Janmar Case Study

923 Words4 Pages
Andrew Perry Dr. Ricketts MRKT 4330 Spring 2015 Janmar Coatings Out of all the industries in the U.S., the paint coatings industry is considered to be one with growth at a level that keeps up with rising inflation. It is a $16 billion dollar industry with one to two percent annual growth that is divided into three segments: architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose coatings. Architectural coatings account for 43% of the total industry dollar sales, and is estimated to be valued at more than $12 billion dollars for U.S. sales. About 50% of architectural coatings’ sales are brought in by DIY painters’ purchases. Professional painters’ purchases are accounted for about 25% of the dollar sales. The rest is from government, export, and contractor sales. The three main types of distributors are mass merchandisers and home improvement centers. (50%), special paint stores (36%), and hardware stores and lumberyards (14%). I. Market/Situation Analysis Janmar Coatings, Inc. is a company that sells architectural paint coatings and sundries (brushes, rollers, paint removers). They market to over 50 counties Dallas, Texas. The major service area is in the 11 county Dallas-Fort Worth (DFW) metropolitan area. The sales volume grew to $80 million in 2004 and DFW made up about 60% ($48 million) of those sales, which the non-DFW areas made up the remainder $32 million. Janmar Coatings has two market segments, Dallas Fort Worth and Non-Dallas Fort Worth. DFW has 80 of the stores and Non-DFW 120 of the stores. To break it down more, the other two segments within those two areas are do-it-yourselfers and professional painters. 70% of sales of professional contractors are in DFW area and 70% of sales of do-it-yourselfers are in non DFW area. Each area accounts for 50% of the sales. Janmar Coatings, Inc. is strong with their

More about Janmar Case Study

Open Document