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Jamar

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Submitted By 24juice
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I. Market/Situation Analysis
a. Janmar Coating, Inc. produces and markets a full line of architectural paint and sundries (brushes, rollers, paint removers, and thinners) under the Janmar brand name.
b. Market Condition - In 2004 Industry sources estimated that the market for architectural coating had matured and had projected long term sales growth not to surpass 2 percent per year.
c. Competitors - Janmar competitors account for 60 percent of sales in architectural coating, which included subdivisions of Sherwin-Williams, Benjamin Moore, Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert. Architectural coating also faces competition from alternative material like aluminum, vinyl siding, and wood panels. With the increase cost of research and development (R&D) and slow sales growth companies within the paint industry are making mergers and acquisitions to support increasing cost.
d. Government - Facing pressure to reduce emission of volatile organic compounds (VOC’s), paint manufactures have to limit the consumption of solvents. The Environmental Projection Agency (EPA) adopted a three-step plan for the reduction of VOCs in architectural coating. Phase one is to reduce 25 percent of VOC’s from base year of 1990, phase two 35 percent in 2000, and finally in phase three, 45 percent by 2003.

II. Key Problem
a. Key Issue - Janmar’s Executive Board is having a difficult time deciding how and where to implement a new marketing effort among the numerous architectural paint markets in the company’s southwestern service area. Currently, Janmar is marketing to 50 counties in Texas, Oklahoma, New Mexico, and Louisiana, and their main focus has been the 11 counties in the Dallas/Fort Worth (DFW) metropolitan area.
III. Analysis of Options/Alternative Strategies
a. Current Approach - Over the past decade

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