janmar essay expand sales into a new territory an increase profits.
This would be a benefit for Janmar because it will reach a market outside of the core DFW region. JanMar covers the architectural coatings division. DIY customers represent a higher percentage of sales than professionals in both areas. If Janmar just stays where they are, they could ose market share as well.
The purchaser will then choose a retail outlet, lastly deciding on a product. With the addition of a sales representative, though, this sales rep could be focused on the non-DFW area and create account leads with more professional painters.
Those three parts include architectural coatings, original equipment manufacturing coatings, and special-purpose coatings. Janmar employs 8 sales representatives, all of which are responsible for monitoring inventories in each retail outlet, as well as for order taking, assisting in store display, and coordinating cooperating advertising programs.
Because by concentrating on only developing new retail accounts in the non-DFW area, the company could generate lots of sales to a brand new buyer market. The problem facing Janmar Coatings, Inc. Yes there is a great contribution now, but if things stayed the same, other companies may become more popular and generate more sales than we do and push us out.
In this case, simply adding a new sales representative seems to be the best, lowest risk, most probable solution in this case. The VP of Advertising has proposed to increase corporate advertising with an large emphasis on television. Products in this division include general-purpose paints, and varnishes used in commercial and residential settings.
The first step requires the purchaser to decide on a project or product. Paint gallonage, however, had remained stable over the past 5 years.
While initially, a price cut may seem very appealing to the consumers, the overall toll it will take on the contribution margin and sales dollars generated by Janmar, Janmar essay would not be a smart decision to move forward in making that a reality. The VP of Sales proposed hiring a new field representative to help generate new accounts.
Janmar Coatings is currently marketing to 50 counties, their main focus area so far has been the 11 counties in the Dallas-Fort Worth area. Although the VP of Finance has valid points, there is obviously something that needs to be done, or else 22 meetings would not have been necessary.
Based on his suggestion, I believe it would be a smart time to hire a new sales representative for Janmar. Janmar needs to focus all their current energies on the DIY consumers and professional painters.Read this essay on Janmar.
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Only at mi-centre.com". Janmar Coatings Words | 10 Pages. Janmar Coatings, Inc. I.
Summary of Facts A) Market – Paint coatings industry 1) Three broad segments a) Architectural coatings: general-purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures.
The current problem that is facing Janmar Coatings is how to cost effectively market the products and what area is the best place to market. Companies rely on the leadership to help make decisions regarding the market and after two senior executive meetings, there is.
Janmar Coatings Essay Sample. Janmar Coatings, Inc., based in Dallas, Texas, is a privately held corporation that markets its architectural paint coatings and sundries (brushes, rollers, paint removers) in over 50 counties in. Janmar Coating INC is currently facing a problem of where and how to enact corporate marketing efforts among various paint coatings market.
Several top executives cannot come to an agreement on if they should expand to non-Dallas Fort Worth (DFW) areas or construct additives to the current budget for advertising, hiring a salaried employee, or. Janmar Coating case study Essay Case Summary This case is about an organization doing business on paint coatings market served .Download