Janmar Case Summary

Janmar needs to focus all their current energies on the DIY consumers and professional painters. Hiring a new sales representative would be the smartest decision right now because they will know every detail of the products and have the ability to market that properly to each of those consumer segments.However, I have also considered the Vice President of Advertising’s suggestion that they should increase advertising expense by $350,000. While initially, increasing advertising expenses sounds like a good thing to do, this decision would almost double the current advertising expenditure. Janmar is spending around 3% of revene on advertising and sales promotions efforts; which comes out to nearly $360,000. And while it may By increasing advertising expenses by $350,000, an additional $1,000,000 in sales will need to be recovered to make up for this expenditure. Mr. Burns makes a valid point by saying that 75% of the audience advertised too is not buying paint. With 25% of your audience only looking to buy paint, it would not be worth the risk of not increasing sales by $1,000,000, to implement the extra advertising expense.Also, I considered the Vice President of Operations proposal for a 20% price cut on all Janmar Coatings, Inc products. Price cuts are always something that needs to be entered into with extreme caution. Even the slightest 1-2% drop in price

The biggest challenge that they face as a company is they do not have the room the increase expenditure by such a vast amount. Currently there is $3,675,000 in promotional dollars allocated as follows; sales and administration expense (995,000), cooperative advertising programs with retailers (1,650,000), consumer advertising (562,000) and trade promotion (467,000). adding the $225,000 increase in consumer advertising will not allow the 5% of expected sales for total promo expenditures. John Bott, the vice president of sales disagreed with the budget allocation and noted that sales expenses and administration cost were projected to be $65,000 in 2008. This led him to believe that an additional sales representative would be needed to service company accounts because 50 were being added. Therefore he estimated this addition would cost at least $70,000 including salary and expenses in 2008. Bott also stated that “That's about $135,000 in additional sales expense that have to be added to our promotional budget for 2008”

All segments are critical for the implementation of our company’s strategy because we chose to be broad cost leaders. Cost leaders maintain a presence in all market segments by focusing on low production costs and competitive pricing. With that in mind, one segment is considered to be slightly more important than the others: the low end segment. We will compete in every market segment, but this is one of the most important due to the fact that price is the main consideration of the buying criteria at 53% importance. Our costs will be much lower than our competitors which translates into a lower market price for this product, which is ideal for our customers.

2) Company spends 3 percent of net sales on advertising and sales promotion efforts. 55 percent of advertising and sales promotion dollars are allocated to cooperative advertising programs with retail accounts. Janmar pays for a portion of an account’s media costs based on the dollar amount of paint purchased from Janmar. Remainder of advertising and sales promotion budget is spent on in-store displays, corporate brand advertising, outdoor signs, regional magazines, premiums and advertising production costs.

Candidate Janssen was missing multiple vital parts of his operations order, to including a complete mission statement, EPW Plan, and a complete command paragraph. Candidate Janssen took input from his peers in order to improve his plan. SNM lead by example and placed himself at the point of friction. When a board entered the water, Candidate Janssen took himself out of the fight for 60 seconds to retrieve the board. He should have used another member of his team, as it caused the fire team to wait for his return rather than continuing to solve the problem. During points of friction Candidate Janssen remained calm and collective which built confidence in his fire team. Candidate Janssen did an outstanding job checking on security, while

I would put Porsche Winter Equipment sale promotion advertisement on three different newspapers for a 12-week campaign so that to make more people watching Porsche advertisement every week. Then, 24,000 direct mails will be sent to the current Porsche owners. As drivers usually have a habit of listening to the radio, I plan to choose 14 rotators to play Porsche’s advertisement. Because the mid-high income people are the Porsche’s target users, who would have the habit of reading magazines, such as luxury car, real estate, tourism, the economist and business management, I decide to put Porsche’s advertisement on five different magazines. In addition, outdoor wallboard and online advertisement would be effective to attract more potential buyer. Therefore, the total advertisement fee is $379,940; and I think this marketing plan and strategy is acceptable and reasonable.

Beside suggestions stated by the senior executives and the president of Janmar Coatings, Inc., there are three ways to deploy Janmar products (Paints and sun-dries). First, since 60% ($80 million) of Janmar’s architectural coatings products were sold in DFW area, the company should distribute more of its products to that area in order to maximize sales. Regarding the non-DFW area, the majority (90%) of that area deals with “do-it-yourself” method to paint their houses or rooms, and usually the decision effected by the price of the product. Therefore, Janmar has two options for the non-DFW area, either to cut the prices of their products, or to develop a new lower quality category that has the same brand name but cheaper than the premium category. The competition in Architectural coating segment are increasing. Companies seeking growth and a higher sales base to support increasing costs are making acquisition. Major products of paint for the architectural coatings segment include Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow group and Pratt & Lambert. These producers account upward for 60% of

When looking at the paint coating industry you will find that is separated into three different segments, architectural, original equipment manufacturing coatings and special purpose coatings. The segment, which we will focus on, is architectural coatings, which are basically the paints, varnishes, and lacquers you see in your home or any commercial buildings. Usually architectural coatings or shelf goods are purchased by do-it-yourselfers. It has been estimated to account for 43 percent of industry market. Nearly 50% of architectural coatings are sold through brands such as Sears, Lowe’s, Wal-Mart, Home Depot and hardware stores such as True Value and Ace hardware. Despite heavy competition from these mass specialty paint stores, lumberyards, and hardware outlets have also been able to compete in the paint business Specialty paint stores represent 36 percent of paint and sundry sales and hardware stores and lumberyards represent 14 percent.

Sherwin-Williams’ Paint Stores Group, renamed The America’s Group in 2014, is the most profitable division within the organization, contributing 61.6% of the company’s total annual sales for 2014. The bulk of the sales emerge from the sale of paints and accessories in its 4,000+ paint stores to architectural and industrial painting contractors. The most profitable market for the Sherwin-Williams organization, the paint stores sell primarily to industrial end-users, who benefit from the knowledgeable sales force at each Sherwin-Williams paint

I believe the issue Barry and Gen Tech is facing regarding their current price structure is a complex one. Before changing any prices extensive reach needs to be done to further understanding the issue and how the current price was developed. The part of my research I would conduct first would be understanding how we got this price. in able to do this we will need to look at couple key factors and pricing. The first would be the cost to serve. "The cost-to-serve (CSM) method (Braithwaite and Samakh 1998) has proved to be a viable approach to capturing external supply chain logistics costs and the action research (AR) framework has demonstrated how activities and their linkages can be better understood (Ross, Jayaraman, Robinson, 2007)." This is understanding all the cost that are taking into to account to get the product in the customer hands. Under this umbrella would be Gen Tech supply chain. would have to calculate how much does it cost to produce each unit. How much is packaging and how much is freight. One of the most important data that will be needed to make a strategic decision would be the cost to serve. This is the most import factor for a couple of reasons. Out of all areas this is area where companies normal find areas where they can cut cost and in the long run save money for the customer. Also this figure will help Barry understand the how they set their original price for the Asian market. Cost to serve is all

This paper is written from the vantage point of an automotive exterior component engineer who has been involved with vehicle body design and manufacturing of polymers and painted plastics. My experience in large scale injection molding, e-stat painting, and fabrication processes, as well as the business of the automotive industry, has motivated me to research the history of the automotive body design and its future. I have sought to investigate the events that produced unique vehicle designs and the trends of what the future may produce.

In the beginning of our operations, we only had one employee, as we operated out of my basement for the first year. Within the next couple of years, we had to make the addition of phone sales representatives to accommodate our growing customer base. By 2003, we reached 10 full-time employees and 2 part-time employees who helped run our day to day operations. In order to increase our sales even further, we hired a marketing manager to help obtain more customers for our products through tactical advertisement. We were growing at a stable rate and continued to generate good streams of revenue, which led to the increase in our

A strong ad campaign coupled with media initiatives can potentially increase sales and revenue. The publicity received from a public offering encourages new business development

Assessing the pre-existing organization – Describe the strengths and weakness of the C&B Brokerage division prior to the two changes explained in the case. • The interactions of the New York Office with the regional sales teams • Whether there are misalignments in incentives between these functions. – Salespeople aim to maximize dollar value of sales (hence commission) while product managers aim to maximize profit of sales (overall firm objective as well). – How important is the regional sales manager to the success of the regional office?

A price hike seemed like a necessity to restore the margins; a hike in the price had the potential to increase the margin by 50% and to restore the previous level of 15%. But the previous experience of price hike had already given a bad experience to Parle. The problem with Parle is its VFM image, companies build brand equity in order to deflect the focus of customers from the price. They don’t mind loosening their wallets for a brand which delivers a value on a dimension perceived by them. Parley needs to come out of its perilous VFM image and secondly the dependence on a single brand and a single SKU. Parley G contributes 68% of the annual sales revenue of Parley and the INR 4.00 SKU was contributing to 50 % of Parley G’s annual sales revenue.