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Janmar Case

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CASE NO. 2
Janmar Coatings, INC

Define the Problem Janmar Coatings, Inc is a seller and manufacturer of architectural paint. While the company is small compared to nationally known brands, the service area reach is big with over 50 counties in Oklahoma, Texas, New Mexico and Louisiana. Janmar Coatings, Inc headquarters are in Dallas, Texas where even with mass merchandisers holding 50% of the market, are still able to maintain a competitive advantage. Janmar Coatings, Inc is also a seller of OEM, original equipment manufacturing coatings. The problem Janmar Coatings, Inc is facing today is determining where and how to focus marketing efforts in the architectural coatings markets. Currently Janmar Coatings, Inc is the highest price product in the architectural coatings market and could be looking to expand their efforts in order to keep their contribution margin high and better position themselves to consumers. Especially with the do-it-yourself market only buying paint in certain seasons, price sensitivity could be a major factor in their decision making it hard for Janmar to steadily compete.
Alternatives
During a meeting with the VP’s of Janmar Coatings, Inc each participant had a different opinion on how this particular strategy should be met. Alternatives ranged from maintaining the status quo to drastically cutting prices.
First Alternative From the Advertising VP an increase in the advertising budget of $350,000 could bring a higher awareness to consumers in the do-it-yourself market in the DFW service area. With a study showing that consumer’s buy based on awareness in product and retailers, the move could contribute to 30% of higher awareness.
Second Alternative From the Operations VP, a price cut of 20% across all areas could increase market share by giving focus to do-it-yourself consumers in general and allow Janmar Coatings, Inc to

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