Jan Mar

Janmar Coatings, Inc. Group Assignment

Problem Identification

Senior management executives of Janmar Coatings, Inc. assembled to consider the matter of where and how to organize business marketing efforts among a variety of architectural paint coatings markets served by the company. Upon reviewing the information received from Management, Janmar’s main dilemma is deciding where and how to direct corporate marketing efforts for architectural paint coatings in the Southwestern region of The United States.

Industry Analysis

The architectural coatings industry is a mature market that estimates to be around $12 billion with an annual growth percentage of 1-2%, accounting for nearly 43% of total industry sales. Research shows that 50% of architectural sales are contributed from the Do-It-Yourself (DIY) painters, an individualized market. The remaining percentage stems from the U.S. government, exports, and contractor sales. In addition, there are three main types of distributors: mass merchandisers and home improvement centers holding 50%, special paint stores at 36%, and hardware stores and lumberyards with the remaining 14% (Kerin/Peterson, p 106).

The necessity for ongoing research, slow sales growth, and recent compliance with government regulations has caused mergers and acquisition activity within the U.S. paint industry. Companies seeking growth and higher sales sought after acquisitions, whereas companies unwilling or incapable of making capital and research and development commitments considered necessary to remain competitive sold their businesses. It was estimated that the number of paint companies is currently 600, about 40% fewer than reported in 1980. Paint company numbers are declining at a rate of 2-3% per year. However, Janmar Coating, Inc. has adapted to the issues and has competed successfully against the other paint manufacturers nationally (Kerin/Peterson, p106).

Market Analysis

Janmar Coatings, Inc. markets to over 50 counties in...