Palladium Door Essay

1714 Words7 Pages
Recommendation: It would be in the best interest of Palladium Door, Inc. to develop a formal exclusive program and start exclusive contracts with willing dealers. Problem Statement: Should Palladium Door, Inc, a privately owned regional manufacturer of residential and commercial garage doors, develop a formal exclusive franchise program to help solve the distribution strategy issue? Facts: Market * Residential garage door name awareness is very low * Steel garage doors account for 90% of industry sales * Residential garage door industry expected to post sales of $2 billion in 2003 * Projected 2004 sales of residential garage doors to the home remodeling market were up 2.4% to $2.05 billion * Demand for replacement garage doors is up with many customers replacing old wooden garage doors with new steel garage doors * Independent retailers had sales of $348.5 million in 2003 Palladium Door Inc. * Privately owned garage door manufacturer. * In 2003, sales were $9.2 million * In 2003, they had a net income of $460,000. * Manufactures insulated and non-insulated steel doors. * 70% of sales comes from exclusive dealers * Therefore 30% of sales came from non-exclusive dealers Competition * Competitors include Clopay Corporation, Overhead Door Corporation, Wayne-Dalton Corporation, Amarr Garage Doors, and Roynor Garage Doors. * Home Depot, Menards, and Lowe’s Companies sell competitor brands in their stores * Palladium Door, Inc. is one of the smaller regional garage door manufacturers in the industry Assumptions: 1. Sales for Palladium will increase by 36% in 2004 2. Total sales for Palladium will equal $12.5 million in 2004 3. Industry-wide, residential garage doors sold to the home remodeling market will equal $2.05 billion in 2004 Analysis: Palladium Door, Inc.
Open Document