DIY customers represent a higher percentage of sales than professionals in both areas. 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.
There Janmar coatings case a way to introduce a plan that will generate sales to compensate for the expenditure.
Although the VP of Finance has valid points, there is Janmar coatings case something that needs to be done, or else 22 meetings would not have been necessary. The problem facing Janmar Coatings, Inc.
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, it would not be a smart decision to move forward in making that a reality. The focus for this new representative would be to focus on developing retail account leads and calling on professional painters to gain new business through dealers.
Janmar Coatings Janmar coatings case currently marketing to 50 counties, their main focus area so far has been the 11 counties in the Dallas-Fort Worth area. While initially, increasing advertising expenses sounds like a good thing to do, this decision would almost double the current advertising expenditure.
The VP of Sales proposed hiring a new field representative to help generate new accounts. 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. Increase Advertising Spending emphasis on television: However, if this sales representative position is correctly used, they will be able to make this margin back rapidly.
The VP of Advertising has proposed to increase corporate advertising with an large emphasis on television. He has gathered an approach from each of his team members, including: Janmar needs to focus all their current energies on the DIY consumers and professional painters.
And their variable cost will not be effected by this price cut to their cost of goods sold will be held constant.
Hiring a new sales representative would be the smartest decision right now because they will know every detail of the products and have the ability to market that properly to each of those consumer segments.
Based on his suggestion, I believe it would be a smart time to hire a new sales representative for Janmar. If Janmar just stays where they are, they could ose market share as well.
Price cuts are always something that needs to be entered into with extreme caution. How to Write a Summary of an Article? 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. The main issue Ronald Burns, the president of Janmar Coatings, is having is trying to come up with a solution to market his company in the most cost effective way during Now, the Vice President of Finance suggested pursuing the current approach.
After 2 long meetings with his executive team he still has no clear direction. Lastly, to do a more in depth review the Vice President of Sales suggestion to bring on a new field representative to the sales force.
His idea is that Janmar Coatings has always, and will continue, to be successful. In this case, simply adding a new sales representative seems to be the best, lowest risk, most probable solution in this case.JanMar Case Study Case Analysis United States Paint Industry The US paint industry is divided into three broad segments: architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose lacquers.
The paint industry is a maturing industry. 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.
The main issue Ronald Burns, the president of Janmar Coatings, is having is trying to come up with a solution to market his company in. Janmar Coatings, lnc. In early January 2OO5, Ronald Burns, president of Janmar Coatings, Inc., slumped back in his chair as his senior management executives filed out of the conference room%(3).
JANMAR COATINGS INC. CASE ANALYSIS 1 BACKGROUND Janmar Coatings Inc. The retail market that sells predominantly to do-it-yourselfers has increased vastly 5/5(1).
Janmar Coatings Words | 7 Pages. JanMar Case Study Case Analysis United States Paint Industry The US paint industry is divided into three broad segments: architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose lacquers.
The paint industry is a maturing industry. View Homework Help - Janmar Coatings Inc. Case Study MKT from MKT at College of Staten Island, CUNY. 2. Cons - sales representatives come at a cost oF $60, a year as well as commissions%(12).Download