Janmar Coatings, Inc

JANMAR COATINGS, INC.

A Case Study Analysis

I) Statement of Problem

Janmar Coatings, Inc. carry on business in paint industry in U.S. Firstly, I will discuss paint industry in U.S., secondly and more importantly in the following sections I will review the problem which company faced with, in scrupulous attention to detail.

A) The U.S. Paint Industry

The U.S. paint industry is divided into three different segments;

a) Architectural Coatings; these items are designed for general purpose paints, vanishes, and lacquers which used on residential, commercial, and institutional structures. These items sold thoroughly wholesalers and retail stores.

b) Original Equipment Manufacturing (OEM) Coatings; these items designed for durable goods in using industrial purposes such as automobiles, transportation equipment, industrial machinery and furniture etc.

c) Special – Purpose Coatings; these items are designed for special purposes as in extreme conditions, exposure to chemicals, or corrosive conditions for automotive and machinery finishing, industrial construction etc.

The industry considered as a mature industry and in the year of 2004, sales were estimated to be marginally over $16 billion and sales growth was projected between the 1% to 2% increases yearly.

B) Architectural Coatings Segment and Purchase Behavior in the Market

Industry sources estimated that U.S. sales in architectural coatings and sundries to be $12 billion in 2004 which its share on the whole paint industry nearly 75% in dollar sales. The architectural coatings also accepted as a mature market, one of the main characteristic of the segment is slow change in growth rate. Competition within this segment has been as a result of slow sales growth and new government regulations on manufacturing process. In this segment, demand level has been reflected by the level of home improvements and redecorating, sales in new houses, adding to this commercial and industrial...